Why did FBALX have higher returns than FFNOX if its price % increase was lower?

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ralphboy
Posts: 91
Joined: Thu Apr 23, 2020 7:09 pm

Why did FBALX have higher returns than FFNOX if its price % increase was lower?

Post by ralphboy »

I imagine this is a stupid question but why would an investment return more money if its price % over the years was lower than the other investment?

When I look at FBALX Fidelity® Balanced Fund (https://fundresearch.fidelity.com/mutua ... /316345206) and FFNOX Fidelity® Multi-Asset Index Fund (https://fundresearch.fidelity.com/mutua ... /31634R109) on the google search graph, it says:

FBALX +1.01 (3.51%) (past year) and +7.39 (33.04%) (past 5 years)
YTD return 18.28%

FFNOX +3.98 (7.05%) (past year) and +21.60 (55.64%) (past 5 years)
YTD return 17.05%

Comparing the two from 2017:
Image

Can someone explain to me why FBALX is more profitable?
MrJedi
Posts: 1532
Joined: Wed May 06, 2020 11:42 am

Re: Why did FBALX have higher returns than FFNOX if its price % increase was lower?

Post by MrJedi »

Just looking up ticker price does not factor in distributions. A fund with bonds especially will have a significant amount of return in the dividend distributions, not necessarily share price unless the value of the bonds go up (falling interest rate).
an_asker
Posts: 3767
Joined: Thu Jun 27, 2013 2:15 pm

Re: Why did FBALX have higher returns than FFNOX if its price % increase was lower?

Post by an_asker »

It's probably got more annual yield in terms of dividends, capital gains etc that get shed from (i.e., are not part of) the NAV.
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