AAFTX vs. ABALX
AAFTX (American Funds 2035 Target Date Retirement Fund) and ABALX (American Funds American Balanced Fund Class A) are both mutual funds - AAFTX is a Target Retirement Date fund managed by American Funds, while ABALX is a Diversified Portfolio fund actively managed by American Funds. Over the past 10 years, AAFTX returned 10.36%/yr vs 10.07%/yr for ABALX. With a 0.96 correlation, they move nearly in lockstep. AAFTX charges 0.33%/yr vs 0.56%/yr for ABALX.
Performance
AAFTX vs. ABALX - Performance Comparison
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Returns By Period
In the year-to-date period, AAFTX achieves a 6.62% return, which is significantly lower than ABALX's 9.47% return. Both investments have delivered pretty close results over the past 10 years, with AAFTX having a 10.36% annualized return and ABALX not far behind at 10.07%.
AAFTX
- 1D
- -0.45%
- 1M
- 2.16%
- YTD
- 6.62%
- 6M
- 7.08%
- 1Y
- 17.54%
- 3Y*
- 15.07%
- 5Y*
- 7.56%
- 10Y*
- 10.36%
ABALX
- 1D
- -0.46%
- 1M
- 2.87%
- YTD
- 9.47%
- 6M
- 10.29%
- 1Y
- 23.98%
- 3Y*
- 17.24%
- 5Y*
- 9.43%
- 10Y*
- 10.07%
AAFTX vs. ABALX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 6.62% | 16.77% | 12.40% | 16.50% | -16.53% | 15.20% | 17.23% | 22.81% | -5.48% | 20.68% |
ABALX American Funds American Balanced Fund Class A | 9.47% | 18.45% | 14.63% | 13.65% | -12.13% | 15.75% | 10.85% | 18.60% | -3.35% | 14.69% |
Correlation
The correlation between AAFTX and ABALX is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2007 | 0.96 |
The correlation between AAFTX and ABALX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.
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Return for Risk
AAFTX vs. ABALX — Risk / Return Rank
AAFTX
ABALX
AAFTX vs. ABALX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2035 Target Date Retirement Fund (AAFTX) and American Funds American Balanced Fund Class A (ABALX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| AAFTX | ABALX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.68 | ||
| Sortino ratioReturn per unit of downside risk | -0.89 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.53 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.58 | 3.49 | -0.91 |
| Martin ratioReturn relative to average drawdown | 11.53 | 15.74 | -4.21 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AAFTX | ABALX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.13 | 2.81 | -0.68 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.66 | 0.90 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.82 | 0.95 | -0.13 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.81 | -0.29 |
Drawdowns
AAFTX vs. ABALX - Drawdown Comparison
The maximum AAFTX drawdown since its inception was -49.89%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for AAFTX and ABALX.
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Drawdown Indicators
| AAFTX | ABALX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.89% | -40.20% | -9.69% |
Max Drawdown (1Y)Largest decline over 1 year | -6.99% | -7.03% | +0.04% |
Max Drawdown (3Y)Largest decline over 3 years | -10.58% | -10.68% | +0.10% |
Max Drawdown (5Y)Largest decline over 5 years | -23.31% | -18.76% | -4.55% |
Max Drawdown (10Y)Largest decline over 10 years | -26.72% | -22.34% | -4.38% |
Current DrawdownCurrent decline from peak | -0.45% | -0.46% | +0.01% |
Average DrawdownAverage peak-to-trough decline | -6.80% | -3.85% | -2.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.56% | 1.55% | +0.01% |
Volatility
AAFTX vs. ABALX - Volatility Comparison
American Funds 2035 Target Date Retirement Fund (AAFTX) and American Funds American Balanced Fund Class A (ABALX) have volatilities of 2.58% and 2.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAFTX | ABALX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.58% | 2.71% | -0.13% |
Volatility (6M)Calculated over the trailing 6-month period | 6.74% | 6.82% | -0.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.48% | 8.73% | -0.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.44% | 10.49% | +0.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.71% | 10.67% | +2.04% |
AAFTX vs. ABALX - Expense Ratio Comparison
AAFTX has a 0.33% expense ratio, which is lower than ABALX's 0.56% expense ratio.
Dividends
AAFTX vs. ABALX - Dividend Comparison
AAFTX's dividend yield for the trailing twelve months is around 5.62%, less than ABALX's 7.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 5.62% | 5.99% | 4.26% | 2.61% | 5.43% | 5.25% | 3.53% | 4.21% | 4.80% | 2.38% | 3.52% | 5.63% |
ABALX American Funds American Balanced Fund Class A | 7.58% | 8.27% | 6.87% | 2.05% | 2.30% | 4.30% | 4.35% | 3.49% | 5.49% | 4.72% | 4.24% | 5.60% |
Frequently Asked Questions
With a correlation of 0.97, AAFTX and ABALX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
ABALX has higher volatility (2.71%) compared to AAFTX (2.58%). In terms of maximum drawdown, AAFTX dropped -49.89% vs ABALX's -40.20%.
ABALX currently has the higher Sharpe Ratio (2.81 vs 2.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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