CLBAX vs. VTMFX

Last updated Jun 23, 2026

CLBAX (American Funds American Balanced Fund Class 529-A) and VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) are both Diversified Portfolio funds. CLBAX is actively managed, while VTMFX is passively managed. Over the past 10 years, CLBAX returned 10.09%/yr vs 8.63%/yr for VTMFX. With a 0.96 correlation, they move nearly in lockstep. CLBAX charges 0.58%/yr vs 0.05%/yr for VTMFX.

Performance

CLBAX vs. VTMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds American Balanced Fund Class 529-A (CLBAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CLBAX achieves a 9.75% return, which is significantly higher than VTMFX's 5.44% return. Over the past 10 years, CLBAX has outperformed VTMFX with an annualized return of 10.09%, while VTMFX has yielded a comparatively lower 8.63% annualized return.

CLBAX

• 1D: 0.84%
• 1M: 1.76%
• YTD: 9.75%
• 6M: 10.04%
• 1Y: 23.81%
• 3Y*: 16.85%
• 5Y*: 9.90%
• 10Y*: 10.09%

VTMFX

• 1D: 0.57%
• 1M: 0.96%
• YTD: 5.44%
• 6M: 5.27%
• 1Y: 15.82%
• 3Y*: 11.93%
• 5Y*: 7.23%
• 10Y*: 8.63%

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

CLBAX vs. VTMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CLBAX American Funds American Balanced Fund Class 529-A	9.75%	18.43%	14.96%	13.61%	-12.16%	15.70%	10.79%	18.51%	-3.43%	14.64%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.44%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%

Correlation

The correlation between CLBAX and VTMFX is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Feb 15, 2002	0.96

The correlation between CLBAX and VTMFX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

CLBAX vs. VTMFX — Risk / Return Rank

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

CLBAX

CLBAX Risk / Return Rank: 83
CLBAX Sharpe Ratio Rank: 86
CLBAX Sortino Ratio Rank: 83
CLBAX Omega Ratio Rank: 81
CLBAX Calmar Ratio Rank: 79
CLBAX Martin Ratio Rank: 86

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 81
VTMFX Sortino Ratio Rank: 79
VTMFX Omega Ratio Rank: 79
VTMFX Calmar Ratio Rank: 64
VTMFX Martin Ratio Rank: 79

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.

CLBAX vs. VTMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds American Balanced Fund Class 529-A (CLBAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). 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.

	CLBAX	VTMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.58	2.45	+0.13
Sortino ratio: Return per unit of downside risk	3.59	3.45	+0.14
Omega ratio: Gain probability vs. loss probability	1.49	1.47	+0.02
Calmar ratio: Return relative to maximum drawdown	3.38	2.93	+0.44
Martin ratio: Return relative to average drawdown	14.96	13.72	+1.23

CLBAX vs. VTMFX - Sharpe Ratio Comparison

The current CLBAX Sharpe Ratio is 2.58, which is comparable to the VTMFX Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of CLBAX and VTMFX, 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

CLBAX vs. VTMFX - Drawdown Comparison

The maximum CLBAX drawdown since its inception was -40.25%, which is greater than VTMFX's maximum drawdown of -28.49%. Use the drawdown chart below to compare losses from any high point for CLBAX and VTMFX.

Drawdown Indicators

	CLBAX	VTMFX	Difference
Max Drawdown Largest peak-to-trough decline	-40.25%	-28.49%	-11.76%
Max Drawdown (1Y) Largest decline over 1 year	-7.03%	-5.38%	-1.65%
Max Drawdown (3Y) Largest decline over 3 years	-10.68%	-10.61%	-0.07%
Max Drawdown (5Y) Largest decline over 5 years	-18.79%	-17.40%	-1.39%
Max Drawdown (10Y) Largest decline over 10 years	-22.33%	-21.87%	-0.46%
Current Drawdown Current decline from peak	-0.20%	-0.56%	+0.36%
Average Drawdown Average peak-to-trough decline	-4.28%	-3.54%	-0.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.58%	1.15%	+0.43%

Volatility

CLBAX vs. VTMFX - Volatility Comparison

American Funds American Balanced Fund Class 529-A (CLBAX) has a higher volatility of 3.44% compared to Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) at 2.50%. This indicates that CLBAX's price experiences larger fluctuations and is considered to be riskier than VTMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CLBAX	VTMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.44%	2.50%	+0.94%
Volatility (6M) Calculated over the trailing 6-month period	7.34%	5.21%	+2.13%
Volatility (1Y) Calculated over the trailing 1-year period	9.19%	6.45%	+2.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.57%	8.57%	+2.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.71%	9.15%	+1.56%

CLBAX vs. VTMFX - Expense Ratio Comparison

CLBAX has a 0.58% expense ratio, which is higher than VTMFX's 0.05% expense ratio.

Dividends

CLBAX vs. VTMFX - Dividend Comparison

CLBAX's dividend yield for the trailing twelve months is around 7.09%, more than VTMFX's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CLBAX American Funds American Balanced Fund Class 529-A	7.09%	8.26%	7.17%	2.03%	2.27%	4.27%	4.32%	3.43%	5.42%	4.67%	4.17%	5.51%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.12%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%

Frequently Asked Questions

Can I hold both CLBAX and VTMFX in my portfolio?

With a correlation of 0.94, CLBAX and VTMFX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, CLBAX or VTMFX?

CLBAX has higher volatility (3.44%) compared to VTMFX (2.50%). In terms of maximum drawdown, CLBAX dropped -40.25% vs VTMFX's -28.49%.

Which has better risk-adjusted returns?

CLBAX currently has the higher Sharpe Ratio (2.58 vs 2.45), 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.