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15 important things you should know about American Funds RMACX 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
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

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

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 RMACX top holdings?

RMACX 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 RMACX performance? What are RMACX historical returns?

RMACX has generated the following returns:

  • 1-month return is -0.08%;
  • 3-month return is 0.71%;
  • 1-year return is 5.69%;
  • 3-year return is 3.10%;
  • 5-year return is 2.63%.

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

In the last 10 years, RMACX had 9 up years and 1 down year. See Performances

5. What is RMACX dividend yield?

RMACX yield is 1.88%.

6. What is RMACX minimum initial investment amount?

RMACX minimum initial investment amount is N/A.

7. What is RMACX expense ratio?

RMACX expense ratio is 0.98%. 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 RMACX have any sales loads or 12b-1 distribution expenses?

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

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

  • 1-year ax cost ratio is 0.76%;
  • 3-year ax cost ratio is 0.7%.

See Taxes

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

  • 3-year beta is 0.54;
  • 5-year beta is 0.54.

See Risks

11. What is RMACX Sharpe ratio?

  • 3-year Sharpe ratio is 0.64;
  • 5-year Sharpe ratio is 0.71.

See Risks

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 RMACX? What are RMACX buy reasons?

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

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

The following are RMACX weaknesses from our perspective:

  • <strong>RMACX net assets</strong> are $36.20 million. This fund is not a popular choice with retail investors.
  • <strong>RMACX 3-year return</strong> is 3.1%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.67%.
  • <strong>RMACX 5-year return</strong> is 2.63%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.08%.
  • <strong>RMACX expense ratio</strong> is 0.98%, 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 RMACX review, we covered RMACX 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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