AFIFX vs. ABALX

Last updated Jun 3, 2026

AFIFX (American Funds Fundamental Investors Class F-1) and ABALX (American Funds American Balanced Fund Class A) are both mutual funds - AFIFX is a Large Cap Blend Equities fund actively managed by American Funds, while ABALX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, AFIFX returned 14.83%/yr vs 10.10%/yr for ABALX. With a 0.95 correlation, they move nearly in lockstep. AFIFX charges 0.64%/yr vs 0.56%/yr for ABALX.

Performance

AFIFX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Fundamental Investors Class F-1 (AFIFX) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFIFX achieves a 15.10% return, which is significantly higher than ABALX's 9.71% return. Over the past 10 years, AFIFX has outperformed ABALX with an annualized return of 14.83%, while ABALX has yielded a comparatively lower 10.10% annualized return.

AFIFX

• 1D: 0.23%
• 1M: 6.09%
• YTD: 15.10%
• 6M: 16.35%
• 1Y: 35.25%
• 3Y*: 26.02%
• 5Y*: 14.73%
• 10Y*: 14.83%

ABALX

• 1D: 0.20%
• 1M: 3.56%
• YTD: 9.71%
• 6M: 10.64%
• 1Y: 25.20%
• 3Y*: 17.33%
• 5Y*: 9.57%
• 10Y*: 10.10%

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

AFIFX vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AFIFX American Funds Fundamental Investors Class F-1	15.10%	24.12%	22.68%	25.78%	-16.69%	22.36%	14.85%	27.00%	-8.19%	22.70%
ABALX American Funds American Balanced Fund Class A	9.71%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%

Correlation

The correlation between AFIFX and ABALX is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jan 3, 2002	0.95

The correlation between AFIFX and ABALX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

AFIFX vs. ABALX — Risk / Return Rank

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

AFIFX

AFIFX Risk / Return Rank: 77
AFIFX Sharpe Ratio Rank: 82
AFIFX Sortino Ratio Rank: 72
AFIFX Omega Ratio Rank: 71
AFIFX Calmar Ratio Rank: 75
AFIFX Martin Ratio Rank: 83

ABALX

ABALX Risk / Return Rank: 85
ABALX Sharpe Ratio Rank: 90
ABALX Sortino Ratio Rank: 87
ABALX Omega Ratio Rank: 84
ABALX Calmar Ratio Rank: 80
ABALX Martin Ratio Rank: 86

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.

AFIFX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Fundamental Investors Class F-1 (AFIFX) and American Funds American Balanced Fund Class A (ABALX). 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.

	AFIFX	ABALX	Difference
Sharpe ratio Return per unit of total volatility	2.64	2.96	-0.31
Sortino ratio Return per unit of downside risk	3.54	4.13	-0.60
Omega ratio Gain probability vs. loss probability	1.47	1.56	-0.09
Calmar ratio Return relative to maximum drawdown	3.40	3.67	-0.27
Martin ratio Return relative to average drawdown	15.75	16.58	-0.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AFIFX vs. ABALX - Sharpe Ratio Comparison

The current AFIFX Sharpe Ratio is 2.64, which is comparable to the ABALX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of AFIFX and ABALX, 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

	AFIFX	ABALX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.64	2.96	-0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.88	0.92	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.95	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.81	-0.22

Drawdowns

AFIFX vs. ABALX - Drawdown Comparison

The maximum AFIFX drawdown since its inception was -53.25%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for AFIFX and ABALX.

Drawdown Indicators

	AFIFX	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-53.25%	-40.20%	-13.05%
Max Drawdown (1Y) Largest decline over 1 year	-10.67%	-7.03%	-3.64%
Max Drawdown (3Y) Largest decline over 3 years	-17.99%	-10.68%	-7.31%
Max Drawdown (5Y) Largest decline over 5 years	-25.11%	-18.76%	-6.35%
Max Drawdown (10Y) Largest decline over 10 years	-33.92%	-22.34%	-11.58%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-7.37%	-3.85%	-3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.30%	1.55%	+0.75%

Volatility

AFIFX vs. ABALX - Volatility Comparison

American Funds Fundamental Investors Class F-1 (AFIFX) has a higher volatility of 3.68% compared to American Funds American Balanced Fund Class A (ABALX) at 2.65%. This indicates that AFIFX's price experiences larger fluctuations and is considered to be riskier than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFIFX	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.68%	2.65%	+1.03%
Volatility (6M) Calculated over the trailing 6-month period	10.83%	6.87%	+3.96%
Volatility (1Y) Calculated over the trailing 1-year period	13.77%	8.73%	+5.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.79%	10.49%	+6.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.73%	10.67%	+7.06%

AFIFX vs. ABALX - Expense Ratio Comparison

AFIFX has a 0.64% expense ratio, which is higher than ABALX's 0.56% expense ratio.

Dividends

AFIFX vs. ABALX - Dividend Comparison

AFIFX's dividend yield for the trailing twelve months is around 7.38%, less than ABALX's 7.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.56%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
AFIFX American Funds Fundamental Investors Class F-1	7.38%	8.48%	8.84%	5.76%	4.92%	10.91%	2.57%	6.86%	9.21%	7.21%	4.65%	6.01%

Frequently Asked Questions

Can I hold both AFIFX and ABALX in my portfolio?

With a correlation of 0.97, AFIFX and ABALX 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, AFIFX or ABALX?

AFIFX has higher volatility (3.68%) compared to ABALX (2.65%). In terms of maximum drawdown, AFIFX dropped -53.25% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (2.96 vs 2.64), 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.