ASBAX vs. TEPAX
ASBAX (American Funds Short-Term Bond Fund of America) and TEPAX (American Funds Tax-Exempt Preservation Portfolio) are both mutual funds - ASBAX is a Short-Term Bond fund managed by American Funds, while TEPAX is a Municipal Bonds fund managed by American Funds. Over the past 10 years, ASBAX returned 1.60%/yr vs 1.46%/yr for TEPAX. At a 0.32 correlation, their price movements are largely independent. ASBAX charges 0.66%/yr vs 0.34%/yr for TEPAX.
Performance
ASBAX vs. TEPAX - Performance Comparison
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Returns By Period
In the year-to-date period, ASBAX achieves a 0.34% return, which is significantly lower than TEPAX's 0.92% return. Over the past 10 years, ASBAX has outperformed TEPAX with an annualized return of 1.60%, while TEPAX has yielded a comparatively lower 1.46% annualized return.
ASBAX
- 1D
- 0.00%
- 1M
- 0.10%
- 6M
- 0.45%
- YTD
- 0.34%
- 1Y
- 2.71%
- 3Y*
- 4.21%
- 5Y*
- 1.65%
- 10Y*
- 1.60%
TEPAX
- 1D
- 0.00%
- 1M
- 0.21%
- 6M
- 0.41%
- YTD
- 0.92%
- 1Y
- 3.36%
- 3Y*
- 3.40%
- 5Y*
- 1.20%
- 10Y*
- 1.46%
ASBAX vs. TEPAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ASBAX American Funds Short-Term Bond Fund of America | 0.34% | 5.05% | 4.31% | 3.60% | -4.16% | -0.88% | 3.53% | 2.81% | 1.10% | 0.91% |
TEPAX American Funds Tax-Exempt Preservation Portfolio | 0.92% | 4.36% | 2.14% | 3.63% | -4.36% | -0.03% | 3.52% | 4.14% | 0.90% | 2.43% |
Correlation
The correlation between ASBAX and TEPAX is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.39 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.34 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013 | 0.32 |
The correlation between ASBAX and TEPAX shifts across timeframes, from 0.32 (all time) to 0.46 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
ASBAX vs. TEPAX — Risk / Return Rank
ASBAX
TEPAX
ASBAX vs. TEPAX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds Short-Term Bond Fund of America (ASBAX) and American Funds Tax-Exempt Preservation Portfolio (TEPAX). 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.
| ASBAX | TEPAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.88 | ||
| Sortino ratioReturn per unit of downside risk | -0.88 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.61 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.19 | 1.85 | +0.35 |
| Martin ratioReturn relative to average drawdown | 7.75 | 5.31 | +2.44 |
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Drawdowns
ASBAX vs. TEPAX - Drawdown Comparison
The maximum ASBAX drawdown since its inception was -6.29%, smaller than the maximum TEPAX drawdown of -7.13%. Use the drawdown chart below to compare losses from any high point for ASBAX and TEPAX.
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Drawdown Indicators
| ASBAX | TEPAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.29% | -7.13% | +0.84% |
Max Drawdown (1Y)Largest decline over 1 year | -1.24% | -1.82% | +0.58% |
Max Drawdown (3Y)Largest decline over 3 years | -1.24% | -2.23% | +0.99% |
Max Drawdown (5Y)Largest decline over 5 years | -6.03% | -7.12% | +1.09% |
Max Drawdown (10Y)Largest decline over 10 years | -6.29% | -7.13% | +0.84% |
Current DrawdownCurrent decline from peak | -0.34% | -0.69% | +0.35% |
Average DrawdownAverage peak-to-trough decline | -0.68% | -1.24% | +0.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.35% | 0.63% | -0.28% |
Volatility
ASBAX vs. TEPAX - Volatility Comparison
American Funds Short-Term Bond Fund of America (ASBAX) has a higher volatility of 0.58% compared to American Funds Tax-Exempt Preservation Portfolio (TEPAX) at 0.35%. This indicates that ASBAX's price experiences larger fluctuations and is considered to be riskier than TEPAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ASBAX | TEPAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.58% | 0.35% | +0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 1.43% | 1.15% | +0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.85% | 1.43% | +0.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.25% | 1.94% | +0.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.84% | 2.06% | -0.22% |
ASBAX vs. TEPAX - Expense Ratio Comparison
ASBAX has a 0.66% expense ratio, which is higher than TEPAX's 0.34% expense ratio.
Dividends
ASBAX vs. TEPAX - Dividend Comparison
ASBAX's dividend yield for the trailing twelve months is around 3.75%, more than TEPAX's 2.37% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASBAX American Funds Short-Term Bond Fund of America | 3.75% | 3.87% | 3.99% | 2.88% | 1.02% | 0.42% | 2.08% | 1.66% | 1.70% | 1.21% | 0.83% | 1.21% |
TEPAX American Funds Tax-Exempt Preservation Portfolio | 2.37% | 2.39% | 2.44% | 1.96% | 1.11% | 0.87% | 1.44% | 1.79% | 1.72% | 1.79% | 2.22% | 2.36% |
Frequently Asked Questions
ASBAX and TEPAX have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ASBAX has higher volatility (0.58%) compared to TEPAX (0.35%). In terms of maximum drawdown, ASBAX dropped -6.29% vs TEPAX's -7.13%.
TEPAX currently has the higher Sharpe Ratio (2.36 vs 1.48), 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.
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