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15 important things you should know about FARXX mutual fund

Updated: September 18, 2020
20
Bull Case
  • No sales load or distribution fees
Bear Case
  • Low net assets
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • 10-year return below the benchmark

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

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

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

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

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

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

Fact Sheet

1. Describe American Funds US Government Money Market Fund; Class 529-F-1 Shares (FARXX).

The Fund seeks to earn income on cash reserves while preserving capital and maintaining liquidity. The Fund invests substantially in U.S. Treasury securities, which are guaranteed by the U.S. government, federal agency discount notes and high-quality money market instruments.

2. What are FARXX top holdings?

FARXX has 0 stock holdings and 19 bond holdings.

The top 10 holdings represent 25.26% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal Home Loan Banks 0.32% N/A 3.36%
United States Treasury Bills 0.44% N/A 2.83%
United States Treasury Bills 0.4% N/A 2.79%
United States Treasury Bills 1.8% N/A 2.51%
United States Treasury Notes 2.21% N/A 2.38%
United States Treasury Bills 0.23% N/A 2.36%
Federal Home Loan Banks 0.37% N/A 2.31%
Royal Bank Of Canada 2.48% 07-01-19 Tsy Repo Tp N/A 2.24%
Jp Morgan Securities Llc 2.53% 07-01-19 Tsy Repo Tp N/A 2.24%
Federal Home Loan Banks 1.14% N/A 2.24%

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

FARXX has generated the following returns:

  • 1-year return is 0.70%;
  • 3-year return is 1.20%;
  • 5-year return is 0.75%;
  • 10-year return is 0.38%.

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

In the last 10 years, FARXX had 10 up years and 0 down years. See Performances

5. What is FARXX dividend yield?

FARXX yield is 1.73%.

6. What is FARXX minimum initial investment amount?

FARXX minimum initial investment amount is N/A.

7. What is FARXX expense ratio?

FARXX expense ratio is 0.45%. 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 FARXX have any sales loads or 12b-1 distribution expenses?

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

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

  • 1-year ax cost ratio is 0.29%;
  • 3-year ax cost ratio is 0.49%.

See Taxes

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

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 20. Our quantitative analysis shows 1 reason to buy and 4 reasons to sell it, resulting in the Finny Score of 20.

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

The following are FARXX strengths from our perspective:

  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

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

The following are FARXX weaknesses from our perspective:

  • <strong>FARXX net assets</strong> are $168.70 million. This fund is not a popular choice with retail investors.
  • <strong>FARXX 3-year return</strong> is 1.2%, which is lower than the 3-year return of the benchmark index (USTREAS Treasury Bill Auction Average 3 Month), 1.64%.
  • <strong>FARXX 5-year return</strong> is 0.75%, which is lower than the 5-year return of the benchmark index (USTREAS Treasury Bill Auction Average 3 Month), 1.17%.
  • <strong>FARXX 10-year return</strong> is 0.38%, which is lower than the 10-year return of the benchmark index (USTREAS Treasury Bill Auction Average 3 Month), 0.61%.
In the FARXX review, we covered FARXX 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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