ABALX vs. VEMAX
Compare and contrast key facts about American Funds American Balanced Fund Class A (ABALX) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX).
ABALX is managed by American Funds. It was launched on Jul 26, 1975. VEMAX is managed by Vanguard. It was launched on Jun 23, 2006.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABALX or VEMAX.
Key characteristics
| ABALX | VEMAX | |
|---|---|---|
| YTD Return | 2.53% | 2.92% |
| 1Y Return | 13.22% | 10.52% |
| 3Y Return (Ann) | 3.65% | -4.07% |
| 5Y Return (Ann) | 7.45% | 2.48% |
| 10Y Return (Ann) | 7.73% | 3.18% |
| Sharpe Ratio | 1.55 | 0.80 |
| Daily Std Dev | 8.10% | 11.78% |
| Max Drawdown | -39.31% | -66.45% |
| Current Drawdown | -3.43% | -17.00% |
Correlation
The correlation between ABALX and VEMAX is 0.73, 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. VEMAX - Performance Comparison
In the year-to-date period, ABALX achieves a 2.53% return, which is significantly lower than VEMAX's 2.92% return. Over the past 10 years, ABALX has outperformed VEMAX with an annualized return of 7.73%, while VEMAX has yielded a comparatively lower 3.18% 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. VEMAX - Expense Ratio Comparison
ABALX has a 0.56% expense ratio, which is higher than VEMAX's 0.14% expense ratio.
Risk-Adjusted Performance
ABALX vs. VEMAX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class A (ABALX) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). 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. VEMAX - Dividend Comparison
ABALX's dividend yield for the trailing twelve months is around 2.34%, less than VEMAX's 3.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ABALX American Funds American Balanced Fund Class A | 2.34% | 2.36% | 2.30% | 4.30% | 4.35% | 4.00% | 6.17% | 5.37% | 4.21% | 5.97% | 8.09% | 1.54% |
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares | 3.39% | 3.46% | 4.05% | 2.57% | 1.87% | 3.20% | 2.85% | 2.31% | 2.51% | 3.25% | 2.86% | 2.76% |
Drawdowns
ABALX vs. VEMAX - Drawdown Comparison
The maximum ABALX drawdown since its inception was -39.31%, smaller than the maximum VEMAX drawdown of -66.45%. Use the drawdown chart below to compare losses from any high point for ABALX and VEMAX. For additional features, visit the drawdowns tool.
Volatility
ABALX vs. VEMAX - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class A (ABALX) is 2.70%, while Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) has a volatility of 3.39%. This indicates that ABALX experiences smaller price fluctuations and is considered to be less risky than VEMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.