LKSMX vs. LKBAX

Last updated Jun 4, 2026

LKSMX (LKCM Small-Mid Cap Equity Fund) and LKBAX (LKCM Balanced Fund) are both mutual funds - LKSMX is a Mid Cap Growth Equities fund managed by LKCM, while LKBAX is a Diversified Portfolio fund managed by LKCM. Over the past 10 years, LKSMX returned 11.15%/yr vs 8.15%/yr for LKBAX. Their correlation of 0.87 suggests significant overlap in exposure. LKSMX charges 1.00%/yr vs 0.80%/yr for LKBAX.

Performance

LKSMX vs. LKBAX - Performance Comparison

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

Returns By Period

In the year-to-date period, LKSMX achieves a 5.37% return, which is significantly higher than LKBAX's 2.48% return. Over the past 10 years, LKSMX has outperformed LKBAX with an annualized return of 11.15%, while LKBAX has yielded a comparatively lower 8.15% annualized return.

LKSMX

• 1D: 0.34%
• 1M: 2.05%
• YTD: 5.37%
• 6M: 5.85%
• 1Y: 10.54%
• 3Y*: 14.22%
• 5Y*: 5.89%
• 10Y*: 11.15%

LKBAX

• 1D: -0.14%
• 1M: 1.05%
• YTD: 2.48%
• 6M: 2.77%
• 1Y: 8.58%
• 3Y*: 9.81%
• 5Y*: 4.77%
• 10Y*: 8.15%

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

LKSMX vs. LKBAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LKSMX LKCM Small-Mid Cap Equity Fund	5.37%	5.27%	15.64%	25.76%	-22.23%	15.44%	30.55%	31.02%	-8.91%	24.18%
LKBAX LKCM Balanced Fund	2.48%	8.44%	10.97%	10.85%	-13.86%	14.01%	15.28%	21.86%	-2.15%	12.88%

Correlation

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

Return for Risk

LKSMX vs. LKBAX — Risk / Return Rank

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

LKSMX

LKSMX Risk / Return Rank: 9
LKSMX Sharpe Ratio Rank: 9
LKSMX Sortino Ratio Rank: 9
LKSMX Omega Ratio Rank: 8
LKSMX Calmar Ratio Rank: 9
LKSMX Martin Ratio Rank: 10

LKBAX

LKBAX Risk / Return Rank: 21
LKBAX Sharpe Ratio Rank: 20
LKBAX Sortino Ratio Rank: 19
LKBAX Omega Ratio Rank: 19
LKBAX Calmar Ratio Rank: 19
LKBAX Martin Ratio Rank: 26

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.

LKSMX vs. LKBAX - Risk-Adjusted Trends Comparison

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

	LKSMX	LKBAX	Difference
Sharpe ratio: Return per unit of total volatility	0.69	1.29	-0.59
Sortino ratio: Return per unit of downside risk	1.11	1.84	-0.74
Omega ratio: Gain probability vs. loss probability	1.13	1.23	-0.10
Calmar ratio: Return relative to maximum drawdown	0.89	1.57	-0.68
Martin ratio: Return relative to average drawdown	2.88	6.32	-3.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LKSMX vs. LKBAX - Sharpe Ratio Comparison

The current LKSMX Sharpe Ratio is 0.69, which is lower than the LKBAX Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of LKSMX and LKBAX, 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

	LKSMX	LKBAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.69	1.29	-0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.44	-0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.69	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.57	-0.15

Drawdowns

LKSMX vs. LKBAX - Drawdown Comparison

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

Drawdown Indicators

	LKSMX	LKBAX	Difference
Max Drawdown Largest peak-to-trough decline	-39.56%	-31.40%	-8.16%
Max Drawdown (1Y) Largest decline over 1 year	-13.08%	-5.71%	-7.37%
Max Drawdown (3Y) Largest decline over 3 years	-21.23%	-11.65%	-9.58%
Max Drawdown (5Y) Largest decline over 5 years	-27.51%	-19.63%	-7.88%
Max Drawdown (10Y) Largest decline over 10 years	-39.56%	-26.04%	-13.52%
Current Drawdown Current decline from peak	-2.21%	-0.14%	-2.07%
Average Drawdown Average peak-to-trough decline	-7.73%	-4.28%	-3.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	1.42%	+2.62%

Volatility

LKSMX vs. LKBAX - Volatility Comparison

LKCM Small-Mid Cap Equity Fund (LKSMX) has a higher volatility of 4.08% compared to LKCM Balanced Fund (LKBAX) at 1.61%. This indicates that LKSMX's price experiences larger fluctuations and is considered to be riskier than LKBAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LKSMX	LKBAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	1.61%	+2.47%
Volatility (6M) Calculated over the trailing 6-month period	12.98%	5.22%	+7.76%
Volatility (1Y) Calculated over the trailing 1-year period	16.84%	6.97%	+9.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.82%	10.84%	+8.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.37%	11.89%	+9.48%

LKSMX vs. LKBAX - Expense Ratio Comparison

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

Dividends

LKSMX vs. LKBAX - Dividend Comparison

LKSMX's dividend yield for the trailing twelve months is around 6.05%, more than LKBAX's 5.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LKBAX LKCM Balanced Fund	5.87%	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	6.05%	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 LKSMX and LKBAX in my portfolio?

LKSMX and LKBAX 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, LKSMX or LKBAX?

LKSMX has higher volatility (4.08%) compared to LKBAX (1.61%). In terms of maximum drawdown, LKSMX dropped -39.56% vs LKBAX's -31.40%.

Which has better risk-adjusted returns?

LKBAX currently has the higher Sharpe Ratio (1.29 vs 0.69), 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.