BALCX vs. QUAL
BALCX (American Funds American Balanced Fund Class C) and QUAL (iShares MSCI USA Quality Factor ETF) are both funds - BALCX is a Diversified Portfolio fund managed by American Funds, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Over the past 10 years, BALCX returned 9.35%/yr vs 14.27%/yr for QUAL. Their correlation of 0.92 suggests significant overlap in exposure. BALCX charges 1.31%/yr vs 0.15%/yr for QUAL.
Performance
BALCX vs. QUAL - Performance Comparison
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Returns By Period
In the year-to-date period, BALCX achieves a 9.64% return, which is significantly higher than QUAL's 8.80% return. Over the past 10 years, BALCX has underperformed QUAL with an annualized return of 9.35%, while QUAL has yielded a comparatively higher 14.27% annualized 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%
QUAL
- 1D
- -0.07%
- 1M
- 4.62%
- YTD
- 8.80%
- 6M
- 8.86%
- 1Y
- 21.68%
- 3Y*
- 19.66%
- 5Y*
- 11.96%
- 10Y*
- 14.27%
BALCX vs. QUAL - 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% |
QUAL iShares MSCI USA Quality Factor ETF | 8.80% | 12.65% | 22.29% | 30.88% | -20.50% | 26.94% | 17.04% | 33.89% | -5.70% | 22.26% |
Correlation
The correlation between BALCX and QUAL is 0.88, 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 | 0.88 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jul 19, 2013 | 0.92 |
The correlation between BALCX and QUAL has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.
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Return for Risk
BALCX vs. QUAL — Risk / Return Rank
BALCX
QUAL
BALCX vs. QUAL - 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 MSCI USA Quality Factor ETF (QUAL). 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 | QUAL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.99 | ||
| Sortino ratioReturn per unit of downside risk | +1.33 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.32 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 3.49 | 2.41 | +1.08 |
| Martin ratioReturn relative to average drawdown | 15.67 | 11.00 | +4.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BALCX | QUAL | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.84 | 1.84 | +0.99 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.86 | 0.69 | +0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.88 | 0.79 | +0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.62 | 0.80 | -0.18 |
Drawdowns
BALCX vs. QUAL - Drawdown Comparison
The maximum BALCX drawdown since its inception was -40.88%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for BALCX and QUAL.
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Drawdown Indicators
| BALCX | QUAL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -40.88% | -34.06% | -6.82% |
Max Drawdown (1Y)Largest decline over 1 year | -7.08% | -9.03% | +1.95% |
Max Drawdown (3Y)Largest decline over 3 years | -10.77% | -18.00% | +7.23% |
Max Drawdown (5Y)Largest decline over 5 years | -19.22% | -28.23% | +9.01% |
Max Drawdown (10Y)Largest decline over 10 years | -22.38% | -34.06% | +11.68% |
Current DrawdownCurrent decline from peak | 0.00% | -0.16% | +0.16% |
Average DrawdownAverage peak-to-trough decline | -4.46% | -4.11% | -0.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.57% | 1.98% | -0.41% |
Volatility
BALCX vs. QUAL - Volatility Comparison
American Funds American Balanced Fund Class C (BALCX) has a higher volatility of 2.66% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 2.51%. This indicates that BALCX's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BALCX | QUAL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.66% | 2.51% | +0.15% |
Volatility (6M)Calculated over the trailing 6-month period | 6.86% | 9.03% | -2.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.71% | 11.83% | -3.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.48% | 17.33% | -6.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.67% | 18.10% | -7.43% |
BALCX vs. QUAL - Expense Ratio Comparison
BALCX has a 1.31% expense ratio, which is higher than QUAL's 0.15% expense ratio.
Dividends
BALCX vs. QUAL - Dividend Comparison
BALCX's dividend yield for the trailing twelve months is around 6.93%, more than QUAL's 0.88% 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% |
QUAL iShares MSCI USA Quality Factor ETF | 0.88% | 0.94% | 1.02% | 1.23% | 1.59% | 1.20% | 1.39% | 1.60% | 2.00% | 1.76% | 1.96% | 1.63% |
Frequently Asked Questions
BALCX and QUAL have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BALCX has higher volatility (2.66%) compared to QUAL (2.51%). In terms of maximum drawdown, BALCX dropped -40.88% vs QUAL's -34.06%.
BALCX currently has the higher Sharpe Ratio (2.84 vs 1.84), 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.
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