Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: ABNDX is ratedTier 1 (Cornerstone)while CSWC is ratedTier 3 (Specialty).ABNDX is structurally lower risk than CSWC.
| Metric | ABNDX | CSWC |
|---|---|---|
| Total Return (1Y) | 4.24% | 3.72% |
| NAV Change (1Y) | 0.26% | -0.60% |
| Max Drawdown | -4.06% | -24.44% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
ABNDX (American Funds Bond Fund of Amer A) is a conservative dividend growth fund managed by American Funds. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
CSWC (Capital Southwest) is a sector-specific income fund managed by BDC. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of ABNDX vs CSWC, the choice depends on your specific goal. CSWC wins for Immediate Income with a 4.32% yield. However, ABNDX is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
ABNDX
Annual Yield: 3.98%
$332/mo
($3,983/year)
Frequency: monthly
CSWC
Annual Yield: 4.32%
$360/mo
($4,317/year)
Frequency: monthly
Income Gap: CSWC generates $335/year more than ABNDX on the same $100k investment.
Over 20 years, that's $6,697 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. ABNDX has delivered a superior Total Return of 4.24% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
ABNDX (More Resilient)
Max Drawdown: -4.06%
-$4,060
Worst unrealized loss
CSWC (More Volatile)
Max Drawdown: -24.44%
-$24,440
Worst unrealized loss
Protection Value: ABNDX saved investors $20,380 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: ABNDX demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.