RLBGX vs. AGG

Last updated Jun 5, 2026

RLBGX (American Funds American Balanced Fund Class R-6) and AGG (iShares Core U.S. Aggregate Bond ETF) are both funds - RLBGX is a Diversified Portfolio fund managed by American Funds, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Over the past 10 years, RLBGX returned 10.43%/yr vs 1.60%/yr for AGG. At a 0.05 correlation, their price movements are largely independent. RLBGX charges 0.25%/yr vs 0.03%/yr for AGG.

Performance

RLBGX vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund Class R-6 (RLBGX) and iShares Core U.S. Aggregate Bond ETF (AGG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RLBGX achieves a 9.60% return, which is significantly higher than AGG's 0.42% return. Over the past 10 years, RLBGX has outperformed AGG with an annualized return of 10.43%, while AGG has yielded a comparatively lower 1.60% annualized return.

RLBGX

• 1D: -0.46%
• 1M: 2.89%
• YTD: 9.60%
• 6M: 10.45%
• 1Y: 24.34%
• 3Y*: 17.71%
• 5Y*: 9.82%
• 10Y*: 10.43%

AGG

• 1D: 0.16%
• 1M: 0.22%
• YTD: 0.42%
• 6M: 0.49%
• 1Y: 4.69%
• 3Y*: 4.01%
• 5Y*: 0.13%
• 10Y*: 1.60%

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

RLBGX vs. AGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RLBGX American Funds American Balanced Fund Class R-6	9.60%	18.83%	15.35%	13.92%	-11.85%	16.10%	11.20%	18.95%	-3.07%	14.97%
AGG iShares Core U.S. Aggregate Bond ETF	0.42%	7.19%	1.31%	5.65%	-13.02%	-1.77%	7.48%	8.46%	0.09%	3.55%

Correlation

The correlation between RLBGX and AGG is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.21
Correlation (All Time) Calculated using the full available price history since Jan 5, 2010	0.05

Over the past year, RLBGX and AGG have become more correlated (0.44) than their long-term average of 0.05, meaning their price movements have been converging.

Return for Risk

RLBGX vs. AGG — Risk / Return Rank

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

RLBGX

RLBGX Risk / Return Rank: 83
RLBGX Sharpe Ratio Rank: 87
RLBGX Sortino Ratio Rank: 83
RLBGX Omega Ratio Rank: 81
RLBGX Calmar Ratio Rank: 79
RLBGX Martin Ratio Rank: 85

AGG

AGG Risk / Return Rank: 35
AGG Sharpe Ratio Rank: 35
AGG Sortino Ratio Rank: 36
AGG Omega Ratio Rank: 33
AGG Calmar Ratio Rank: 35
AGG Martin Ratio Rank: 35

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.

RLBGX vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class R-6 (RLBGX) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.

	RLBGX	AGG	Difference
Sharpe ratio: Return per unit of total volatility	2.86	1.24	+1.62
Sortino ratio: Return per unit of downside risk	4.01	1.83	+2.18
Omega ratio: Gain probability vs. loss probability	1.54	1.22	+0.33
Calmar ratio: Return relative to maximum drawdown	3.57	1.70	+1.87
Martin ratio: Return relative to average drawdown	16.12	5.21	+10.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RLBGX vs. AGG - Sharpe Ratio Comparison

The current RLBGX Sharpe Ratio is 2.86, which is higher than the AGG Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of RLBGX and AGG, 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

	RLBGX	AGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.86	1.24	+1.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.94	0.02	+0.92
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.98	0.30	+0.68
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.59	+0.39

Drawdowns

RLBGX vs. AGG - Drawdown Comparison

The maximum RLBGX drawdown since its inception was -22.33%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for RLBGX and AGG.

Drawdown Indicators

	RLBGX	AGG	Difference
Max Drawdown Largest peak-to-trough decline	-22.33%	-18.43%	-3.90%
Max Drawdown (1Y) Largest decline over 1 year	-6.98%	-2.76%	-4.22%
Max Drawdown (3Y) Largest decline over 3 years	-10.65%	-6.11%	-4.54%
Max Drawdown (5Y) Largest decline over 5 years	-18.59%	-17.82%	-0.77%
Max Drawdown (10Y) Largest decline over 10 years	-22.33%	-18.43%	-3.90%
Current Drawdown Current decline from peak	-0.46%	-1.98%	+1.52%
Average Drawdown Average peak-to-trough decline	-2.46%	-2.71%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.54%	0.90%	+0.64%

Volatility

RLBGX vs. AGG - Volatility Comparison

American Funds American Balanced Fund Class R-6 (RLBGX) has a higher volatility of 2.70% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.29%. This indicates that RLBGX's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RLBGX	AGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.70%	1.29%	+1.41%
Volatility (6M) Calculated over the trailing 6-month period	6.80%	2.74%	+4.06%
Volatility (1Y) Calculated over the trailing 1-year period	8.71%	3.85%	+4.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.49%	6.09%	+4.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.67%	5.40%	+5.27%

RLBGX vs. AGG - Expense Ratio Comparison

RLBGX has a 0.25% expense ratio, which is higher than AGG's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

RLBGX vs. AGG - Dividend Comparison

RLBGX's dividend yield for the trailing twelve months is around 7.85%, more than AGG's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AGG iShares Core U.S. Aggregate Bond ETF	3.98%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%
RLBGX American Funds American Balanced Fund Class R-6	7.85%	8.56%	7.50%	2.27%	2.63%	4.59%	4.65%	3.78%	5.81%	4.92%	4.54%	5.91%

Frequently Asked Questions

Can I hold both RLBGX and AGG in my portfolio?

RLBGX and AGG have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RLBGX or AGG?

RLBGX has higher volatility (2.70%) compared to AGG (1.29%). In terms of maximum drawdown, RLBGX dropped -22.33% vs AGG's -18.43%.

Which has better risk-adjusted returns?

RLBGX currently has the higher Sharpe Ratio (2.86 vs 1.24), 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.