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18 important things you should know about American Funds ABALX mutual fund

Updated: Last Tuesday
67
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
  • 15-year return above the benchmark
Bear Case
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for ABALX “stock” price, you can quickly find it out by visiting Finny and typing "ABALX quote". If you’re looking for a quick scoop on ABALX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "ABALX". You’ll get all this info in one place.

Are you looking to buy or sell ABALX? Or perhaps you’re looking for ABALX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this ABALX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: ABALX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: ABALX buy or sell; the pros and cons of investing in ABALX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to ABALX.

And here is the list of questions we’ll answer:

  1. Describe American Balanced Fund; Class A Shares (ABALX).
  2. What are ABALX holdings?
  3. What is ABALX performance? What are ABALX historical returns?
  4. How many up and down years did ABALX have historically?
  5. What is ABALX dividend yield?
  6. What is ABALX minimum initial investment amount?
  7. What is ABALX expense ratio?
  8. Does ABALX have any sales loads or 12b-1 distribution expenses?
  9. What is ABALX tax efficiency (tax-cost ratio)?
  10. What is ABALX beta? How would you assess ABALX risk?
  11. What is ABALX Sharpe ratio?
  12. What is ABALX Finny Score? ABALX buy or sell?
  13. What are the pros of investing in ABALX? What are ABALX buy reasons?
  14. What are the cons of investing in ABALX? What are ABALX sell reasons?
  15. Compare and contrast: ABALX vs VWELX.
  16. Compare and contrast: ABALX vs FBALX.
  17. Compare and contrast: ABALX vs VBAIX.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Balanced Fund; Class A Shares (ABALX).

The Fund seeks to provide conservation of capital, current income, and long-term growth of both capital and income. The Fund invests in a broad range of securities, including common stocks and investment-grade bonds. The Fund also invests in securities issued and guaranteed by the U.S. government.

2. What are ABALX top holdings?

ABALX has 182 stock holdings and 1,800 bond holdings.

The top 10 holdings represent 19.16% of total assets. Here are the top holdings:

Name Symbol % Assets
Microsoft Corp MSFT 3.96%
UnitedHealth Group Inc UNH 2.81%
Philip Morris International Inc PM 1.97%
Taiwan Semiconductor Manufacturing Co Ltd ADR TSM.TW 1.87%
Berkshire Hathaway Inc A BRK.A 1.78%
Broadcom Inc AVGO 1.59%
Amazon.com Inc AMZN 1.47%
JPMorgan Chase & Co JPM 1.30%
Pfizer Inc PFE 1.24%
Cigna Corp CI 1.17%

3. What is ABALX performance? What are ABALX historical returns?

ABALX has generated the following returns:

  • 1-month return is 1.50%;
  • 3-month return is 1.82%;
  • 1-year return is 8.45%;
  • 3-year return is 7.59%;
  • 5-year return is 8.34%;
  • 10-year return is 9.57%;
  • 15-year return is 7.64%.

4. How many up and down years did ABALX have historically?

In the last 10 years, ABALX had 9 up years and 1 down year.

ABALX up and down years

5. What is ABALX dividend yield?

ABALX yield is 1.89%.

6. What is ABALX minimum initial investment amount?

ABALX minimum initial investment amount is $1.00K.

7. What is ABALX expense ratio?

ABALX expense ratio is 0.59%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

ABALX expenses

8. Does ABALX have any sales loads or 12b-1 distribution expenses?

ABALX 12b-1 distribution fee is 0.25. ABALX front-end sales load is 5.75. ABALX back-end sales load is 0.

9. What is ABALX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.25%;
  • 3-year ax cost ratio is 1.36%.
ABALX tax costs

10. What is ABALX beta? How would you assess ABALX risk?

  • 3-year beta is 0.96;
  • 5-year beta is 0.95;
  • 10-year beta is 0.98;
  • 15-year beta is 1.00.
ABALX Beta

11. What is ABALX Sharpe ratio?

  • 3-year Sharpe ratio is 0.60;
  • 5-year Sharpe ratio is 0.77;
  • 10-year Sharpe ratio is 1.12.
ABALX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 67. Our quantitative analysis shows 4 reasons to buy and 2 reasons to sell it, resulting in the Finny Score of 67.

13. What are the pros of investing in ABALX? What are ABALX buy reasons?

The following are ABALX strengths from our perspective:

  • <strong>ABALX 3-year return</strong> is 7.59%, which is higher than the 3-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 6.7%.
  • <strong>ABALX 5-year return</strong> is 8.34%, which is higher than the 5-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 7.63%.
  • <strong>ABALX 10-year return</strong> is 9.57%, which is higher than the 10-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 7.31%.
  • <strong>ABALX 15-year return</strong> is 7.64%, which is higher than the 15-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 6.78%.

14. What are the cons of investing in ABALX? What are ABALX negatives?

The following are ABALX weaknesses from our perspective:

  • <strong>ABALX expense ratio</strong> is 0.59%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.25%, while the maximum front-end sales load is 5.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.

Alternatives

15. Compare and contrast: ABALX vs VWELX.

Both ABALX and VWELX are mutual funds. ABALX has a lower 5-year return than VWELX (8.34% vs 8.94%). ABALX has a higher expense ratio than VWELX (0.59% vs 0.25%). Below is the comparison between ABALX and VWELX.

ABALX VWELX
Segment U.S. Balanced: Allocation--50% to 70% Equity U.S. Balanced: Allocation--50% to 70% Equity
Net Assets $81.62B $15.05B
Expense Ratio 0.59% 0.25%
Management Style active active
Underlying Index N/A N/A
YTD Return 3.59% 3.44%
1-Year Return 8.45% 7.87%
3-Year Return 7.59% 8.17%
5-Year Return 8.34% 8.94%
10-Year Return 9.57% 9.52%
Dividend Yield 1.89% 2.3%

VWELX profile: The Fund seeks conservation of principal, reasonable income and capital appreciation without undue risk, by investing 60% to 70% of its assets in common stocks and 30% to 40% in bonds.

For further information, check out ABALX vs VWELX comparison details.

16. Compare and contrast: ABALX vs FBALX.

Both ABALX and FBALX are mutual funds. ABALX has a lower 5-year return than FBALX (8.34% vs 10.46%). ABALX has a higher expense ratio than FBALX (0.59% vs 0.53%). Below is the comparison between ABALX and FBALX.

ABALX FBALX
Segment U.S. Balanced: Allocation--50% to 70% Equity U.S. Balanced: Allocation--50% to 70% Equity
Net Assets $81.62B $28.20B
Expense Ratio 0.59% 0.53%
Management Style active active
Underlying Index N/A N/A
YTD Return 3.59% 11.27%
1-Year Return 8.45% 17.74%
3-Year Return 7.59% 11%
5-Year Return 8.34% 10.46%
10-Year Return 9.57% 10.25%
Dividend Yield 1.89% 1.55%

FBALX profile: The Fund seeks income and capital growth by investing 60% of its assets in stocks and other equity securities and the remainder in bonds and other debt securities, including lower-quality debt securities, when its outlook is neutral. It invests at least 25% in fixed-income senior securities.

For further information, check out ABALX vs FBALX comparison details.

17. Compare and contrast: ABALX vs VBAIX.

Both ABALX and VBAIX are mutual funds. ABALX has a lower 5-year return than VBAIX (8.34% vs 9.38%). ABALX has a higher expense ratio than VBAIX (0.59% vs 0.06%). Below is the comparison between ABALX and VBAIX.

ABALX VBAIX
Segment U.S. Balanced: Allocation--50% to 70% Equity U.S. Balanced: Allocation--50% to 70% Equity
Net Assets $81.62B $10.78B
Expense Ratio 0.59% 0.06%
Management Style active passive (index-based)
Underlying Index N/A N/A
YTD Return 3.59% 7.91%
1-Year Return 8.45% 12.74%
3-Year Return 7.59% 9.61%
5-Year Return 8.34% 9.38%
10-Year Return 9.57% 9.58%
Dividend Yield 1.89% 1.89%

VBAIX profile: The Fund seeks to track, with respect to 60% of its assets, investment performance of the CRSP US Total Market Index, and with respect to 40% of its assets, investment performance of the Barclays U.S. Aggregate Float Adjusted Index.

For further information, check out ABALX vs VBAIX comparison details.

In the ABALX review, we covered ABALX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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