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AFMBX vs. VSMIX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

AFMBX vs. VSMIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund Class F-3 (AFMBX) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX). The values are adjusted to include any dividend payments, if applicable.

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AFMBX vs. VSMIX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
AFMBX
American Funds American Balanced Fund Class F-3
-2.79%18.82%15.36%13.89%-11.83%16.12%11.17%18.96%-3.07%10.06%
VSMIX
Vanguard Short-Term Investment-Grade Fund Investor Shares
6.62%18.01%24.82%23.14%4.58%36.67%11.14%32.32%-25.45%13.05%

Returns By Period

In the year-to-date period, AFMBX achieves a -2.79% return, which is significantly lower than VSMIX's 6.62% return.


AFMBX

1D
-0.11%
1M
-6.77%
YTD
-2.79%
6M
1.01%
1Y
15.69%
3Y*
13.85%
5Y*
8.39%
10Y*

VSMIX

1D
-1.87%
1M
-10.11%
YTD
6.62%
6M
13.97%
1Y
33.62%
3Y*
24.68%
5Y*
17.55%
10Y*
15.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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AFMBX vs. VSMIX - Expense Ratio Comparison

AFMBX has a 0.25% expense ratio, which is higher than VSMIX's 0.20% 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%.


Return for Risk

AFMBX vs. VSMIX — Risk / Return Rank

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

AFMBX
AFMBX Risk / Return Rank: 8282
Overall Rank
AFMBX Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
AFMBX Sortino Ratio Rank: 8383
Sortino Ratio Rank
AFMBX Omega Ratio Rank: 7979
Omega Ratio Rank
AFMBX Calmar Ratio Rank: 8484
Calmar Ratio Rank
AFMBX Martin Ratio Rank: 8585
Martin Ratio Rank

VSMIX
VSMIX Risk / Return Rank: 7171
Overall Rank
VSMIX Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
VSMIX Sortino Ratio Rank: 7373
Sortino Ratio Rank
VSMIX Omega Ratio Rank: 7070
Omega Ratio Rank
VSMIX Calmar Ratio Rank: 7272
Calmar Ratio Rank
VSMIX Martin Ratio Rank: 6868
Martin Ratio Rank
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.

AFMBX vs. VSMIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class F-3 (AFMBX) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX). 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.


AFMBXVSMIXDifference

Sharpe ratio

Return per unit of total volatility

1.46

1.29

+0.17

Sortino ratio

Return per unit of downside risk

2.14

1.80

+0.34

Omega ratio

Gain probability vs. loss probability

1.30

1.26

+0.04

Calmar ratio

Return relative to maximum drawdown

2.05

1.66

+0.39

Martin ratio

Return relative to average drawdown

8.76

6.43

+2.33

AFMBX vs. VSMIX - Sharpe Ratio Comparison

The current AFMBX Sharpe Ratio is 1.46, which is comparable to the VSMIX Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of AFMBX and VSMIX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


AFMBXVSMIXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.46

1.29

+0.17

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.81

0.76

+0.05

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.59

Sharpe Ratio (All Time)

Calculated using the full available price history

0.84

0.45

+0.39

Correlation

The correlation between AFMBX and VSMIX is 0.76, 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.


Dividends

AFMBX vs. VSMIX - Dividend Comparison

AFMBX's dividend yield for the trailing twelve months is around 8.86%, more than VSMIX's 8.00% yield.


TTM20252024202320222021202020192018201720162015
AFMBX
American Funds American Balanced Fund Class F-3
8.86%8.57%7.51%2.27%2.63%4.60%4.65%3.78%5.81%4.94%0.00%0.00%
VSMIX
Vanguard Short-Term Investment-Grade Fund Investor Shares
8.00%8.53%7.40%4.71%9.53%15.84%0.40%2.37%26.83%15.94%1.65%10.91%

Drawdowns

AFMBX vs. VSMIX - Drawdown Comparison

The maximum AFMBX drawdown since its inception was -22.34%, smaller than the maximum VSMIX drawdown of -57.53%. Use the drawdown chart below to compare losses from any high point for AFMBX and VSMIX.


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Drawdown Indicators


AFMBXVSMIXDifference

Max Drawdown

Largest peak-to-trough decline

-22.34%

-57.53%

+35.19%

Max Drawdown (1Y)

Largest decline over 1 year

-7.34%

-16.58%

+9.24%

Max Drawdown (5Y)

Largest decline over 5 years

-18.58%

-25.26%

+6.68%

Max Drawdown (10Y)

Largest decline over 10 years

-57.53%

Current Drawdown

Current decline from peak

-6.98%

-11.39%

+4.41%

Average Drawdown

Average peak-to-trough decline

-3.25%

-9.58%

+6.33%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.72%

4.49%

-2.77%

Volatility

AFMBX vs. VSMIX - Volatility Comparison

The current volatility for American Funds American Balanced Fund Class F-3 (AFMBX) is 3.26%, while Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) has a volatility of 8.30%. This indicates that AFMBX experiences smaller price fluctuations and is considered to be less risky than VSMIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


AFMBXVSMIXDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.26%

8.30%

-5.04%

Volatility (6M)

Calculated over the trailing 6-month period

6.74%

16.62%

-9.88%

Volatility (1Y)

Calculated over the trailing 1-year period

11.10%

25.78%

-14.68%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

10.42%

23.13%

-12.71%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

11.16%

26.69%

-15.53%