RWMBX vs. ABALX

Last updated Jul 25, 2026

RWMBX (American Funds Washington Mutual Investors Fund Class R-2) and ABALX (American Funds American Balanced Fund Class A) are both mutual funds - RWMBX is a Large Cap Value 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, RWMBX returned 11.80%/yr vs 9.68%/yr for ABALX. With a 0.96 correlation, they move nearly in lockstep. RWMBX charges 1.35%/yr vs 0.56%/yr for ABALX.

Performance

RWMBX vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Washington Mutual Investors Fund Class R-2 (RWMBX) 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, RWMBX achieves a 7.17% return, which is significantly lower than ABALX's 8.02% return. Over the past 10 years, RWMBX has outperformed ABALX with an annualized return of 11.80%, while ABALX has yielded a comparatively lower 9.68% annualized return.

RWMBX

• 1D: -0.38%
• 1M: 2.09%
• 6M: 5.41%
• YTD: 7.17%
• 1Y: 12.68%
• 3Y*: 15.83%
• 5Y*: 11.25%
• 10Y*: 11.80%
• ALL TIME*: 9.24%

ABALX

• 1D: -0.54%
• 1M: -0.49%
• 6M: 5.11%
• YTD: 8.02%
• 1Y: 16.96%
• 3Y*: 15.33%
• 5Y*: 8.94%
• 10Y*: 9.68%
• ALL TIME*: 8.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ABALX American Funds American Balanced Fund Class A	$0.00	$0.00	$0.00
RWMBX American Funds Washington Mutual Investors Fund Class R-2	$0.00	$0.00	$0.00

RWMBX vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWMBX American Funds Washington Mutual Investors Fund Class R-2	7.17%	16.27%	18.07%	16.30%	-9.18%	27.45%	6.87%	24.38%	-6.98%	19.06%
ABALX American Funds American Balanced Fund Class A	8.02%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%

Correlation

The correlation between RWMBX and ABALX is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 2, 2003	0.96

The correlation between RWMBX and ABALX has been stable across timeframes, ranging from 0.88 to 0.96 - a consistent structural relationship.

Return for Risk

RWMBX vs. ABALX — Risk / Return Rank

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

RWMBX

RWMBX Risk / Return Rank: 40
RWMBX Sharpe Ratio Rank: 41
RWMBX Sortino Ratio Rank: 41
RWMBX Omega Ratio Rank: 39
RWMBX Calmar Ratio Rank: 35
RWMBX Martin Ratio Rank: 44

ABALX

ABALX Risk / Return Rank: 73
ABALX Sharpe Ratio Rank: 73
ABALX Sortino Ratio Rank: 72
ABALX Omega Ratio Rank: 72
ABALX Calmar Ratio Rank: 68
ABALX Martin Ratio Rank: 78

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.

RWMBX vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Washington Mutual Investors Fund Class R-2 (RWMBX) 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.

	RWMBX	ABALX	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.82	-0.62
Sortino ratio: Return per unit of downside risk	1.75	2.57	-0.82
Omega ratio: Gain probability vs. loss probability	1.22	1.34	-0.12
Calmar ratio: Return relative to maximum drawdown	1.48	2.41	-0.93
Martin ratio: Return relative to average drawdown	6.33	10.45	-4.12

RWMBX vs. ABALX - Sharpe Ratio Comparison

The current RWMBX Sharpe Ratio is 1.20, which is lower than the ABALX Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of RWMBX 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

RWMBX vs. ABALX - Drawdown Comparison

The maximum RWMBX drawdown since its inception was -54.49%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for RWMBX and ABALX.

Drawdown Indicators

	RWMBX	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-54.49%	-40.20%	-14.29%
Max Drawdown (1Y) Largest decline over 1 year	-8.47%	-7.03%	-1.44%
Max Drawdown (3Y) Largest decline over 3 years	-14.74%	-10.68%	-4.06%
Max Drawdown (5Y) Largest decline over 5 years	-19.13%	-18.76%	-0.37%
Max Drawdown (10Y) Largest decline over 10 years	-34.71%	-22.34%	-12.37%
Current Drawdown Current decline from peak	-0.89%	-1.88%	+0.99%
Average Drawdown Average peak-to-trough decline	-6.96%	-3.84%	-3.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.62%	+0.36%

Volatility

RWMBX vs. ABALX - Volatility Comparison

The current volatility for American Funds Washington Mutual Investors Fund Class R-2 (RWMBX) is 1.90%, while American Funds American Balanced Fund Class A (ABALX) has a volatility of 2.09%. This indicates that RWMBX experiences smaller price fluctuations and is considered to be less risky than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RWMBX	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.90%	2.09%	-0.19%
Volatility (6M) Calculated over the trailing 6-month period	7.66%	7.25%	+0.41%
Volatility (1Y) Calculated over the trailing 1-year period	10.45%	9.31%	+1.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.04%	10.58%	+3.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.28%	10.69%	+5.59%

RWMBX vs. ABALX - Expense Ratio Comparison

RWMBX has a 1.35% expense ratio, which is higher than ABALX's 0.56% expense ratio.

Dividends

RWMBX vs. ABALX - Dividend Comparison

RWMBX's dividend yield for the trailing twelve months is around 9.07%, more than ABALX's 7.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.21%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
RWMBX American Funds Washington Mutual Investors Fund Class R-2	9.07%	9.54%	9.49%	5.53%	5.60%	5.43%	2.41%	5.97%	3.51%	6.58%	5.68%	5.52%

Frequently Asked Questions

Can I hold both RWMBX and ABALX in my portfolio?

RWMBX and ABALX have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWMBX or ABALX?

ABALX has higher volatility (2.09%) compared to RWMBX (1.90%). In terms of maximum drawdown, RWMBX dropped -54.49% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (1.82 vs 1.20), 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.