Fixed Income / Muni
Limited Term Tax-Exempt Bond Fund of America®
Balances high-quality investing with tax-exempt income. Seeks to combine the stability of shorter term bond funds with the generally higher yield of intermediate-term bonds. With a focus on quality, the strategy typically invests in a broad spectrum of investment-grade municipal bonds with maturities between one and 10 years.
Overview
Key information
Objective
The fund's investment objective is to provide you with current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.
Types of investments
Invests primarily in state, municipal and public authority bonds and notes rated in the top four categories. The fund will invest at least 65% of its assets in debt securities rated A- or better or A3 or better, or unrated, but determined by the fund’s investment adviser to be of equivalent quality.
Distinguishing characteristics
This tax-exempt strategy seeks to combine the stability of shorter term bond funds with the generally higher yield of intermediate-term bonds. With a focus on quality, the strategy typically invests in a broad spectrum of investment-grade municipal bonds with maturities between one and 10 years.
Portfolio restrictions
May invest up to 20% of assets in debt securities in the rating category of BBB/Baa (or unrated, but determined by the fund’s investment adviser to be of equivalent quality).
Maturity
The dollar-weighted average maturity of the fund's portfolio is between one and 10 years.
Key facts
Fund inception
10/6/93
Fund assets (millions)
$6,081.0
As of 5/31/26 (updated monthly)
Shareholder accounts
10,516
As of 5/31/26 (updated monthly)
Issuers (#)
754
As of 5/31/26 (updated monthly)
One-year turnover (%)tooltip: Portfolio turnover is the portion of a portfolio's holdings sold and replaced with new securities annually, usually expressed as a percentage of the portfolio's total assets. For example, a portfolio with a turnover of 25% holds assets for an average of about four years, while a portfolio with a turnover of 100% holds assets for one year. 5
44.0
Minimum initial investment
$250
Regular dividends paid 4
Monthly
Capital gains paid 4
Dec.
Fiscal year-end
July
Prospectus date
11/1/10
CUSIP
532726 60 1
Fund number
643
Portfolio managers8
Years with Capital Group
Years of investment industry experience
Principal Investment Officer
13
9
Portfolio managers8
Years with Capital Group
Years of investment industry experience
Principal Investment Officer
13
9
A distinctive investment approach
The Capital System is designed to deliver superior investment results. Across asset classes, we believe in collaborative research to yield deeper insights, diverse perspectives from multiple portfolio managers and analysts, and a long-term view to decision-making.
Returns
Investment results1, 2
Total returns for periods ended 5/31/26 (%)
- ●NAV
- ●Index
| FUND | Daily YTD | 1M | 3M | YTD | 1Y | 3Y | 5Y | 10Y | 15Y | 20Y | Lifetime |
|---|
Index data refers to the Bloomberg Municipal Short-Intermediate 1-10 Years Indextooltip: Bloomberg Municipal Short-Intermediate 1-10 Years Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes..
Daily YTD as of 6/16/26.
Fund inception: 10/6/93. The index lifetime return is based on the inception date of the fund.
Ratings are based on risk-adjusted returns.
Yield
As of 5/31/26 (updated monthly, %)
| 12-month distribution rate (at NAV)tooltip: The income per share paid by the fund over the past 12 months to an investor from dividends (including any special dividends). The distribution rate is expressed as a percentage of the current price.6 | 2.82 |
| 30-day SEC yield (gross/net)tooltip: The 30-day SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities calculated according to the standardized SEC formula; when applicable, it reflects the maximum sales charge. If shown, a net yield reflects fee waivers and/or expense reimbursements in effect during the period. Without waivers and/or reimbursements, the yield would be reduced. Gross yield does not adjust for any fee waivers and/or expense reimbursements in effect. | 2.92 / 2.92 |
| 30-day tax-equivalent SEC yield (gross/net)tooltip: The after-tax (or tax-equivalent) yield of a municipal bond investment is the yield a taxable bond would have to offer to equal the same amount as the tax-exempt bond.7 | 4.93 / 4.93 |
Risk measures
As of 5/31/26 (updated monthly)
| Standard deviation (%)tooltip: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. | |
| LTEFX | 3.23 |
| —tooltip: | — |
| Sharpe ratiotooltip: Sharpe ratios use standard deviation and excess return to determine reward per unit of risk. The higher the number, the better the portfolio's historical risk-adjusted performance. | |
| LTEFX | -0.22 |
| —tooltip: | — |
| R-squared (%)tooltip: R-squared is a measure of the correlation between a particular return and that of a benchmark index. A measure of 100 indicates that all of the return can be explained by movements in the benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. | 98.01 |
| Alphatooltip: Alpha is a measure of the difference between a portfolio's actual returns and its expected results, given its level of risk as measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha indicates the portfolio has underperformed, given the expectations established by beta. | 0.46 |
| Betatooltip: Beta relatively measures sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a return was more volatile than the market. A beta lower than 1 suggests that a return was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be. | 0.94 |
| Information ratiotooltip: The information ratio represents the excess return generated (over the market) per unit of relative risk as measured by tracking error. | 1.11 |
| Downside capture ratio (%)tooltip: Ratio of a portfolio/composite's return during periods when the index was down, divided by the return of the index during those periods. For example, during periods when the index was down, a down-capture ratio greater than 100 indicates the portfolio/composite produced a lower return than the index. | 83 |
| Upside capture ratio (%)tooltip: Ratio of a portfolio/composite's return during periods when the index was up, divided by the return of the index during those periods. For example, an up-capture ratio greater than 100 indicates the portfolio/composite produced a higher return than the index during periods when the index was up. | 101 |
| Tracking error (%)tooltip: The tracking error is the standard deviation of the difference between the returns of an investment and its benchmark. | 0.50 |
| S&P 500 correlationtooltip: Correlation describes the strength of the association between a return and a benchmark. Correlation is shown on a scale from 1 to -1. The higher the positive correlation, the more closely the return and the benchmark moved relative to one another. The lower the negative correlation, the more the return and the benchmark diverged from one another. | 0.69 |
| MSCI ACWI correlationtooltip: Correlation describes the strength of the association between a return and a benchmark. Correlation is shown on a scale from 1 to -1. The higher the positive correlation, the more closely the return and the benchmark moved relative to one another. The lower the negative correlation, the more the return and the benchmark diverged from one another. | 0.76 |
Data calculated against the —tooltip: unless noted otherwise.
Prices & distributions
As of 6/16/26
- Price at nav ($)
- Price change ($)
- Price change (%)
| YTD dividends subtotal | $0.17890823 |
| YTD cap gains subtotal | $0.00 |
| YTD total distributions | $0.17890823 |
Find Historical Prices
Find Historical Distributions
Portfolio composition
Asset mix
As of 5/31/26 (updated monthly, %)
U.S. Equities | 0.0 |
|---|---|
Non-U.S. Equities | 0.0 |
U.S. Bonds | 89.9 |
Non-U.S. Bonds | 0.2 |
Cash, Equivalents & Other10 | 9.9 |
U.S. Equities | — |
|---|---|
Non-U.S. Equities | — |
U.S Bonds | 89.9 |
Non-U.S. Bonds | 0.2 |
Cash, Equivalents & Other | 9.9 |
Morningstar Style Box™11
As of 3/31/26 (updated quarterly)
Key statistics
As of 5/31/26 (updated monthly)
LTEFX | INDEX | |
|---|---|---|
Yield to worst (%)tooltip: Lower of Yield to Maturity or the bond's total return if put or call options are exercised prior to maturity but no default occurs. | 3.4 | 3.1 |
Yield to maturity (%)tooltip: A bond's total return if held to maturity and no default occurs or options are exercised. Assumes coupons are paid on time and accounts for their present value. Assumes principal is returned at maturity. | 3.5 | 3.4 |
Average coupon (%)tooltip: The average coupon is the weighted average coupon rate of all the bond holdings. | 4.3 | 4.7 |
Effective duration (years)tooltip: Effective duration is a duration calculation for bonds that takes into account that expected cash flows will fluctuate as interest rates change. | 3.9 | 3.9 |
Spread duration (years)tooltip: A measure of fixed income securities' sensitivity to spread movement. | 3.8 | 3.9 |
Option adjusted spread (bps)tooltip: Option-adjusted spread is a yield-spread calculation used to value securities with embedded options. | 64 | 42 |
Duration times spread (bps)tooltip: A measure of fixed income securities' spread exposure, taking into account both spread duration and credit spread exposure. | 264 | 174 |
Index data refers to the Bloomberg Municipal Short-Intermediate 1-10 Years Indextooltip: Bloomberg Municipal Short-Intermediate 1-10 Years Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes..
Top obligors12
As of 4/30/26 (updated monthly, %)
| LTEFX | Index | |
|---|---|---|
| Black Belt Energy Gas Dist | 4.3% | 1.9% |
| California Community Choice Financing Authority | 3.9% | 3.3% |
| Waste Management | 1.7% | 0.0% |
| New York City Transitional Finance Authority Future Tax Secured Revenue | 1.5% | 1.3% |
| Main Street Natural Gas Inc Ga | 1.2% | 1.4% |
| California (State of) | 1.1% | 3.6% |
| Texas Department of Housing & Community Affairs | 1.1% | — |
| Southeast Energy Authority Al | 1.1% | 1.2% |
| New Jersey St Higher Ed Assistance Auth | 1.1% | 0.0% |
| State of Wisconsin | 0.9% | 0.5% |
Index data refers to the Bloomberg Municipal Short-Intermediate 1-10 Years Indextooltip: Bloomberg Municipal Short-Intermediate 1-10 Years Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes..
Portfolio exposures
As of 5/31/26 (updated monthly)
| Market value (%) | Contribution to duration (years) | ||||
|---|---|---|---|---|---|
| Sectors | LTEFX | INDEX | LTEFX | INDEX | |
| General obligation | 11.65 | 28.39 | 0.43 | 1.01 | |
| Revenue bonds | 79.48 | 71.48 | 3.26 | 2.86 | |
| Other | 0.00 | 0.14 | — | 0.01 | |
| Swaps & futures | 0.00 | — | 0.24 | — | |
| Cash & equivalents13 | 8.86 | 0.00 | 0.01 | — | |
Fees & expenses
Fees
As of the most recent prospectus (%)
Annual management fees | 0.22 |
|---|---|
Other expenses | 0.15 |
12b-1 | — |
Expense ratio
Values shown as percentages (%)
LTEFX (gross/net)3 | 0.37/0.37 |
|---|---|
Morningstar Municipal Short No Load median14 As of 3/31/26 (updated quarterly) | 0.44 |
Resources
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.
View mutual fund expense ratios and returns.
View current mutual fund SEC yields.
View current 30-day tax-equivalent SEC yields.
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 mutual fund prospectuses and/or summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness.
Unless otherwise noted below, if agency ratings differ, a security will be considered to have received the highest of those ratings, consistent with applicable investment policies. Securities in the Unrated category have not been rated by any of the rating agencies referenced above; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with applicable investment policies.
The return of principal for bond portfolios and portfolios with significant underlying bond holdings is not guaranteed. Investments are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.
There 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.
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 and/or cash flows.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower and net expenses higher.
For mutual funds, read details about how waivers and/or reimbursements affect the results for each fund.
View results and yields without fee waiver and/or expense reimbursement.
Certain share classes were offered after the inception dates of some funds. Results for these shares prior to the dates of first sale are hypothetical based on the original share class results without a sales charge, adjusted for typical estimated expenses.
- Class F-2 shares were first offered on 8/1/2008.
1.
YTD (year-to-date return): For the period from January 1 of the current year to the date shown or from inception date if first offered after January 1 of the current year.
2.
When applicable, returns for less than one year are not annualized, but calculated as cumulative total returns.
3.
Expense ratios are as of each fund's prospectus/characteristics statement, as applicable, available at the time of publication.
4.
The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
5.
Portfolio turnover is as of the most recent prospectus/characteristics statement, as applicable.
6.
The distribution rate reflects the fund's past dividends paid to shareholders and may differ from the fund's SEC yield which reflects the rate at which the fund is earning income on its current portfolio of securities. The distribution rate reflects fee waivers and/or expense reimbursements in effect during the period. Without waivers and/or reimbursements, it would be reduced.
7.
Highest federal tax rate assumes the 3.8% Medicare tax and the top federal marginal tax rate for 2026 of 37%, for a total federal tax rate of 40.8%. Tax-equivalent yield calculation is yield/(1- (federal tax rate)).
8.
Reflects current team at the time of publication. Years of experience in investment industry and Capital Group are as of the most recent year end.
9.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past results are not a guarantee of results in future periods. The Morningstar Ratings are based on the share classes of each underlying fund held by the series; other underlying fund share classes may have different performance characteristics.
10.
Includes cash, short-term securities, other assets less liabilities, accruals, derivatives and forwards. It may also include investments in money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public.
11.
Read more information about Morningstar Style Box methodology.
The model for the fixed-income style box is based on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio's effective duration and third party credit ratings to provide an overall representation of the fund's risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.
12.
The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public.
13.
Includes cash, short-term securities, other assets less liabilities, and may include accrued income. It may also include investments in money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public.
14.
Source for Morningstar expense ratio comparison: Morningstar, based on Morningstar Municipal Short No Load median funds' most recent fiscal year-ends available as of the most recent quarter-end.
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Capital Client Group, Inc.
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© 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. When applicable, due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.