RGAGX vs. ABALX

Last updated Jun 4, 2026

RGAGX (American Funds The Growth Fund of America Class R-6) and ABALX (American Funds American Balanced Fund Class A) are both mutual funds - RGAGX is a Large Cap Growth Equities fund managed by American Funds, while ABALX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, RGAGX returned 16.39%/yr vs 10.12%/yr for ABALX. Their correlation of 0.92 suggests significant overlap in exposure. RGAGX charges 0.30%/yr vs 0.56%/yr for ABALX.

Performance

RGAGX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds The Growth Fund of America Class R-6 (RGAGX) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with RGAGX having a 10.24% return and ABALX slightly lower at 9.98%. Over the past 10 years, RGAGX has outperformed ABALX with an annualized return of 16.39%, while ABALX has yielded a comparatively lower 10.12% annualized return.

RGAGX

• 1D: -0.33%
• 1M: 6.84%
• YTD: 10.24%
• 6M: 9.86%
• 1Y: 26.58%
• 3Y*: 25.54%
• 5Y*: 12.86%
• 10Y*: 16.39%

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)

RGAGX vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RGAGX American Funds The Growth Fund of America Class R-6	10.24%	20.08%	28.41%	37.66%	-30.53%	19.67%	38.30%	29.22%	-2.88%	26.53%
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 RGAGX and ABALX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since May 4, 2009	0.92

The correlation between RGAGX and ABALX has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

Return for Risk

RGAGX vs. ABALX — Risk / Return Rank

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

RGAGX

RGAGX Risk / Return Rank: 35
RGAGX Sharpe Ratio Rank: 39
RGAGX Sortino Ratio Rank: 35
RGAGX Omega Ratio Rank: 37
RGAGX Calmar Ratio Rank: 28
RGAGX Martin Ratio Rank: 35

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.

RGAGX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds The Growth Fund of America Class R-6 (RGAGX) 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.

	RGAGX	ABALX	Difference
Sharpe ratio Return per unit of total volatility	1.80	2.94	-1.14
Sortino ratio Return per unit of downside risk	2.46	4.11	-1.65
Omega ratio Gain probability vs. loss probability	1.32	1.56	-0.24
Calmar ratio Return relative to maximum drawdown	1.99	3.64	-1.66
Martin ratio Return relative to average drawdown	7.76	16.45	-8.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RGAGX vs. ABALX - Sharpe Ratio Comparison

The current RGAGX Sharpe Ratio is 1.80, which is lower than the ABALX Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of RGAGX 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

	RGAGX	ABALX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	2.94	-1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	0.93	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.95	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	0.81	+0.04

Drawdowns

RGAGX vs. ABALX - Drawdown Comparison

The maximum RGAGX drawdown since its inception was -36.19%, smaller than the maximum ABALX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for RGAGX and ABALX.

Drawdown Indicators

	RGAGX	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-36.19%	-40.20%	+4.01%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-7.03%	-6.68%
Max Drawdown (3Y) Largest decline over 3 years	-21.54%	-10.68%	-10.86%
Max Drawdown (5Y) Largest decline over 5 years	-36.19%	-18.76%	-17.43%
Max Drawdown (10Y) Largest decline over 10 years	-36.19%	-22.34%	-13.85%
Current Drawdown Current decline from peak	-0.33%	0.00%	-0.33%
Average Drawdown Average peak-to-trough decline	-5.49%	-3.85%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.50%	1.55%	+1.95%

Volatility

RGAGX vs. ABALX - Volatility Comparison

American Funds The Growth Fund of America Class R-6 (RGAGX) has a higher volatility of 3.69% compared to American Funds American Balanced Fund Class A (ABALX) at 2.65%. This indicates that RGAGX's price experiences larger fluctuations and is considered to be riskier than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RGAGX	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.69%	2.65%	+1.04%
Volatility (6M) Calculated over the trailing 6-month period	11.65%	6.86%	+4.79%
Volatility (1Y) Calculated over the trailing 1-year period	15.15%	8.71%	+6.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.25%	10.49%	+9.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.69%	10.67%	+9.02%

RGAGX vs. ABALX - Expense Ratio Comparison

RGAGX has a 0.30% expense ratio, which is lower than ABALX's 0.56% expense ratio.

Dividends

RGAGX vs. ABALX - Dividend Comparison

RGAGX's dividend yield for the trailing twelve months is around 9.97%, more 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%
RGAGX American Funds The Growth Fund of America Class R-6	9.97%	10.99%	9.29%	7.70%	4.44%	8.49%	4.57%	7.93%	12.36%	7.34%	6.95%	9.22%

Frequently Asked Questions

Can I hold both RGAGX and ABALX in my portfolio?

With a correlation of 0.91, RGAGX 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, RGAGX or ABALX?

RGAGX has higher volatility (3.69%) compared to ABALX (2.65%). In terms of maximum drawdown, RGAGX dropped -36.19% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (2.94 vs 1.80), 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.