VBAIX vs. VIG

Last updated Jun 4, 2026

VBAIX (Vanguard Balanced Index Fund Institutional Shares) and VIG (Vanguard Dividend Appreciation ETF) are both funds - VBAIX is a Diversified Portfolio fund managed by Vanguard, while VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index. Over the past 10 years, VBAIX returned 10.15%/yr vs 13.23%/yr for VIG. Their correlation of 0.91 suggests significant overlap in exposure. VBAIX charges 0.06%/yr vs 0.04%/yr for VIG.

Performance

VBAIX vs. VIG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Balanced Index Fund Institutional Shares (VBAIX) and Vanguard Dividend Appreciation ETF (VIG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VBAIX having a 7.40% return and VIG slightly higher at 7.57%. Over the past 10 years, VBAIX has underperformed VIG with an annualized return of 10.15%, while VIG has yielded a comparatively higher 13.23% annualized 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%

VIG

• 1D: -0.19%
• 1M: 3.79%
• YTD: 7.57%
• 6M: 6.99%
• 1Y: 19.63%
• 3Y*: 16.49%
• 5Y*: 10.62%
• 10Y*: 13.23%

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

VBAIX vs. VIG - 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%	13.86%
VIG Vanguard Dividend Appreciation ETF	7.57%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%

Correlation

The correlation between VBAIX and VIG is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 28, 2006	0.91

The correlation between VBAIX and VIG has been stable across timeframes, ranging from 0.85 to 0.91 - a consistent structural relationship.

VBAIX vs. VIG - Sectors Allocation Comparison

Sectors	VBAIX	VIG
Technology	33.5%	26.2%
Financial Services	12.0%	20.6%
Communication Services	10.3%	0.5%
Consumer Cyclical	10.0%	4.7%
Industrials	9.8%	11.8%
Healthcare	9.2%	16.5%
Consumer Defensive	4.7%	10.1%
Energy	3.7%	3.5%
Real Estate	2.4%	-
Utilities	2.3%	3.2%
Basic Materials	2.0%	3.5%

Return for Risk

VBAIX vs. VIG — 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

VIG

VIG Risk / Return Rank: 56
VIG Sharpe Ratio Rank: 57
VIG Sortino Ratio Rank: 60
VIG Omega Ratio Rank: 56
VIG Calmar Ratio Rank: 50
VIG Martin Ratio Rank: 56

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. VIG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced Index Fund Institutional Shares (VBAIX) and Vanguard Dividend Appreciation ETF (VIG). 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	VIG	Difference
Sharpe ratio: Return per unit of total volatility	2.53	1.97	+0.55
Sortino ratio: Return per unit of downside risk	3.60	2.88	+0.72
Omega ratio: Gain probability vs. loss probability	1.47	1.35	+0.12
Calmar ratio: Return relative to maximum drawdown	3.42	2.49	+0.93
Martin ratio: Return relative to average drawdown	15.63	10.06	+5.57
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. VIG - Sharpe Ratio Comparison

The current VBAIX Sharpe Ratio is 2.53, which is comparable to the VIG Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of VBAIX and VIG, 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	VIG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	1.97	+0.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.75	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.83	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.60	+0.06

Drawdowns

VBAIX vs. VIG - Drawdown Comparison

The maximum VBAIX drawdown since its inception was -35.82%, smaller than the maximum VIG drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VBAIX and VIG.

Drawdown Indicators

	VBAIX	VIG	Difference
Max Drawdown Largest peak-to-trough decline	-35.82%	-46.81%	+10.99%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-7.91%	+2.07%
Max Drawdown (3Y) Largest decline over 3 years	-11.57%	-14.95%	+3.38%
Max Drawdown (5Y) Largest decline over 5 years	-21.52%	-20.39%	-1.13%
Max Drawdown (10Y) Largest decline over 10 years	-22.77%	-31.72%	+8.95%
Current Drawdown Current decline from peak	0.00%	-0.19%	+0.19%
Average Drawdown Average peak-to-trough decline	-4.42%	-5.51%	+1.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.27%	1.96%	-0.69%

Volatility

VBAIX vs. VIG - Volatility Comparison

Vanguard Balanced Index Fund Institutional Shares (VBAIX) and Vanguard Dividend Appreciation ETF (VIG) have volatilities of 2.26% and 2.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBAIX	VIG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.26%	2.19%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	6.11%	7.57%	-1.46%
Volatility (1Y) Calculated over the trailing 1-year period	7.90%	10.01%	-2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.10%	14.23%	-3.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.23%	16.05%	-4.82%

VBAIX vs. VIG - Expense Ratio Comparison

VBAIX has a 0.06% expense ratio, which is higher than VIG's 0.04% 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

VBAIX vs. VIG - Dividend Comparison

VBAIX's dividend yield for the trailing twelve months is around 5.22%, more than VIG's 1.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VIG Vanguard Dividend Appreciation ETF	1.47%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%

Frequently Asked Questions

Can I hold both VBAIX and VIG in my portfolio?

VBAIX and VIG have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBAIX or VIG?

VBAIX has higher volatility (2.26%) compared to VIG (2.19%). In terms of maximum drawdown, VBAIX dropped -35.82% vs VIG's -46.81%.

Which has better risk-adjusted returns?

VBAIX currently has the higher Sharpe Ratio (2.53 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.