ABALX vs. VOO
Compare and contrast key facts about American Funds American Balanced Fund Class A (ABALX) and Vanguard S&P 500 ETF (VOO).
ABALX is managed by American Funds. It was launched on Jul 26, 1975. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABALX or VOO.
Key characteristics
| ABALX | VOO | |
|---|---|---|
| YTD Return | 14.95% | 22.64% |
| 1Y Return | 25.17% | 34.74% |
| 3Y Return (Ann) | 6.62% | 11.37% |
| 5Y Return (Ann) | 9.43% | 16.16% |
| 10Y Return (Ann) | 8.84% | 13.81% |
| Sharpe Ratio | 2.97 | 2.84 |
| Sortino Ratio | 4.24 | 3.79 |
| Omega Ratio | 1.56 | 1.52 |
| Calmar Ratio | 2.31 | 3.05 |
| Martin Ratio | 19.76 | 17.66 |
| Ulcer Index | 1.30% | 2.01% |
| Daily Std Dev | 8.65% | 12.46% |
| Max Drawdown | -39.31% | -33.99% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between ABALX and VOO is 0.95, 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. VOO - Performance Comparison
In the year-to-date period, ABALX achieves a 14.95% return, which is significantly lower than VOO's 22.64% return. Over the past 10 years, ABALX has underperformed VOO with an annualized return of 8.84%, while VOO has yielded a comparatively higher 13.81% 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. VOO - Expense Ratio Comparison
ABALX has a 0.56% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
ABALX vs. VOO - 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 S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
ABALX's dividend yield for the trailing twelve months is around 2.16%, more than VOO's 1.28% 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% |
VOO Vanguard S&P 500 ETF | 1.28% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
ABALX vs. VOO - Drawdown Comparison
The maximum ABALX drawdown since its inception was -39.31%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for ABALX and VOO. For additional features, visit the drawdowns tool.
Volatility
ABALX vs. VOO - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class A (ABALX) is 1.83%, while Vanguard S&P 500 ETF (VOO) has a volatility of 2.95%. This indicates that ABALX experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.