VBAIX vs. AFMBX

Last updated Jun 4, 2026

VBAIX (Vanguard Balanced Index Fund Institutional Shares) and AFMBX (American Funds American Balanced Fund Class F-3) are both Diversified Portfolio funds. Over the past 5 years, VBAIX returned 8.62%/yr vs 10.06%/yr for AFMBX. Their correlation of 0.95 suggests significant overlap in exposure. VBAIX charges 0.06%/yr vs 0.25%/yr for AFMBX.

Performance

VBAIX vs. AFMBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Balanced Index Fund Institutional Shares (VBAIX) and American Funds American Balanced Fund Class F-3 (AFMBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBAIX achieves a 7.40% return, which is significantly lower than AFMBX's 10.12% return.

VBAIX

• 1D: 0.16%
• 1M: 3.72%
• YTD: 7.40%
• 6M: 7.29%
• 1Y: 19.41%
• 3Y*: 16.11%
• 5Y*: 8.62%
• 10Y*: 10.15%

AFMBX

• 1D: 0.24%
• 1M: 4.02%
• YTD: 10.12%
• 6M: 10.78%
• 1Y: 25.36%
• 3Y*: 17.90%
• 5Y*: 10.06%
• 10Y*: —

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

VBAIX vs. AFMBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBAIX Vanguard Balanced Index Fund Institutional Shares	7.40%	13.60%	17.78%	17.55%	-16.87%	14.20%	16.40%	21.79%	-2.83%	9.53%
AFMBX American Funds American Balanced Fund Class F-3	10.12%	18.82%	15.36%	13.89%	-11.83%	16.12%	11.17%	18.96%	-3.07%	10.06%

Correlation

The correlation between VBAIX and AFMBX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 16, 2017	0.95

The correlation between VBAIX and AFMBX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

VBAIX vs. AFMBX — Risk / Return Rank

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

VBAIX

VBAIX Risk / Return Rank: 76
VBAIX Sharpe Ratio Rank: 76
VBAIX Sortino Ratio Rank: 74
VBAIX Omega Ratio Rank: 70
VBAIX Calmar Ratio Rank: 76
VBAIX Martin Ratio Rank: 83

AFMBX

AFMBX Risk / Return Rank: 86
AFMBX Sharpe Ratio Rank: 90
AFMBX Sortino Ratio Rank: 87
AFMBX Omega Ratio Rank: 85
AFMBX Calmar Ratio Rank: 81
AFMBX Martin Ratio Rank: 87

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.

VBAIX vs. AFMBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced Index Fund Institutional Shares (VBAIX) and American Funds American Balanced Fund Class F-3 (AFMBX). 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.

	VBAIX	AFMBX	Difference
Sharpe ratio Return per unit of total volatility	2.53	2.99	-0.46
Sortino ratio Return per unit of downside risk	3.60	4.16	-0.56
Omega ratio Gain probability vs. loss probability	1.47	1.57	-0.10
Calmar ratio Return relative to maximum drawdown	3.42	3.72	-0.31
Martin ratio Return relative to average drawdown	15.63	16.82	-1.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBAIX vs. AFMBX - Sharpe Ratio Comparison

The current VBAIX Sharpe Ratio is 2.53, which is comparable to the AFMBX Sharpe Ratio of 2.99. The chart below compares the historical Sharpe Ratios of VBAIX and AFMBX, 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

	VBAIX	AFMBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	2.99	-0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.96	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.96	-0.30

Drawdowns

VBAIX vs. AFMBX - Drawdown Comparison

The maximum VBAIX drawdown since its inception was -35.82%, which is greater than AFMBX's maximum drawdown of -22.34%. Use the drawdown chart below to compare losses from any high point for VBAIX and AFMBX.

Drawdown Indicators

	VBAIX	AFMBX	Difference
Max Drawdown Largest peak-to-trough decline	-35.82%	-22.34%	-13.48%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-6.98%	+1.14%
Max Drawdown (3Y) Largest decline over 3 years	-11.57%	-10.64%	-0.93%
Max Drawdown (5Y) Largest decline over 5 years	-21.52%	-18.58%	-2.94%
Max Drawdown (10Y) Largest decline over 10 years	-22.77%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.42%	-3.21%	-1.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.27%	1.54%	-0.27%

Volatility

VBAIX vs. AFMBX - Volatility Comparison

The current volatility for Vanguard Balanced Index Fund Institutional Shares (VBAIX) is 2.26%, while American Funds American Balanced Fund Class F-3 (AFMBX) has a volatility of 2.66%. This indicates that VBAIX experiences smaller price fluctuations and is considered to be less risky than AFMBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBAIX	AFMBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.26%	2.66%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	6.11%	6.85%	-0.74%
Volatility (1Y) Calculated over the trailing 1-year period	7.90%	8.72%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.10%	10.49%	+0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.23%	11.14%	+0.09%

VBAIX vs. AFMBX - Expense Ratio Comparison

VBAIX has a 0.06% expense ratio, which is lower than AFMBX's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBAIX vs. AFMBX - Dividend Comparison

VBAIX's dividend yield for the trailing twelve months is around 5.22%, less than AFMBX's 7.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFMBX American Funds American Balanced Fund Class F-3	7.82%	8.57%	7.51%	2.27%	2.63%	4.60%	4.65%	3.78%	5.81%	4.94%	0.00%	0.00%
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.22%	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 VBAIX and AFMBX in my portfolio?

With a correlation of 0.94, VBAIX and AFMBX 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, VBAIX or AFMBX?

AFMBX has higher volatility (2.66%) compared to VBAIX (2.26%). In terms of maximum drawdown, VBAIX dropped -35.82% vs AFMBX's -22.34%.

Which has better risk-adjusted returns?

AFMBX currently has the higher Sharpe Ratio (2.99 vs 2.53), 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.