BALCX vs. ESGU

Last updated Jun 4, 2026

BALCX (American Funds American Balanced Fund Class C) and ESGU (iShares ESG Aware MSCI USA ETF) are both funds - BALCX is a Diversified Portfolio fund managed by American Funds, while ESGU is a Large Cap Blend Equities fund tracking the MSCI USA Extended ESG Focus Index. Over the past 5 years, BALCX returned 8.93%/yr vs 12.74%/yr for ESGU. Their correlation of 0.91 suggests significant overlap in exposure. BALCX charges 1.31%/yr vs 0.15%/yr for ESGU.

Performance

BALCX vs. ESGU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund Class C (BALCX) and iShares ESG Aware MSCI USA ETF (ESGU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BALCX achieves a 9.64% return, which is significantly lower than ESGU's 11.06% return.

BALCX

• 1D: 0.25%
• 1M: 3.91%
• YTD: 9.64%
• 6M: 10.20%
• 1Y: 24.04%
• 3Y*: 16.71%
• 5Y*: 8.93%
• 10Y*: 9.35%

ESGU

• 1D: -0.79%
• 1M: 5.51%
• YTD: 11.06%
• 6M: 10.93%
• 1Y: 27.83%
• 3Y*: 22.00%
• 5Y*: 12.74%
• 10Y*: —

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

BALCX vs. ESGU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BALCX American Funds American Balanced Fund Class C	9.64%	17.58%	14.00%	12.97%	-12.77%	14.87%	10.06%	17.66%	-4.09%	14.02%
ESGU iShares ESG Aware MSCI USA ETF	11.06%	16.90%	24.31%	25.79%	-20.27%	26.89%	22.54%	31.72%	-4.32%	21.07%

Correlation

The correlation between BALCX and ESGU is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 7, 2016	0.91

The correlation between BALCX and ESGU has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

Return for Risk

BALCX vs. ESGU — Risk / Return Rank

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

BALCX

BALCX Risk / Return Rank: 82
BALCX Sharpe Ratio Rank: 87
BALCX Sortino Ratio Rank: 84
BALCX Omega Ratio Rank: 82
BALCX Calmar Ratio Rank: 77
BALCX Martin Ratio Rank: 83

ESGU

ESGU Risk / Return Rank: 67
ESGU Sharpe Ratio Rank: 68
ESGU Sortino Ratio Rank: 66
ESGU Omega Ratio Rank: 67
ESGU Calmar Ratio Rank: 60
ESGU Martin Ratio Rank: 72

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.

BALCX vs. ESGU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class C (BALCX) and iShares ESG Aware MSCI USA ETF (ESGU). 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.

	BALCX	ESGU	Difference
Sharpe ratio Return per unit of total volatility	2.84	2.30	+0.53
Sortino ratio Return per unit of downside risk	3.96	3.12	+0.84
Omega ratio Gain probability vs. loss probability	1.54	1.41	+0.13
Calmar ratio Return relative to maximum drawdown	3.49	3.02	+0.47
Martin ratio Return relative to average drawdown	15.67	13.75	+1.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BALCX vs. ESGU - Sharpe Ratio Comparison

The current BALCX Sharpe Ratio is 2.84, which is comparable to the ESGU Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of BALCX and ESGU, 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

	BALCX	ESGU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.84	2.30	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.74	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.88	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.83	-0.22

Drawdowns

BALCX vs. ESGU - Drawdown Comparison

The maximum BALCX drawdown since its inception was -40.88%, which is greater than ESGU's maximum drawdown of -33.87%. Use the drawdown chart below to compare losses from any high point for BALCX and ESGU.

Drawdown Indicators

	BALCX	ESGU	Difference
Max Drawdown Largest peak-to-trough decline	-40.88%	-33.87%	-7.01%
Max Drawdown (1Y) Largest decline over 1 year	-7.08%	-9.26%	+2.18%
Max Drawdown (3Y) Largest decline over 3 years	-10.77%	-19.32%	+8.55%
Max Drawdown (5Y) Largest decline over 5 years	-19.22%	-26.15%	+6.93%
Max Drawdown (10Y) Largest decline over 10 years	-22.38%	—	—
Current Drawdown Current decline from peak	0.00%	-0.79%	+0.79%
Average Drawdown Average peak-to-trough decline	-4.46%	-4.89%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.57%	2.03%	-0.46%

Volatility

BALCX vs. ESGU - Volatility Comparison

The current volatility for American Funds American Balanced Fund Class C (BALCX) is 2.66%, while iShares ESG Aware MSCI USA ETF (ESGU) has a volatility of 2.92%. This indicates that BALCX experiences smaller price fluctuations and is considered to be less risky than ESGU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BALCX	ESGU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.66%	2.92%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	6.86%	9.20%	-2.34%
Volatility (1Y) Calculated over the trailing 1-year period	8.71%	12.16%	-3.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.48%	17.32%	-6.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.67%	18.60%	-7.93%

BALCX vs. ESGU - Expense Ratio Comparison

BALCX has a 1.31% expense ratio, which is higher than ESGU's 0.15% expense ratio.

Dividends

BALCX vs. ESGU - Dividend Comparison

BALCX's dividend yield for the trailing twelve months is around 6.93%, more than ESGU's 0.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALCX American Funds American Balanced Fund Class C	6.93%	7.61%	6.37%	1.54%	1.53%	3.60%	3.68%	2.79%	4.67%	4.17%	3.51%	4.81%
ESGU iShares ESG Aware MSCI USA ETF	0.92%	0.99%	1.18%	1.43%	1.58%	1.06%	1.27%	1.32%	1.73%	1.82%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BALCX and ESGU in my portfolio?

With a correlation of 0.91, BALCX and ESGU 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, BALCX or ESGU?

ESGU has higher volatility (2.92%) compared to BALCX (2.66%). In terms of maximum drawdown, BALCX dropped -40.88% vs ESGU's -33.87%.

Which has better risk-adjusted returns?

BALCX currently has the higher Sharpe Ratio (2.84 vs 2.30), 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.