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.
Key characteristics
| BALCX | QQQ | |
|---|---|---|
| YTD Return | 2.96% | 4.29% |
| 1Y Return | 13.92% | 38.51% |
| 3Y Return (Ann) | 3.10% | 8.61% |
| 5Y Return (Ann) | 6.74% | 18.32% |
| 10Y Return (Ann) | 6.99% | 18.35% |
| Sharpe Ratio | 1.66 | 2.19 |
| Daily Std Dev | 8.04% | 16.38% |
| Max Drawdown | -40.25% | -82.98% |
| Current Drawdown | -2.86% | -4.45% |
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.
Performance
BALCX vs. QQQ - Performance Comparison
In the year-to-date period, BALCX achieves a 2.96% return, which is significantly lower than QQQ's 4.29% return. Over the past 10 years, BALCX has underperformed QQQ with an annualized return of 6.99%, while QQQ has yielded a comparatively higher 18.35% annualized 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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BALCX vs. QQQ - Expense Ratio Comparison
BALCX has a 1.31% expense ratio, which is higher than QQQ's 0.20% expense ratio.
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 1.63%, more than QQQ's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BALCX American Funds American Balanced Fund Class C | 1.63% | 1.67% | 1.53% | 3.60% | 3.68% | 3.30% | 5.35% | 4.63% | 3.48% | 4.99% | 6.92% | 0.82% |
QQQ Invesco QQQ | 0.62% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
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 2.51%, while Invesco QQQ (QQQ) has a volatility of 4.84%. 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.