DIFIX vs. VBAIX

Last updated Aug 1, 2026

DIFIX (MFS Diversified Income Fund) and VBAIX (Vanguard Balanced Index Fund Institutional Shares) are both Diversified Portfolio funds. Over the past 10 years, DIFIX returned 4.63%/yr vs 9.67%/yr for VBAIX. Their correlation of 0.81 means they have usually moved in the same direction. DIFIX charges 0.73%/yr vs 0.04%/yr for VBAIX.

Performance

DIFIX vs. VBAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MFS Diversified Income Fund (DIFIX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with DIFIX having a 6.09% return and VBAIX slightly lower at 5.84%. Over the past 10 years, DIFIX has underperformed VBAIX with an annualized return of 4.63%, while VBAIX has yielded a comparatively higher 9.67% annualized return.

DIFIX

• 1D: 0.00%
• 1M: 0.31%
• 6M: 4.24%
• YTD: 6.09%
• 1Y: 11.09%
• 3Y*: 8.02%
• 5Y*: 3.20%
• 10Y*: 4.63%
• ALL TIME*: 5.91%

VBAIX

• 1D: 1.01%
• 1M: -0.81%
• 6M: 4.74%
• YTD: 5.84%
• 1Y: 13.39%
• 3Y*: 13.84%
• 5Y*: 7.53%
• 10Y*: 9.67%
• ALL TIME*: 7.40%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DIFIX MFS Diversified Income Fund	$0.00	$0.00	$0.00
VBAIX Vanguard Balanced Index Fund Institutional Shares	$0.00	$0.00	$0.00

DIFIX vs. VBAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DIFIX MFS Diversified Income Fund	6.09%	9.73%	4.60%	8.84%	-13.55%	9.26%	2.17%	17.69%	-3.41%	8.94%
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.84%	13.60%	17.78%	17.55%	-16.87%	14.20%	16.40%	21.79%	-2.83%	13.86%

Correlation

The correlation between DIFIX and VBAIX is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.56
Correlation (3Y) Balances recent behavior with more history.	0.67
Correlation (5Y) Shows whether the relationship held over a longer period.	0.75
Correlation (10Y) Provides a long-term view across more market conditions.	0.73
Correlation (All Time) Calculated using the full available price history since May 26, 2006	0.81

Over the past year, the correlation between DIFIX and VBAIX has dropped to 0.56 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

Return for Risk

DIFIX vs. VBAIX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DIFIX

DIFIX Risk / Return Rank: 86
DIFIX Sharpe Ratio Rank: 90
DIFIX Sortino Ratio Rank: 90
DIFIX Omega Ratio Rank: 88
DIFIX Calmar Ratio Rank: 77
DIFIX Martin Ratio Rank: 85

VBAIX

VBAIX Risk / Return Rank: 65
VBAIX Sharpe Ratio Rank: 62
VBAIX Sortino Ratio Rank: 61
VBAIX Omega Ratio Rank: 59
VBAIX Calmar Ratio Rank: 67
VBAIX Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DIFIX vs. VBAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MFS Diversified Income Fund (DIFIX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). 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.

	DIFIX	VBAIX	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.45	+0.85
Sortino ratio: Return per unit of downside risk	3.41	2.07	+1.33
Omega ratio: Gain probability vs. loss probability	1.46	1.26	+0.20
Calmar ratio: Return relative to maximum drawdown	2.54	2.13	+0.42
Martin ratio: Return relative to average drawdown	10.92	9.09	+1.83

DIFIX vs. VBAIX - Sharpe Ratio Comparison

The current DIFIX Sharpe Ratio is 2.30, which is higher than the VBAIX Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of DIFIX and VBAIX, 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

DIFIX vs. VBAIX - Drawdown Comparison

The maximum DIFIX drawdown since its inception was -35.04%, roughly equal to the maximum VBAIX drawdown of -35.82%. Use the drawdown chart below to compare losses from any high point for DIFIX and VBAIX.

Drawdown Indicators

	DIFIX	VBAIX	Difference
Max Drawdown Largest peak-to-trough decline	-35.04%	-35.82%	+0.78%
Max Drawdown (1Y) Largest decline over 1 year	-4.48%	-5.84%	+1.36%
Max Drawdown (3Y) Largest decline over 3 years	-6.25%	-11.57%	+5.32%
Max Drawdown (5Y) Largest decline over 5 years	-19.70%	-21.52%	+1.82%
Max Drawdown (10Y) Largest decline over 10 years	-23.69%	-22.77%	-0.92%
Current Drawdown Current decline from peak	-0.23%	-1.46%	+1.23%
Average Drawdown Average peak-to-trough decline	-3.83%	-4.40%	+0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.04%	1.36%	-0.32%

Volatility

DIFIX vs. VBAIX - Volatility Comparison

The current volatility for MFS Diversified Income Fund (DIFIX) is 1.07%, while Vanguard Balanced Index Fund Institutional Shares (VBAIX) has a volatility of 2.31%. This indicates that DIFIX experiences smaller price fluctuations and is considered to be less risky than VBAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DIFIX	VBAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.07%	2.31%	-1.24%
Volatility (6M) Calculated over the trailing 6-month period	4.02%	6.84%	-2.82%
Volatility (1Y) Calculated over the trailing 1-year period	4.98%	8.56%	-3.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.84%	11.19%	-4.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.49%	11.25%	-3.76%

DIFIX vs. VBAIX - Expense Ratio Comparison

DIFIX has a 0.73% expense ratio, which is higher than VBAIX's 0.04% expense ratio.

Dividends

DIFIX vs. VBAIX - Dividend Comparison

DIFIX's dividend yield for the trailing twelve months is around 5.22%, less than VBAIX's 5.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DIFIX MFS Diversified Income Fund	5.22%	5.62%	3.86%	3.12%	3.99%	4.95%	2.83%	3.13%	4.39%	3.79%	3.76%	7.57%
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.39%	6.01%	8.01%	4.36%	2.84%	3.20%	2.65%	2.29%	2.33%	1.96%	2.10%	2.10%

Frequently Asked Questions

Can I hold both DIFIX and VBAIX in my portfolio?

DIFIX and VBAIX have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DIFIX or VBAIX?

VBAIX has higher volatility (2.31%) compared to DIFIX (1.07%). In terms of maximum drawdown, DIFIX dropped -35.04% vs VBAIX's -35.82%.

Which has better risk-adjusted returns?

DIFIX currently has the higher Sharpe Ratio (2.30 vs 1.45), 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.