AFMBX vs. VOO
Compare and contrast key facts about American Funds American Balanced Fund Class F-3 (AFMBX) and Vanguard S&P 500 ETF (VOO).
AFMBX 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: AFMBX or VOO.
Key characteristics
| AFMBX | VOO | |
|---|---|---|
| YTD Return | 2.83% | 5.98% |
| 1Y Return | 13.14% | 22.69% |
| 3Y Return (Ann) | 4.04% | 8.02% |
| 5Y Return (Ann) | 7.95% | 13.41% |
| Sharpe Ratio | 1.59 | 1.93 |
| Daily Std Dev | 8.06% | 11.69% |
| Max Drawdown | -22.34% | -33.99% |
| Current Drawdown | -3.22% | -4.14% |
Correlation
The correlation between AFMBX 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
AFMBX vs. VOO - Performance Comparison
In the year-to-date period, AFMBX achieves a 2.83% return, which is significantly lower than VOO's 5.98% 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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AFMBX vs. VOO - Expense Ratio Comparison
AFMBX has a 0.25% expense ratio, which is higher than VOO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
AFMBX vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class F-3 (AFMBX) 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
AFMBX vs. VOO - Dividend Comparison
AFMBX's dividend yield for the trailing twelve months is around 2.64%, more than VOO's 1.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AFMBX American Funds American Balanced Fund Class F-3 | 2.64% | 2.66% | 2.63% | 4.60% | 4.65% | 4.29% | 6.48% | 5.66% | 0.00% | 0.00% | 0.00% | 0.00% |
VOO Vanguard S&P 500 ETF | 1.39% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
AFMBX vs. VOO - Drawdown Comparison
The maximum AFMBX drawdown since its inception was -22.34%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for AFMBX and VOO. For additional features, visit the drawdowns tool.
Volatility
AFMBX vs. VOO - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class F-3 (AFMBX) is 2.72%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.92%. This indicates that AFMBX 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.