PAEAX vs. VBAIX

Last updated Jul 14, 2026

PAEAX (Putnam Dynamic Asset Allocation Growth Fund) and VBAIX (Vanguard Balanced Index Fund Institutional Shares) are both Diversified Portfolio funds. Over the past 10 years, PAEAX returned 10.98%/yr vs 9.88%/yr for VBAIX. Their correlation of 0.94 suggests significant overlap in exposure. PAEAX charges 1.03%/yr vs 0.04%/yr for VBAIX.

Performance

PAEAX vs. VBAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Putnam Dynamic Asset Allocation Growth Fund (PAEAX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAEAX achieves a 10.22% return, which is significantly higher than VBAIX's 7.19% return. Over the past 10 years, PAEAX has outperformed VBAIX with an annualized return of 10.98%, while VBAIX has yielded a comparatively lower 9.88% annualized return.

PAEAX

• 1D: 0.30%
• 1M: 1.41%
• 6M: 8.06%
• YTD: 10.22%
• 1Y: 20.62%
• 3Y*: 18.85%
• 5Y*: 9.96%
• 10Y*: 10.98%

VBAIX

• 1D: 0.17%
• 1M: 1.12%
• 6M: 5.62%
• YTD: 7.19%
• 1Y: 15.19%
• 3Y*: 15.23%
• 5Y*: 7.91%
• 10Y*: 9.88%

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

PAEAX vs. VBAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAEAX Putnam Dynamic Asset Allocation Growth Fund	10.22%	18.45%	18.71%	20.78%	-16.99%	16.63%	14.41%	20.79%	-9.73%	19.92%
VBAIX Vanguard Balanced Index Fund Institutional Shares	7.19%	13.60%	17.78%	17.55%	-16.87%	14.20%	16.40%	21.79%	-2.83%	13.86%

Correlation

The correlation between PAEAX and VBAIX 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	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 30, 2000	0.94

The correlation between PAEAX and VBAIX has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.

Return for Risk

PAEAX vs. VBAIX — Risk / Return Rank

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

PAEAX

PAEAX Risk / Return Rank: 70
PAEAX Sharpe Ratio Rank: 67
PAEAX Sortino Ratio Rank: 65
PAEAX Omega Ratio Rank: 64
PAEAX Calmar Ratio Rank: 74
PAEAX Martin Ratio Rank: 82

VBAIX

VBAIX Risk / Return Rank: 67
VBAIX Sharpe Ratio Rank: 64
VBAIX Sortino Ratio Rank: 64
VBAIX Omega Ratio Rank: 61
VBAIX Calmar Ratio Rank: 68
VBAIX 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.

PAEAX vs. VBAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Putnam Dynamic Asset Allocation Growth Fund (PAEAX) 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.

	PAEAX	VBAIX	Difference
Sharpe ratio: Return per unit of total volatility	1.81	1.77	+0.04
Sortino ratio: Return per unit of downside risk	2.53	2.51	+0.02
Omega ratio: Gain probability vs. loss probability	1.33	1.32	+0.01
Calmar ratio: Return relative to maximum drawdown	2.65	2.53	+0.12
Martin ratio: Return relative to average drawdown	11.59	11.09	+0.50

PAEAX vs. VBAIX - Sharpe Ratio Comparison

The current PAEAX Sharpe Ratio is 1.81, which is comparable to the VBAIX Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of PAEAX 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

PAEAX vs. VBAIX - Drawdown Comparison

The maximum PAEAX drawdown since its inception was -53.25%, which is greater than VBAIX's maximum drawdown of -35.82%. Use the drawdown chart below to compare losses from any high point for PAEAX and VBAIX.

Drawdown Indicators

	PAEAX	VBAIX	Difference
Max Drawdown Largest peak-to-trough decline	-53.25%	-35.82%	-17.43%
Max Drawdown (1Y) Largest decline over 1 year	-7.59%	-5.84%	-1.75%
Max Drawdown (3Y) Largest decline over 3 years	-21.31%	-11.57%	-9.74%
Max Drawdown (5Y) Largest decline over 5 years	-23.30%	-21.52%	-1.78%
Max Drawdown (10Y) Largest decline over 10 years	-28.57%	-22.77%	-5.80%
Current Drawdown Current decline from peak	-0.17%	-0.19%	+0.02%
Average Drawdown Average peak-to-trough decline	-7.64%	-4.41%	-3.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.73%	1.33%	+0.40%

Volatility

PAEAX vs. VBAIX - Volatility Comparison

Putnam Dynamic Asset Allocation Growth Fund (PAEAX) has a higher volatility of 4.20% compared to Vanguard Balanced Index Fund Institutional Shares (VBAIX) at 2.83%. This indicates that PAEAX's price experiences larger fluctuations and is considered to be riskier than VBAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAEAX	VBAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.20%	2.83%	+1.37%
Volatility (6M) Calculated over the trailing 6-month period	9.17%	6.74%	+2.43%
Volatility (1Y) Calculated over the trailing 1-year period	11.12%	8.36%	+2.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.50%	11.18%	+4.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.95%	11.24%	+3.71%

PAEAX vs. VBAIX - Expense Ratio Comparison

PAEAX has a 1.03% expense ratio, which is higher than VBAIX's 0.04% expense ratio.

Dividends

PAEAX vs. VBAIX - Dividend Comparison

PAEAX's dividend yield for the trailing twelve months is around 6.19%, more than VBAIX's 5.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAEAX Putnam Dynamic Asset Allocation Growth Fund	6.19%	6.83%	11.00%	4.18%	1.73%	14.90%	0.47%	1.56%	10.41%	10.22%	1.58%	6.53%
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.32%	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 PAEAX and VBAIX in my portfolio?

With a correlation of 0.97, PAEAX and VBAIX 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, PAEAX or VBAIX?

PAEAX has higher volatility (4.20%) compared to VBAIX (2.83%). In terms of maximum drawdown, PAEAX dropped -53.25% vs VBAIX's -35.82%.

Which has better risk-adjusted returns?

PAEAX currently has the higher Sharpe Ratio (1.81 vs 1.77), 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.