But you know that. So here's a query: What is the typical growth rate of these funds' cash distributions since just before the Federal Reserve threw the interest rate switch in March? The answer: 94%. Monthly payouts from the 10 largest such funds are riding a rocket ship, nearly doubling already, with more raises to come.
American Funds' Intermediate Bond Fund of America (symbol FIFBX), a short-term fund despite its name, tops the list with a 246% boost since early March. Annualizing its latest monthly payment works out to a 4.2% yield-about where economists and fixed-income fund managers expect the Fed to drive short-term rates over the next several months before pausing to assess the effects on the economy, inflation and investor moods.
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