LTXFX

About LTXFX

American Funds Limited Term Tax-Exempt Bond Fund Class F-1 is an open-end municipal bond fund designed to provide federally tax-exempt current income while seeking capital preservation. It primarily invests in state, municipal, and public authority bonds rated in the top four categories, with a mandate to keep at least 65% of assets in A-/A3 or better securities, and targets a dollar-weighted average effective maturity between three and ten years. The portfolio is predominantly U.S. municipal debt, with a short-intermediate interest-rate profile reflected in an effective duration of about 3.7–3.9 years, aiming to balance rate sensitivity and income stability. The fund distributes income monthly and has a long operating history under the Capital Group fixed income platform, with assets in the mid-single-digit billions and hundreds of issuers for diversification. As part of the Muni National Short category, it emphasizes revenue bonds alongside general obligation exposure, positioning it as a core municipal allocation for investors seeking tax-advantaged income within shorter to intermediate maturities.