ABALX vs. VSMGX
Compare and contrast key facts about American Funds American Balanced Fund Class A (ABALX) and Vanguard LifeStrategy Moderate Growth Fund (VSMGX).
ABALX is managed by American Funds. It was launched on Jul 26, 1975. VSMGX is managed by Vanguard. It was launched on Sep 30, 1994.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABALX or VSMGX.
Key characteristics
| ABALX | VSMGX | |
|---|---|---|
| YTD Return | 14.47% | 11.33% |
| 1Y Return | 25.16% | 21.82% |
| 3Y Return (Ann) | 6.48% | 3.67% |
| 5Y Return (Ann) | 9.45% | 7.44% |
| 10Y Return (Ann) | 8.79% | 6.98% |
| Sharpe Ratio | 3.02 | 2.79 |
| Sortino Ratio | 4.33 | 4.05 |
| Omega Ratio | 1.57 | 1.53 |
| Calmar Ratio | 2.36 | 1.53 |
| Martin Ratio | 20.22 | 17.36 |
| Ulcer Index | 1.30% | 1.29% |
| Daily Std Dev | 8.68% | 8.05% |
| Max Drawdown | -39.31% | -41.13% |
| Current Drawdown | -0.14% | -0.86% |
Correlation
The correlation between ABALX and VSMGX is 0.92, 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. VSMGX - Performance Comparison
In the year-to-date period, ABALX achieves a 14.47% return, which is significantly higher than VSMGX's 11.33% return. Over the past 10 years, ABALX has outperformed VSMGX with an annualized return of 8.79%, while VSMGX has yielded a comparatively lower 6.98% 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. VSMGX - Expense Ratio Comparison
ABALX has a 0.56% expense ratio, which is higher than VSMGX's 0.13% expense ratio.
Risk-Adjusted Performance
ABALX vs. VSMGX - 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 LifeStrategy Moderate Growth Fund (VSMGX). 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. VSMGX - Dividend Comparison
ABALX's dividend yield for the trailing twelve months is around 2.16%, less than VSMGX's 3.85% 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% |
VSMGX Vanguard LifeStrategy Moderate Growth Fund | 3.85% | 4.02% | 2.66% | 3.86% | 3.46% | 2.52% | 4.11% | 2.31% | 2.26% | 3.89% | 2.75% | 2.21% |
Drawdowns
ABALX vs. VSMGX - Drawdown Comparison
The maximum ABALX drawdown since its inception was -39.31%, roughly equal to the maximum VSMGX drawdown of -41.13%. Use the drawdown chart below to compare losses from any high point for ABALX and VSMGX. For additional features, visit the drawdowns tool.
Volatility
ABALX vs. VSMGX - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class A (ABALX) is 1.81%, while Vanguard LifeStrategy Moderate Growth Fund (VSMGX) has a volatility of 1.91%. This indicates that ABALX experiences smaller price fluctuations and is considered to be less risky than VSMGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.