BFCAX vs. CWBFX

Last updated Jun 4, 2026

BFCAX (American Funds Corporate Bond Fund) and CWBFX (American Funds Capital World Bond Fund) are both mutual funds - BFCAX is a Corporate Bonds fund managed by American Funds, while CWBFX is a Global Bonds fund managed by American Funds. Over the past 5 years, BFCAX returned -0.20%/yr vs -2.43%/yr for CWBFX. A 0.71 correlation means they provide meaningful diversification when combined. BFCAX charges 0.70%/yr vs 0.95%/yr for CWBFX.

Performance

BFCAX vs. CWBFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Corporate Bond Fund (BFCAX) and American Funds Capital World Bond Fund (CWBFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BFCAX achieves a 0.46% return, which is significantly higher than CWBFX's -0.48% return.

BFCAX

• 1D: 0.11%
• 1M: 0.78%
• YTD: 0.46%
• 6M: 0.18%
• 1Y: 5.25%
• 3Y*: 4.31%
• 5Y*: -0.20%
• 10Y*: —

CWBFX

• 1D: 0.12%
• 1M: 0.37%
• YTD: -0.48%
• 6M: -0.30%
• 1Y: 1.53%
• 3Y*: 2.85%
• 5Y*: -2.43%
• 10Y*: 0.27%

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

BFCAX vs. CWBFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BFCAX American Funds Corporate Bond Fund	0.46%	6.67%	1.71%	6.85%	-16.51%	-2.15%	13.05%	13.21%	-2.50%	5.61%
CWBFX American Funds Capital World Bond Fund	-0.48%	7.78%	-3.25%	5.81%	-17.52%	-5.17%	9.91%	7.66%	-1.81%	7.89%

Correlation

The correlation between BFCAX and CWBFX is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jan 4, 2017	0.71

The correlation between BFCAX and CWBFX has been stable across timeframes, ranging from 0.71 to 0.77 - a consistent structural relationship.

Return for Risk

BFCAX vs. CWBFX — Risk / Return Rank

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

BFCAX

BFCAX Risk / Return Rank: 19
BFCAX Sharpe Ratio Rank: 18
BFCAX Sortino Ratio Rank: 19
BFCAX Omega Ratio Rank: 17
BFCAX Calmar Ratio Rank: 22
BFCAX Martin Ratio Rank: 19

CWBFX

CWBFX Risk / Return Rank: 4
CWBFX Sharpe Ratio Rank: 4
CWBFX Sortino Ratio Rank: 4
CWBFX Omega Ratio Rank: 4
CWBFX Calmar Ratio Rank: 4
CWBFX Martin Ratio Rank: 4

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.

BFCAX vs. CWBFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Corporate Bond Fund (BFCAX) and American Funds Capital World Bond Fund (CWBFX). 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.

	BFCAX	CWBFX	Difference
Sharpe ratio: Return per unit of total volatility	1.23	0.25	+0.98
Sortino ratio: Return per unit of downside risk	1.81	0.39	+1.42
Omega ratio: Gain probability vs. loss probability	1.22	1.05	+0.17
Calmar ratio: Return relative to maximum drawdown	1.73	0.29	+1.44
Martin ratio: Return relative to average drawdown	5.10	0.80	+4.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BFCAX vs. CWBFX - Sharpe Ratio Comparison

The current BFCAX Sharpe Ratio is 1.23, which is higher than the CWBFX Sharpe Ratio of 0.25. The chart below compares the historical Sharpe Ratios of BFCAX and CWBFX, 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

	BFCAX	CWBFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	0.25	+0.98
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	-0.37	+0.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.86	-0.45

Drawdowns

BFCAX vs. CWBFX - Drawdown Comparison

The maximum BFCAX drawdown since its inception was -23.01%, smaller than the maximum CWBFX drawdown of -27.91%. Use the drawdown chart below to compare losses from any high point for BFCAX and CWBFX.

Drawdown Indicators

	BFCAX	CWBFX	Difference
Max Drawdown Largest peak-to-trough decline	-23.01%	-27.91%	+4.90%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-4.45%	+1.34%
Max Drawdown (3Y) Largest decline over 3 years	-6.92%	-7.69%	+0.77%
Max Drawdown (5Y) Largest decline over 5 years	-22.55%	-26.34%	+3.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-27.91%	—
Current Drawdown Current decline from peak	-4.85%	-14.34%	+9.49%
Average Drawdown Average peak-to-trough decline	-6.45%	-4.19%	-2.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	1.61%	-0.56%

Volatility

BFCAX vs. CWBFX - Volatility Comparison

The current volatility for American Funds Corporate Bond Fund (BFCAX) is 1.48%, while American Funds Capital World Bond Fund (CWBFX) has a volatility of 1.81%. This indicates that BFCAX experiences smaller price fluctuations and is considered to be less risky than CWBFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BFCAX	CWBFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.48%	1.81%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	3.19%	3.77%	-0.58%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	5.16%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.71%	6.57%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.99%	5.65%	+0.34%

BFCAX vs. CWBFX - Expense Ratio Comparison

BFCAX has a 0.70% expense ratio, which is lower than CWBFX's 0.95% expense ratio.

Dividends

BFCAX vs. CWBFX - Dividend Comparison

BFCAX's dividend yield for the trailing twelve months is around 4.19%, more than CWBFX's 2.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BFCAX American Funds Corporate Bond Fund	4.19%	4.20%	4.06%	2.82%	1.95%	1.50%	4.43%	3.44%	2.63%	2.68%	0.00%	0.00%
CWBFX American Funds Capital World Bond Fund	2.78%	2.68%	3.01%	2.47%	1.99%	2.63%	3.18%	2.26%	1.87%	1.80%	2.05%	0.58%

Frequently Asked Questions

Can I hold both BFCAX and CWBFX in my portfolio?

BFCAX and CWBFX have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BFCAX or CWBFX?

CWBFX has higher volatility (1.81%) compared to BFCAX (1.48%). In terms of maximum drawdown, BFCAX dropped -23.01% vs CWBFX's -27.91%.

Which has better risk-adjusted returns?

BFCAX currently has the higher Sharpe Ratio (1.23 vs 0.25), 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.