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

Updated: June 29, 2020
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Before we start: if you’re looking for PPVAX “stock” price, you can quickly find it out by visiting Finny and typing "PPVAX quote". If you’re looking for a quick scoop on PPVAX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "PPVAX". You’ll get all this info in one place.

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

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

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

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

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

Fact Sheet

1. Describe American Funds Portfolio Series: American Funds Preservation Portfolio; Class A Shares (PPVAX).

The Fund seeks current income, consistent with preservation of capital. The Fund principally invests through bond investment with exposure to higher quality bonds with intermediate to short term durations. The Fund may, however, invest in underlying funds with exposure to lower quality, higher yielding securities.

2. What are PPVAX top holdings?

PPVAX has 0 stock holdings and 0 bond holdings.

The top 2 holdings represent 100.03% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Interm Bd Fd of Amer R6 RBOGX 60.02%
American Funds ST Bd Fd of Amer R6 RMMGX 40.01%

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

PPVAX has generated the following returns:

  • 1-month return is 0.46%;
  • 3-month return is 3.12%;
  • 1-year return is 6.03%;
  • 3-year return is 2.95%;
  • 5-year return is 2.15%.

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

In the last 10 years, PPVAX had 9 up years and 1 down year.

5. What is PPVAX dividend yield?

PPVAX yield is 1.91%.

6. What is PPVAX minimum initial investment amount?

PPVAX minimum initial investment amount is $1.00K.

7. What is PPVAX expense ratio?

PPVAX expense ratio is 0.68%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

PPVAX 12b-1 distribution fee is 0.29. PPVAX front-end sales load is 2.5. PPVAX back-end sales load is 0.

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

  • 1-year ax cost ratio is 0.77%;
  • 3-year ax cost ratio is 0.65%.

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

  • 3-year beta is 0.38;
  • 5-year beta is 0.42.

11. What is PPVAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.58;
  • 5-year Sharpe ratio is 0.48.

Analysis

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

PPVAX Finny Score is 33. Our quantitative analysis shows 2 reasons to buy PPVAX and 4 reasons to sell it, resulting in the Finny Score of 33.

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

The following are PPVAX strengths from our perspective:

  • PPVAX 3-year Beta is 0.38, 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.
  • PPVAX 5-year Beta is 0.42, 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 PPVAX? What are PPVAX negatives?

The following are PPVAX weaknesses from our perspective:

  • PPVAX 3-year return is 2.95%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US Government/Credit A+ 1-5 Yr TR USD), 3.35%.
  • PPVAX 5-year return is 2.15%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US Government/Credit A+ 1-5 Yr TR USD), 2.44%.
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.29%, 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.
  • PPVAX expense ratio is 0.68%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the PPVAX review, we covered PPVAX 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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