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American Funds American Balanced Fund (BALFX) Diversifiers

Mutual Fund · Currency in USD · Last updated Jun 3, 2026

The fund uses a balanced approach to invest in a broad range of securities, including common stocks and investment-grade bonds. It also invests in securities issued and guaranteed by the U.S. government and by federal agencies and instrumentalities. In addition, the fund may invest a portion of its assets in common stocks, most of which have a history of paying dividends, bonds and other securities of issuers domiciled outside the United States.

Looking to diversify beyond BALFX? The mutual funds below have the lowest correlation with BALFX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from BALFX.

Best Diversifiers for BALFX

4 mutual funds have low correlation with BALFX (below 0.3), 1 of which are negatively correlated. The least correlated is SEI Institutional Managed Trust Multi-Asset Inflation Managed Fund (SIFAX) (Diversified Portfolio) with a 1Y correlation of -0.16, down from 0.17 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
SIFAX
SEI Institutional Managed Trust Multi-Asset Inflat...-0.160.030.17
76
Diversified PortfolioBALFX vs SIFAX
MCSFX
MFS Commodity Strategy Fund0.020.150.22
77
CommoditiesBALFX vs MCSFX
MHELX
MH Elite Small Cap Fund of Funds Fund0.070.190.49
63
Diversified PortfolioBALFX vs MHELX
CCLFX
Cliffwater Corporate Lending Fund0.070.110.08
100
High Yield BondsBALFX vs CCLFX
FCSRX
Fidelity Advisor Strategic Real Return Fund Class ...0.340.550.63
95
Diversified PortfolioBALFX vs FCSRX
See all 53 diversifiers for BALFX

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Low-Correlation Stock Ideas

If you're looking for individual stocks that move independently from BALFX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to BALFX and solid risk/return profiles. The least correlated is BigBear.ai Holdings, Inc. (BBAI) (Technology) with a 1Y correlation of 0.43, roughly unchanged from 0.41 over 3 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
BBAI
BigBear.ai Holdings, Inc.0.430.41—
52
Technology

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Diversification Analysis

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Analyze a portfolio with BALFX