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I agree with Mark. Three CGBL portfolio managers (out of five) are also managers of ABALX¹. Both funds have very similar objectives and characteristics. Looking at the funds' quarterly Fact Sheets may be a good place to start.
abalx= 'redemptions only,' per schwab. ... seems to put it out of my reach. i do see that cgbl is concentrated into its top 10 holdings. but its top ten's top 2 are in bonds, not stocks. i am leaning into cgbl, thanks to you guys. i also see rlbgx is available 'to trust company clients only.' so, it sounds unobtainable for me.
When we were in our accumulation phase we held ABALX among other American Funds (Capitol Group) for many years. It did well for our needs. As a general rule I found American Funds to have better equity performance than bond performance, but ABALX was pretty good.
At that time almost all of our investment money was with American Funds. They had various loads depending upon the total amount a customer had with them, and they combined the value of our two IRA accounts with our taxable trust account to determine the load. For the greater period of our time with American we paid no load on any fund.
We did have an advisor, who was also very helpful in many ways other than American Funds. He let me run things myself, and I would only bother him if I had any questions.
@Crash and @Old_Joe ABALX has a front load of 5.75%. For American Funds, does this indicate that this share class is for use only with an advisor?
Fidelity doesn't waive the front-end load for ABALX. Fido does offer BALFX sans load with an expense ratio of 0.62% compared to 0.57% for ABALX. The same situation exists at Schwab. Class A fund shares are sometimes available load-waived at various brokerages.
The R-class of American funds have the lowest ER, no front load and 12-b-1 fee. Unfortunately they are only available in 401k) and 403(b) plan without advisors, and not at brokerages.
This year CGBL leads the pack of moderate allocation ETFs. Bear in mind that CGBLhas a higher stock allocation, 70%, and only 30% in bonds. Other funds in the same category such as VG Wellington and TRP Capital Appreciation have % allocation closer to 60/40 stocks/ bonds. The stock portion of CGBL has considerable overlap with CGDV that I invested in. Otherwise, it is the expensive American Balanced offering with ER 0.39%.
+1. good info, i appreciate it. if i switch out of prfdx into prcfx that's a move from more risk to less. if i switch wife from conserv. wbalx to upper limit of moderate risk, it sort of washes out. not very scientific, i know... wanna switch out of the ones not serving their purpose. wife is much younger, anyhow.
You beat me to it, PRCFX. Having 40% stocks certain lower the risk profile.
BTW, there is an ETF version of PRCFX being registered, and manage by Giroux and five other managers. That would be something to consider if that does not overlap too much with your PRWCX.
@Crash - I'm not sure if you've looked at all the funds you'd care to but maybe take a peek at FBALX (Fid. Bal. Fund) and/or FPURX (Fid. Puritan). They both have a similar risk profile to ABALX but come with higher total 10-yr returns and lower ER's. If you're just looking to buy at Schwab though that may be a non-starter.
@Mark Excellent suggestions for a 'younger' person who has time and can ride some market turns over the years. FBALX has maintained a high percentile ranking over many years for its category. FPURX is better yet !!! But, can those be purchased outside of Fido; at the vendor he would use? I know Fido funds can be purchased at other vendors, but I don't know how inclusive the list might be.
@catch22 - well Crash does hype his much younger wife so you know...
And I have nothing against the Capital Group whatsoever. I never bought them because my only option(s) were to pay the front end loads (self-employed and my boss was a cheapskate). I do hold quite a bit of CGDV.
Comments
Three CGBL portfolio managers (out of five) are also managers of ABALX¹.
Both funds have very similar objectives and characteristics.
Looking at the funds' quarterly Fact Sheets may be a good place to start.
CGBL Fact Sheet
ABALX Fact Sheet
¹ I own RLBGX in my Health Savings Account and appreciate the fund's historical risk/reward performance.
i am leaning into cgbl, thanks to you guys. i also see rlbgx is available 'to trust company clients only.' so, it sounds unobtainable for me.
ABALX has a front load of 5.75%. For American Funds, does this indicate that this share class is for use only with an advisor?
We did have an advisor, who was also very helpful in many ways other than American Funds. He let me run things myself, and I would only bother him if I had any questions.
i really don't know the answer to that. perhaps that's why that note appeared at schwab regarding availability.
Fido does offer BALFX sans load with an expense ratio of 0.62% compared to 0.57% for ABALX.
The same situation exists at Schwab.
Class A fund shares are sometimes available load-waived at various brokerages.
This year CGBL leads the pack of moderate allocation ETFs. Bear in mind that CGBLhas a higher stock allocation, 70%, and only 30% in bonds. Other funds in the same category such as VG Wellington and TRP Capital Appreciation have % allocation closer to 60/40 stocks/ bonds. The stock portion of CGBL has considerable overlap with CGDV that I invested in. Otherwise, it is the expensive American Balanced offering with ER 0.39%.
BTW, there is an ETF version of PRCFX being registered, and manage by Giroux and five other managers. That would be something to consider if that does not overlap too much with your PRWCX.
FBALX has maintained a high percentile ranking over many years for its category. FPURX is better yet !!!
But, can those be purchased outside of Fido; at the vendor he would use? I know Fido funds can be purchased at other vendors, but I don't know how inclusive the list might be.
FWIW, CGBL is one of my larger holdings, pretty much since its inception. Also own CGDV. I like the Capital funds.
And I have nothing against the Capital Group whatsoever. I never bought them because my only option(s) were to pay the front end loads (self-employed and my boss was a cheapskate). I do hold quite a bit of CGDV.