NFFFX vs. AFMFX

Last updated Jun 4, 2026

NFFFX (American Funds New World Fund) and AFMFX (American Funds American Mutual Fund Class F-3) are both mutual funds - NFFFX is a Emerging Markets Equities fund managed by American Funds, while AFMFX is a Large Cap Value Equities fund managed by American Funds. Over the past 5 years, NFFFX returned 7.22%/yr vs 10.36%/yr for AFMFX. A 0.71 correlation means they provide meaningful diversification when combined. NFFFX charges 0.68%/yr vs 0.27%/yr for AFMFX.

Performance

NFFFX vs. AFMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NFFFX) and American Funds American Mutual Fund Class F-3 (AFMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NFFFX achieves a 17.55% return, which is significantly higher than AFMFX's 6.78% return.

NFFFX

• 1D: 0.70%
• 1M: 6.75%
• YTD: 17.55%
• 6M: 19.27%
• 1Y: 36.61%
• 3Y*: 19.82%
• 5Y*: 7.22%
• 10Y*: 11.32%

AFMFX

• 1D: 0.62%
• 1M: 2.98%
• YTD: 6.78%
• 6M: 7.02%
• 1Y: 17.61%
• 3Y*: 15.85%
• 5Y*: 10.36%
• 10Y*: —

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

NFFFX vs. AFMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NFFFX American Funds New World Fund	17.55%	28.52%	6.78%	16.11%	-21.86%	4.98%	25.17%	27.89%	-12.08%	20.48%
AFMFX American Funds American Mutual Fund Class F-3	6.78%	16.43%	15.30%	9.77%	-4.19%	23.64%	5.04%	21.90%	-1.98%	11.75%

Correlation

The correlation between NFFFX and AFMFX is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 20, 2017	0.71

The correlation between NFFFX and AFMFX shifts across timeframes, from 0.60 (1 year) to 0.71 (all time), reflecting how their relationship changes across market environments.

Return for Risk

NFFFX vs. AFMFX — Risk / Return Rank

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

NFFFX

NFFFX Risk / Return Rank: 66
NFFFX Sharpe Ratio Rank: 75
NFFFX Sortino Ratio Rank: 70
NFFFX Omega Ratio Rank: 71
NFFFX Calmar Ratio Rank: 55
NFFFX Martin Ratio Rank: 58

AFMFX

AFMFX Risk / Return Rank: 42
AFMFX Sharpe Ratio Rank: 43
AFMFX Sortino Ratio Rank: 41
AFMFX Omega Ratio Rank: 42
AFMFX Calmar Ratio Rank: 37
AFMFX Martin Ratio Rank: 44

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.

NFFFX vs. AFMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NFFFX) and American Funds American Mutual Fund Class F-3 (AFMFX). 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.

	NFFFX	AFMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.51	1.92	+0.59
Sortino ratio: Return per unit of downside risk	3.49	2.68	+0.81
Omega ratio: Gain probability vs. loss probability	1.47	1.35	+0.13
Calmar ratio: Return relative to maximum drawdown	2.84	2.31	+0.53
Martin ratio: Return relative to average drawdown	11.66	9.27	+2.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NFFFX vs. AFMFX - Sharpe Ratio Comparison

The current NFFFX Sharpe Ratio is 2.51, which is higher than the AFMFX Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of NFFFX and AFMFX, 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

	NFFFX	AFMFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	1.92	+0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.83	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.76	-0.37

Drawdowns

NFFFX vs. AFMFX - Drawdown Comparison

The maximum NFFFX drawdown since its inception was -50.17%, which is greater than AFMFX's maximum drawdown of -29.79%. Use the drawdown chart below to compare losses from any high point for NFFFX and AFMFX.

Drawdown Indicators

	NFFFX	AFMFX	Difference
Max Drawdown Largest peak-to-trough decline	-50.17%	-29.79%	-20.38%
Max Drawdown (1Y) Largest decline over 1 year	-13.01%	-7.90%	-5.11%
Max Drawdown (3Y) Largest decline over 3 years	-15.05%	-12.91%	-2.14%
Max Drawdown (5Y) Largest decline over 5 years	-33.48%	-15.16%	-18.32%
Max Drawdown (10Y) Largest decline over 10 years	-33.48%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-9.81%	-2.92%	-6.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.16%	1.96%	+1.20%

Volatility

NFFFX vs. AFMFX - Volatility Comparison

American Funds New World Fund (NFFFX) has a higher volatility of 5.50% compared to American Funds American Mutual Fund Class F-3 (AFMFX) at 2.36%. This indicates that NFFFX's price experiences larger fluctuations and is considered to be riskier than AFMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NFFFX	AFMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.50%	2.36%	+3.14%
Volatility (6M) Calculated over the trailing 6-month period	12.51%	7.36%	+5.15%
Volatility (1Y) Calculated over the trailing 1-year period	14.73%	9.50%	+5.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.42%	12.50%	+2.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.14%	14.50%	+1.64%

NFFFX vs. AFMFX - Expense Ratio Comparison

NFFFX has a 0.68% expense ratio, which is higher than AFMFX's 0.27% expense ratio.

Dividends

NFFFX vs. AFMFX - Dividend Comparison

NFFFX's dividend yield for the trailing twelve months is around 5.11%, less than AFMFX's 7.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFMFX American Funds American Mutual Fund Class F-3	7.40%	7.86%	6.60%	4.06%	5.20%	3.58%	2.22%	4.89%	6.75%	6.25%	0.00%	0.00%
NFFFX American Funds New World Fund	5.11%	6.01%	4.01%	2.78%	1.21%	7.23%	0.35%	3.95%	2.62%	2.17%	1.28%	0.94%

Frequently Asked Questions

Can I hold both NFFFX and AFMFX in my portfolio?

NFFFX and AFMFX have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NFFFX or AFMFX?

NFFFX has higher volatility (5.50%) compared to AFMFX (2.36%). In terms of maximum drawdown, NFFFX dropped -50.17% vs AFMFX's -29.79%.

Which has better risk-adjusted returns?

NFFFX currently has the higher Sharpe Ratio (2.51 vs 1.92), 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.