RDVY vs. BALFX

Last updated Jun 10, 2026

RDVY (First Trust Rising Dividend Achievers ETF) and BALFX (American Funds American Balanced Fund) are both funds - RDVY is a Large Cap Blend Equities fund tracking the NASDAQ US Rising Dividend Achievers, while BALFX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, RDVY returned 15.78%/yr vs 9.83%/yr for BALFX. Their correlation of 0.82 suggests significant overlap in exposure. RDVY charges 0.50%/yr vs 0.62%/yr for BALFX.

Performance

RDVY vs. BALFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Rising Dividend Achievers ETF (RDVY) and American Funds American Balanced Fund (BALFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RDVY achieves a 10.70% return, which is significantly higher than BALFX's 7.61% return. Over the past 10 years, RDVY has outperformed BALFX with an annualized return of 15.78%, while BALFX has yielded a comparatively lower 9.83% annualized return.

RDVY

• 1D: 0.88%
• 1M: 2.83%
• YTD: 10.70%
• 6M: 11.75%
• 1Y: 26.27%
• 3Y*: 20.13%
• 5Y*: 11.58%
• 10Y*: 15.78%

BALFX

• 1D: 0.30%
• 1M: -0.27%
• YTD: 7.61%
• 6M: 8.26%
• 1Y: 21.61%
• 3Y*: 16.60%
• 5Y*: 9.14%
• 10Y*: 9.83%

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

RDVY vs. BALFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RDVY First Trust Rising Dividend Achievers ETF	10.70%	18.90%	16.41%	20.38%	-13.27%	31.14%	13.47%	37.71%	-9.92%	22.75%
BALFX American Funds American Balanced Fund	7.61%	18.40%	14.91%	13.62%	-12.19%	15.69%	10.81%	18.50%	-3.54%	14.63%

Correlation

The correlation between RDVY and BALFX is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jan 7, 2014	0.82

The correlation between RDVY and BALFX has been stable across timeframes, ranging from 0.77 to 0.83 - a consistent structural relationship.

Return for Risk

RDVY vs. BALFX — Risk / Return Rank

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

RDVY

RDVY Risk / Return Rank: 66
RDVY Sharpe Ratio Rank: 63
RDVY Sortino Ratio Rank: 66
RDVY Omega Ratio Rank: 60
RDVY Calmar Ratio Rank: 66
RDVY Martin Ratio Rank: 74

BALFX

BALFX Risk / Return Rank: 81
BALFX Sharpe Ratio Rank: 84
BALFX Sortino Ratio Rank: 81
BALFX Omega Ratio Rank: 80
BALFX Calmar Ratio Rank: 78
BALFX Martin Ratio Rank: 85

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.

RDVY vs. BALFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Rising Dividend Achievers ETF (RDVY) and American Funds American Balanced Fund (BALFX). 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.

	RDVY	BALFX	Difference
Sharpe ratio: Return per unit of total volatility	1.87	2.44	-0.57
Sortino ratio: Return per unit of downside risk	2.66	3.37	-0.71
Omega ratio: Gain probability vs. loss probability	1.33	1.46	-0.13
Calmar ratio: Return relative to maximum drawdown	2.92	3.10	-0.18
Martin ratio: Return relative to average drawdown	12.26	13.88	-1.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RDVY vs. BALFX - Sharpe Ratio Comparison

The current RDVY Sharpe Ratio is 1.87, which is comparable to the BALFX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of RDVY and BALFX, 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

	RDVY	BALFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	2.44	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.87	-0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.92	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.68	-0.01

Drawdowns

RDVY vs. BALFX - Drawdown Comparison

The maximum RDVY drawdown since its inception was -40.60%, roughly equal to the maximum BALFX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for RDVY and BALFX.

Drawdown Indicators

	RDVY	BALFX	Difference
Max Drawdown Largest peak-to-trough decline	-40.60%	-40.20%	-0.40%
Max Drawdown (1Y) Largest decline over 1 year	-9.04%	-7.03%	-2.01%
Max Drawdown (3Y) Largest decline over 3 years	-19.11%	-10.67%	-8.44%
Max Drawdown (5Y) Largest decline over 5 years	-25.32%	-18.81%	-6.51%
Max Drawdown (10Y) Largest decline over 10 years	-40.60%	-22.34%	-18.26%
Current Drawdown Current decline from peak	-0.32%	-2.12%	+1.80%
Average Drawdown Average peak-to-trough decline	-5.00%	-4.16%	-0.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	1.57%	+0.58%

Volatility

RDVY vs. BALFX - Volatility Comparison

First Trust Rising Dividend Achievers ETF (RDVY) has a higher volatility of 4.05% compared to American Funds American Balanced Fund (BALFX) at 3.08%. This indicates that RDVY's price experiences larger fluctuations and is considered to be riskier than BALFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RDVY	BALFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	3.08%	+0.97%
Volatility (6M) Calculated over the trailing 6-month period	11.17%	7.11%	+4.06%
Volatility (1Y) Calculated over the trailing 1-year period	14.15%	8.97%	+5.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.94%	10.52%	+8.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.12%	10.68%	+10.44%

RDVY vs. BALFX - Expense Ratio Comparison

RDVY has a 0.50% expense ratio, which is lower than BALFX's 0.62% expense ratio.

Dividends

RDVY vs. BALFX - Dividend Comparison

RDVY's dividend yield for the trailing twelve months is around 0.91%, less than BALFX's 6.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALFX American Funds American Balanced Fund	6.91%	8.22%	7.14%	2.02%	2.24%	4.24%	4.31%	3.44%	5.30%	4.66%	4.18%	5.54%
RDVY First Trust Rising Dividend Achievers ETF	0.91%	1.11%	1.64%	2.09%	2.21%	1.04%	1.53%	1.55%	1.68%	1.25%	2.07%	2.14%

Frequently Asked Questions

Can I hold both RDVY and BALFX in my portfolio?

RDVY and BALFX have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RDVY or BALFX?

RDVY has higher volatility (4.05%) compared to BALFX (3.08%). In terms of maximum drawdown, RDVY dropped -40.60% vs BALFX's -40.20%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.44 vs 1.87), 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.