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BALFX vs. VBINX
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility

Performance

BALFX vs. VBINX - Performance Comparison

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

0.00%2.00%4.00%6.00%8.00%10.00%JuneJulyAugustSeptemberOctoberNovember
8.09%
9.36%
BALFX
VBINX

Returns By Period

The year-to-date returns for both investments are quite close, with BALFX having a 14.50% return and VBINX slightly higher at 15.16%. Both investments have delivered pretty close results over the past 10 years, with BALFX having a 8.14% annualized return and VBINX not far behind at 8.12%.


BALFX

YTD

14.50%

1M

-0.41%

6M

7.45%

1Y

20.62%

5Y (annualized)

8.58%

10Y (annualized)

8.14%

VBINX

YTD

15.16%

1M

0.76%

6M

8.66%

1Y

21.62%

5Y (annualized)

8.74%

10Y (annualized)

8.12%

Key characteristics


BALFXVBINX
Sharpe Ratio2.452.61
Sortino Ratio3.463.69
Omega Ratio1.461.49
Calmar Ratio3.992.66
Martin Ratio16.3416.41
Ulcer Index1.25%1.31%
Daily Std Dev8.34%8.20%
Max Drawdown-39.30%-35.97%
Current Drawdown-1.79%-1.12%

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BALFX vs. VBINX - Expense Ratio Comparison

BALFX has a 0.62% expense ratio, which is higher than VBINX's 0.18% 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 VBINX: current value at 0.18% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%0.18%

Correlation

-0.50.00.51.01.0

The correlation between BALFX and VBINX 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

BALFX vs. VBINX - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund (BALFX) and Vanguard Balanced Index Fund (VBINX). 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 2.45, compared to the broader market-1.000.001.002.003.004.005.002.452.61
The chart of Sortino ratio for BALFX, currently valued at 3.46, compared to the broader market0.005.0010.003.463.69
The chart of Omega ratio for BALFX, currently valued at 1.46, compared to the broader market1.002.003.004.001.461.49
The chart of Calmar ratio for BALFX, currently valued at 3.99, compared to the broader market0.005.0010.0015.0020.0025.003.992.66
The chart of Martin ratio for BALFX, currently valued at 16.34, compared to the broader market0.0020.0040.0060.0080.00100.0016.3416.41
BALFX
VBINX

The current BALFX Sharpe Ratio is 2.45, which is comparable to the VBINX Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of BALFX and VBINX, 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 Ratio1.502.002.503.003.50JuneJulyAugustSeptemberOctoberNovember
2.45
2.61
BALFX
VBINX

Dividends

BALFX vs. VBINX - Dividend Comparison

BALFX's dividend yield for the trailing twelve months is around 2.11%, more than VBINX's 1.93% 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%
VBINX
Vanguard Balanced Index Fund
1.93%1.93%1.80%1.27%1.55%2.02%2.19%1.83%1.97%1.95%1.79%1.70%

Drawdowns

BALFX vs. VBINX - Drawdown Comparison

The maximum BALFX drawdown since its inception was -39.30%, which is greater than VBINX's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for BALFX and VBINX. For additional features, visit the drawdowns tool.


-5.00%-4.00%-3.00%-2.00%-1.00%0.00%JuneJulyAugustSeptemberOctoberNovember
-1.79%
-1.12%
BALFX
VBINX

Volatility

BALFX vs. VBINX - Volatility Comparison

The current volatility for American Funds American Balanced Fund (BALFX) is 2.46%, while Vanguard Balanced Index Fund (VBINX) has a volatility of 2.59%. This indicates that BALFX experiences smaller price fluctuations and is considered to be less risky than VBINX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


1.50%2.00%2.50%3.00%3.50%4.00%JuneJulyAugustSeptemberOctoberNovember
2.46%
2.59%
BALFX
VBINX