Core fixed income should protect. It can also provide.

In today’s markets, volatility is a feature, not a bug. A well-managed core bond fund should offer some stability when equities struggle, seeking to deliver strong long-term returns.

Hypothetical growth of a $10,000 investment starting in 2009

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Dec-08 Mar-24 Morningstar Core $15,871 U.S. Aggregate Index $14,753 The Bond Fund of America $16,727 9,000 11,000 13,000 15,000 17,000 $19,000 Equity corrections

Sources: Bloomberg Index Services Ltd., Capital Group, Morningstar. As of 3/31/24. Data shown represents The Bond Fund of America F-2 share class, Morningstar's Intermediate Core Bond Category average and the U.S. Bloomberg Aggregate Index. Shading represents correction periods, which are based on price declines of 10% or more (without dividends reinvested) in the unmanaged S&P 500 with at least 75% recovery. Ten equity correction periods are highlighted as follows: 12/31/08 to 3/31/09; 3/31/10 to 6/30/10; 4/30/11 to 9/30/11; 4/30/15 to 8/31/15; 10/31/15 to 2/29/16; 1/31/18 to 2/28/18; 8/31/18 to 12/31/18; 1/31/20 to 3/31/20; 12/31/21 to 10/31/22; and 7/31/23 to 10/31/23.

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CORE APPROACH

Does your core provide balance?

Our portfolio managers take a long-term approach to core bond investing. They seek to provide the four roles of fixed income: diversification, capital preservation, income and inflation protection. Their quality-oriented approach utilizes multiple return drivers aiming to deliver consistent excess returns versus their benchmarks.

Morningstar Medalist RatingTM

Analyst-Driven 100%
Data Coverage 100%

The Bond Fund of America:
A case study in our core investing strategy

Our flagship core bond mutual fund strives to provide balance, discipline and consistency. Discover how its true core approach has helped it receive, as of 11/15/23, a Morningstar Medalist Rating of Gold for F-2 and A shares.

exchange-traded funds

CGCB: Core for ETF investors

Our core approach and philosophy is also available for ETF investors through Capital Group Core Bond ETF (CGCB)
  • 6.1 Years duration
  • 5.0 Average yield to worst
  • 0.27% Expense ratio
    (estimated)
Source: Capital Group. As of 3/31/24. Yield to worst is the lowest yield that can be realized by either calling or putting on one of the available call/put dates, or holding a bond to maturity. Duration indicates a bond fund’s sensitivity to interest rates. Higher duration indicates more sensitivity. On the same date, the duration of the ETF's benchmark, the Bloomberg U.S. Aggregate Index was 6.2 years.

core-plus approach

Core-plus for added return or income potential

For investors seeking a fixed income allocation that seeks to provide more return or income than a traditional core fund alongside a measure of ballast, core-plus funds are an option. Here, two distinct flavors are available, credit- or rates-driven core-plus.

Constructing a core/core-plus bond allocation

Core-plus can complement core to create a bond allocation that seeks strong return or income while also seeking ballast.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Investing for short periods makes losses more likely. Prices and returns will vary, so investors may lose money. Market price returns are determined using the official closing price of the fund’s shares and do not represent the returns you would receive if you traded shares at other times. View mutual fund expense ratios and returns. View ETF expense ratios and returns. View mutual fund SEC yields. View ETF SEC yields.

The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Morningstar Medalist Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including its methodology, please go to global.morningstar.com/ managerdisclosures/

The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

The Bond Fund of America is the largest actively managed bond fund in the Morningstar U.S. Intermediate Core Bond category, as of 12/31/23.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Capital Group exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETF shares are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF's listing will continue or remain unchanged.
Investments in mortgage-related securities involve additional risks, such as prepayment risk.
The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
American Funds Strategic Bond Fund may engage in frequent and active trading of its portfolio securities, which may involve correspondingly greater transaction costs, adversely affecting the fund's results.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
As nondiversified funds, Capital Group ETFs have the ability to invest a larger percentage of assets in securities of individual issuers than a diversified fund. As a result, a single issuer could adversely affect a fund's results more than if the fund invested a smaller percentage of assets in securities of that issuer. Refer to the applicable prospectus for details.
There may have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg's licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Each S&P Index ("Index") shown is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Portfolios are managed, so holdings will change. Certain fixed income and/or cash and equivalents holdings may be held through mutual funds managed by the investment adviser or its affiliates that are not offered to the public.
Totals may not reconcile due to rounding.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
On or around July 1, 2024, American Funds Distributors, Inc. will be renamed Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The Core category contains portfolios that invest primarily in investment-grade U.S. fixed-income issues and hold less than 5% in below-investment-grade exposures. The Core-Plus category contains portfolios that invest primarily in investment-grade U.S. fixed-income issues but have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures.