Head To Head

HEAD-TO-HEAD: AB versus Blackrock

FSA compares two US equity products: the AB American Growth Portfolio and the BGF US Flexible Equity Fund.

by Francis Nikolai Acosta 30 October 202030 November 2020

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The AB and Blackrock funds versus their benchmark indices, the Russell 1000 and the Russell 1000 Growth (three-year cumulative period), respective. Source: FE Fundinfo. In US dollars.

PERFORMANCE

Both products have underperformed their benchmark indices on three-year cumulative basis, according to data from FE Fundinfo.

Given the AB fund’s bias toward high quality companies, Wolfstetter expects the fund to hold up better in market selloffs, but would lag in more speculative rallies.

“With elevated price multiples, the AB portfolio could take more of a hit in a sustained, valuation-driven correction,” she said.

Turning to the Blackrock fund, Wolfstetter said that the portfolio has produced higher downside capture ratios compared to both its index and the AB fund.

However, given its lower portfolio-level price multiples, it carries less valuation risk, she said.

Discreet calendar performance

Fund / index	YTD 2020	2019	2018	2017	2016
AB American Growth Portfolio	17.91	32.48	0.3	29.61	1.07
Index: Russell 1000 Growth	26.22	36.39	-1.51	30.21	7.08
Blackrock GF US Flexible Equity	1.72	26.65	-8.93	24.62	8.37
Index: Russell 1000	7.73	31.43	-4.78	21.69	12.05

Source: FE Fundinfo

Three-year annualized volatility

Fund / Index	Volatility
AB American Growth Portfolio	19.95
Index: Russell 1000 Growth	21.7
Blackrock GF US Flexible Equity	19.59
Index: Russell 1000	21.65

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