SPYM vs. BALFX

Last updated Jun 10, 2026

SPYM (State Street SPDR Portfolio S&P 500 ETF) and BALFX (American Funds American Balanced Fund) are both funds - SPYM is a S&P 500 fund tracking the S&P 500 Index, while BALFX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, SPYM returned 15.36%/yr vs 9.83%/yr for BALFX. Their correlation of 0.83 suggests significant overlap in exposure. SPYM charges 0.02%/yr vs 0.62%/yr for BALFX.

Performance

SPYM vs. BALFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR Portfolio S&P 500 ETF (SPYM) 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, SPYM achieves a 8.42% return, which is significantly higher than BALFX's 7.61% return. Over the past 10 years, SPYM has outperformed BALFX with an annualized return of 15.36%, while BALFX has yielded a comparatively lower 9.83% annualized return.

SPYM

• 1D: -0.30%
• 1M: -0.07%
• YTD: 8.42%
• 6M: 8.55%
• 1Y: 24.43%
• 3Y*: 21.34%
• 5Y*: 13.32%
• 10Y*: 15.36%

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)

SPYM vs. BALFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPYM State Street SPDR Portfolio S&P 500 ETF	8.42%	17.79%	25.00%	26.24%	-18.09%	28.78%	18.49%	31.99%	-4.78%	21.30%
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 SPYM and BALFX 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	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 15, 2005	0.83

The correlation between SPYM and BALFX shifts across timeframes, from 0.83 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SPYM vs. BALFX — Risk / Return Rank

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

SPYM

SPYM Risk / Return Rank: 69
SPYM Sharpe Ratio Rank: 70
SPYM Sortino Ratio Rank: 68
SPYM Omega Ratio Rank: 71
SPYM Calmar Ratio Rank: 62
SPYM Martin Ratio Rank: 75

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.

SPYM vs. BALFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR Portfolio S&P 500 ETF (SPYM) 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.

	SPYM	BALFX	Difference
Sharpe ratio: Return per unit of total volatility	2.04	2.44	-0.40
Sortino ratio: Return per unit of downside risk	2.75	3.37	-0.61
Omega ratio: Gain probability vs. loss probability	1.37	1.46	-0.09
Calmar ratio: Return relative to maximum drawdown	2.76	3.10	-0.34
Martin ratio: Return relative to average drawdown	12.66	13.88	-1.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPYM vs. BALFX - Sharpe Ratio Comparison

The current SPYM Sharpe Ratio is 2.04, which is comparable to the BALFX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of SPYM 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

	SPYM	BALFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.44	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	0.87	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	0.92	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.68	-0.07

Drawdowns

SPYM vs. BALFX - Drawdown Comparison

The maximum SPYM drawdown since its inception was -54.46%, which is greater than BALFX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for SPYM and BALFX.

Drawdown Indicators

	SPYM	BALFX	Difference
Max Drawdown Largest peak-to-trough decline	-54.46%	-40.20%	-14.26%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-7.03%	-1.87%
Max Drawdown (3Y) Largest decline over 3 years	-18.72%	-10.67%	-8.05%
Max Drawdown (5Y) Largest decline over 5 years	-24.48%	-18.81%	-5.67%
Max Drawdown (10Y) Largest decline over 10 years	-33.87%	-22.34%	-11.53%
Current Drawdown Current decline from peak	-2.95%	-2.12%	-0.83%
Average Drawdown Average peak-to-trough decline	-7.15%	-4.16%	-2.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	1.57%	+0.36%

Volatility

SPYM vs. BALFX - Volatility Comparison

State Street SPDR Portfolio S&P 500 ETF (SPYM) has a higher volatility of 3.64% compared to American Funds American Balanced Fund (BALFX) at 3.08%. This indicates that SPYM'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

	SPYM	BALFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.64%	3.08%	+0.56%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	7.11%	+2.20%
Volatility (1Y) Calculated over the trailing 1-year period	12.05%	8.97%	+3.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.84%	10.52%	+6.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.02%	10.68%	+7.34%

SPYM vs. BALFX - Expense Ratio Comparison

SPYM has a 0.02% expense ratio, which is lower than BALFX's 0.62% expense ratio.

Dividends

SPYM vs. BALFX - Dividend Comparison

SPYM's dividend yield for the trailing twelve months is around 1.02%, 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%
SPYM State Street SPDR Portfolio S&P 500 ETF	1.02%	1.13%	1.28%	1.44%	1.69%	1.25%	1.54%	1.79%	2.23%	1.75%	1.97%	1.98%

Frequently Asked Questions

Can I hold both SPYM and BALFX in my portfolio?

With a correlation of 0.93, SPYM and BALFX 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, SPYM or BALFX?

SPYM has higher volatility (3.64%) compared to BALFX (3.08%). In terms of maximum drawdown, SPYM dropped -54.46% vs BALFX's -40.20%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.44 vs 2.04), 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.