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NEWFX vs. SMCWX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

NEWFX vs. SMCWX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NEWFX) and American Funds SMALLCAP World Fund Class A (SMCWX). The values are adjusted to include any dividend payments, if applicable.

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NEWFX vs. SMCWX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
NEWFX
American Funds New World Fund
-1.57%28.16%6.45%15.75%-22.08%4.69%24.79%27.51%-12.32%32.56%
SMCWX
American Funds SMALLCAP World Fund Class A
-1.05%14.07%2.33%18.86%-29.90%10.14%37.46%30.79%-9.75%26.85%

Returns By Period

In the year-to-date period, NEWFX achieves a -1.57% return, which is significantly lower than SMCWX's -1.05% return. Both investments have delivered pretty close results over the past 10 years, with NEWFX having a 9.32% annualized return and SMCWX not far behind at 9.04%.


NEWFX

1D
2.62%
1M
-8.59%
YTD
-1.57%
6M
1.91%
1Y
23.53%
3Y*
13.41%
5Y*
4.37%
10Y*
9.32%

SMCWX

1D
3.47%
1M
-7.83%
YTD
-1.05%
6M
1.11%
1Y
20.45%
3Y*
8.86%
5Y*
0.17%
10Y*
9.04%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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NEWFX vs. SMCWX - Expense Ratio Comparison

NEWFX has a 0.96% expense ratio, which is lower than SMCWX's 1.02% expense ratio.


Return for Risk

NEWFX vs. SMCWX — Risk / Return Rank

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

NEWFX
NEWFX Risk / Return Rank: 7878
Overall Rank
NEWFX Sharpe Ratio Rank: 8181
Sharpe Ratio Rank
NEWFX Sortino Ratio Rank: 8282
Sortino Ratio Rank
NEWFX Omega Ratio Rank: 7878
Omega Ratio Rank
NEWFX Calmar Ratio Rank: 7474
Calmar Ratio Rank
NEWFX Martin Ratio Rank: 7575
Martin Ratio Rank

SMCWX
SMCWX Risk / Return Rank: 6464
Overall Rank
SMCWX Sharpe Ratio Rank: 6363
Sharpe Ratio Rank
SMCWX Sortino Ratio Rank: 6666
Sortino Ratio Rank
SMCWX Omega Ratio Rank: 5555
Omega Ratio Rank
SMCWX Calmar Ratio Rank: 6969
Calmar Ratio Rank
SMCWX Martin Ratio Rank: 6565
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.

NEWFX vs. SMCWX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NEWFX) and American Funds SMALLCAP World Fund Class A (SMCWX). 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.


NEWFXSMCWXDifference

Sharpe ratio

Return per unit of total volatility

1.56

1.17

+0.39

Sortino ratio

Return per unit of downside risk

2.16

1.72

+0.43

Omega ratio

Gain probability vs. loss probability

1.31

1.23

+0.08

Calmar ratio

Return relative to maximum drawdown

1.79

1.66

+0.13

Martin ratio

Return relative to average drawdown

7.45

6.37

+1.08

NEWFX vs. SMCWX - Sharpe Ratio Comparison

The current NEWFX Sharpe Ratio is 1.56, which is higher than the SMCWX Sharpe Ratio of 1.17. The chart below compares the historical Sharpe Ratios of NEWFX and SMCWX, 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


NEWFXSMCWXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.56

1.17

+0.39

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.29

0.01

+0.28

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.58

0.51

+0.07

Sharpe Ratio (All Time)

Calculated using the full available price history

0.49

0.57

-0.08

Correlation

The correlation between NEWFX and SMCWX 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

NEWFX vs. SMCWX - Dividend Comparison

NEWFX's dividend yield for the trailing twelve months is around 5.80%, more than SMCWX's 4.90% yield.


TTM20252024202320222021202020192018201720162015
NEWFX
American Funds New World Fund
5.80%5.71%3.66%2.46%0.89%6.89%0.10%3.65%2.26%1.90%0.92%0.60%
SMCWX
American Funds SMALLCAP World Fund Class A
4.90%4.84%0.60%0.64%0.00%9.24%1.60%4.24%7.06%4.48%0.35%6.49%

Drawdowns

NEWFX vs. SMCWX - Drawdown Comparison

The maximum NEWFX drawdown since its inception was -56.71%, smaller than the maximum SMCWX drawdown of -62.46%. Use the drawdown chart below to compare losses from any high point for NEWFX and SMCWX.


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Drawdown Indicators


NEWFXSMCWXDifference

Max Drawdown

Largest peak-to-trough decline

-56.71%

-62.46%

+5.75%

Max Drawdown (1Y)

Largest decline over 1 year

-13.03%

-11.83%

-1.20%

Max Drawdown (5Y)

Largest decline over 5 years

-33.68%

-39.79%

+6.11%

Max Drawdown (10Y)

Largest decline over 10 years

-33.68%

-39.79%

+6.11%

Current Drawdown

Current decline from peak

-10.76%

-10.12%

-0.64%

Average Drawdown

Average peak-to-trough decline

-11.80%

-14.98%

+3.18%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.14%

3.08%

+0.06%

Volatility

NEWFX vs. SMCWX - Volatility Comparison

The current volatility for American Funds New World Fund (NEWFX) is 7.10%, while American Funds SMALLCAP World Fund Class A (SMCWX) has a volatility of 7.62%. This indicates that NEWFX experiences smaller price fluctuations and is considered to be less risky than SMCWX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


NEWFXSMCWXDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.10%

7.62%

-0.52%

Volatility (6M)

Calculated over the trailing 6-month period

11.01%

11.82%

-0.81%

Volatility (1Y)

Calculated over the trailing 1-year period

15.63%

17.93%

-2.30%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.17%

18.05%

-2.88%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.98%

17.76%

-1.78%