BALCX vs. VFORX
Compare and contrast key facts about American Funds American Balanced Fund Class C (BALCX) and Vanguard Target Retirement 2040 Fund (VFORX).
BALCX is managed by American Funds. It was launched on Jul 26, 1975. VFORX is managed by Vanguard. It was launched on Jun 7, 2006.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BALCX or VFORX.
Key characteristics
| BALCX | VFORX | |
|---|---|---|
| YTD Return | 3.27% | 2.72% |
| 1Y Return | 13.73% | 15.08% |
| 3Y Return (Ann) | 3.23% | 2.37% |
| 5Y Return (Ann) | 6.81% | 7.79% |
| 10Y Return (Ann) | 7.04% | 7.72% |
| Sharpe Ratio | 1.62 | 1.40 |
| Daily Std Dev | 8.06% | 9.86% |
| Max Drawdown | -40.25% | -51.63% |
| Current Drawdown | -2.56% | -2.79% |
Correlation
The correlation between BALCX and VFORX is 0.96, 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. VFORX - Performance Comparison
In the year-to-date period, BALCX achieves a 3.27% return, which is significantly higher than VFORX's 2.72% return. Over the past 10 years, BALCX has underperformed VFORX with an annualized return of 7.04%, while VFORX has yielded a comparatively higher 7.72% 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. VFORX - Expense Ratio Comparison
BALCX has a 1.31% expense ratio, which is higher than VFORX's 0.08% expense ratio.
Risk-Adjusted Performance
BALCX vs. VFORX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class C (BALCX) and Vanguard Target Retirement 2040 Fund (VFORX). 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. VFORX - Dividend Comparison
BALCX's dividend yield for the trailing twelve months is around 1.63%, less than VFORX's 2.31% 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% |
VFORX Vanguard Target Retirement 2040 Fund | 2.31% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 1.95% | 2.40% | 2.99% | 1.99% | 1.79% |
Drawdowns
BALCX vs. VFORX - Drawdown Comparison
The maximum BALCX drawdown since its inception was -40.25%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for BALCX and VFORX. For additional features, visit the drawdowns tool.
Volatility
BALCX vs. VFORX - Volatility Comparison
The current volatility for American Funds American Balanced Fund Class C (BALCX) is 2.50%, while Vanguard Target Retirement 2040 Fund (VFORX) has a volatility of 2.66%. This indicates that BALCX experiences smaller price fluctuations and is considered to be less risky than VFORX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.