BALFX vs. NBARX

Last updated Jun 4, 2026

BALFX (American Funds American Balanced Fund) and NBARX (American Funds Retirement Income Portfolio - Moderate) are both Diversified Portfolio funds from American Funds. Over the past 10 years, BALFX returned 10.08%/yr vs 7.13%/yr for NBARX. Their correlation of 0.94 suggests significant overlap in exposure. BALFX charges 0.62%/yr vs 0.32%/yr for NBARX.

Performance

BALFX vs. NBARX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund (BALFX) and American Funds Retirement Income Portfolio - Moderate (NBARX). 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 higher than NBARX's 5.51% return. Over the past 10 years, BALFX has outperformed NBARX with an annualized return of 10.08%, while NBARX has yielded a comparatively lower 7.13% 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%

NBARX

• 1D: 0.35%
• 1M: 2.13%
• YTD: 5.51%
• 6M: 6.11%
• 1Y: 15.17%
• 3Y*: 12.33%
• 5Y*: 6.40%
• 10Y*: 7.13%

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

BALFX vs. NBARX - 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%
NBARX American Funds Retirement Income Portfolio - Moderate	5.51%	15.67%	9.16%	9.25%	-10.06%	12.14%	7.41%	15.42%	-3.81%	11.18%

Correlation

The correlation between BALFX and NBARX 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	0.94
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.94

The correlation between BALFX and NBARX has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

Return for Risk

BALFX vs. NBARX — 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

NBARX

NBARX Risk / Return Rank: 60
NBARX Sharpe Ratio Rank: 68
NBARX Sortino Ratio Rank: 66
NBARX Omega Ratio Rank: 68
NBARX Calmar Ratio Rank: 44
NBARX Martin Ratio Rank: 55

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. NBARX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund (BALFX) and American Funds Retirement Income Portfolio - Moderate (NBARX). 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	NBARX	Difference
Sharpe ratio Return per unit of total volatility	2.93	2.41	+0.52
Sortino ratio Return per unit of downside risk	4.09	3.39	+0.71
Omega ratio Gain probability vs. loss probability	1.56	1.46	+0.10
Calmar ratio Return relative to maximum drawdown	3.63	2.53	+1.11
Martin ratio Return relative to average drawdown	16.41	11.09	+5.32
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. NBARX - Sharpe Ratio Comparison

The current BALFX Sharpe Ratio is 2.93, which is comparable to the NBARX Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of BALFX and NBARX, 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	NBARX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.41	+0.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.93	0.81	+0.12
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	0.90	-0.22

Drawdowns

BALFX vs. NBARX - Drawdown Comparison

The maximum BALFX drawdown since its inception was -40.20%, which is greater than NBARX's maximum drawdown of -18.50%. Use the drawdown chart below to compare losses from any high point for BALFX and NBARX.

Drawdown Indicators

	BALFX	NBARX	Difference
Max Drawdown Largest peak-to-trough decline	-40.20%	-18.50%	-21.70%
Max Drawdown (1Y) Largest decline over 1 year	-7.03%	-6.10%	-0.93%
Max Drawdown (3Y) Largest decline over 3 years	-10.67%	-6.90%	-3.77%
Max Drawdown (5Y) Largest decline over 5 years	-18.81%	-16.86%	-1.95%
Max Drawdown (10Y) Largest decline over 10 years	-22.34%	-18.50%	-3.84%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.16%	-2.68%	-1.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	1.39%	+0.16%

Volatility

BALFX vs. NBARX - Volatility Comparison

American Funds American Balanced Fund (BALFX) has a higher volatility of 2.65% compared to American Funds Retirement Income Portfolio - Moderate (NBARX) at 2.12%. This indicates that BALFX's price experiences larger fluctuations and is considered to be riskier than NBARX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BALFX	NBARX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	2.12%	+0.53%
Volatility (6M) Calculated over the trailing 6-month period	6.86%	5.20%	+1.66%
Volatility (1Y) Calculated over the trailing 1-year period	8.72%	6.41%	+2.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.48%	7.97%	+2.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.66%	8.23%	+2.43%

BALFX vs. NBARX - Expense Ratio Comparison

BALFX has a 0.62% expense ratio, which is higher than NBARX's 0.32% expense ratio.

Dividends

BALFX vs. NBARX - Dividend Comparison

BALFX's dividend yield for the trailing twelve months is around 7.49%, more than NBARX's 4.90% 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%
NBARX American Funds Retirement Income Portfolio - Moderate	4.90%	5.69%	3.25%	3.46%	5.04%	3.48%	3.97%	3.87%	3.89%	2.50%	2.55%	0.00%

Frequently Asked Questions

Can I hold both BALFX and NBARX in my portfolio?

With a correlation of 0.92, BALFX and NBARX 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 NBARX?

BALFX has higher volatility (2.65%) compared to NBARX (2.12%). In terms of maximum drawdown, BALFX dropped -40.20% vs NBARX's -18.50%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.93 vs 2.41), 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.