2019: Are American Funds mutual funds available for Charles Schwab, Etrade and Fidelity Investments trading accounts customers?


If you’re looking for mutual funds from American Funds, there are some brokerage houses where you can find them, but not all brokers offer them. We’ve done all the research for you, and here are the results:


Fidelity

At Fidelity there are 166 American Funds mutual funds available for purchase. Adding 4 closed funds, there are a total of 170. The same list of 57 no-transaction-fee products is available.

As with the other two brokers, Fidelity offers a list of pre-screened funds that the broker’s investment advisors believe will go up higher than their peers. Called Fund Picks, there are 7 American Funds on the list.

One of these is TAIFX, the Tax-Advantaged Growth and Income Portfolio. It comes with no transaction fee and has only a 0.73% expense ratio. The minimum investment level is $2,500.

TAIFX invests in assets that are exempt from federal income tax. It also attempts to generate long-term capital gains. It is actually a fund of funds, which means it invests in other mutual funds. These are American Funds, and they have municipal bonds and other tax-exempt bonds. We also found dividend-paying stocks, including foreign stocks.



E*Trade

Using E*Trade’s screener, we found 132 securities from American Funds. More than 50 of them come with zero transaction fee, a great service from E*Trade.

The broker displays objective research on these funds from Morningstar. Some of them are rated five stars, the analyst’s highest grade. Others have two stars or no rating.

One really nice service on E*Trade’s fund profile page is the ability to switch between share classes for a specific fund. For example, when looking at the American Funds Short-Term Tax-Exempt Bond Fund, we found ASTEX, a class A fund with a transaction fee. But we were able to switch to FSTTX, which is the same fund with no load and no transaction fee.

E*Trade offers its customers an All-Star list of funds. They are expected to outperform their peers. We looked for American Funds on the list but didn’t find any.



Charles Schwab

At Charles Schwab, we also found investments from American Funds. However, the brokerage firm only provides 57 of them. These are the no-load, no-transaction-fee funds that E*Trade also provides. For some reason, Schwab doesn’t offer the transaction-fee funds from American.

One advantage of using Charles Schwab over E*Trade is the Schwab Report Card. This is a handy pdf document that can be downloaded free of charge. It displays vital fund information in an easy-to-read format.

Similar to E*Trade, Schwab offers a Select List of mutual funds. As with E*Trade’s funds, they are selected by investment professionals for their expected high returns relative to risk. Surprisingly, we found 20 American Funds on this list. It seems strange that there would be so many on one list but zero on the other.



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