BALFX vs. FXAIX

Last updated Jun 4, 2026

BALFX (American Funds American Balanced Fund) and FXAIX (Fidelity 500 Index Fund) are both mutual funds - BALFX is a Diversified Portfolio fund managed by American Funds, while FXAIX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, BALFX returned 10.08%/yr vs 15.66%/yr for FXAIX. With a 0.96 correlation, they move nearly in lockstep. BALFX charges 0.62%/yr vs 0.02%/yr for FXAIX.

Performance

BALFX vs. FXAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund (BALFX) and Fidelity 500 Index Fund (FXAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BALFX achieves a 9.94% return, which is significantly lower than FXAIX's 11.71% return. Over the past 10 years, BALFX has underperformed FXAIX with an annualized return of 10.08%, while FXAIX has yielded a comparatively higher 15.66% annualized return.

BALFX

• 1D: 0.24%
• 1M: 3.98%
• YTD: 9.94%
• 6M: 10.55%
• 1Y: 24.90%
• 3Y*: 17.50%
• 5Y*: 9.67%
• 10Y*: 10.08%

FXAIX

• 1D: 0.13%
• 1M: 5.80%
• YTD: 11.71%
• 6M: 11.74%
• 1Y: 28.99%
• 3Y*: 22.75%
• 5Y*: 14.28%
• 10Y*: 15.66%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BALFX vs. FXAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BALFX American Funds American Balanced Fund	9.94%	18.40%	14.91%	13.62%	-12.19%	15.69%	10.81%	18.50%	-3.54%	14.63%
FXAIX Fidelity 500 Index Fund	11.71%	17.84%	25.01%	26.29%	-18.14%	28.71%	18.42%	31.48%	-4.43%	21.82%

Correlation

The correlation between BALFX and FXAIX is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 5, 2011	0.96

The correlation between BALFX and FXAIX has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

Return for Risk

BALFX vs. FXAIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BALFX

BALFX Risk / Return Rank: 85
BALFX Sharpe Ratio Rank: 89
BALFX Sortino Ratio Rank: 86
BALFX Omega Ratio Rank: 84
BALFX Calmar Ratio Rank: 79
BALFX Martin Ratio Rank: 86

FXAIX

FXAIX Risk / Return Rank: 73
FXAIX Sharpe Ratio Rank: 76
FXAIX Sortino Ratio Rank: 67
FXAIX Omega Ratio Rank: 67
FXAIX Calmar Ratio Rank: 74
FXAIX Martin Ratio Rank: 83

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BALFX vs. FXAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund (BALFX) and Fidelity 500 Index Fund (FXAIX). 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.

	BALFX	FXAIX	Difference
Sharpe ratio Return per unit of total volatility	2.93	2.52	+0.41
Sortino ratio Return per unit of downside risk	4.09	3.42	+0.67
Omega ratio Gain probability vs. loss probability	1.56	1.46	+0.10
Calmar ratio Return relative to maximum drawdown	3.63	3.36	+0.27
Martin ratio Return relative to average drawdown	16.41	15.70	+0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BALFX vs. FXAIX - Sharpe Ratio Comparison

The current BALFX Sharpe Ratio is 2.93, which is comparable to the FXAIX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of BALFX and FXAIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BALFX	FXAIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.52	+0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.93	0.85	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	0.87	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.82	-0.14

Drawdowns

BALFX vs. FXAIX - Drawdown Comparison

The maximum BALFX drawdown since its inception was -40.20%, which is greater than FXAIX's maximum drawdown of -33.79%. Use the drawdown chart below to compare losses from any high point for BALFX and FXAIX.

Drawdown Indicators

	BALFX	FXAIX	Difference
Max Drawdown Largest peak-to-trough decline	-40.20%	-33.79%	-6.41%
Max Drawdown (1Y) Largest decline over 1 year	-7.03%	-8.89%	+1.86%
Max Drawdown (3Y) Largest decline over 3 years	-10.67%	-18.76%	+8.09%
Max Drawdown (5Y) Largest decline over 5 years	-18.81%	-24.50%	+5.69%
Max Drawdown (10Y) Largest decline over 10 years	-22.34%	-33.79%	+11.45%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.16%	-3.79%	-0.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	1.90%	-0.35%

Volatility

BALFX vs. FXAIX - Volatility Comparison

The current volatility for American Funds American Balanced Fund (BALFX) is 2.65%, while Fidelity 500 Index Fund (FXAIX) has a volatility of 2.83%. This indicates that BALFX experiences smaller price fluctuations and is considered to be less risky than FXAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BALFX	FXAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	2.83%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	6.86%	8.97%	-2.11%
Volatility (1Y) Calculated over the trailing 1-year period	8.72%	11.86%	-3.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.48%	16.91%	-6.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.66%	18.07%	-7.41%

BALFX vs. FXAIX - Expense Ratio Comparison

BALFX has a 0.62% expense ratio, which is higher than FXAIX's 0.02% expense ratio.

Dividends

BALFX vs. FXAIX - Dividend Comparison

BALFX's dividend yield for the trailing twelve months is around 7.49%, more than FXAIX's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALFX American Funds American Balanced Fund	7.49%	8.22%	7.14%	2.02%	2.24%	4.24%	4.31%	3.44%	5.30%	4.66%	4.18%	5.54%
FXAIX Fidelity 500 Index Fund	1.03%	1.11%	1.25%	1.45%	1.69%	1.22%	1.60%	2.06%	2.72%	1.97%	2.52%	2.83%

Frequently Asked Questions

Can I hold both BALFX and FXAIX in my portfolio?

With a correlation of 0.92, BALFX and FXAIX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BALFX or FXAIX?

FXAIX has higher volatility (2.83%) compared to BALFX (2.65%). In terms of maximum drawdown, BALFX dropped -40.20% vs FXAIX's -33.79%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.93 vs 2.52), 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.