ABALX vs. SPY
Compare and contrast key facts about American Funds American Balanced Fund Class A (ABALX) and SPDR S&P 500 ETF (SPY).
ABALX is managed by American Funds. It was launched on Jul 26, 1975. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABALX or SPY.
Key characteristics
| ABALX | SPY | |
|---|---|---|
| YTD Return | 14.47% | 21.73% |
| 1Y Return | 25.16% | 34.38% |
| 3Y Return (Ann) | 6.48% | 11.06% |
| 5Y Return (Ann) | 9.45% | 16.18% |
| 10Y Return (Ann) | 8.79% | 13.66% |
| Sharpe Ratio | 3.02 | 2.84 |
| Sortino Ratio | 4.33 | 3.79 |
| Omega Ratio | 1.57 | 1.52 |
| Calmar Ratio | 2.36 | 3.02 |
| Martin Ratio | 20.22 | 17.54 |
| Ulcer Index | 1.30% | 2.01% |
| Daily Std Dev | 8.68% | 12.41% |
| Max Drawdown | -39.31% | -55.19% |
| Current Drawdown | -0.14% | -0.10% |
Correlation
The correlation between ABALX and SPY is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ABALX vs. SPY - Performance Comparison
In the year-to-date period, ABALX achieves a 14.47% return, which is significantly lower than SPY's 21.73% return. Over the past 10 years, ABALX has underperformed SPY with an annualized return of 8.79%, while SPY has yielded a comparatively higher 13.66% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ABALX vs. SPY - Expense Ratio Comparison
ABALX has a 0.56% expense ratio, which is higher than SPY's 0.09% expense ratio.
Risk-Adjusted Performance
ABALX vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class A (ABALX) and SPDR S&P 500 ETF (SPY). 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.
Dividends
ABALX vs. SPY - Dividend Comparison
ABALX's dividend yield for the trailing twelve months is around 2.16%, more than SPY's 1.22% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ABALX American Funds American Balanced Fund Class A | 2.16% | 2.36% | 2.30% | 4.30% | 4.35% | 4.00% | 6.17% | 5.37% | 4.21% | 5.97% | 8.09% | 1.54% |
SPY SPDR S&P 500 ETF | 1.22% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
ABALX vs. SPY - Drawdown Comparison
The maximum ABALX drawdown since its inception was -39.31%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for ABALX and SPY. For additional features, visit the drawdowns tool.
Volatility
ABALX vs. SPY - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class A (ABALX) is 1.81%, while SPDR S&P 500 ETF (SPY) has a volatility of 2.88%. This indicates that ABALX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.