American Funds Tax-Exempt Series II: Tax-Exempt Fund of California; Class C Shares (TECCX)

18.36 0.00%
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Bull case

No bull case arguments.

Bear case
Low net assets
3-year return below the benchmark
5-year return below the benchmark
10-year return below the benchmark
15-year return below the benchmark
High expense ratio
Sales load and/or distribution fees

Bull case

No bull case arguments.

Bear case

  1. TECCX net assets are $51.10 million. This fund is not a popular choice with retail investors.
  2. TECCX 3-year return is 4.13%, which is lower than the 3-year return of the benchmark index (Bloomberg Municipal California Exempt TR USD), 5.06%.
  3. TECCX 5-year return is 3.3%, which is lower than the 5-year return of the benchmark index (Bloomberg Municipal California Exempt TR USD), 4.14%.
  4. TECCX 10-year return is 3.49%, which is lower than the 10-year return of the benchmark index (Bloomberg Municipal California Exempt TR USD), 4.16%.
  5. TECCX 15-year return is 3.28%, which is lower than the 15-year return of the benchmark index (Bloomberg Municipal California Exempt TR USD), 4.31%.
  6. TECCX expense ratio is 1.33%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  7. 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.