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.
Performance
BALCX vs. VFORX - Performance Comparison
Returns By Period
The year-to-date returns for both stocks are quite close, with BALCX having a 14.21% return and VFORX slightly lower at 13.87%. Over the past 10 years, BALCX has underperformed VFORX with an annualized return of 7.38%, while VFORX has yielded a comparatively higher 8.09% annualized return.
BALCX
14.21%
-0.19%
8.11%
19.92%
7.90%
7.38%
VFORX
13.87%
0.07%
7.48%
20.35%
8.96%
8.09%
Key characteristics
| BALCX | VFORX | |
|---|---|---|
| Sharpe Ratio | 2.41 | 2.12 |
| Sortino Ratio | 3.41 | 3.00 |
| Omega Ratio | 1.45 | 1.40 |
| Calmar Ratio | 3.24 | 2.70 |
| Martin Ratio | 15.90 | 13.13 |
| Ulcer Index | 1.27% | 1.57% |
| Daily Std Dev | 8.36% | 9.71% |
| Max Drawdown | -40.25% | -51.63% |
| Current Drawdown | -1.47% | -1.12% |
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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.
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.
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 1.49%, less than VFORX's 2.09% 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% |
VFORX Vanguard Target Retirement 2040 Fund | 2.09% | 2.38% | 2.10% | 2.39% | 1.62% | 2.28% | 2.41% | 1.91% | 1.98% | 2.16% | 1.93% | 1.77% |
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
American Funds American Balanced Fund Class C (BALCX) and Vanguard Target Retirement 2040 Fund (VFORX) have volatilities of 2.41% and 2.42%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.