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

Updated: September 18, 2020
40
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
Bear Case
  • Low net assets
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

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

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

Fact Sheet

1. Describe American Funds Corporate Bond Fund; Class 529-E Shares (COBEX).

The Fund seeks to provide maximum total return consistent with capital preservation and prudent risk management. The Fund would invest at least 80% of its assets in corporate debt securities. The Fund will also normally invest all of its assets in debt securities with quality ratings of Baa3 or better or BBB- or better.

2. What are COBEX top holdings?

COBEX has 0 stock holdings and 574 bond holdings.

The top 10 holdings represent 11.65% of total assets. Here are the top holdings:

Name Symbol % Assets
United States Treasury Bonds 2.38% N/A 2.79%
Bank of America Corporation 2.5% N/A 1.31%
Goldman Sachs Group, Inc. 3.8% N/A 1.26%
United States Treasury Notes 1.5% N/A 1.10%
Takeda Pharmaceutical Company Limited 4.4% N/A 1.07%
Credit Suisse Group AG 4.19% N/A 0.98%
Becton, Dickinson and Company 3.7% N/A 0.90%
Broadcom Corp 4.75% N/A 0.75%
Wells Fargo & Company 5.01% N/A 0.75%
Edison International 4.12% N/A 0.74%

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

COBEX has generated the following returns:

  • 1-month return is -1.72%;
  • 3-month return is 3.15%;
  • 1-year return is 10.76%;
  • 3-year return is 7.12%;
  • 5-year return is 6.57%.

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

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

5. What is COBEX dividend yield?

COBEX yield is 2.29%.

6. What is COBEX minimum initial investment amount?

COBEX minimum initial investment amount is N/A.

7. What is COBEX expense ratio?

COBEX expense ratio is 1.05%. 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 COBEX have any sales loads or 12b-1 distribution expenses?

COBEX 12b-1 distribution fee is 0.5. COBEX front-end sales load is 0. COBEX back-end sales load is 0.

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

  • 1-year ax cost ratio is 1.2%;
  • 3-year ax cost ratio is 1.07%.

See Taxes

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

  • 3-year beta is 1.33;
  • 5-year beta is 1.31.

See Risks

11. What is COBEX Sharpe ratio?

  • 3-year Sharpe ratio is 0.97;
  • 5-year Sharpe ratio is 1.05.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 40. Our quantitative analysis shows 2 reasons to buy and 3 reasons to sell it, resulting in the Finny Score of 40.

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

The following are COBEX strengths from our perspective:

  • <strong>COBEX 3-year return</strong> is 7.12%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 6.51%.
  • <strong>COBEX 5-year return</strong> is 6.57%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 6.06%.

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

The following are COBEX weaknesses from our perspective:

  • <strong>COBEX net assets</strong> are $1.40 million. This fund is not a popular choice with retail investors.
  • <strong>COBEX expense ratio</strong> is 1.05%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 0.5%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the COBEX review, we covered COBEX 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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