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15 important things you should know about American Funds CITAX mutual fund

Updated: September 18, 2020
N/A
Bull Case
  • No Bull case arguments for now!
Bear Case
  • Low net assets
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • 10-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

  1. Describe American High-Income Trust; Class 529-A Shares (CITAX).
  2. What are CITAX holdings?
  3. What is CITAX performance? What are CITAX historical returns?
  4. How many up and down years did CITAX have historically?
  5. What is CITAX dividend yield?
  6. What is CITAX minimum initial investment amount?
  7. What is CITAX expense ratio?
  8. Does CITAX have any sales loads or 12b-1 distribution expenses?
  9. What is CITAX tax efficiency (tax-cost ratio)?
  10. What is CITAX beta? How would you assess CITAX risk?
  11. What is CITAX Sharpe ratio?
  12. What is CITAX Finny Score? CITAX buy or sell?
  13. What are the pros of investing in CITAX? What are CITAX buy reasons?
  14. What are the cons of investing in CITAX? What are CITAX sell reasons?

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

Fact Sheet

1. Describe American High-Income Trust; Class 529-A Shares (CITAX).

The Fund seeks to provide a high level of current income and, secondarily, capital appreciation. At least 65% of the portfolio will be invested in high-yield, lower rated bonds (Ba or BB or below at the time of purchase) and other similar securities, including preferred stocks.

2. What are CITAX top holdings?

CITAX has 30 stock holdings and 680 bond holdings.

The top 10 holdings represent 8.62% of total assets. Here are the top holdings:

Name Symbol % Assets
Bausch Health Companies Inc 6.12% N/A 1.03%
Sprint Capital Corporation 8.75% N/A 0.97%
Petsmart Inc 7.12% N/A 0.96%
Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc. 9.88% N/A 0.89%
MDC Partners Inc. 6.5% N/A 0.89%
Sprint Capital Corporation 6.88% N/A 0.85%
First Quantum Minerals Ltd. 7.5% N/A 0.81%
Petsmart Inc 8.88% N/A 0.78%
Tenet Healthcare Corporation 4.88% N/A 0.77%
Petsmart Inc 5.88% N/A 0.67%

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

CITAX has generated the following returns:

  • 1-month return is 1.39%;
  • 3-month return is 4.97%;
  • 1-year return is 3.08%;
  • 3-year return is 3.64%;
  • 5-year return is 5.05%;
  • 10-year return is 5.22%;
  • 15-year return is 5.44%.

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

In the last 10 years, CITAX had 8 up years and 2 down years. See Performances

5. What is CITAX dividend yield?

CITAX yield is 6.14%.

6. What is CITAX minimum initial investment amount?

CITAX minimum initial investment amount is N/A.

7. What is CITAX expense ratio?

CITAX expense ratio is 0.77%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

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

CITAX 12b-1 distribution fee is 0.24. CITAX front-end sales load is 3.75. CITAX back-end sales load is 0.

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

  • 1-year ax cost ratio is 2.45%;
  • 3-year ax cost ratio is 2.41%.

See Taxes

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

  • 3-year beta is 0.26;
  • 5-year beta is 0.29;
  • 10-year beta is 0.28.

See Risks

11. What is CITAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.08;
  • 5-year Sharpe ratio is 0.28;
  • 10-year Sharpe ratio is 0.65.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 7 reasons to sell it, resulting in the Finny Score of 0.

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

We don't see any strong reasons to buy CITAX.

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

The following are CITAX weaknesses from our perspective:

  • <strong>CITAX net assets</strong> are $320.30 million. This fund is not a popular choice with retail investors.
  • <strong>CITAX 3-year return</strong> is 3.64%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 4.81%.
  • <strong>CITAX 5-year return</strong> is 5.05%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.39%.
  • <strong>CITAX 10-year return</strong> is 5.22%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 6.82%.
  • <strong>CITAX 15-year return</strong> is 5.44%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays US High Yield 2% Issuer Cap TR USD), 7.11%.
  • <strong>CITAX expense ratio</strong> is 0.77%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.24%, while the maximum front-end sales load is 3.75%. 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.
In the CITAX review, we covered CITAX 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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