RIDGX vs. VBAIX

Last updated Jun 23, 2026

RIDGX (American Funds Income Fund of America Class R-6) and VBAIX (Vanguard Balanced Index Fund Institutional Shares) are both mutual funds - RIDGX is a Global Allocation fund managed by American Funds, while VBAIX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, RIDGX returned 8.74%/yr vs 10.11%/yr for VBAIX. Their correlation of 0.88 suggests significant overlap in exposure. RIDGX charges 0.26%/yr vs 0.06%/yr for VBAIX.

Performance

RIDGX vs. VBAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Income Fund of America Class R-6 (RIDGX) 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, RIDGX achieves a 5.64% return, which is significantly lower than VBAIX's 6.72% return. Over the past 10 years, RIDGX has underperformed VBAIX with an annualized return of 8.74%, while VBAIX has yielded a comparatively higher 10.11% annualized return.

RIDGX

• 1D: -0.40%
• 1M: -0.99%
• YTD: 5.64%
• 6M: 5.72%
• 1Y: 14.57%
• 3Y*: 13.10%
• 5Y*: 8.40%
• 10Y*: 8.74%

VBAIX

• 1D: 0.79%
• 1M: 0.89%
• YTD: 6.72%
• 6M: 6.30%
• 1Y: 18.23%
• 3Y*: 15.17%
• 5Y*: 8.45%
• 10Y*: 10.11%

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

RIDGX vs. VBAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RIDGX American Funds Income Fund of America Class R-6	5.64%	18.12%	11.22%	7.04%	-6.15%	17.72%	5.24%	18.84%	-4.96%	12.80%
VBAIX Vanguard Balanced Index Fund Institutional Shares	6.72%	13.60%	17.78%	17.55%	-16.87%	14.20%	16.40%	21.79%	-2.83%	13.86%

Correlation

The correlation between RIDGX and VBAIX is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jan 4, 2010	0.88

The correlation between RIDGX and VBAIX shifts across timeframes, from 0.71 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

Return for Risk

RIDGX vs. VBAIX — Risk / Return Rank

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

RIDGX

RIDGX Risk / Return Rank: 48
RIDGX Sharpe Ratio Rank: 52
RIDGX Sortino Ratio Rank: 52
RIDGX Omega Ratio Rank: 50
RIDGX Calmar Ratio Rank: 43
RIDGX Martin Ratio Rank: 45

VBAIX

VBAIX Risk / Return Rank: 69
VBAIX Sharpe Ratio Rank: 65
VBAIX Sortino Ratio Rank: 65
VBAIX Omega Ratio Rank: 63
VBAIX Calmar Ratio Rank: 71
VBAIX Martin Ratio Rank: 79

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.

RIDGX vs. VBAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Income Fund of America Class R-6 (RIDGX) 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.

	RIDGX	VBAIX	Difference
Sharpe ratio: Return per unit of total volatility	1.97	2.18	-0.20
Sortino ratio: Return per unit of downside risk	2.78	3.07	-0.29
Omega ratio: Gain probability vs. loss probability	1.35	1.40	-0.05
Calmar ratio: Return relative to maximum drawdown	2.40	3.11	-0.71
Martin ratio: Return relative to average drawdown	8.93	13.85	-4.92

RIDGX vs. VBAIX - Sharpe Ratio Comparison

The current RIDGX Sharpe Ratio is 1.97, which is comparable to the VBAIX Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of RIDGX 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

RIDGX vs. VBAIX - Drawdown Comparison

The maximum RIDGX drawdown since its inception was -26.09%, smaller than the maximum VBAIX drawdown of -35.82%. Use the drawdown chart below to compare losses from any high point for RIDGX and VBAIX.

Drawdown Indicators

	RIDGX	VBAIX	Difference
Max Drawdown Largest peak-to-trough decline	-26.09%	-35.82%	+9.73%
Max Drawdown (1Y) Largest decline over 1 year	-6.09%	-5.84%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-8.58%	-11.57%	+2.99%
Max Drawdown (5Y) Largest decline over 5 years	-15.62%	-21.52%	+5.90%
Max Drawdown (10Y) Largest decline over 10 years	-26.09%	-22.77%	-3.32%
Current Drawdown Current decline from peak	-1.91%	-0.64%	-1.27%
Average Drawdown Average peak-to-trough decline	-2.56%	-4.41%	+1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	1.31%	+0.32%

Volatility

RIDGX vs. VBAIX - Volatility Comparison

The current volatility for American Funds Income Fund of America Class R-6 (RIDGX) is 2.33%, while Vanguard Balanced Index Fund Institutional Shares (VBAIX) has a volatility of 3.35%. This indicates that RIDGX 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

	RIDGX	VBAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.33%	3.35%	-1.02%
Volatility (6M) Calculated over the trailing 6-month period	5.86%	6.73%	-0.87%
Volatility (1Y) Calculated over the trailing 1-year period	7.43%	8.36%	-0.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.49%	11.17%	-1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.70%	11.27%	-0.57%

RIDGX vs. VBAIX - Expense Ratio Comparison

RIDGX has a 0.26% expense ratio, which is higher than VBAIX's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

RIDGX vs. VBAIX - Dividend Comparison

RIDGX's dividend yield for the trailing twelve months is around 9.84%, more than VBAIX's 5.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RIDGX American Funds Income Fund of America Class R-6	9.84%	10.25%	6.69%	3.16%	7.31%	6.97%	3.49%	5.29%	7.78%	4.46%	3.37%	5.38%
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.26%	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 RIDGX and VBAIX in my portfolio?

RIDGX and VBAIX have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RIDGX or VBAIX?

VBAIX has higher volatility (3.35%) compared to RIDGX (2.33%). In terms of maximum drawdown, RIDGX dropped -26.09% vs VBAIX's -35.82%.

Which has better risk-adjusted returns?

VBAIX currently has the higher Sharpe Ratio (2.18 vs 1.97), 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.