FKTFX vs. TAFTX

Last updated Aug 5, 2026

FKTFX (Franklin California Tax Free Income Fund) and TAFTX (American Funds Tax-Exempt Fund of California) are both Municipal Bonds funds. Over the past 10 years, FKTFX returned 2.02%/yr vs 1.82%/yr for TAFTX. Their 0.72 correlation means they have sometimes moved together and sometimes differently. FKTFX charges 0.62%/yr vs 0.57%/yr for TAFTX.

Performance

FKTFX vs. TAFTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin California Tax Free Income Fund (FKTFX) 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, FKTFX achieves a 0.39% return, which is significantly higher than TAFTX's 0.08% return. Over the past 10 years, FKTFX has outperformed TAFTX with an annualized return of 2.02%, while TAFTX has yielded a comparatively lower 1.82% annualized return.

FKTFX

• 1D: 0.00%
• 1M: -2.34%
• 6M: -0.37%
• YTD: 0.39%
• 1Y: 5.44%
• 3Y*: 4.10%
• 5Y*: 0.44%
• 10Y*: 2.02%
• ALL TIME*: 3.36%

TAFTX

• 1D: 0.00%
• 1M: -2.19%
• 6M: -0.53%
• YTD: 0.08%
• 1Y: 4.93%
• 3Y*: 3.76%
• 5Y*: 0.39%
• 10Y*: 1.82%
• ALL TIME*: 4.86%

*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)
FKTFX Franklin California Tax Free Income Fund	$0.00	$0.00	$0.00
TAFTX American Funds Tax-Exempt Fund of California	$0.00	$0.00	$0.00

FKTFX vs. TAFTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FKTFX Franklin California Tax Free Income Fund	0.39%	4.38%	2.78%	6.25%	-10.31%	1.80%	5.29%	9.73%	0.31%	6.08%
TAFTX American Funds Tax-Exempt Fund of California	0.08%	4.73%	2.31%	5.76%	-9.78%	1.88%	4.43%	7.33%	0.71%	5.96%

Correlation

The correlation between FKTFX and TAFTX is 0.87, 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.	0.87
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.	0.88
Correlation (All Time) Calculated using the full available price history since Oct 28, 1986	0.72

The correlation between FKTFX and TAFTX shifts across timeframes, from 0.72 (all time) to 0.92 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

FKTFX vs. TAFTX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FKTFX

FKTFX Risk / Return Rank: 60
FKTFX Sharpe Ratio Rank: 67
FKTFX Sortino Ratio Rank: 71
FKTFX Omega Ratio Rank: 87
FKTFX Calmar Ratio Rank: 38
FKTFX Martin Ratio Rank: 34

TAFTX

TAFTX Risk / Return Rank: 58
TAFTX Sharpe Ratio Rank: 69
TAFTX Sortino Ratio Rank: 72
TAFTX Omega Ratio Rank: 82
TAFTX Calmar Ratio Rank: 35
TAFTX Martin Ratio Rank: 33

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FKTFX vs. TAFTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin California Tax Free Income Fund (FKTFX) 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.

	FKTFX	TAFTX	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.79	-0.04
Sortino ratio: Return per unit of downside risk	2.60	2.63	-0.03
Omega ratio: Gain probability vs. loss probability	1.44	1.41	+0.04
Calmar ratio: Return relative to maximum drawdown	1.76	1.67	+0.09
Martin ratio: Return relative to average drawdown	5.52	5.45	+0.07

FKTFX vs. TAFTX - Sharpe Ratio Comparison

The current FKTFX Sharpe Ratio is 1.75, which is comparable to the TAFTX Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of FKTFX 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

FKTFX vs. TAFTX - Drawdown Comparison

The maximum FKTFX drawdown since its inception was -31.16%, which is greater than TAFTX's maximum drawdown of -18.83%. Use the drawdown chart below to compare losses from any high point for FKTFX and TAFTX.

Drawdown Indicators

	FKTFX	TAFTX	Difference
Max Drawdown Largest peak-to-trough decline	-31.16%	-18.83%	-12.33%
Max Drawdown (1Y) Largest decline over 1 year	-3.20%	-3.05%	-0.15%
Max Drawdown (3Y) Largest decline over 3 years	-5.49%	-5.34%	-0.15%
Max Drawdown (5Y) Largest decline over 5 years	-16.00%	-14.73%	-1.27%
Max Drawdown (10Y) Largest decline over 10 years	-16.21%	-14.82%	-1.39%
Current Drawdown Current decline from peak	-2.34%	-2.19%	-0.15%
Average Drawdown Average peak-to-trough decline	-6.08%	-1.93%	-4.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.02%	0.93%	+0.09%

Volatility

FKTFX vs. TAFTX - Volatility Comparison

Franklin California Tax Free Income Fund (FKTFX) has a higher volatility of 1.03% compared to American Funds Tax-Exempt Fund of California (TAFTX) at 0.92%. This indicates that FKTFX'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

	FKTFX	TAFTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.03%	0.92%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	2.62%	2.33%	+0.29%
Volatility (1Y) Calculated over the trailing 1-year period	3.23%	2.84%	+0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.53%	4.07%	+0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.77%	3.93%	+0.84%

FKTFX vs. TAFTX - Expense Ratio Comparison

FKTFX has a 0.62% expense ratio, which is higher than TAFTX's 0.57% expense ratio.

Dividends

FKTFX vs. TAFTX - Dividend Comparison

FKTFX's dividend yield for the trailing twelve months is around 3.52%, more than TAFTX's 2.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FKTFX Franklin California Tax Free Income Fund	3.52%	4.96%	4.22%	3.20%	3.29%	2.68%	2.91%	3.85%	3.58%	3.58%	3.65%	3.93%
TAFTX American Funds Tax-Exempt Fund of California	2.83%	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 FKTFX and TAFTX in my portfolio?

FKTFX and TAFTX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FKTFX or TAFTX?

FKTFX has higher volatility (1.03%) compared to TAFTX (0.92%). In terms of maximum drawdown, FKTFX dropped -31.16% vs TAFTX's -18.83%.

Which has better risk-adjusted returns?

TAFTX currently has the higher Sharpe Ratio (1.79 vs 1.75), 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.