AIVSX vs. TAFTX

Last updated Jun 23, 2026

AIVSX (American Funds Investment Company of America Class A) and TAFTX (American Funds Tax-Exempt Fund of California) are both mutual funds - AIVSX is a Large Cap Blend Equities fund managed by American Funds, while TAFTX is a Municipal Bonds fund managed by American Funds. Over the past 10 years, AIVSX returned 14.17%/yr vs 2.04%/yr for TAFTX. At a correlation of -0.00, they often move in opposite directions. AIVSX charges 0.55%/yr vs 0.57%/yr for TAFTX.

Performance

AIVSX vs. TAFTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Investment Company of America Class A (AIVSX) and American Funds Tax-Exempt Fund of California (TAFTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AIVSX achieves a 9.70% return, which is significantly higher than TAFTX's 1.70% return. Over the past 10 years, AIVSX has outperformed TAFTX with an annualized return of 14.17%, while TAFTX has yielded a comparatively lower 2.04% annualized return.

AIVSX

• 1D: 1.34%
• 1M: 0.89%
• YTD: 9.70%
• 6M: 9.64%
• 1Y: 24.69%
• 3Y*: 22.72%
• 5Y*: 15.04%
• 10Y*: 14.17%

TAFTX

• 1D: 0.06%
• 1M: 1.77%
• YTD: 1.70%
• 6M: 2.10%
• 1Y: 7.19%
• 3Y*: 4.15%
• 5Y*: 0.87%
• 10Y*: 2.04%

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

AIVSX vs. TAFTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AIVSX American Funds Investment Company of America Class A	9.70%	20.47%	24.90%	28.56%	-15.50%	25.10%	14.47%	24.10%	-8.21%	19.54%
TAFTX American Funds Tax-Exempt Fund of California	1.70%	4.73%	2.31%	5.76%	-9.78%	1.88%	4.43%	7.33%	0.71%	5.96%

Correlation

The correlation between AIVSX and TAFTX is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (10Y) Calculated over the trailing 10-year period	0.01
Correlation (All Time) Calculated using the full available price history since Jan 2, 1990	-0.00

The correlation between AIVSX and TAFTX shifts across timeframes, from -0.00 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

AIVSX vs. TAFTX — Risk / Return Rank

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

AIVSX

AIVSX Risk / Return Rank: 47
AIVSX Sharpe Ratio Rank: 47
AIVSX Sortino Ratio Rank: 42
AIVSX Omega Ratio Rank: 45
AIVSX Calmar Ratio Rank: 44
AIVSX Martin Ratio Rank: 57

TAFTX

TAFTX Risk / Return Rank: 70
TAFTX Sharpe Ratio Rank: 86
TAFTX Sortino Ratio Rank: 89
TAFTX Omega Ratio Rank: 91
TAFTX Calmar Ratio Rank: 43
TAFTX Martin Ratio Rank: 41

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.

AIVSX vs. TAFTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Investment Company of America Class A (AIVSX) and American Funds Tax-Exempt Fund of California (TAFTX). 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.

	AIVSX	TAFTX	Difference
Sharpe ratio: Return per unit of total volatility	1.85	2.59	-0.74
Sortino ratio: Return per unit of downside risk	2.54	4.04	-1.50
Omega ratio: Gain probability vs. loss probability	1.34	1.63	-0.29
Calmar ratio: Return relative to maximum drawdown	2.42	2.37	+0.05
Martin ratio: Return relative to average drawdown	10.68	8.28	+2.40

AIVSX vs. TAFTX - Sharpe Ratio Comparison

The current AIVSX Sharpe Ratio is 1.85, which is comparable to the TAFTX Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of AIVSX and TAFTX, 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

AIVSX vs. TAFTX - Drawdown Comparison

The maximum AIVSX drawdown since its inception was -50.90%, which is greater than TAFTX's maximum drawdown of -18.83%. Use the drawdown chart below to compare losses from any high point for AIVSX and TAFTX.

Drawdown Indicators

	AIVSX	TAFTX	Difference
Max Drawdown Largest peak-to-trough decline	-50.90%	-18.83%	-32.07%
Max Drawdown (1Y) Largest decline over 1 year	-10.08%	-3.05%	-7.03%
Max Drawdown (3Y) Largest decline over 3 years	-17.40%	-5.66%	-11.74%
Max Drawdown (5Y) Largest decline over 5 years	-24.31%	-14.82%	-9.49%
Max Drawdown (10Y) Largest decline over 10 years	-31.09%	-14.82%	-16.27%
Current Drawdown Current decline from peak	-1.09%	-0.34%	-0.75%
Average Drawdown Average peak-to-trough decline	-5.90%	-1.93%	-3.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	0.87%	+1.41%

Volatility

AIVSX vs. TAFTX - Volatility Comparison

American Funds Investment Company of America Class A (AIVSX) has a higher volatility of 5.04% compared to American Funds Tax-Exempt Fund of California (TAFTX) at 0.77%. This indicates that AIVSX's price experiences larger fluctuations and is considered to be riskier than TAFTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AIVSX	TAFTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.04%	0.77%	+4.27%
Volatility (6M) Calculated over the trailing 6-month period	10.60%	2.14%	+8.46%
Volatility (1Y) Calculated over the trailing 1-year period	13.18%	2.79%	+10.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.12%	4.05%	+12.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.63%	3.92%	+12.71%

AIVSX vs. TAFTX - Expense Ratio Comparison

AIVSX has a 0.55% expense ratio, which is lower than TAFTX's 0.57% expense ratio.

Dividends

AIVSX vs. TAFTX - Dividend Comparison

AIVSX's dividend yield for the trailing twelve months is around 9.14%, more than TAFTX's 3.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIVSX American Funds Investment Company of America Class A	9.14%	10.60%	9.29%	4.96%	6.12%	6.94%	1.65%	6.15%	9.61%	7.08%	5.48%	8.95%
TAFTX American Funds Tax-Exempt Fund of California	3.03%	3.96%	2.64%	2.19%	1.82%	2.19%	2.65%	3.15%	2.93%	2.95%	3.13%	3.32%

Frequently Asked Questions

Can I hold both AIVSX and TAFTX in my portfolio?

AIVSX and TAFTX have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIVSX or TAFTX?

AIVSX has higher volatility (5.04%) compared to TAFTX (0.77%). In terms of maximum drawdown, AIVSX dropped -50.90% vs TAFTX's -18.83%.

Which has better risk-adjusted returns?

TAFTX currently has the higher Sharpe Ratio (2.59 vs 1.85), 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.