RLBGX vs. SPSM

Last updated Jun 4, 2026

RLBGX (American Funds American Balanced Fund Class R-6) and SPSM (SPDR Portfolio S&P 600 Small Cap ETF) are both funds - RLBGX is a Diversified Portfolio fund managed by American Funds, while SPSM is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index. Over the past 10 years, RLBGX returned 10.48%/yr vs 10.77%/yr for SPSM. A 0.77 correlation means they provide meaningful diversification when combined. RLBGX charges 0.25%/yr vs 0.05%/yr for SPSM.

Performance

RLBGX vs. SPSM - 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 SPDR Portfolio S&P 600 Small Cap ETF (SPSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RLBGX achieves a 10.11% return, which is significantly lower than SPSM's 15.28% return. Both investments have delivered pretty close results over the past 10 years, with RLBGX having a 10.48% annualized return and SPSM not far ahead at 10.77%.

RLBGX

• 1D: 0.24%
• 1M: 3.99%
• YTD: 10.11%
• 6M: 10.77%
• 1Y: 25.37%
• 3Y*: 17.89%
• 5Y*: 10.05%
• 10Y*: 10.48%

SPSM

• 1D: -0.92%
• 1M: 1.62%
• YTD: 15.28%
• 6M: 14.19%
• 1Y: 31.50%
• 3Y*: 14.42%
• 5Y*: 5.71%
• 10Y*: 10.77%

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

RLBGX vs. SPSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RLBGX American Funds American Balanced Fund Class R-6	10.11%	18.83%	15.35%	13.92%	-11.85%	16.10%	11.20%	18.95%	-3.07%	14.97%
SPSM SPDR Portfolio S&P 600 Small Cap ETF	15.28%	6.11%	8.55%	16.11%	-16.12%	26.67%	11.69%	25.85%	-11.17%	15.44%

Correlation

The correlation between RLBGX and SPSM is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Jul 10, 2013	0.77

The correlation between RLBGX and SPSM has been stable across timeframes, ranging from 0.73 to 0.79 - a consistent structural relationship.

Return for Risk

RLBGX vs. SPSM — Risk / Return Rank

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

RLBGX

RLBGX Risk / Return Rank: 86
RLBGX Sharpe Ratio Rank: 90
RLBGX Sortino Ratio Rank: 88
RLBGX Omega Ratio Rank: 85
RLBGX Calmar Ratio Rank: 81
RLBGX Martin Ratio Rank: 87

SPSM

SPSM Risk / Return Rank: 58
SPSM Sharpe Ratio Rank: 52
SPSM Sortino Ratio Rank: 54
SPSM Omega Ratio Rank: 49
SPSM Calmar Ratio Rank: 72
SPSM Martin Ratio Rank: 65

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. SPSM - 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 SPDR Portfolio S&P 600 Small Cap ETF (SPSM). 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	SPSM	Difference
Sharpe ratio Return per unit of total volatility	2.99	1.82	+1.18
Sortino ratio Return per unit of downside risk	4.18	2.64	+1.54
Omega ratio Gain probability vs. loss probability	1.57	1.32	+0.26
Calmar ratio Return relative to maximum drawdown	3.73	3.63	+0.10
Martin ratio Return relative to average drawdown	16.84	12.14	+4.70
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. SPSM - Sharpe Ratio Comparison

The current RLBGX Sharpe Ratio is 2.99, which is higher than the SPSM Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of RLBGX and SPSM, 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	SPSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.99	1.82	+1.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.96	0.27	+0.70
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.99	0.47	+0.52
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.45	+0.53

Drawdowns

RLBGX vs. SPSM - Drawdown Comparison

The maximum RLBGX drawdown since its inception was -22.33%, smaller than the maximum SPSM drawdown of -42.89%. Use the drawdown chart below to compare losses from any high point for RLBGX and SPSM.

Drawdown Indicators

	RLBGX	SPSM	Difference
Max Drawdown Largest peak-to-trough decline	-22.33%	-42.89%	+20.56%
Max Drawdown (1Y) Largest decline over 1 year	-6.98%	-8.72%	+1.74%
Max Drawdown (3Y) Largest decline over 3 years	-10.65%	-27.94%	+17.29%
Max Drawdown (5Y) Largest decline over 5 years	-18.59%	-27.94%	+9.35%
Max Drawdown (10Y) Largest decline over 10 years	-22.33%	-42.89%	+20.56%
Current Drawdown Current decline from peak	0.00%	-0.97%	+0.97%
Average Drawdown Average peak-to-trough decline	-2.46%	-7.93%	+5.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.54%	2.60%	-1.06%

Volatility

RLBGX vs. SPSM - Volatility Comparison

The current volatility for American Funds American Balanced Fund Class R-6 (RLBGX) is 2.64%, while SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has a volatility of 4.44%. This indicates that RLBGX experiences smaller price fluctuations and is considered to be less risky than SPSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RLBGX	SPSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.64%	4.44%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	6.84%	11.64%	-4.80%
Volatility (1Y) Calculated over the trailing 1-year period	8.69%	17.47%	-8.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.49%	21.43%	-10.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.67%	22.99%	-12.32%

RLBGX vs. SPSM - Expense Ratio Comparison

RLBGX has a 0.25% expense ratio, which is higher than SPSM's 0.05% 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. SPSM - Dividend Comparison

RLBGX's dividend yield for the trailing twelve months is around 7.81%, more than SPSM's 1.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RLBGX American Funds American Balanced Fund Class R-6	7.81%	8.56%	7.50%	2.27%	2.63%	4.59%	4.65%	3.78%	5.81%	4.92%	4.54%	5.91%
SPSM SPDR Portfolio S&P 600 Small Cap ETF	1.43%	1.62%	1.85%	1.61%	1.38%	1.40%	1.34%	1.58%	1.82%	1.51%	1.49%	2.37%

Frequently Asked Questions

Can I hold both RLBGX and SPSM in my portfolio?

RLBGX and SPSM have a correlation of 0.73, 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 SPSM?

SPSM has higher volatility (4.44%) compared to RLBGX (2.64%). In terms of maximum drawdown, RLBGX dropped -22.33% vs SPSM's -42.89%.

Which has better risk-adjusted returns?

RLBGX currently has the higher Sharpe Ratio (2.99 vs 1.82), 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.