GBATX vs. GABFX

Last updated Jul 15, 2026

GBATX (GMO Strategic Opportunities Allocation Fund) and GABFX (GMO Asset Allocation Bond Fund) are both mutual funds - GBATX is a Global Allocation fund managed by GMO, while GABFX is a Inflation-Protected Bonds fund managed by GMO. Over the past 10 years, GBATX returned 9.04%/yr vs 0.20%/yr for GABFX. At a 0.07 correlation, their price movements are largely independent. Both charge a 0.32% expense ratio.

Performance

GBATX vs. GABFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GMO Strategic Opportunities Allocation Fund (GBATX) and GMO Asset Allocation Bond Fund (GABFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GBATX achieves a 12.10% return, which is significantly higher than GABFX's -5.99% return. Over the past 10 years, GBATX has outperformed GABFX with an annualized return of 9.04%, while GABFX has yielded a comparatively lower 0.20% annualized return.

GBATX

• 1D: -0.51%
• 1M: -0.71%
• 6M: 9.43%
• YTD: 12.10%
• 1Y: 26.03%
• 3Y*: 16.51%
• 5Y*: 9.11%
• 10Y*: 9.04%

GABFX

• 1D: -0.57%
• 1M: -1.57%
• 6M: -5.94%
• YTD: -5.99%
• 1Y: -0.53%
• 3Y*: -1.86%
• 5Y*: -3.98%
• 10Y*: 0.20%

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

GBATX vs. GABFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GBATX GMO Strategic Opportunities Allocation Fund	12.10%	24.71%	5.50%	17.36%	-11.27%	12.12%	4.83%	19.59%	-9.41%	19.30%
GABFX GMO Asset Allocation Bond Fund	-5.99%	8.82%	-12.60%	8.33%	-14.86%	1.34%	11.28%	8.00%	0.78%	2.41%

Correlation

The correlation between GBATX and GABFX is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Mar 18, 2009	0.07

Over the past year, GBATX and GABFX have become more correlated (0.34) than their long-term average of 0.07, meaning their price movements have been converging.

Return for Risk

GBATX vs. GABFX — Risk / Return Rank

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

GBATX

GBATX Risk / Return Rank: 91
GBATX Sharpe Ratio Rank: 95
GBATX Sortino Ratio Rank: 91
GBATX Omega Ratio Rank: 89
GBATX Calmar Ratio Rank: 91
GBATX Martin Ratio Rank: 91

GABFX

GABFX Risk / Return Rank: 3
GABFX Sharpe Ratio Rank: 3
GABFX Sortino Ratio Rank: 3
GABFX Omega Ratio Rank: 3
GABFX Calmar Ratio Rank: 3
GABFX Martin Ratio Rank: 3

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.

GBATX vs. GABFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO Strategic Opportunities Allocation Fund (GBATX) and GMO Asset Allocation Bond Fund (GABFX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	GBATX	GABFX	Difference
Sharpe ratio: Return per unit of total volatility	2.70	-0.06	+2.75
Sortino ratio: Return per unit of downside risk	3.79	-0.01	+3.80
Omega ratio: Gain probability vs. loss probability	1.51	1.00	+0.51
Calmar ratio: Return relative to maximum drawdown	3.69	-0.06	+3.75
Martin ratio: Return relative to average drawdown	13.80	-0.14	+13.94

GBATX vs. GABFX - Sharpe Ratio Comparison

The current GBATX Sharpe Ratio is 2.70, which is higher than the GABFX Sharpe Ratio of -0.06. The chart below compares the historical Sharpe Ratios of GBATX and GABFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

GBATX vs. GABFX - Drawdown Comparison

The maximum GBATX drawdown since its inception was -35.37%, which is greater than GABFX's maximum drawdown of -27.84%. Use the drawdown chart below to compare losses from any high point for GBATX and GABFX.

Drawdown Indicators

	GBATX	GABFX	Difference
Max Drawdown Largest peak-to-trough decline	-35.37%	-27.84%	-7.53%
Max Drawdown (1Y) Largest decline over 1 year	-7.06%	-9.58%	+2.52%
Max Drawdown (3Y) Largest decline over 3 years	-9.98%	-19.48%	+9.50%
Max Drawdown (5Y) Largest decline over 5 years	-22.58%	-27.84%	+5.26%
Max Drawdown (10Y) Largest decline over 10 years	-29.68%	-27.84%	-1.84%
Current Drawdown Current decline from peak	-1.44%	-19.54%	+18.10%
Average Drawdown Average peak-to-trough decline	-5.55%	-7.37%	+1.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	4.23%	-2.34%

Volatility

GBATX vs. GABFX - Volatility Comparison

GMO Strategic Opportunities Allocation Fund (GBATX) has a higher volatility of 3.04% compared to GMO Asset Allocation Bond Fund (GABFX) at 2.54%. This indicates that GBATX's price experiences larger fluctuations and is considered to be riskier than GABFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GBATX	GABFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	2.54%	+0.50%
Volatility (6M) Calculated over the trailing 6-month period	7.83%	6.67%	+1.16%
Volatility (1Y) Calculated over the trailing 1-year period	9.69%	9.96%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.09%	14.05%	-2.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.01%	10.38%	+1.63%

GBATX vs. GABFX - Expense Ratio Comparison

Both GBATX and GABFX have an expense ratio of 0.32%.

Dividends

GBATX vs. GABFX - Dividend Comparison

GBATX's dividend yield for the trailing twelve months is around 15.64%, more than GABFX's 2.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GABFX GMO Asset Allocation Bond Fund	2.92%	2.69%	4.19%	5.03%	0.71%	1.81%	1.20%	4.72%	5.13%	1.07%	0.00%	7.43%
GBATX GMO Strategic Opportunities Allocation Fund	15.64%	13.65%	5.97%	6.04%	10.08%	24.22%	4.29%	5.17%	9.77%	2.98%	2.84%	9.67%

Frequently Asked Questions

Can I hold both GBATX and GABFX in my portfolio?

GBATX and GABFX have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GBATX or GABFX?

GBATX has higher volatility (3.04%) compared to GABFX (2.54%). In terms of maximum drawdown, GBATX dropped -35.37% vs GABFX's -27.84%.

Which has better risk-adjusted returns?

GBATX currently has the higher Sharpe Ratio (2.70 vs -0.06), 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.