ACAZX vs. AFMBX

Last updated Jun 5, 2026

ACAZX (Alger Capital Appreciation Fund Class Z) and AFMBX (American Funds American Balanced Fund Class F-3) are both mutual funds - ACAZX is a Large Cap Growth Equities fund managed by Alger, while AFMBX is a Diversified Portfolio fund managed by American Funds. Over the past 5 years, ACAZX returned 20.92%/yr vs 9.83%/yr for AFMBX. Their correlation of 0.83 suggests significant overlap in exposure. ACAZX charges 0.85%/yr vs 0.25%/yr for AFMBX.

Performance

ACAZX vs. AFMBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger Capital Appreciation Fund Class Z (ACAZX) and American Funds American Balanced Fund Class F-3 (AFMBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACAZX achieves a 14.21% return, which is significantly higher than AFMBX's 9.61% return.

ACAZX

• 1D: -1.29%
• 1M: 7.44%
• YTD: 14.21%
• 6M: 12.80%
• 1Y: 40.17%
• 3Y*: 43.03%
• 5Y*: 20.92%
• 10Y*: 21.42%

AFMBX

• 1D: -0.46%
• 1M: 2.89%
• YTD: 9.61%
• 6M: 10.46%
• 1Y: 24.36%
• 3Y*: 17.72%
• 5Y*: 9.83%
• 10Y*: —

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

ACAZX vs. AFMBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACAZX Alger Capital Appreciation Fund Class Z	14.21%	31.33%	69.38%	43.53%	-36.63%	18.48%	42.23%	33.63%	-0.61%	18.57%
AFMBX American Funds American Balanced Fund Class F-3	9.61%	18.82%	15.36%	13.89%	-11.83%	16.12%	11.17%	18.96%	-3.07%	10.06%

Correlation

The correlation between ACAZX and AFMBX is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (All Time) Calculated using the full available price history since Mar 16, 2017	0.83

The correlation between ACAZX and AFMBX has been stable across timeframes, ranging from 0.76 to 0.83 - a consistent structural relationship.

Return for Risk

ACAZX vs. AFMBX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ACAZX

ACAZX Risk / Return Rank: 38
ACAZX Sharpe Ratio Rank: 46
ACAZX Sortino Ratio Rank: 39
ACAZX Omega Ratio Rank: 38
ACAZX Calmar Ratio Rank: 35
ACAZX Martin Ratio Rank: 31

AFMBX

AFMBX Risk / Return Rank: 83
AFMBX Sharpe Ratio Rank: 87
AFMBX Sortino Ratio Rank: 83
AFMBX Omega Ratio Rank: 81
AFMBX Calmar Ratio Rank: 79
AFMBX Martin Ratio Rank: 85

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ACAZX vs. AFMBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger Capital Appreciation Fund Class Z (ACAZX) and American Funds American Balanced Fund Class F-3 (AFMBX). 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.

	ACAZX	AFMBX	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.85	-0.87
Sortino ratio: Return per unit of downside risk	2.59	3.99	-1.40
Omega ratio: Gain probability vs. loss probability	1.33	1.54	-0.21
Calmar ratio: Return relative to maximum drawdown	2.20	3.56	-1.37
Martin ratio: Return relative to average drawdown	7.11	16.10	-8.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ACAZX vs. AFMBX - Sharpe Ratio Comparison

The current ACAZX Sharpe Ratio is 1.99, which is lower than the AFMBX Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of ACAZX and AFMBX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ACAZX	AFMBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.99	2.85	-0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.94	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.95	-0.18

Drawdowns

ACAZX vs. AFMBX - Drawdown Comparison

The maximum ACAZX drawdown since its inception was -47.92%, which is greater than AFMBX's maximum drawdown of -22.34%. Use the drawdown chart below to compare losses from any high point for ACAZX and AFMBX.

Drawdown Indicators

	ACAZX	AFMBX	Difference
Max Drawdown Largest peak-to-trough decline	-47.92%	-22.34%	-25.58%
Max Drawdown (1Y) Largest decline over 1 year	-18.97%	-6.98%	-11.99%
Max Drawdown (3Y) Largest decline over 3 years	-27.72%	-10.64%	-17.08%
Max Drawdown (5Y) Largest decline over 5 years	-47.92%	-18.58%	-29.34%
Max Drawdown (10Y) Largest decline over 10 years	-47.92%	—	—
Current Drawdown Current decline from peak	-1.69%	-0.46%	-1.23%
Average Drawdown Average peak-to-trough decline	-8.34%	-3.20%	-5.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.85%	1.54%	+4.31%

Volatility

ACAZX vs. AFMBX - Volatility Comparison

Alger Capital Appreciation Fund Class Z (ACAZX) has a higher volatility of 5.24% compared to American Funds American Balanced Fund Class F-3 (AFMBX) at 2.71%. This indicates that ACAZX's price experiences larger fluctuations and is considered to be riskier than AFMBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACAZX	AFMBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	2.71%	+2.53%
Volatility (6M) Calculated over the trailing 6-month period	15.85%	6.81%	+9.04%
Volatility (1Y) Calculated over the trailing 1-year period	21.01%	8.73%	+12.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.98%	10.50%	+18.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.44%	11.14%	+14.30%

ACAZX vs. AFMBX - Expense Ratio Comparison

ACAZX has a 0.85% expense ratio, which is higher than AFMBX's 0.25% expense ratio.

Dividends

ACAZX vs. AFMBX - Dividend Comparison

ACAZX's dividend yield for the trailing twelve months is around 7.73%, less than AFMBX's 7.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACAZX Alger Capital Appreciation Fund Class Z	7.73%	8.83%	23.61%	6.65%	4.13%	22.24%	14.91%	7.87%	11.23%	6.60%	0.82%	8.15%
AFMBX American Funds American Balanced Fund Class F-3	7.85%	8.57%	7.51%	2.27%	2.63%	4.60%	4.65%	3.78%	5.81%	4.94%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ACAZX and AFMBX in my portfolio?

ACAZX and AFMBX have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACAZX or AFMBX?

ACAZX has higher volatility (5.24%) compared to AFMBX (2.71%). In terms of maximum drawdown, ACAZX dropped -47.92% vs AFMBX's -22.34%.

Which has better risk-adjusted returns?

AFMBX currently has the higher Sharpe Ratio (2.85 vs 1.99), 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.