Tax-Exempt High Yield Bond Fund
RUSSELL INVESTMENT CO · 4 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Tax-Exempt High Yield Bond Fund is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- High yield
- Rate sensitivity
- Intermediate duration
Fund profile
As filed in the prospectus · 2026 Q1
The Fund seeks to provide a high level of current income that is exempt from federal tax,
The fund invests at least 80% of assets in federal tax-exempt municipal debt, with a substantial portion in medium- to low-quality securities including those rated below investment grade or unrated equivalents of comparable quality; up to 20% may be in taxable municipal debt. A multi-manager approach oversees security selection across assigned asset pools. Because the fund targets high-yield and unrated municipal securities, credit risk is material to returns.
| Share class | Gross | Net |
|---|---|---|
| RTHAX | 1.01% | 0.89% |
| RTHCX | 1.76% | 1.64% |
| RTHSX | 0.76% | 0.61% |
| RHYTX | 0.76% | 0.54% |
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Portfolio turnover 22.00% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 96.15% |
| Cash & short-term | 2.24% |
| Derivatives | 0.06% |
Derivatives are shown at market value, not notional exposure.
Latest quarter
What changed since the fund's previous filing
Largest new: New York State Dormitory Authority, Salt River Project Agricultural Improvement & Power District, City of Orlando FL, City of New York NY, County of Harris TX Toll Road Revenue, Weatherford College of the Parker County Junior College District, Arkansas Development Finance Authority, City of Baltimore MD
Largest exited: San Antonio Water System, Liberty Hill Independent School District, City of New York NY, New York City Municipal Water Finance Authority, Salt River Project Agricultural Improvement & Power District, New York State Dormitory Authority, New York City Transitional Finance Authority Future Tax Secured Revenue, Massachusetts Development Finance Agency
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +5.36% | -49.40% | -81.46% | 4.71% | -52.51% | |
| +4.56% | +10.31% | -0.53% | 4.71% | -7.17% | |
| +5.69% | +13.87% | +4.80% | 4.69% | -6.91% | |
| +5.65% | +14.09% | +5.07% | 4.75% | -6.89% |
These classes hold the same portfolio, so the 86.53pp spread over 5 years is the cost difference between them — roughly 17.31pp a year — not a difference in what they own.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 89.4% |
| Zero-coupon or unclassified | 6.1% |
| Floating rate | 4.5% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.4% |
| 1-3y | 1.5% |
| 3-5y | 1.8% |
| 5-10y | 7.2% |
| 10y+ | 89.1% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Credit spreads | 52% |
| Interest rates | 48% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| High yield | +3.91 yr |
| Investment grade | +3.53 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.03 yr | 0% |
| 1 yr | 0.35 yr | 5% |
| 5 yr | 1.41 yr | 20% |
| 10 yr | 3.27 yr | 48% |
| 30 yr | 1.82 yr | 26% |
| 3 mo | 0.02 yr | 0% |
| 1 yr | 0.37 yr | 5% |
| 5 yr | 1.46 yr | 20% |
| 10 yr | 3.71 yr | 50% |
| 30 yr | 1.88 yr | 25% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.03 | +0.01 | +0.01 | $2.1k | $3.1k |
| 1 yr | +0.35 | +0.15 | +0.22 | $37.4k | $53.5k |
| 5 yr | +1.41 | +0.66 | +0.80 | $163.5k | $197.9k |
| 10 yr | +3.27 | +1.80 | +1.91 | $444.4k | $470.9k |
| 30 yr | +1.82 | +0.91 | +0.97 | $224.5k | $238.8k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | Russell Investments Trust Company Commingled Employee Benefit Funds Trust-U.S. Cash Management Fund | 2.24% | $55.18M | — |
| — | Buckeye Tobacco Settlement Financing Authority5.00% · due 2055-06-01 | 1.11% | $27.28M | — |
| — | Puerto Rico Sales Tax Financing Corp Sales Tax Revenue0.00% · due 2046-07-01 | 0.93% | $22.89M | — |
| — | Puerto Rico Sales Tax Financing Corp Sales Tax Revenue5.00% · due 2058-07-01 | 0.90% | $22.21M | — |
| — | Public Finance Authority6.50% · due 2065-12-31 | 0.55% | $13.68M | — |
| — | New York State Dormitory Authority5.25% · due 2056-03-15 | 0.51% | $12.64M | — |
| — | Puerto Rico Commonwealth Aqueduct & Sewer Authority5.00% · due 2047-07-01 | 0.49% | $12.14M | — |
| — | New York Liberty Development Corp5.00% · due 2044-11-15 | 0.46% | $11.26M | — |
| — | Salt River Project Agricultural Improvement & Power District5.25% · due 2055-01-01 | 0.44% | $10.87M | — |
| — | San Francisco City & County Airport Comm-San Francisco International Airport5.50% · due 2055-05-01 | 0.44% | $10.81M | — |
Top 10 positions are 8.06% of net assets, top 25 13.49%, across 1.1K issuers.
See more of this fund's book
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