Fixed Income / Muni
The Tax-Exempt Bond Fund of America®
A quality-oriented approach to core tax-exempt income. With a focus on investment-grade securities, this is also our most diversified municipal offering, with the flexibility to own higher income securities across the ratings spectrum. It does not invest in bonds subject to the alternative minimum tax.
Overview
Key information
Objective
The fund's investment objective is to provide you with a high level of current income exempt from federal income tax, consistent with the preservation of capital.
Types of investments
Primarily invests in state, municipal and public authority bonds and notes. The fund will normally invest at least 80% of its assets in, or derive at least 80% of its income from, tax-exempt securities, and invest at least 65% of its assets in tax-exempt securities rated in the three highest categories.
Distinguishing characteristics
This strategy takes a quality-oriented approach to tax-exempt investing, with a focus on investment-grade securities. It is also our most diversified municipal offering with the flexibility to own higher income securities across the ratings spectrum. The strategy does not invest in bonds subject to the alternative minimum tax.
Portfolio restrictions
May invest up to 10% of its assets in debt securities rated BB+ or below and Ba1 or below (or unrated, but determined by the fund’s investment adviser to be of equivalent quality). Will not invest in securities subject to the alternative minimum tax.
Maturity
Typically, the fund will be invested substantially in securities with maturities in excess of three years.
Key facts
Fund inception
10/3/79
Fund assets (millions)
$24,172.5
As of 8/31/26 (updated monthly)
Shareholder accounts
184,266
As of 8/31/26 (updated monthly)
Issuers (#)
1,512
As of 8/31/26 (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
24.0
Minimum initial investment
$250
Regular dividends paid 4
Monthly
Capital gains paid 4
Dec.
Fiscal year-end
July
Prospectus date
10/1/25
CUSIP
876902 10 7
Fund number
19
Portfolio managers8
Principal Investment Officer
Portfolio managers8
Principal Investment Officer
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 8/31/26 (%)
- ●NAV
- ●MOP
- ●Index
| FUND | Daily YTD | 1M | 3M | YTD | 1Y | 3Y | 5Y | 10Y | 15Y | 20Y | Lifetime |
|---|
Index data refers to the Bloomberg Municipal Bond Indextooltip: Bloomberg Municipal Bond Index is a market-value-weighted index designed to represent the long-term investment-grade tax-exempt bond market. 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 9/18/26.
Fund inception: 10/3/79. The index lifetime return is based on the inception date of the fund.
Ratings are based on risk-adjusted returns.
Yield
As of 8/31/26 (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 | 3.09 |
| — / — | |
| 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. | 3.40 / 3.40 |
| 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 | 5.74 / 5.74 |
Prices & distributions
As of 9/18/26
- Price at nav ($)
- Price change ($)
- Price change (%)
| YTD dividends subtotal | $0.2515739 |
| YTD cap gains subtotal | $0.00 |
| YTD total distributions | $0.2515739 |
Find Historical Prices
Find Historical Distributions
Portfolio composition
Asset mix
As of 8/31/26 (updated monthly, %)
U.S. Equities | 0.0 |
|---|---|
Non-U.S. Equities | 0.0 |
U.S. Bonds | 95.3 |
Non-U.S. Bonds | 0.1 |
Cash, Equivalents & Other10 | 4.6 |
U.S. Equities | — |
|---|---|
Non-U.S. Equities | — |
U.S Bonds | 95.3 |
Non-U.S. Bonds | 0.1 |
Cash, Equivalents & Other | 4.6 |
Morningstar Style Box™11
As of 6/30/26 (updated quarterly)
Key statistics
No data available
Top obligors
As of 7/31/26 (updated monthly, %)
| AFTEX | Index | |
|---|---|---|
| Black Belt Energy Gas Dist | 3.6% | 1.1% |
| New York City Transitional Finance Authority Future Tax Secured Revenue | 2.0% | 1.7% |
| California Community Choice Financing Authority | 1.8% | 1.6% |
| State of New York Personal Income Tax Revenue | 1.6% | 1.6% |
| South Carolina Public Service Authority | 1.5% | 0.3% |
| Chicago Board of Education | 1.5% | — |
| Los Angeles Department of Water & Power Power System Revenue | 1.4% | 0.5% |
| New York City of | 1.4% | 1.6% |
| Freddie Mac Multifamily Pass Through Certificates | 1.3% | — |
| New York City Water & Sewer System | 1.2% | 0.9% |
Index data refers to the Bloomberg Municipal Bond Indextooltip: Bloomberg Municipal Bond Index is a market-value-weighted index designed to represent the long-term investment-grade tax-exempt bond market. 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 — (updated —, %)
No data available.
Fees & expenses
Fees
As of the most recent prospectus (%)
Annual management fees | 0.23 |
|---|---|
Other expenses | 0.07 |
12b-1 | 0.25 |
Expense ratio
Values shown as percentages (%)
AFTEX (gross/net)3 | 0.55/0.55 |
|---|---|
Morningstar Municipal Intermediate Front Load median12 As of 6/30/26 (updated quarterly) | 0.75 |
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.
Returns at net asset value (NAV) do not reflect a sales charge. If a sales charge had been deducted, the results would have been lower.
Returns shown at maximum offering price (MOP) for Class A shares reflect deduction of the 3.75% maximum sales charge.
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.
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 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.
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.
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% net investment income tax and a 37% top federal marginal tax rate for the current tax year, for a total federal tax rate of 40.8%.
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, and certain accruals. 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.
Source for Morningstar expense ratio comparison: Morningstar, based on Morningstar Municipal Intermediate Front Load median funds' most recent fiscal year-ends available as of the most recent quarter-end.
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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.
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