CATF ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
The American Century California Municipal Bond ETF (CATF) is an actively managed bond product that aims to deliver income exempt from both federal and state taxes. With monthly muni bond distributions, an after-tax return outlook, and interest rate and regional concentration risks to weigh, it is worth a look for California investors in high tax brackets.
SubscribeWhat Is the American Century California Municipal Bond ETF?
It is an actively managed bond ETF that invests mainly in tax-exempt municipal bonds issued by the state of California and its local governments and public agencies. The portfolio is built to target interest income exempt from federal tax and California state tax.
It suits California-resident investors in high tax brackets who seek after-tax interest income along with bond diversification.
The ETF is managed by American Century Investments using an active management approach.
How Does the American Century California Municipal Bond ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Active (does not track a benchmark) |
| Management Style | Active (manager selection) |
| Rebalancing Frequency | Ongoing (at manager discretion) |
| Distribution Frequency | Monthly |
| Total Expense Ratio | 0.25% |
The management team selects California-issued municipal bonds based on credit quality, maturity and tax characteristics, pursuing an active strategy aimed at tax-exempt interest income. Rather than replicating a specific index, it adjusts duration and holdings according to the interest rate and credit environment.
- Aims for double tax exemption from federal and California state taxes
- Credit and maturity selection through active management
American Century California Municipal Bond ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $166.6M, and the total expense ratio is 0.25% per year.
Unlike nationwide tax-exempt bond ETFs, it concentrates on California, which brings state tax exemption into scope. That is the structural difference.
American Century California Municipal Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeMunicipal bond prices move with the direction of market interest rates. Bond prices tend to come under pressure when rates rise and recover when rates fall. On an after-tax basis, the relative appeal can vary for investors in higher tax brackets.
Fund flows into municipal bond ETFs are driven by demand for tax benefits and by the interest rate cycle, and during rate-cut phases interest tends to shift toward bond products in general. California-focused products are also affected by changes in the regional tax environment.
American Century California Municipal Bond ETF Strengths and Weaknesses
The double tax exemption goal and active credit selection are its strengths, while regional and interest rate concentration risks are cited as weaknesses.
💪 Key Strengths
⚠️ Points to Watch
American Century California Municipal Bond ETF Alternative ETFs and Related Products
California municipal bond products such as CMF, shown in the table, are direct substitutes with a low-fee, passive character, while nationwide tax-exempt bond products such as VTEB and MUB are broad core products with lower regional concentration. Investors who prefer active management can also consider products such as JMUB and CGMU, which differ in the scope of state tax exemption, fees and management approach.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 MUB | iShares National Muni Bond ETF | $104.91 | +0.1% | $54.9B | 0.05% | 3.26% | -2.2% |
 VTEB | Vanguard Tax-Exempt Bond ETF | $49.24 | +0.2% | $53.5B | 0.03% | 3.46% | -2.3% |
 JMUB | JPMorgan Municipal ETF | $49.40 | +0.1% | $9.2B | 0.18% | 3.79% | -2.5% |
 CGMU | Capital Group Municipal Income ETF | $26.97 | +0.2% | $7.6B | 0.27% | 3.39% | -1.5% |
 CMF | iShares California Muni Bond ETF | $56.28 | +0.3% | $5.4B | 0.08% | 3.02% | -2.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| UAL | United Airlines Holdings Inc | 0.02% | $112.74 | +2.0% | $36.6B | 10.3 | - |
 OBT | Orange County Bancorp Inc | 0.02% | $39.50 | -0.9% | $529.7M | 10.6 | 1.72% |
 GDOT | Green Dot Corp | 0.00% | $12.24 | -1.6% | $697.5M | - | - |
American Century California Municipal Bond ETF Investor Checkpoints
Here are the points to review before investing in CATF. Because a California municipal bond ETF requires weighing tax benefits, interest rate sensitivity and regional concentration risk together, it is important to confirm in advance whether the tax treatment applies based on your state of residence, as well as the characteristics of the bonds.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cost level of active management | Needs verification |
| 🏛️ Tax Benefits | Whether federal and state tax exemption applies | Check based on residence |
| 📉 Interest Rate Sensitivity | Duration and interest rate direction | Mind bond characteristics |
| 📍 Regional Concentration | Share of California-issued bonds | Regional bias present |
Rising interest rates and changes in California's fiscal and credit environment are the main risk factors. Even for a bond product, a sharp spike in market interest rates can cause short-term losses through a decline in underlying asset prices.
It is worth considering as a way for high-bracket California investors to manage after-tax bond returns. To reduce regional concentration, compare it with a nationwide tax-exempt bond ETF, and for low-fee California exposure, compare it with CMF.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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