LKBAX vs. LKSMX

Last updated Jun 3, 2026

LKBAX (LKCM Balanced Fund) and LKSMX (LKCM Small-Mid Cap Equity Fund) are both mutual funds - LKBAX is a Diversified Portfolio fund managed by LKCM, while LKSMX is a Mid Cap Growth Equities fund managed by LKCM. Over the past 10 years, LKBAX returned 8.17%/yr vs 11.11%/yr for LKSMX. Their correlation of 0.87 suggests significant overlap in exposure. LKBAX charges 0.80%/yr vs 1.00%/yr for LKSMX.

Performance

LKBAX vs. LKSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LKCM Balanced Fund (LKBAX) and LKCM Small-Mid Cap Equity Fund (LKSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LKBAX achieves a 2.62% return, which is significantly lower than LKSMX's 5.02% return. Over the past 10 years, LKBAX has underperformed LKSMX with an annualized return of 8.17%, while LKSMX has yielded a comparatively higher 11.11% annualized return.

LKBAX

• 1D: 0.00%
• 1M: 0.77%
• YTD: 2.62%
• 6M: 3.23%
• 1Y: 9.08%
• 3Y*: 9.86%
• 5Y*: 4.77%
• 10Y*: 8.17%

LKSMX

• 1D: -0.42%
• 1M: 1.36%
• YTD: 5.02%
• 6M: 6.65%
• 1Y: 11.24%
• 3Y*: 14.10%
• 5Y*: 5.54%
• 10Y*: 11.11%

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

LKBAX vs. LKSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LKBAX LKCM Balanced Fund	2.62%	8.44%	10.97%	10.85%	-13.86%	14.01%	15.28%	21.86%	-2.15%	12.88%
LKSMX LKCM Small-Mid Cap Equity Fund	5.02%	5.27%	15.64%	25.76%	-22.23%	15.44%	30.55%	31.02%	-8.91%	24.18%

Correlation

The correlation between LKBAX and LKSMX is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since May 3, 2011	0.87

The correlation between LKBAX and LKSMX shifts across timeframes, from 0.75 (1 year) to 0.87 (all time), reflecting how their relationship changes across market environments.

Return for Risk

LKBAX vs. LKSMX — Risk / Return Rank

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

LKBAX

LKBAX Risk / Return Rank: 22
LKBAX Sharpe Ratio Rank: 21
LKBAX Sortino Ratio Rank: 20
LKBAX Omega Ratio Rank: 20
LKBAX Calmar Ratio Rank: 19
LKBAX Martin Ratio Rank: 27

LKSMX

LKSMX Risk / Return Rank: 8
LKSMX Sharpe Ratio Rank: 8
LKSMX Sortino Ratio Rank: 9
LKSMX Omega Ratio Rank: 8
LKSMX Calmar Ratio Rank: 8
LKSMX Martin Ratio Rank: 9

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.

LKBAX vs. LKSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LKCM Balanced Fund (LKBAX) and LKCM Small-Mid Cap Equity Fund (LKSMX). 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.

	LKBAX	LKSMX	Difference
Sharpe ratio Return per unit of total volatility	1.33	0.68	+0.65
Sortino ratio Return per unit of downside risk	1.89	1.08	+0.81
Omega ratio Gain probability vs. loss probability	1.23	1.12	+0.11
Calmar ratio Return relative to maximum drawdown	1.64	0.87	+0.77
Martin ratio Return relative to average drawdown	6.61	2.83	+3.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LKBAX vs. LKSMX - Sharpe Ratio Comparison

The current LKBAX Sharpe Ratio is 1.33, which is higher than the LKSMX Sharpe Ratio of 0.68. The chart below compares the historical Sharpe Ratios of LKBAX and LKSMX, 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

	LKBAX	LKSMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.33	0.68	+0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.28	+0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	0.52	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.42	+0.16

Drawdowns

LKBAX vs. LKSMX - Drawdown Comparison

The maximum LKBAX drawdown since its inception was -31.40%, smaller than the maximum LKSMX drawdown of -39.56%. Use the drawdown chart below to compare losses from any high point for LKBAX and LKSMX.

Drawdown Indicators

	LKBAX	LKSMX	Difference
Max Drawdown Largest peak-to-trough decline	-31.40%	-39.56%	+8.16%
Max Drawdown (1Y) Largest decline over 1 year	-5.71%	-13.08%	+7.37%
Max Drawdown (3Y) Largest decline over 3 years	-11.65%	-21.23%	+9.58%
Max Drawdown (5Y) Largest decline over 5 years	-19.63%	-27.51%	+7.88%
Max Drawdown (10Y) Largest decline over 10 years	-26.04%	-39.56%	+13.52%
Current Drawdown Current decline from peak	0.00%	-2.53%	+2.53%
Average Drawdown Average peak-to-trough decline	-4.28%	-7.73%	+3.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.42%	4.04%	-2.62%

Volatility

LKBAX vs. LKSMX - Volatility Comparison

The current volatility for LKCM Balanced Fund (LKBAX) is 1.61%, while LKCM Small-Mid Cap Equity Fund (LKSMX) has a volatility of 4.10%. This indicates that LKBAX experiences smaller price fluctuations and is considered to be less risky than LKSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LKBAX	LKSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	4.10%	-2.49%
Volatility (6M) Calculated over the trailing 6-month period	5.23%	12.99%	-7.76%
Volatility (1Y) Calculated over the trailing 1-year period	6.98%	16.87%	-9.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.84%	19.82%	-8.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.89%	21.37%	-9.48%

LKBAX vs. LKSMX - Expense Ratio Comparison

LKBAX has a 0.80% expense ratio, which is lower than LKSMX's 1.00% expense ratio.

Dividends

LKBAX vs. LKSMX - Dividend Comparison

LKBAX's dividend yield for the trailing twelve months is around 5.86%, less than LKSMX's 6.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LKBAX LKCM Balanced Fund	5.86%	6.00%	4.60%	3.49%	3.59%	4.41%	4.18%	5.95%	3.02%	4.09%	5.06%	3.50%
LKSMX LKCM Small-Mid Cap Equity Fund	6.07%	6.38%	0.00%	0.00%	8.27%	17.23%	6.48%	14.23%	21.66%	12.01%	18.07%	7.12%

Frequently Asked Questions

Can I hold both LKBAX and LKSMX in my portfolio?

LKBAX and LKSMX have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LKBAX or LKSMX?

LKSMX has higher volatility (4.10%) compared to LKBAX (1.61%). In terms of maximum drawdown, LKBAX dropped -31.40% vs LKSMX's -39.56%.

Which has better risk-adjusted returns?

LKBAX currently has the higher Sharpe Ratio (1.33 vs 0.68), 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.