AFTFX vs. DFSMX

Last updated Jul 29, 2026

AFTFX (American Funds Tax-Exempt Bond Fund of America Class F-1) and DFSMX (DFA Short Term Municipal Bond Portfolio) are both Municipal Bonds funds. Over the past 10 years, AFTFX returned 1.85%/yr vs 1.23%/yr for DFSMX. Their 0.38 correlation means their historical movements had little consistent relationship. AFTFX charges 0.63%/yr vs 0.20%/yr for DFSMX.

Performance

AFTFX vs. DFSMX - 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 DFA Short Term Municipal Bond Portfolio (DFSMX). 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 DFSMX's 1.26% return. Over the past 10 years, AFTFX has outperformed DFSMX with an annualized return of 1.85%, while DFSMX has yielded a comparatively lower 1.23% 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%

DFSMX

• 1D: 0.00%
• 1M: 0.11%
• 6M: 0.96%
• YTD: 1.26%
• 1Y: 2.29%
• 3Y*: 2.65%
• 5Y*: 1.76%
• 10Y*: 1.23%
• ALL TIME*: 1.62%

*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
DFSMX DFA Short Term Municipal Bond Portfolio	$0.00	$0.00	$0.00

AFTFX vs. DFSMX - 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%
DFSMX DFA Short Term Municipal Bond Portfolio	1.26%	2.30%	2.84%	2.98%	-0.36%	-0.11%	0.83%	1.62%	1.22%	1.15%

Correlation

The correlation between AFTFX and DFSMX is 0.19, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.19
Correlation (3Y) Balances recent behavior with more history.	0.27
Correlation (5Y) Shows whether the relationship held over a longer period.	0.36
Correlation (10Y) Provides a long-term view across more market conditions.	0.30
Correlation (All Time) Calculated using the full available price history since Aug 22, 2002	0.38

The correlation between AFTFX and DFSMX shifts across timeframes, from 0.19 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.

Return for Risk

AFTFX vs. DFSMX — 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

DFSMX

DFSMX Risk / Return Rank: 100
DFSMX Sharpe Ratio Rank: 99
DFSMX Sortino Ratio Rank: 100
DFSMX Omega Ratio Rank: 100
DFSMX Calmar Ratio Rank: 100
DFSMX Martin Ratio Rank: 100

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. DFSMX - 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 DFA Short Term Municipal Bond Portfolio (DFSMX). 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	DFSMX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	4.29	-2.09
Sortino ratio: Return per unit of downside risk	3.31	10.75	-7.44
Omega ratio: Gain probability vs. loss probability	1.52	5.41	-3.89
Calmar ratio: Return relative to maximum drawdown	2.13	21.93	-19.80
Martin ratio: Return relative to average drawdown	7.29	83.76	-76.47

AFTFX vs. DFSMX - Sharpe Ratio Comparison

The current AFTFX Sharpe Ratio is 2.20, which is lower than the DFSMX Sharpe Ratio of 4.29. The chart below compares the historical Sharpe Ratios of AFTFX and DFSMX, 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. DFSMX - Drawdown Comparison

The maximum AFTFX drawdown since its inception was -13.99%, which is greater than DFSMX's maximum drawdown of -2.66%. Use the drawdown chart below to compare losses from any high point for AFTFX and DFSMX.

Drawdown Indicators

	AFTFX	DFSMX	Difference
Max Drawdown Largest peak-to-trough decline	-13.99%	-2.66%	-11.33%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-0.11%	-2.65%
Max Drawdown (3Y) Largest decline over 3 years	-5.07%	-0.49%	-4.58%
Max Drawdown (5Y) Largest decline over 5 years	-13.99%	-1.66%	-12.33%
Max Drawdown (10Y) Largest decline over 10 years	-13.99%	-1.69%	-12.30%
Current Drawdown Current decline from peak	-1.67%	0.00%	-1.67%
Average Drawdown Average peak-to-trough decline	-1.85%	-0.23%	-1.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.03%	+0.77%

Volatility

AFTFX vs. DFSMX - Volatility Comparison

American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) has a higher volatility of 0.94% compared to DFA Short Term Municipal Bond Portfolio (DFSMX) at 0.17%. This indicates that AFTFX's price experiences larger fluctuations and is considered to be riskier than DFSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFTFX	DFSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	0.17%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	2.16%	0.38%	+1.78%
Volatility (1Y) Calculated over the trailing 1-year period	2.68%	0.54%	+2.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.77%	0.79%	+2.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.78%	0.76%	+3.02%

AFTFX vs. DFSMX - Expense Ratio Comparison

AFTFX has a 0.63% expense ratio, which is higher than DFSMX's 0.20% expense ratio.

Dividends

AFTFX vs. DFSMX - Dividend Comparison

AFTFX's dividend yield for the trailing twelve months is around 2.98%, more than DFSMX's 2.56% 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%
DFSMX DFA Short Term Municipal Bond Portfolio	2.56%	2.08%	2.80%	1.94%	0.63%	0.19%	0.83%	1.22%	1.11%	0.95%	0.94%	0.95%

Frequently Asked Questions

Can I hold both AFTFX and DFSMX in my portfolio?

AFTFX and DFSMX have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AFTFX or DFSMX?

AFTFX has higher volatility (0.94%) compared to DFSMX (0.17%). In terms of maximum drawdown, AFTFX dropped -13.99% vs DFSMX's -2.66%.

Which has better risk-adjusted returns?

DFSMX currently has the higher Sharpe Ratio (4.29 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.