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CSTAX vs. ABALX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

CSTAX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds College 2027 Fund (CSTAX) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

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CSTAX vs. ABALX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
CSTAX
American Funds College 2027 Fund
-0.65%9.00%5.57%6.57%-9.87%6.52%7.66%13.35%-2.23%11.77%
ABALX
American Funds American Balanced Fund Class A
-2.86%18.45%14.63%13.65%-12.13%15.75%10.85%18.60%-3.35%14.69%

Returns By Period

In the year-to-date period, CSTAX achieves a -0.65% return, which is significantly higher than ABALX's -2.86% return. Over the past 10 years, CSTAX has underperformed ABALX with an annualized return of 4.97%, while ABALX has yielded a comparatively higher 8.98% annualized return.


CSTAX

1D
0.25%
1M
-2.48%
YTD
-0.65%
6M
0.73%
1Y
5.79%
3Y*
5.94%
5Y*
2.92%
10Y*
4.97%

ABALX

1D
-0.14%
1M
-6.82%
YTD
-2.86%
6M
0.85%
1Y
15.33%
3Y*
13.40%
5Y*
8.00%
10Y*
8.98%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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CSTAX vs. ABALX - Expense Ratio Comparison

CSTAX has a 0.41% expense ratio, which is lower than ABALX's 0.56% expense ratio.


Return for Risk

CSTAX vs. ABALX — Risk / Return Rank

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

CSTAX
CSTAX Risk / Return Rank: 8787
Overall Rank
CSTAX Sharpe Ratio Rank: 8787
Sharpe Ratio Rank
CSTAX Sortino Ratio Rank: 8989
Sortino Ratio Rank
CSTAX Omega Ratio Rank: 8585
Omega Ratio Rank
CSTAX Calmar Ratio Rank: 8787
Calmar Ratio Rank
CSTAX Martin Ratio Rank: 8787
Martin Ratio Rank

ABALX
ABALX Risk / Return Rank: 8181
Overall Rank
ABALX Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
ABALX Sortino Ratio Rank: 8282
Sortino Ratio Rank
ABALX Omega Ratio Rank: 7878
Omega Ratio Rank
ABALX Calmar Ratio Rank: 8383
Calmar Ratio Rank
ABALX Martin Ratio Rank: 8484
Martin Ratio Rank
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.

CSTAX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds College 2027 Fund (CSTAX) and American Funds American Balanced Fund Class A (ABALX). 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.


CSTAXABALXDifference

Sharpe ratio

Return per unit of total volatility

1.73

1.43

+0.30

Sortino ratio

Return per unit of downside risk

2.47

2.09

+0.38

Omega ratio

Gain probability vs. loss probability

1.35

1.29

+0.06

Calmar ratio

Return relative to maximum drawdown

2.23

2.00

+0.22

Martin ratio

Return relative to average drawdown

9.16

8.51

+0.65

CSTAX vs. ABALX - Sharpe Ratio Comparison

The current CSTAX Sharpe Ratio is 1.73, which is comparable to the ABALX Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of CSTAX and ABALX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


CSTAXABALXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.73

1.43

+0.30

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.57

0.77

-0.20

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.86

0.85

+0.01

Sharpe Ratio (All Time)

Calculated using the full available price history

0.86

0.79

+0.07

Correlation

The correlation between CSTAX and ABALX is 0.86, 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.


Dividends

CSTAX vs. ABALX - Dividend Comparison

CSTAX's dividend yield for the trailing twelve months is around 5.30%, less than ABALX's 8.54% yield.


TTM20252024202320222021202020192018201720162015
CSTAX
American Funds College 2027 Fund
5.30%5.26%3.78%3.17%3.40%7.52%5.72%4.00%4.78%3.90%4.34%4.49%
ABALX
American Funds American Balanced Fund Class A
8.54%8.27%6.87%2.05%2.30%4.30%4.35%3.49%5.49%4.72%4.24%5.60%

Drawdowns

CSTAX vs. ABALX - Drawdown Comparison

The maximum CSTAX drawdown since its inception was -14.52%, smaller than the maximum ABALX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for CSTAX and ABALX.


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Drawdown Indicators


CSTAXABALXDifference

Max Drawdown

Largest peak-to-trough decline

-14.52%

-40.20%

+25.68%

Max Drawdown (1Y)

Largest decline over 1 year

-2.72%

-7.33%

+4.61%

Max Drawdown (5Y)

Largest decline over 5 years

-14.52%

-18.76%

+4.24%

Max Drawdown (10Y)

Largest decline over 10 years

-14.52%

-22.34%

+7.82%

Current Drawdown

Current decline from peak

-2.48%

-7.03%

+4.55%

Average Drawdown

Average peak-to-trough decline

-2.37%

-3.86%

+1.49%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.66%

1.73%

-1.07%

Volatility

CSTAX vs. ABALX - Volatility Comparison

The current volatility for American Funds College 2027 Fund (CSTAX) is 1.32%, while American Funds American Balanced Fund Class A (ABALX) has a volatility of 3.26%. This indicates that CSTAX experiences smaller price fluctuations and is considered to be less risky than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


CSTAXABALXDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.32%

3.26%

-1.94%

Volatility (6M)

Calculated over the trailing 6-month period

2.05%

6.74%

-4.69%

Volatility (1Y)

Calculated over the trailing 1-year period

3.47%

11.11%

-7.64%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

5.16%

10.42%

-5.26%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.82%

10.61%

-4.79%