AFTFX vs. AHMFX

Last updated Jul 29, 2026

AFTFX (American Funds Tax-Exempt Bond Fund of America Class F-1) and AHMFX (American High-Income Municipal Bond Fund Class F-2) are both mutual funds - AFTFX is a Municipal Bonds fund actively managed by Capital Group, while AHMFX is a High Yield Muni fund actively managed by Capital Group. Both are actively managed. Over the past 10 years, AFTFX returned 1.85%/yr vs 3.22%/yr for AHMFX. Their correlation of 0.89 means they have usually moved in the same direction. AFTFX charges 0.63%/yr vs 0.42%/yr for AHMFX.

Performance

AFTFX vs. AHMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) and American High-Income Municipal Bond Fund Class F-2 (AHMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFTFX achieves a 0.49% return, which is significantly lower than AHMFX's 1.66% return. Over the past 10 years, AFTFX has underperformed AHMFX with an annualized return of 1.85%, while AHMFX has yielded a comparatively higher 3.22% annualized return.

AFTFX

• 1D: 0.32%
• 1M: -1.35%
• 6M: 0.25%
• YTD: 0.49%
• 1Y: 5.84%
• 3Y*: 3.39%
• 5Y*: 0.53%
• 10Y*: 1.85%
• ALL TIME*: 3.50%

AHMFX

• 1D: 0.20%
• 1M: -1.16%
• 6M: 1.46%
• YTD: 1.66%
• 1Y: 8.16%
• 3Y*: 5.88%
• 5Y*: 1.47%
• 10Y*: 3.22%
• ALL TIME*: 5.95%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	$0.00	$0.00	$0.00
AHMFX American High-Income Municipal Bond Fund Class F-2	$0.00	$0.00	$0.00

AFTFX vs. AHMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	0.49%	3.77%	2.22%	6.41%	-9.23%	1.96%	4.64%	7.09%	0.66%	5.43%
AHMFX American High-Income Municipal Bond Fund Class F-2	1.66%	6.03%	6.45%	7.04%	-12.44%	5.49%	4.61%	9.12%	1.80%	9.09%

Correlation

The correlation between AFTFX and AHMFX is 0.92, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.92
Correlation (3Y) Balances recent behavior with more history.	0.91
Correlation (5Y) Shows whether the relationship held over a longer period.	0.92
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Jan 2, 2009	0.89

The correlation between AFTFX and AHMFX has been stable across timeframes, ranging from 0.89 to 0.92 - a consistent structural relationship.

Return for Risk

AFTFX vs. AHMFX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AFTFX

AFTFX Risk / Return Rank: 77
AFTFX Sharpe Ratio Rank: 88
AFTFX Sortino Ratio Rank: 89
AFTFX Omega Ratio Rank: 91
AFTFX Calmar Ratio Rank: 63
AFTFX Martin Ratio Rank: 52

AHMFX

AHMFX Risk / Return Rank: 92
AHMFX Sharpe Ratio Rank: 96
AHMFX Sortino Ratio Rank: 96
AHMFX Omega Ratio Rank: 96
AHMFX Calmar Ratio Rank: 85
AHMFX Martin Ratio Rank: 84

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AFTFX vs. AHMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) and American High-Income Municipal Bond Fund Class F-2 (AHMFX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AFTFX	AHMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.68	-0.48
Sortino ratio: Return per unit of downside risk	3.31	4.21	-0.91
Omega ratio: Gain probability vs. loss probability	1.52	1.64	-0.12
Calmar ratio: Return relative to maximum drawdown	2.13	2.97	-0.84
Martin ratio: Return relative to average drawdown	7.29	10.67	-3.38

AFTFX vs. AHMFX - Sharpe Ratio Comparison

The current AFTFX Sharpe Ratio is 2.20, which is comparable to the AHMFX Sharpe Ratio of 2.68. The chart below compares the historical Sharpe Ratios of AFTFX and AHMFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AFTFX vs. AHMFX - Drawdown Comparison

The maximum AFTFX drawdown since its inception was -13.99%, smaller than the maximum AHMFX drawdown of -17.65%. Use the drawdown chart below to compare losses from any high point for AFTFX and AHMFX.

Drawdown Indicators

	AFTFX	AHMFX	Difference
Max Drawdown Largest peak-to-trough decline	-13.99%	-17.65%	+3.66%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-2.76%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-5.07%	-6.02%	+0.95%
Max Drawdown (5Y) Largest decline over 5 years	-13.99%	-17.65%	+3.66%
Max Drawdown (10Y) Largest decline over 10 years	-13.99%	-17.65%	+3.66%
Current Drawdown Current decline from peak	-1.67%	-1.67%	0.00%
Average Drawdown Average peak-to-trough decline	-1.85%	-2.35%	+0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.77%	+0.03%

Volatility

AFTFX vs. AHMFX - Volatility Comparison

The current volatility for American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) is 0.94%, while American High-Income Municipal Bond Fund Class F-2 (AHMFX) has a volatility of 1.01%. This indicates that AFTFX experiences smaller price fluctuations and is considered to be less risky than AHMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFTFX	AHMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	1.01%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	2.16%	2.36%	-0.20%
Volatility (1Y) Calculated over the trailing 1-year period	2.68%	3.06%	-0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.77%	4.88%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.78%	4.55%	-0.77%

AFTFX vs. AHMFX - Expense Ratio Comparison

AFTFX has a 0.63% expense ratio, which is higher than AHMFX's 0.42% expense ratio.

Dividends

AFTFX vs. AHMFX - Dividend Comparison

AFTFX's dividend yield for the trailing twelve months is around 2.98%, less than AHMFX's 4.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	2.98%	2.92%	2.84%	2.62%	2.25%	2.39%	2.34%	2.52%	2.75%	2.93%	3.02%	3.10%
AHMFX American High-Income Municipal Bond Fund Class F-2	4.16%	5.58%	4.04%	2.97%	2.71%	3.44%	3.60%	3.68%	3.88%	4.19%	3.74%	4.19%

Frequently Asked Questions

Can I hold both AFTFX and AHMFX in my portfolio?

With a correlation of 0.92, AFTFX and AHMFX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AFTFX or AHMFX?

AHMFX has higher volatility (1.01%) compared to AFTFX (0.94%). In terms of maximum drawdown, AFTFX dropped -13.99% vs AHMFX's -17.65%.

Which has better risk-adjusted returns?

AHMFX currently has the higher Sharpe Ratio (2.68 vs 2.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.