BWBIX vs. CAPAX

Last updated Jun 4, 2026

BWBIX (Baron WealthBuilder Fund) and CAPAX (Federated Hermes Capital Income Fund) are both Diversified Portfolio funds. Over the past 5 years, BWBIX returned 4.59%/yr vs 5.00%/yr for CAPAX. A 0.72 correlation means they provide meaningful diversification when combined. BWBIX charges 0.05%/yr vs 0.88%/yr for CAPAX.

Performance

BWBIX vs. CAPAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron WealthBuilder Fund (BWBIX) and Federated Hermes Capital Income Fund (CAPAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BWBIX achieves a 0.74% return, which is significantly lower than CAPAX's 4.85% return.

BWBIX

• 1D: -1.04%
• 1M: 4.14%
• YTD: 0.74%
• 6M: 5.76%
• 1Y: 11.63%
• 3Y*: 13.94%
• 5Y*: 4.59%
• 10Y*: —

CAPAX

• 1D: 0.52%
• 1M: 2.49%
• YTD: 4.85%
• 6M: 6.13%
• 1Y: 16.13%
• 3Y*: 11.79%
• 5Y*: 5.00%
• 10Y*: 6.31%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BWBIX vs. CAPAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
BWBIX Baron WealthBuilder Fund	0.74%	10.23%	19.62%	25.77%	-32.58%	14.76%	62.85%	36.41%	-12.02%
CAPAX Federated Hermes Capital Income Fund	4.85%	11.88%	10.21%	10.51%	-12.43%	9.72%	9.48%	15.70%	-7.18%

Correlation

The correlation between BWBIX and CAPAX is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since May 22, 2018	0.72

Over the past year, the correlation between BWBIX and CAPAX has dropped to 0.21 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

Return for Risk

BWBIX vs. CAPAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BWBIX

BWBIX Risk / Return Rank: 11
BWBIX Sharpe Ratio Rank: 11
BWBIX Sortino Ratio Rank: 12
BWBIX Omega Ratio Rank: 11
BWBIX Calmar Ratio Rank: 11
BWBIX Martin Ratio Rank: 12

CAPAX

CAPAX Risk / Return Rank: 85
CAPAX Sharpe Ratio Rank: 86
CAPAX Sortino Ratio Rank: 89
CAPAX Omega Ratio Rank: 89
CAPAX Calmar Ratio Rank: 76
CAPAX Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BWBIX vs. CAPAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron WealthBuilder Fund (BWBIX) and Federated Hermes Capital Income Fund (CAPAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BWBIX	CAPAX	Difference
Sharpe ratio: Return per unit of total volatility	0.85	2.80	-1.94
Sortino ratio: Return per unit of downside risk	1.37	4.27	-2.91
Omega ratio: Gain probability vs. loss probability	1.16	1.63	-0.47
Calmar ratio: Return relative to maximum drawdown	1.05	3.46	-2.41
Martin ratio: Return relative to average drawdown	3.47	16.58	-13.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BWBIX vs. CAPAX - Sharpe Ratio Comparison

The current BWBIX Sharpe Ratio is 0.85, which is lower than the CAPAX Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of BWBIX and CAPAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BWBIX	CAPAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.85	2.80	-1.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.22	0.64	-0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.73	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.64	-0.11

Drawdowns

BWBIX vs. CAPAX - Drawdown Comparison

The maximum BWBIX drawdown since its inception was -39.14%, smaller than the maximum CAPAX drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for BWBIX and CAPAX.

Drawdown Indicators

	BWBIX	CAPAX	Difference
Max Drawdown Largest peak-to-trough decline	-39.14%	-46.13%	+6.99%
Max Drawdown (1Y) Largest decline over 1 year	-11.65%	-4.68%	-6.97%
Max Drawdown (3Y) Largest decline over 3 years	-21.59%	-8.87%	-12.72%
Max Drawdown (5Y) Largest decline over 5 years	-39.14%	-17.75%	-21.39%
Max Drawdown (10Y) Largest decline over 10 years	—	-23.36%	—
Current Drawdown Current decline from peak	-1.26%	0.00%	-1.26%
Average Drawdown Average peak-to-trough decline	-11.72%	-5.79%	-5.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	0.97%	+2.56%

Volatility

BWBIX vs. CAPAX - Volatility Comparison

Baron WealthBuilder Fund (BWBIX) has a higher volatility of 3.38% compared to Federated Hermes Capital Income Fund (CAPAX) at 1.91%. This indicates that BWBIX's price experiences larger fluctuations and is considered to be riskier than CAPAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BWBIX	CAPAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.38%	1.91%	+1.47%
Volatility (6M) Calculated over the trailing 6-month period	10.99%	4.71%	+6.28%
Volatility (1Y) Calculated over the trailing 1-year period	14.36%	5.79%	+8.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.08%	7.81%	+13.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.14%	8.65%	+14.49%

BWBIX vs. CAPAX - Expense Ratio Comparison

BWBIX has a 0.05% expense ratio, which is lower than CAPAX's 0.88% expense ratio.

Dividends

BWBIX vs. CAPAX - Dividend Comparison

BWBIX's dividend yield for the trailing twelve months is around 7.55%, more than CAPAX's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BWBIX Baron WealthBuilder Fund	7.55%	7.61%	0.77%	0.06%	3.21%	3.75%	1.24%	3.51%	0.14%	0.00%	0.00%	0.00%
CAPAX Federated Hermes Capital Income Fund	3.26%	3.33%	3.24%	3.36%	3.70%	3.31%	3.43%	3.62%	4.42%	3.91%	4.23%	5.54%

Frequently Asked Questions

Can I hold both BWBIX and CAPAX in my portfolio?

BWBIX and CAPAX have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BWBIX or CAPAX?

BWBIX has higher volatility (3.38%) compared to CAPAX (1.91%). In terms of maximum drawdown, BWBIX dropped -39.14% vs CAPAX's -46.13%.

Which has better risk-adjusted returns?

CAPAX currently has the higher Sharpe Ratio (2.80 vs 0.85), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.