FMTIX vs. VTMFX

Last updated Jun 24, 2026

FMTIX (Franklin Moderate Allocation Fund) and VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) are both Diversified Portfolio funds. Over the past 10 years, FMTIX returned 8.35%/yr vs 8.70%/yr for VTMFX. Their correlation of 0.90 suggests significant overlap in exposure. FMTIX charges 0.63%/yr vs 0.05%/yr for VTMFX.

Performance

FMTIX vs. VTMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Moderate Allocation Fund (FMTIX) 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, FMTIX achieves a 7.13% return, which is significantly higher than VTMFX's 5.23% return. Both investments have delivered pretty close results over the past 10 years, with FMTIX having a 8.35% annualized return and VTMFX not far ahead at 8.70%.

FMTIX

• 1D: -0.23%
• 1M: 1.08%
• YTD: 7.13%
• 6M: 6.70%
• 1Y: 17.82%
• 3Y*: 13.80%
• 5Y*: 6.83%
• 10Y*: 8.35%

VTMFX

• 1D: -0.19%
• 1M: 0.76%
• YTD: 5.23%
• 6M: 4.83%
• 1Y: 14.99%
• 3Y*: 12.08%
• 5Y*: 7.01%
• 10Y*: 8.70%

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

FMTIX vs. VTMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMTIX Franklin Moderate Allocation Fund	7.13%	15.05%	11.80%	14.38%	-16.11%	12.37%	12.36%	17.38%	-4.81%	13.50%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.23%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%

Correlation

The correlation between FMTIX and VTMFX is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Dec 31, 1996	0.90

The correlation between FMTIX and VTMFX has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.

Return for Risk

FMTIX vs. VTMFX — Risk / Return Rank

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

FMTIX

FMTIX Risk / Return Rank: 63
FMTIX Sharpe Ratio Rank: 63
FMTIX Sortino Ratio Rank: 62
FMTIX Omega Ratio Rank: 64
FMTIX Calmar Ratio Rank: 58
FMTIX Martin Ratio Rank: 69

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 80
VTMFX Sortino Ratio Rank: 78
VTMFX Omega Ratio Rank: 78
VTMFX Calmar Ratio Rank: 63
VTMFX Martin Ratio Rank: 78

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.

FMTIX vs. VTMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Moderate Allocation Fund (FMTIX) 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.

	FMTIX	VTMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.43	-0.28
Sortino ratio: Return per unit of downside risk	3.01	3.42	-0.41
Omega ratio: Gain probability vs. loss probability	1.40	1.46	-0.06
Calmar ratio: Return relative to maximum drawdown	2.79	2.91	-0.12
Martin ratio: Return relative to average drawdown	12.45	13.60	-1.15

FMTIX vs. VTMFX - Sharpe Ratio Comparison

The current FMTIX Sharpe Ratio is 2.15, which is comparable to the VTMFX Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of FMTIX 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

FMTIX vs. VTMFX - Drawdown Comparison

The maximum FMTIX drawdown since its inception was -32.01%, which is greater than VTMFX's maximum drawdown of -28.49%. Use the drawdown chart below to compare losses from any high point for FMTIX and VTMFX.

Drawdown Indicators

	FMTIX	VTMFX	Difference
Max Drawdown Largest peak-to-trough decline	-32.01%	-28.49%	-3.52%
Max Drawdown (1Y) Largest decline over 1 year	-6.66%	-5.38%	-1.28%
Max Drawdown (3Y) Largest decline over 3 years	-10.81%	-10.61%	-0.20%
Max Drawdown (5Y) Largest decline over 5 years	-29.19%	-17.40%	-11.79%
Max Drawdown (10Y) Largest decline over 10 years	-29.19%	-21.87%	-7.32%
Current Drawdown Current decline from peak	-0.45%	-0.75%	+0.30%
Average Drawdown Average peak-to-trough decline	-6.40%	-3.54%	-2.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.49%	1.15%	+0.34%

Volatility

FMTIX vs. VTMFX - Volatility Comparison

Franklin Moderate Allocation Fund (FMTIX) has a higher volatility of 3.37% compared to Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) at 2.45%. This indicates that FMTIX'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

	FMTIX	VTMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.37%	2.45%	+0.92%
Volatility (6M) Calculated over the trailing 6-month period	7.24%	5.18%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	8.68%	6.46%	+2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.40%	8.57%	+3.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.16%	9.15%	+2.01%

FMTIX vs. VTMFX - Expense Ratio Comparison

FMTIX has a 0.63% expense ratio, which is higher than VTMFX's 0.05% expense ratio.

Dividends

FMTIX vs. VTMFX - Dividend Comparison

FMTIX's dividend yield for the trailing twelve months is around 5.05%, more than VTMFX's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMTIX Franklin Moderate Allocation Fund	5.05%	8.79%	2.24%	2.61%	4.25%	12.93%	4.35%	9.38%	9.15%	4.65%	2.24%	5.42%
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 FMTIX and VTMFX in my portfolio?

With a correlation of 0.97, FMTIX 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, FMTIX or VTMFX?

FMTIX has higher volatility (3.37%) compared to VTMFX (2.45%). In terms of maximum drawdown, FMTIX dropped -32.01% vs VTMFX's -28.49%.

Which has better risk-adjusted returns?

VTMFX currently has the higher Sharpe Ratio (2.43 vs 2.15), 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.