ANEFX vs. GMGEX

Last updated Jun 4, 2026

ANEFX (American Funds The New Economy Fund) and GMGEX (GMO Global Equity Allocation Fund) are both Global Equities funds. Over the past 10 years, ANEFX returned 16.74%/yr vs 11.33%/yr for GMGEX. Their correlation of 0.86 suggests significant overlap in exposure. ANEFX charges 0.75%/yr vs 0.01%/yr for GMGEX.

Performance

ANEFX vs. GMGEX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds The New Economy Fund (ANEFX) and GMO Global Equity Allocation Fund (GMGEX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ANEFX achieves a 22.90% return, which is significantly higher than GMGEX's 19.85% return. Over the past 10 years, ANEFX has outperformed GMGEX with an annualized return of 16.74%, while GMGEX has yielded a comparatively lower 11.33% annualized return.

ANEFX

• 1D: 0.02%
• 1M: 10.69%
• YTD: 22.90%
• 6M: 25.37%
• 1Y: 54.74%
• 3Y*: 30.70%
• 5Y*: 14.49%
• 10Y*: 16.74%

GMGEX

• 1D: 0.65%
• 1M: 7.86%
• YTD: 19.85%
• 6M: 21.91%
• 1Y: 42.42%
• 3Y*: 21.98%
• 5Y*: 10.11%
• 10Y*: 11.33%

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

ANEFX vs. GMGEX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ANEFX American Funds The New Economy Fund	22.90%	31.01%	23.58%	29.14%	-29.67%	12.85%	33.47%	26.46%	-4.36%	34.37%
GMGEX GMO Global Equity Allocation Fund	19.85%	29.14%	4.12%	22.27%	-17.07%	14.99%	9.55%	25.45%	-13.04%	26.39%

Correlation

The correlation between ANEFX and GMGEX 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	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jan 3, 1997	0.86

The correlation between ANEFX and GMGEX has been stable across timeframes, ranging from 0.76 to 0.86 - a consistent structural relationship.

Return for Risk

ANEFX vs. GMGEX — Risk / Return Rank

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

ANEFX

ANEFX Risk / Return Rank: 88
ANEFX Sharpe Ratio Rank: 94
ANEFX Sortino Ratio Rank: 86
ANEFX Omega Ratio Rank: 83
ANEFX Calmar Ratio Rank: 87
ANEFX Martin Ratio Rank: 91

GMGEX

GMGEX Risk / Return Rank: 91
GMGEX Sharpe Ratio Rank: 95
GMGEX Sortino Ratio Rank: 92
GMGEX Omega Ratio Rank: 88
GMGEX Calmar Ratio Rank: 90
GMGEX Martin Ratio Rank: 90

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.

ANEFX vs. GMGEX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds The New Economy Fund (ANEFX) and GMO Global Equity Allocation Fund (GMGEX). 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.

	ANEFX	GMGEX	Difference
Sharpe ratio: Return per unit of total volatility	3.26	3.37	-0.11
Sortino ratio: Return per unit of downside risk	4.08	4.59	-0.51
Omega ratio: Gain probability vs. loss probability	1.56	1.62	-0.06
Calmar ratio: Return relative to maximum drawdown	4.20	4.61	-0.41
Martin ratio: Return relative to average drawdown	18.80	18.29	+0.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ANEFX vs. GMGEX - Sharpe Ratio Comparison

The current ANEFX Sharpe Ratio is 3.26, which is comparable to the GMGEX Sharpe Ratio of 3.37. The chart below compares the historical Sharpe Ratios of ANEFX and GMGEX, 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

	ANEFX	GMGEX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.26	3.37	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.69	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.88	0.71	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.74	0.25	+0.49

Drawdowns

ANEFX vs. GMGEX - Drawdown Comparison

The maximum ANEFX drawdown since its inception was -61.28%, roughly equal to the maximum GMGEX drawdown of -58.47%. Use the drawdown chart below to compare losses from any high point for ANEFX and GMGEX.

Drawdown Indicators

	ANEFX	GMGEX	Difference
Max Drawdown Largest peak-to-trough decline	-61.28%	-58.47%	-2.81%
Max Drawdown (1Y) Largest decline over 1 year	-13.35%	-9.24%	-4.11%
Max Drawdown (3Y) Largest decline over 3 years	-20.82%	-17.12%	-3.70%
Max Drawdown (5Y) Largest decline over 5 years	-36.63%	-28.58%	-8.05%
Max Drawdown (10Y) Largest decline over 10 years	-36.63%	-34.98%	-1.65%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-11.44%	-16.75%	+5.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	2.32%	+0.65%

Volatility

ANEFX vs. GMGEX - Volatility Comparison

American Funds The New Economy Fund (ANEFX) has a higher volatility of 5.29% compared to GMO Global Equity Allocation Fund (GMGEX) at 4.04%. This indicates that ANEFX's price experiences larger fluctuations and is considered to be riskier than GMGEX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ANEFX	GMGEX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.29%	4.04%	+1.25%
Volatility (6M) Calculated over the trailing 6-month period	13.71%	9.91%	+3.80%
Volatility (1Y) Calculated over the trailing 1-year period	17.19%	12.65%	+4.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.41%	14.81%	+4.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.13%	16.06%	+3.07%

ANEFX vs. GMGEX - Expense Ratio Comparison

ANEFX has a 0.75% expense ratio, which is higher than GMGEX's 0.01% expense ratio.

Dividends

ANEFX vs. GMGEX - Dividend Comparison

ANEFX's dividend yield for the trailing twelve months is around 8.08%, more than GMGEX's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ANEFX American Funds The New Economy Fund	8.08%	9.93%	9.59%	3.96%	0.00%	8.24%	2.47%	7.34%	10.00%	8.28%	4.61%	6.16%
GMGEX GMO Global Equity Allocation Fund	3.91%	4.69%	0.29%	5.62%	7.81%	7.76%	3.83%	3.14%	3.14%	2.90%	3.71%	4.20%

Frequently Asked Questions

Can I hold both ANEFX and GMGEX in my portfolio?

ANEFX and GMGEX 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, ANEFX or GMGEX?

ANEFX has higher volatility (5.29%) compared to GMGEX (4.04%). In terms of maximum drawdown, ANEFX dropped -61.28% vs GMGEX's -58.47%.

Which has better risk-adjusted returns?

GMGEX currently has the higher Sharpe Ratio (3.37 vs 3.26), 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.