PortfoliosLab logo
PortfoliosLab logo
Tools
Performance Analysis
Portfolio Analysis
Factor Model
Portfolios
Lazy PortfoliosUser Portfolios
Discussions
BALFX vs. QQQ
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility

Performance

BALFX vs. QQQ - Performance Comparison

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

-5.00%0.00%5.00%10.00%JuneJulyAugustSeptemberOctoberNovember
8.44%
11.65%
BALFX
QQQ

Returns By Period

In the year-to-date period, BALFX achieves a 14.88% return, which is significantly lower than QQQ's 23.84% return. Over the past 10 years, BALFX has underperformed QQQ with an annualized return of 8.16%, while QQQ has yielded a comparatively higher 18.03% annualized return.


BALFX

YTD

14.88%

1M

-0.16%

6M

8.44%

1Y

20.75%

5Y (annualized)

8.64%

10Y (annualized)

8.16%

QQQ

YTD

23.84%

1M

1.82%

6M

11.65%

1Y

30.35%

5Y (annualized)

20.97%

10Y (annualized)

18.03%

Key characteristics


BALFXQQQ
Sharpe Ratio2.521.78
Sortino Ratio3.552.37
Omega Ratio1.471.32
Calmar Ratio4.212.28
Martin Ratio16.778.27
Ulcer Index1.25%3.73%
Daily Std Dev8.34%17.37%
Max Drawdown-39.30%-82.98%
Current Drawdown-1.46%-1.78%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.


BALFX vs. QQQ - Expense Ratio Comparison

BALFX has a 0.62% expense ratio, which is higher than QQQ's 0.20% expense ratio.


BALFX
American Funds American Balanced Fund
Expense ratio chart for BALFX: current value at 0.62% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%0.62%
Expense ratio chart for QQQ: current value at 0.20% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%0.20%

Correlation

-0.50.00.51.00.8

The correlation between BALFX and QQQ is 0.83, 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

BALFX vs. QQQ - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund (BALFX) and Invesco QQQ (QQQ). 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.


Sharpe ratio
The chart of Sharpe ratio for BALFX, currently valued at 2.52, compared to the broader market-1.000.001.002.003.004.005.002.521.78
The chart of Sortino ratio for BALFX, currently valued at 3.55, compared to the broader market0.005.0010.003.552.37
The chart of Omega ratio for BALFX, currently valued at 1.47, compared to the broader market1.002.003.004.001.471.32
The chart of Calmar ratio for BALFX, currently valued at 4.21, compared to the broader market0.005.0010.0015.0020.0025.004.212.28
The chart of Martin ratio for BALFX, currently valued at 16.77, compared to the broader market0.0020.0040.0060.0080.00100.0016.778.27
BALFX
QQQ

The current BALFX Sharpe Ratio is 2.52, which is higher than the QQQ Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of BALFX and QQQ, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Rolling 12-month Sharpe Ratio1.001.502.002.503.003.50JuneJulyAugustSeptemberOctoberNovember
2.52
1.78
BALFX
QQQ

Dividends

BALFX vs. QQQ - Dividend Comparison

BALFX's dividend yield for the trailing twelve months is around 2.11%, more than QQQ's 0.60% yield.


TTM20232022202120202019201820172016201520142013
BALFX
American Funds American Balanced Fund
2.11%2.31%1.63%1.13%1.28%1.85%2.02%1.71%1.71%2.40%8.02%1.51%
QQQ
Invesco QQQ
0.60%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%1.41%1.02%

Drawdowns

BALFX vs. QQQ - Drawdown Comparison

The maximum BALFX drawdown since its inception was -39.30%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for BALFX and QQQ. For additional features, visit the drawdowns tool.


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%-2.00%0.00%JuneJulyAugustSeptemberOctoberNovember
-1.46%
-1.78%
BALFX
QQQ

Volatility

BALFX vs. QQQ - Volatility Comparison

The current volatility for American Funds American Balanced Fund (BALFX) is 2.41%, while Invesco QQQ (QQQ) has a volatility of 5.41%. This indicates that BALFX experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


2.00%4.00%6.00%8.00%JuneJulyAugustSeptemberOctoberNovember
2.41%
5.41%
BALFX
QQQ