14 important things you should know about American Funds BFIAX mutual fund

Updated: June 28, 2020
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Before we start: if you’re looking for BFIAX “stock” price, you can quickly find it out by visiting Finny and typing "BFIAX quote". If you’re looking for a quick scoop on BFIAX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "BFIAX". You’ll get all this info in one place.

Are you looking to buy or sell BFIAX? Or perhaps you’re looking for BFIAX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this BFIAX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: BFIAX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: BFIAX buy or sell; the pros and cons of investing in BFIAX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to BFIAX.

And here is the list of questions we’ll answer:

  1. Describe American Funds Inflation Linked Bond Fund; Class A Shares (BFIAX).
  2. What are BFIAX holdings?
  3. What is BFIAX performance? What are BFIAX historical returns?
  4. How many up and down years did BFIAX have historically?
  5. What is BFIAX dividend yield?
  6. What is BFIAX minimum initial investment amount?
  7. What is BFIAX expense ratio?
  8. Does BFIAX have any sales loads or 12b-1 distribution expenses?
  9. What is BFIAX tax efficiency (tax-cost ratio)?
  10. What is BFIAX beta? How would you assess BFIAX risk?
  11. What is BFIAX Sharpe ratio?
  12. What is BFIAX Finny Score? BFIAX buy or sell?
  13. What are the pros of investing in BFIAX? What are BFIAX buy reasons?
  14. What are the cons of investing in BFIAX? What are BFIAX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Funds Inflation Linked Bond Fund; Class A Shares (BFIAX).

The Fund seeks to provide inflation protection and income consistent with investment in inflation linked securities. The Fund, under normal circumstances, invests at least 80% of its net assets in inflation linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations.

2. What are BFIAX top holdings?

BFIAX has 0 stock holdings and 79 bond holdings.

The top 7 holdings represent 28.35% of total assets. Here are the top holdings:

Name Symbol % Assets
United States Treasury Notes 0.12% N/A 4.58%
United States Treasury Notes 0.5% N/A 4.28%
United States Treasury Bonds 1% N/A 4.25%
United States Treasury Notes 0.25% N/A 3.96%
United States Treasury Bonds 2.38% N/A 3.86%
United States Treasury Notes 0.62% N/A 3.78%
United States Treasury Notes 0.38% N/A 3.64%

3. What is BFIAX performance? What are BFIAX historical returns?

BFIAX has generated the following returns:

  • 1-month return is 0.09%;
  • 3-month return is 6.22%;
  • 1-year return is 10.67%;
  • 3-year return is 4.77%;
  • 5-year return is 3.58%.

4. How many up and down years did BFIAX have historically?

In the last 10 years, BFIAX had 7 up years and 3 down years.

5. What is BFIAX dividend yield?

BFIAX yield is 0.94%.

6. What is BFIAX minimum initial investment amount?

BFIAX minimum initial investment amount is $1.00K.

7. What is BFIAX expense ratio?

BFIAX expense ratio is 0.72%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does BFIAX have any sales loads or 12b-1 distribution expenses?

BFIAX 12b-1 distribution fee is 0.3. BFIAX front-end sales load is 2.5. BFIAX back-end sales load is 0.

9. What is BFIAX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.38%;
  • 3-year ax cost ratio is 0.68%.

10. What is BFIAX beta? How would you assess BFIAX risk?

  • 3-year beta is 0.72;
  • 5-year beta is 0.74.

11. What is BFIAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.64;
  • 5-year Sharpe ratio is 0.52.

Analysis

12. What is BFIAX Finny Score? BFIAX buy or sell?

BFIAX Finny Score is 57. Our quantitative analysis shows 4 reasons to buy BFIAX and 3 reasons to sell it, resulting in the Finny Score of 57.

13. What are the pros of investing in BFIAX? What are BFIAX buy reasons?

The following are BFIAX strengths from our perspective:

  • BFIAX 3-year return is 4.77%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US Treasury US TIPS TR USD), 4.62%.
  • BFIAX 5-year return is 3.58%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US Treasury US TIPS TR USD), 3.3%.
  • BFIAX 3-year Beta is 0.72, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.
  • BFIAX 5-year Beta is 0.74, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.

14. What are the cons of investing in BFIAX? What are BFIAX negatives?

The following are BFIAX weaknesses from our perspective:

  • BFIAX net assets are $658.80 million. This fund is not a popular choice with retail investors.
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.3%, while the maximum front-end sales load is 2.5%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
  • BFIAX expense ratio is 0.72%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the BFIAX review, we covered BFIAX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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