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

Updated: September 28, 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
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

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

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

Fact Sheet

1. Describe American Funds Mortgage Fund; Class C Shares (MFACX).

The Fund seeks current income and preservation of capital. At least 80% of the funds assets will be invested in mortgage-related securities, including contracts for future delivery of such securities (such as to be announced contracts and mortgage dollar rolls) and other securities collateralized by mortgage loans.

2. What are MFACX top holdings?

MFACX has 0 stock holdings and 427 bond holdings.

The top 8 holdings represent 22.65% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal National Mortgage Association 3.5% N/A 6.46%
Federal National Mortgage Association 2% N/A 4.98%
Federal National Mortgage Association 4.5% N/A 2.59%
Federal National Mortgage Association 3% N/A 1.85%
Federal Home Loan Mortgage Corporation 3% N/A 1.84%
Federal Home Loan Mortgage Corporation 3.5% N/A 1.70%
Federal Home Loan Mortgage Corporation N/A 1.62%
Government National Mortgage Association 4% N/A 1.61%

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

MFACX has generated the following returns:

  • 1-month return is -0.09%;
  • 3-month return is 0.29%;
  • 1-year return is 5.78%;
  • 3-year return is 2.76%;
  • 5-year return is 2.10%.

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

In the last 10 years, MFACX had 8 up years and 2 down years.

MFACX up and down years

5. What is MFACX dividend yield?

MFACX yield is 1.42%.

6. What is MFACX minimum initial investment amount?

MFACX minimum initial investment amount is $1.00K.

7. What is MFACX expense ratio?

MFACX expense ratio is 1.46%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

MFACX expenses

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

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

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

  • 1-year ax cost ratio is 0.61%;
  • 3-year ax cost ratio is 0.52%.
MFACX tax costs

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

  • 3-year beta is 0.57;
  • 5-year beta is 0.56.
MFACX Beta

11. What is MFACX Sharpe ratio?

  • 3-year Sharpe ratio is 0.45;
  • 5-year Sharpe ratio is 0.50.
MFACX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 5 reasons to sell it, resulting in the Finny Score of 0.

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

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

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

The following are MFACX weaknesses from our perspective:

  • <strong>MFACX net assets</strong> are $16.00 million. This fund is not a popular choice with retail investors.
  • <strong>MFACX 3-year return</strong> is 2.76%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.65%.
  • <strong>MFACX 5-year return</strong> is 2.1%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.02%.
  • <strong>MFACX expense ratio</strong> is 1.46%, 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 deferred sales fee. The maximum 12b1 fee is 1%, while the maximum deferred sales load is 1%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Deferred sales load is a back-end sales charge and is imposed when an investor redeems shares.
In the MFACX review, we covered MFACX 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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