SPMO vs. BALFX

Last updated Jun 10, 2026

SPMO (Invesco S&P 500 Momentum ETF) and BALFX (American Funds American Balanced Fund) are both funds - SPMO is a Momentum fund tracking the S&P 500 Momentum Index, while BALFX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, SPMO returned 20.35%/yr vs 9.83%/yr for BALFX. A 0.76 correlation means they provide meaningful diversification when combined. SPMO charges 0.13%/yr vs 0.62%/yr for BALFX.

Performance

SPMO vs. BALFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Momentum ETF (SPMO) and American Funds American Balanced Fund (BALFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPMO achieves a 23.98% return, which is significantly higher than BALFX's 7.61% return. Over the past 10 years, SPMO has outperformed BALFX with an annualized return of 20.35%, while BALFX has yielded a comparatively lower 9.83% annualized return.

SPMO

• 1D: -0.25%
• 1M: 2.57%
• YTD: 23.98%
• 6M: 22.84%
• 1Y: 39.21%
• 3Y*: 40.17%
• 5Y*: 22.76%
• 10Y*: 20.35%

BALFX

• 1D: 0.30%
• 1M: -0.27%
• YTD: 7.61%
• 6M: 8.26%
• 1Y: 21.61%
• 3Y*: 16.60%
• 5Y*: 9.14%
• 10Y*: 9.83%

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

SPMO vs. BALFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPMO Invesco S&P 500 Momentum ETF	23.98%	26.58%	45.82%	17.56%	-10.45%	22.64%	28.25%	25.93%	-0.92%	27.76%
BALFX American Funds American Balanced Fund	7.61%	18.40%	14.91%	13.62%	-12.19%	15.69%	10.81%	18.50%	-3.54%	14.63%

Correlation

The correlation between SPMO and BALFX is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Oct 12, 2015	0.76

The correlation between SPMO and BALFX has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.

Return for Risk

SPMO vs. BALFX — Risk / Return Rank

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

SPMO

SPMO Risk / Return Rank: 71
SPMO Sharpe Ratio Rank: 73
SPMO Sortino Ratio Rank: 69
SPMO Omega Ratio Rank: 74
SPMO Calmar Ratio Rank: 69
SPMO Martin Ratio Rank: 71

BALFX

BALFX Risk / Return Rank: 81
BALFX Sharpe Ratio Rank: 84
BALFX Sortino Ratio Rank: 81
BALFX Omega Ratio Rank: 80
BALFX Calmar Ratio Rank: 78
BALFX Martin Ratio Rank: 85

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.

SPMO vs. BALFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Momentum ETF (SPMO) and American Funds American Balanced Fund (BALFX). 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.

	SPMO	BALFX	Difference
Sharpe ratio: Return per unit of total volatility	2.11	2.44	-0.33
Sortino ratio: Return per unit of downside risk	2.79	3.37	-0.57
Omega ratio: Gain probability vs. loss probability	1.39	1.46	-0.07
Calmar ratio: Return relative to maximum drawdown	3.10	3.10	0.00
Martin ratio: Return relative to average drawdown	11.87	13.88	-2.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPMO vs. BALFX - Sharpe Ratio Comparison

The current SPMO Sharpe Ratio is 2.11, which is comparable to the BALFX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of SPMO and BALFX, 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

	SPMO	BALFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	2.44	-0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.17	0.87	+0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.00	0.92	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.68	+0.30

Drawdowns

SPMO vs. BALFX - Drawdown Comparison

The maximum SPMO drawdown since its inception was -30.95%, smaller than the maximum BALFX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for SPMO and BALFX.

Drawdown Indicators

	SPMO	BALFX	Difference
Max Drawdown Largest peak-to-trough decline	-30.95%	-40.20%	+9.25%
Max Drawdown (1Y) Largest decline over 1 year	-12.70%	-7.03%	-5.67%
Max Drawdown (3Y) Largest decline over 3 years	-20.13%	-10.67%	-9.46%
Max Drawdown (5Y) Largest decline over 5 years	-22.74%	-18.81%	-3.93%
Max Drawdown (10Y) Largest decline over 10 years	-30.95%	-22.34%	-8.61%
Current Drawdown Current decline from peak	-4.89%	-2.12%	-2.77%
Average Drawdown Average peak-to-trough decline	-4.60%	-4.16%	-0.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.31%	1.57%	+1.74%

Volatility

SPMO vs. BALFX - Volatility Comparison

Invesco S&P 500 Momentum ETF (SPMO) has a higher volatility of 8.94% compared to American Funds American Balanced Fund (BALFX) at 3.08%. This indicates that SPMO's price experiences larger fluctuations and is considered to be riskier than BALFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPMO	BALFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.94%	3.08%	+5.86%
Volatility (6M) Calculated over the trailing 6-month period	15.83%	7.11%	+8.72%
Volatility (1Y) Calculated over the trailing 1-year period	18.68%	8.97%	+9.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.50%	10.52%	+8.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.41%	10.68%	+9.73%

SPMO vs. BALFX - Expense Ratio Comparison

SPMO has a 0.13% expense ratio, which is lower than BALFX's 0.62% expense ratio.

Dividends

SPMO vs. BALFX - Dividend Comparison

SPMO's dividend yield for the trailing twelve months is around 0.69%, less than BALFX's 6.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALFX American Funds American Balanced Fund	6.91%	8.22%	7.14%	2.02%	2.24%	4.24%	4.31%	3.44%	5.30%	4.66%	4.18%	5.54%
SPMO Invesco S&P 500 Momentum ETF	0.69%	0.73%	0.48%	1.63%	1.66%	0.52%	1.27%	1.39%	1.05%	0.77%	1.94%	0.36%

Frequently Asked Questions

Can I hold both SPMO and BALFX in my portfolio?

SPMO and BALFX have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPMO or BALFX?

SPMO has higher volatility (8.94%) compared to BALFX (3.08%). In terms of maximum drawdown, SPMO dropped -30.95% vs BALFX's -40.20%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.44 vs 2.11), 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.