American Funds Corporate Bond Fund; Class A Shares (BFCAX)

11.28 -0.18%
Dec 04 close; Powered by IEX
Bull case
3-year return above the benchmark
5-year return above the benchmark
Bear case
High expense ratio
Sales load and/or distribution fees

Bull case

  1. BFCAX 3-year return is 8.23%, which is higher than the 3-year return of the benchmark index (Bloomberg US Corporate Bond TR USD), 7.7%.
  2. BFCAX 5-year return is 5.37%, which is higher than the 5-year return of the benchmark index (Bloomberg US Corporate Bond TR USD), 5.23%.

Bear case

  1. BFCAX expense ratio is 0.83%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  2. Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.3%, while the maximum front-end sales load is 3.75%. 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.