CAPAX vs. BWBIX

Last updated Jun 24, 2026

CAPAX (Federated Hermes Capital Income Fund) and BWBIX (Baron WealthBuilder Fund) are both Diversified Portfolio funds. Over the past 5 years, CAPAX returned 5.10%/yr vs 3.76%/yr for BWBIX. A 0.72 correlation means they provide meaningful diversification when combined. CAPAX charges 0.88%/yr vs 0.05%/yr for BWBIX.

Performance

CAPAX vs. BWBIX - Performance Comparison

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

Returns By Period

In the year-to-date period, CAPAX achieves a 4.63% return, which is significantly higher than BWBIX's 1.98% return.

CAPAX

• 1D: -0.21%
• 1M: 1.32%
• YTD: 4.63%
• 6M: 5.01%
• 1Y: 14.31%
• 3Y*: 11.48%
• 5Y*: 5.10%
• 10Y*: 6.34%

BWBIX

• 1D: -3.11%
• 1M: 3.27%
• YTD: 1.98%
• 6M: 0.41%
• 1Y: 12.21%
• 3Y*: 13.70%
• 5Y*: 3.76%
• 10Y*: —

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

CAPAX vs. BWBIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
CAPAX Federated Hermes Capital Income Fund	4.63%	11.88%	10.21%	10.51%	-12.43%	9.72%	9.48%	15.70%	-6.84%
BWBIX Baron WealthBuilder Fund	1.98%	10.23%	19.62%	25.77%	-32.58%	14.76%	62.85%	36.41%	-12.02%

Correlation

The correlation between CAPAX and BWBIX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
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 21, 2018	0.72

Over the past year, the correlation between CAPAX and BWBIX has dropped to 0.31 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

Return for Risk

CAPAX vs. BWBIX — Risk / Return Rank

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

CAPAX

CAPAX Risk / Return Rank: 82
CAPAX Sharpe Ratio Rank: 80
CAPAX Sortino Ratio Rank: 83
CAPAX Omega Ratio Rank: 85
CAPAX Calmar Ratio Rank: 74
CAPAX Martin Ratio Rank: 86

BWBIX

BWBIX Risk / Return Rank: 14
BWBIX Sharpe Ratio Rank: 12
BWBIX Sortino Ratio Rank: 14
BWBIX Omega Ratio Rank: 13
BWBIX Calmar Ratio Rank: 14
BWBIX Martin Ratio Rank: 15

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.

CAPAX vs. BWBIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Capital Income Fund (CAPAX) and Baron WealthBuilder Fund (BWBIX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CAPAX	BWBIX	Difference
Sharpe ratio: Return per unit of total volatility	2.44	0.89	+1.54
Sortino ratio: Return per unit of downside risk	3.64	1.42	+2.22
Omega ratio: Gain probability vs. loss probability	1.53	1.17	+0.36
Calmar ratio: Return relative to maximum drawdown	3.18	1.20	+1.98
Martin ratio: Return relative to average drawdown	14.99	3.93	+11.06

CAPAX vs. BWBIX - Sharpe Ratio Comparison

The current CAPAX Sharpe Ratio is 2.44, which is higher than the BWBIX Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of CAPAX and BWBIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CAPAX vs. BWBIX - Drawdown Comparison

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

Drawdown Indicators

	CAPAX	BWBIX	Difference
Max Drawdown Largest peak-to-trough decline	-46.13%	-39.14%	-6.99%
Max Drawdown (1Y) Largest decline over 1 year	-4.68%	-11.65%	+6.97%
Max Drawdown (3Y) Largest decline over 3 years	-8.87%	-21.59%	+12.72%
Max Drawdown (5Y) Largest decline over 5 years	-17.75%	-39.14%	+21.39%
Max Drawdown (10Y) Largest decline over 10 years	-23.36%	—	—
Current Drawdown Current decline from peak	-0.51%	-4.78%	+4.27%
Average Drawdown Average peak-to-trough decline	-5.78%	-11.65%	+5.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	3.55%	-2.56%

Volatility

CAPAX vs. BWBIX - Volatility Comparison

The current volatility for Federated Hermes Capital Income Fund (CAPAX) is 2.27%, while Baron WealthBuilder Fund (BWBIX) has a volatility of 7.20%. This indicates that CAPAX experiences smaller price fluctuations and is considered to be less risky than BWBIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CAPAX	BWBIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.27%	7.20%	-4.93%
Volatility (6M) Calculated over the trailing 6-month period	5.04%	11.71%	-6.67%
Volatility (1Y) Calculated over the trailing 1-year period	6.12%	15.67%	-9.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.84%	21.26%	-13.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.67%	23.18%	-14.51%

CAPAX vs. BWBIX - Expense Ratio Comparison

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

Dividends

CAPAX vs. BWBIX - Dividend Comparison

CAPAX's dividend yield for the trailing twelve months is around 3.27%, less than BWBIX's 7.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BWBIX Baron WealthBuilder Fund	7.46%	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	3.27%	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 CAPAX and BWBIX in my portfolio?

CAPAX and BWBIX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CAPAX or BWBIX?

BWBIX has higher volatility (7.20%) compared to CAPAX (2.27%). In terms of maximum drawdown, CAPAX dropped -46.13% vs BWBIX's -39.14%.

Which has better risk-adjusted returns?

CAPAX currently has the higher Sharpe Ratio (2.44 vs 0.89), 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.