RNPEX vs. ABALX

Last updated Jun 23, 2026

RNPEX (American Funds New Perspective Fund Class R4) and ABALX (American Funds American Balanced Fund Class A) are both mutual funds - RNPEX is a Global Equities fund actively managed by American Funds, while ABALX is a Diversified Portfolio fund actively managed by American Funds. Both are actively managed. Over the past 10 years, RNPEX returned 13.52%/yr vs 10.11%/yr for ABALX. Their correlation of 0.90 suggests significant overlap in exposure. RNPEX charges 0.75%/yr vs 0.56%/yr for ABALX.

Performance

RNPEX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New Perspective Fund Class R4 (RNPEX) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RNPEX achieves a 6.59% return, which is significantly lower than ABALX's 9.77% return. Over the past 10 years, RNPEX has outperformed ABALX with an annualized return of 13.52%, while ABALX has yielded a comparatively lower 10.11% annualized return.

RNPEX

• 1D: 1.10%
• 1M: 1.99%
• YTD: 6.59%
• 6M: 6.42%
• 1Y: 19.94%
• 3Y*: 17.07%
• 5Y*: 8.63%
• 10Y*: 13.52%

ABALX

• 1D: 0.84%
• 1M: 1.76%
• YTD: 9.77%
• 6M: 10.06%
• 1Y: 23.85%
• 3Y*: 16.77%
• 5Y*: 9.87%
• 10Y*: 10.11%

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

RNPEX vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNPEX American Funds New Perspective Fund Class R4	6.59%	21.28%	16.71%	24.62%	-25.94%	17.60%	33.40%	30.05%	-6.03%	28.84%
ABALX American Funds American Balanced Fund Class A	9.77%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%

Correlation

The correlation between RNPEX and ABALX is 0.93, 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	0.93
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 28, 2002	0.90

The correlation between RNPEX and ABALX has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

RNPEX vs. ABALX — Risk / Return Rank

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

RNPEX

RNPEX Risk / Return Rank: 27
RNPEX Sharpe Ratio Rank: 25
RNPEX Sortino Ratio Rank: 25
RNPEX Omega Ratio Rank: 26
RNPEX Calmar Ratio Rank: 24
RNPEX Martin Ratio Rank: 33

ABALX

ABALX Risk / Return Rank: 83
ABALX Sharpe Ratio Rank: 86
ABALX Sortino Ratio Rank: 83
ABALX Omega Ratio Rank: 81
ABALX Calmar Ratio Rank: 79
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.

RNPEX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New Perspective Fund Class R4 (RNPEX) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	RNPEX	ABALX	Difference
Sharpe ratio: Return per unit of total volatility	1.35	2.59	-1.24
Sortino ratio: Return per unit of downside risk	1.93	3.60	-1.67
Omega ratio: Gain probability vs. loss probability	1.25	1.49	-0.24
Calmar ratio: Return relative to maximum drawdown	1.68	3.38	-1.70
Martin ratio: Return relative to average drawdown	6.97	14.98	-8.00

RNPEX vs. ABALX - Sharpe Ratio Comparison

The current RNPEX Sharpe Ratio is 1.35, which is lower than the ABALX Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of RNPEX 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.

Drawdowns

RNPEX vs. ABALX - Drawdown Comparison

The maximum RNPEX drawdown since its inception was -52.36%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for RNPEX and ABALX.

Drawdown Indicators

	RNPEX	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-52.36%	-40.20%	-12.16%
Max Drawdown (1Y) Largest decline over 1 year	-11.48%	-7.03%	-4.45%
Max Drawdown (3Y) Largest decline over 3 years	-17.92%	-10.68%	-7.24%
Max Drawdown (5Y) Largest decline over 5 years	-34.46%	-18.76%	-15.70%
Max Drawdown (10Y) Largest decline over 10 years	-34.46%	-22.34%	-12.12%
Current Drawdown Current decline from peak	-0.70%	-0.19%	-0.51%
Average Drawdown Average peak-to-trough decline	-7.95%	-3.85%	-4.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	1.58%	+1.19%

Volatility

RNPEX vs. ABALX - Volatility Comparison

American Funds New Perspective Fund Class R4 (RNPEX) has a higher volatility of 5.90% compared to American Funds American Balanced Fund Class A (ABALX) at 3.45%. This indicates that RNPEX'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

	RNPEX	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.90%	3.45%	+2.45%
Volatility (6M) Calculated over the trailing 6-month period	12.00%	7.35%	+4.65%
Volatility (1Y) Calculated over the trailing 1-year period	14.30%	9.19%	+5.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.35%	10.57%	+6.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.90%	10.71%	+7.19%

RNPEX vs. ABALX - Expense Ratio Comparison

RNPEX has a 0.75% expense ratio, which is higher than ABALX's 0.56% expense ratio.

Dividends

RNPEX vs. ABALX - Dividend Comparison

RNPEX's dividend yield for the trailing twelve months is around 6.25%, less than ABALX's 7.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.10%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
RNPEX American Funds New Perspective Fund Class R4	6.25%	6.66%	5.20%	5.44%	4.18%	7.08%	4.18%	3.69%	7.63%	5.54%	3.89%	6.17%

Frequently Asked Questions

Can I hold both RNPEX and ABALX in my portfolio?

With a correlation of 0.93, RNPEX 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, RNPEX or ABALX?

RNPEX has higher volatility (5.90%) compared to ABALX (3.45%). In terms of maximum drawdown, RNPEX dropped -52.36% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (2.59 vs 1.35), 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.