CTLAX vs. ABALX

Last updated Jun 4, 2026

CTLAX (American Funds College 2033 Fund) and ABALX (American Funds American Balanced Fund Class A) are both Diversified Portfolio funds from American Funds. Over the past 10 years, CTLAX returned 8.46%/yr vs 10.12%/yr for ABALX. Their correlation of 0.95 suggests significant overlap in exposure. CTLAX charges 0.42%/yr vs 0.56%/yr for ABALX.

Performance

CTLAX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds College 2033 Fund (CTLAX) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CTLAX achieves a 4.55% return, which is significantly lower than ABALX's 9.98% return. Over the past 10 years, CTLAX has underperformed ABALX with an annualized return of 8.46%, while ABALX has yielded a comparatively higher 10.12% annualized return.

CTLAX

• 1D: 0.29%
• 1M: 1.92%
• YTD: 4.55%
• 6M: 4.89%
• 1Y: 13.68%
• 3Y*: 12.45%
• 5Y*: 5.85%
• 10Y*: 8.46%

ABALX

• 1D: 0.24%
• 1M: 3.97%
• YTD: 9.98%
• 6M: 10.60%
• 1Y: 24.98%
• 3Y*: 17.43%
• 5Y*: 9.66%
• 10Y*: 10.12%

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

CTLAX vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CTLAX American Funds College 2033 Fund	4.55%	13.98%	10.56%	13.56%	-15.16%	10.61%	15.49%	19.46%	-5.83%	19.33%
ABALX American Funds American Balanced Fund Class A	9.98%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%

Correlation

The correlation between CTLAX and ABALX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Mar 30, 2015	0.95

The correlation between CTLAX and ABALX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

CTLAX vs. ABALX — Risk / Return Rank

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

CTLAX

CTLAX Risk / Return Rank: 62
CTLAX Sharpe Ratio Rank: 65
CTLAX Sortino Ratio Rank: 68
CTLAX Omega Ratio Rank: 68
CTLAX Calmar Ratio Rank: 49
CTLAX Martin Ratio Rank: 59

ABALX

ABALX Risk / Return Rank: 85
ABALX Sharpe Ratio Rank: 89
ABALX Sortino Ratio Rank: 87
ABALX Omega Ratio Rank: 84
ABALX Calmar Ratio Rank: 80
ABALX Martin Ratio Rank: 86

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.

CTLAX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds College 2033 Fund (CTLAX) 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.

	CTLAX	ABALX	Difference
Sharpe ratio Return per unit of total volatility	2.37	2.94	-0.57
Sortino ratio Return per unit of downside risk	3.44	4.11	-0.66
Omega ratio Gain probability vs. loss probability	1.46	1.56	-0.10
Calmar ratio Return relative to maximum drawdown	2.68	3.64	-0.96
Martin ratio Return relative to average drawdown	11.79	16.45	-4.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CTLAX vs. ABALX - Sharpe Ratio Comparison

The current CTLAX Sharpe Ratio is 2.37, which is comparable to the ABALX Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of CTLAX and ABALX, 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

	CTLAX	ABALX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.37	2.94	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.93	-0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.95	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.81	-0.10

Drawdowns

CTLAX vs. ABALX - Drawdown Comparison

The maximum CTLAX drawdown since its inception was -21.42%, smaller than the maximum ABALX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for CTLAX and ABALX.

Drawdown Indicators

	CTLAX	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-21.42%	-40.20%	+18.78%
Max Drawdown (1Y) Largest decline over 1 year	-5.22%	-7.03%	+1.81%
Max Drawdown (3Y) Largest decline over 3 years	-7.07%	-10.68%	+3.61%
Max Drawdown (5Y) Largest decline over 5 years	-21.42%	-18.76%	-2.66%
Max Drawdown (10Y) Largest decline over 10 years	-21.42%	-22.34%	+0.92%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.13%	-3.85%	-0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	1.55%	-0.37%

Volatility

CTLAX vs. ABALX - Volatility Comparison

The current volatility for American Funds College 2033 Fund (CTLAX) is 1.83%, while American Funds American Balanced Fund Class A (ABALX) has a volatility of 2.65%. This indicates that CTLAX 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.

Volatility by Period

	CTLAX	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.83%	2.65%	-0.82%
Volatility (6M) Calculated over the trailing 6-month period	4.70%	6.86%	-2.16%
Volatility (1Y) Calculated over the trailing 1-year period	5.90%	8.71%	-2.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.79%	10.49%	-1.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.12%	10.67%	-0.55%

CTLAX vs. ABALX - Expense Ratio Comparison

CTLAX has a 0.42% expense ratio, which is lower than ABALX's 0.56% expense ratio.

Dividends

CTLAX vs. ABALX - Dividend Comparison

CTLAX's dividend yield for the trailing twelve months is around 7.08%, less than ABALX's 7.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.54%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
CTLAX American Funds College 2033 Fund	7.08%	7.40%	3.80%	2.43%	4.56%	11.46%	6.06%	4.75%	4.36%	2.19%	2.26%	0.00%

Frequently Asked Questions

Can I hold both CTLAX and ABALX in my portfolio?

With a correlation of 0.94, CTLAX and ABALX 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, CTLAX or ABALX?

ABALX has higher volatility (2.65%) compared to CTLAX (1.83%). In terms of maximum drawdown, CTLAX dropped -21.42% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (2.94 vs 2.37), 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.