TAIAX vs. VWELX

Last updated Jun 4, 2026

TAIAX (American Funds Tax-Aware Conservative Growth and Income Portfolio) and VWELX (Vanguard Wellington Fund Investor Shares) are both Diversified Portfolio funds. Over the past 10 years, TAIAX returned 7.85%/yr vs 10.20%/yr for VWELX. Their correlation of 0.93 suggests significant overlap in exposure. TAIAX charges 0.34%/yr vs 0.24%/yr for VWELX.

Performance

TAIAX vs. VWELX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Tax-Aware Conservative Growth and Income Portfolio (TAIAX) and Vanguard Wellington Fund Investor Shares (VWELX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAIAX achieves a 6.28% return, which is significantly lower than VWELX's 7.11% return. Over the past 10 years, TAIAX has underperformed VWELX with an annualized return of 7.85%, while VWELX has yielded a comparatively higher 10.20% annualized return.

TAIAX

• 1D: 0.34%
• 1M: 2.87%
• YTD: 6.28%
• 6M: 6.84%
• 1Y: 16.67%
• 3Y*: 12.59%
• 5Y*: 7.00%
• 10Y*: 7.85%

VWELX

• 1D: 0.06%
• 1M: 3.86%
• YTD: 7.11%
• 6M: 7.36%
• 1Y: 21.02%
• 3Y*: 15.61%
• 5Y*: 8.97%
• 10Y*: 10.20%

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

TAIAX vs. VWELX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TAIAX American Funds Tax-Aware Conservative Growth and Income Portfolio	6.28%	13.27%	10.09%	11.74%	-10.18%	13.47%	7.46%	16.26%	-2.17%	14.25%
VWELX Vanguard Wellington Fund Investor Shares	7.11%	16.54%	14.73%	14.29%	-14.36%	18.99%	10.57%	22.51%	-3.43%	13.98%

Correlation

The correlation between TAIAX and VWELX is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since May 22, 2012	0.93

The correlation between TAIAX and VWELX has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

Return for Risk

TAIAX vs. VWELX — Risk / Return Rank

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

TAIAX

TAIAX Risk / Return Rank: 72
TAIAX Sharpe Ratio Rank: 82
TAIAX Sortino Ratio Rank: 79
TAIAX Omega Ratio Rank: 80
TAIAX Calmar Ratio Rank: 52
TAIAX Martin Ratio Rank: 65

VWELX

VWELX Risk / Return Rank: 74
VWELX Sharpe Ratio Rank: 78
VWELX Sortino Ratio Rank: 75
VWELX Omega Ratio Rank: 73
VWELX Calmar Ratio Rank: 68
VWELX 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.

TAIAX vs. VWELX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Tax-Aware Conservative Growth and Income Portfolio (TAIAX) and Vanguard Wellington Fund Investor Shares (VWELX). 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.

	TAIAX	VWELX	Difference
Sharpe ratio Return per unit of total volatility	2.65	2.56	+0.08
Sortino ratio Return per unit of downside risk	3.75	3.60	+0.15
Omega ratio Gain probability vs. loss probability	1.53	1.48	+0.05
Calmar ratio Return relative to maximum drawdown	2.75	3.17	-0.42
Martin ratio Return relative to average drawdown	12.72	14.69	-1.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAIAX vs. VWELX - Sharpe Ratio Comparison

The current TAIAX Sharpe Ratio is 2.65, which is comparable to the VWELX Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of TAIAX and VWELX, 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

	TAIAX	VWELX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.65	2.56	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	0.81	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.96	0.89	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	1.06	0.84	+0.22

Drawdowns

TAIAX vs. VWELX - Drawdown Comparison

The maximum TAIAX drawdown since its inception was -21.42%, smaller than the maximum VWELX drawdown of -36.12%. Use the drawdown chart below to compare losses from any high point for TAIAX and VWELX.

Drawdown Indicators

	TAIAX	VWELX	Difference
Max Drawdown Largest peak-to-trough decline	-21.42%	-36.12%	+14.70%
Max Drawdown (1Y) Largest decline over 1 year	-6.16%	-6.78%	+0.62%
Max Drawdown (3Y) Largest decline over 3 years	-8.75%	-11.98%	+3.23%
Max Drawdown (5Y) Largest decline over 5 years	-16.76%	-20.88%	+4.12%
Max Drawdown (10Y) Largest decline over 10 years	-21.42%	-25.33%	+3.91%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.20%	-3.92%	+1.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.33%	1.46%	-0.13%

Volatility

TAIAX vs. VWELX - Volatility Comparison

The current volatility for American Funds Tax-Aware Conservative Growth and Income Portfolio (TAIAX) is 2.01%, while Vanguard Wellington Fund Investor Shares (VWELX) has a volatility of 2.52%. This indicates that TAIAX experiences smaller price fluctuations and is considered to be less risky than VWELX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAIAX	VWELX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.01%	2.52%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	5.30%	6.67%	-1.37%
Volatility (1Y) Calculated over the trailing 1-year period	6.41%	8.38%	-1.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.62%	11.13%	-3.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.19%	11.53%	-3.34%

TAIAX vs. VWELX - Expense Ratio Comparison

TAIAX has a 0.34% expense ratio, which is higher than VWELX's 0.24% expense ratio.

Dividends

TAIAX vs. VWELX - Dividend Comparison

TAIAX's dividend yield for the trailing twelve months is around 4.87%, less than VWELX's 10.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAIAX American Funds Tax-Aware Conservative Growth and Income Portfolio	4.87%	5.18%	5.16%	4.29%	4.37%	3.40%	2.65%	4.01%	4.54%	4.04%	2.77%	3.38%
VWELX Vanguard Wellington Fund Investor Shares	10.76%	11.46%	10.76%	6.01%	8.19%	8.64%	7.77%	4.67%	9.49%	5.82%	4.44%	7.03%

Frequently Asked Questions

Can I hold both TAIAX and VWELX in my portfolio?

With a correlation of 0.90, TAIAX and VWELX 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, TAIAX or VWELX?

VWELX has higher volatility (2.52%) compared to TAIAX (2.01%). In terms of maximum drawdown, TAIAX dropped -21.42% vs VWELX's -36.12%.

Which has better risk-adjusted returns?

TAIAX currently has the higher Sharpe Ratio (2.65 vs 2.56), 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.