BALCX vs. QQQ
Compare and contrast key facts about American Funds American Balanced Fund Class C (BALCX) and Invesco QQQ (QQQ).
BALCX is managed by American Funds. It was launched on Jul 26, 1975. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BALCX or QQQ.
Performance
BALCX vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, BALCX achieves a 14.21% return, which is significantly lower than QQQ's 23.84% return. Over the past 10 years, BALCX has underperformed QQQ with an annualized return of 7.38%, while QQQ has yielded a comparatively higher 18.03% annualized return.
BALCX
14.21%
-0.19%
8.11%
19.92%
7.90%
7.38%
QQQ
23.84%
1.82%
11.65%
30.35%
20.97%
18.03%
Key characteristics
| BALCX | QQQ | |
|---|---|---|
| Sharpe Ratio | 2.41 | 1.78 |
| Sortino Ratio | 3.41 | 2.37 |
| Omega Ratio | 1.45 | 1.32 |
| Calmar Ratio | 3.24 | 2.28 |
| Martin Ratio | 15.90 | 8.27 |
| Ulcer Index | 1.27% | 3.73% |
| Daily Std Dev | 8.36% | 17.37% |
| Max Drawdown | -40.25% | -82.98% |
| Current Drawdown | -1.47% | -1.78% |
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BALCX vs. QQQ - Expense Ratio Comparison
BALCX has a 1.31% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Correlation
The correlation between BALCX and QQQ is 0.83, 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.
Risk-Adjusted Performance
BALCX vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class C (BALCX) and Invesco QQQ (QQQ). 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
BALCX vs. QQQ - Dividend Comparison
BALCX's dividend yield for the trailing twelve months is around 1.49%, more than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BALCX American Funds American Balanced Fund Class C | 1.49% | 1.67% | 0.91% | 0.48% | 0.63% | 1.20% | 1.25% | 1.02% | 1.02% | 1.46% | 6.92% | 0.82% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
BALCX vs. QQQ - Drawdown Comparison
The maximum BALCX drawdown since its inception was -40.25%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for BALCX and QQQ. For additional features, visit the drawdowns tool.
Volatility
BALCX vs. QQQ - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class C (BALCX) is 2.41%, while Invesco QQQ (QQQ) has a volatility of 5.41%. This indicates that BALCX experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.