ABALX vs. VSMGX

Last updated Aug 1, 2026

ABALX (American Funds American Balanced Fund Class A) and VSMGX (Vanguard LifeStrategy 60/40 Fund) are both Diversified Portfolio funds. Over the past 10 years, ABALX returned 9.71%/yr vs 8.45%/yr for VSMGX. Their correlation of 0.89 means they have usually moved in the same direction. ABALX charges 0.56%/yr vs 0.10%/yr for VSMGX.

Performance

ABALX vs. VSMGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund Class A (ABALX) and Vanguard LifeStrategy 60/40 Fund (VSMGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ABALX achieves a 8.24% return, which is significantly higher than VSMGX's 6.60% return. Over the past 10 years, ABALX has outperformed VSMGX with an annualized return of 9.71%, while VSMGX has yielded a comparatively lower 8.45% annualized return.

ABALX

• 1D: 1.10%
• 1M: -0.96%
• 6M: 5.45%
• YTD: 8.24%
• 1Y: 18.37%
• 3Y*: 15.27%
• 5Y*: 8.96%
• 10Y*: 9.71%
• ALL TIME*: 8.61%

VSMGX

• 1D: 1.30%
• 1M: -0.57%
• 6M: 4.42%
• YTD: 6.60%
• 1Y: 14.79%
• 3Y*: 13.94%
• 5Y*: 7.18%
• 10Y*: 8.45%
• ALL TIME*: 7.81%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ABALX American Funds American Balanced Fund Class A	$0.00	$0.00	$0.00
VSMGX Vanguard LifeStrategy 60/40 Fund	$0.00	$0.00	$0.00

ABALX vs. VSMGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ABALX American Funds American Balanced Fund Class A	8.24%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%
VSMGX Vanguard LifeStrategy 60/40 Fund	6.60%	16.26%	15.03%	15.70%	-16.01%	10.08%	13.59%	19.37%	-4.91%	13.66%

Correlation

The correlation between ABALX and VSMGX is 0.95, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.95
Correlation (All Time) Calculated using the full available price history since Sep 30, 1994	0.89

The correlation between ABALX and VSMGX has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

Return for Risk

ABALX vs. VSMGX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ABALX

ABALX Risk / Return Rank: 79
ABALX Sharpe Ratio Rank: 79
ABALX Sortino Ratio Rank: 77
ABALX Omega Ratio Rank: 77
ABALX Calmar Ratio Rank: 77
ABALX Martin Ratio Rank: 85

VSMGX

VSMGX Risk / Return Rank: 68
VSMGX Sharpe Ratio Rank: 68
VSMGX Sortino Ratio Rank: 66
VSMGX Omega Ratio Rank: 67
VSMGX Calmar Ratio Rank: 66
VSMGX Martin Ratio Rank: 74

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ABALX vs. VSMGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class A (ABALX) and Vanguard LifeStrategy 60/40 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ABALX	VSMGX	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.54	+0.29
Sortino ratio: Return per unit of downside risk	2.58	2.20	+0.38
Omega ratio: Gain probability vs. loss probability	1.34	1.28	+0.05
Calmar ratio: Return relative to maximum drawdown	2.46	2.10	+0.36
Martin ratio: Return relative to average drawdown	10.47	8.66	+1.82

ABALX vs. VSMGX - Sharpe Ratio Comparison

The current ABALX Sharpe Ratio is 1.83, which is comparable to the VSMGX Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of ABALX and VSMGX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ABALX vs. VSMGX - Drawdown Comparison

The maximum ABALX drawdown since its inception was -40.20%, 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.

Drawdown Indicators

	ABALX	VSMGX	Difference
Max Drawdown Largest peak-to-trough decline	-40.20%	-41.13%	+0.93%
Max Drawdown (1Y) Largest decline over 1 year	-7.03%	-6.64%	-0.39%
Max Drawdown (3Y) Largest decline over 3 years	-10.68%	-9.62%	-1.06%
Max Drawdown (5Y) Largest decline over 5 years	-18.76%	-22.29%	+3.53%
Max Drawdown (10Y) Largest decline over 10 years	-22.34%	-22.43%	+0.09%
Current Drawdown Current decline from peak	-1.68%	-1.52%	-0.16%
Average Drawdown Average peak-to-trough decline	-3.84%	-4.82%	+0.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.65%	1.61%	+0.04%

Volatility

ABALX vs. VSMGX - Volatility Comparison

The current volatility for American Funds American Balanced Fund Class A (ABALX) is 2.36%, while Vanguard LifeStrategy 60/40 Fund (VSMGX) has a volatility of 2.73%. 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.

Volatility by Period

	ABALX	VSMGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.36%	2.73%	-0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.39%	7.65%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	9.42%	9.05%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.60%	10.32%	+0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.70%	10.37%	+0.33%

ABALX vs. VSMGX - Expense Ratio Comparison

ABALX has a 0.56% expense ratio, which is higher than VSMGX's 0.10% expense ratio.

Dividends

ABALX vs. VSMGX - Dividend Comparison

ABALX's dividend yield for the trailing twelve months is around 7.20%, more than VSMGX's 4.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.20%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
VSMGX Vanguard LifeStrategy 60/40 Fund	4.94%	5.25%	11.49%	4.01%	2.66%	3.86%	3.46%	2.52%	4.11%	1.09%	2.26%	3.89%

Frequently Asked Questions

Can I hold both ABALX and VSMGX in my portfolio?

With a correlation of 0.95, ABALX and VSMGX 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.

Which is riskier, ABALX or VSMGX?

VSMGX has higher volatility (2.73%) compared to ABALX (2.36%). In terms of maximum drawdown, ABALX dropped -40.20% vs VSMGX's -41.13%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (1.83 vs 1.54), 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.