VBAIX vs. VWELX

Last updated Jun 4, 2026

VBAIX (Vanguard Balanced Index Fund Institutional Shares) and VWELX (Vanguard Wellington Fund Investor Shares) are both Diversified Portfolio funds from Vanguard. Over the past 10 years, VBAIX returned 10.15%/yr vs 10.20%/yr for VWELX. With a 0.96 correlation, they move nearly in lockstep. VBAIX charges 0.06%/yr vs 0.24%/yr for VWELX.

Performance

VBAIX vs. VWELX - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VBAIX having a 7.40% return and VWELX slightly lower at 7.11%. Both investments have delivered pretty close results over the past 10 years, with VBAIX having a 10.15% annualized return and VWELX not far ahead at 10.20%.

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%

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)

VBAIX vs. VWELX - 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%
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 VBAIX and VWELX 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	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Dec 1, 2000	0.96

The correlation between VBAIX and VWELX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

VBAIX vs. VWELX - Sectors Allocation Comparison

Sectors	VBAIX	VWELX
Technology	33.5%	31.8%
Financial Services	12.0%	10.6%
Communication Services	10.3%	12.3%
Consumer Cyclical	10.0%	10.9%
Industrials	9.8%	8.5%
Healthcare	9.2%	9.8%
Consumer Defensive	4.7%	4.4%
Energy	3.7%	4.4%
Real Estate	2.4%	2.6%
Utilities	2.3%	2.5%
Basic Materials	2.0%	2.1%

Return for Risk

VBAIX vs. VWELX — 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

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.

VBAIX vs. VWELX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced Index Fund Institutional Shares (VBAIX) 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.

	VBAIX	VWELX	Difference
Sharpe ratio: Return per unit of total volatility	2.53	2.56	-0.04
Sortino ratio: Return per unit of downside risk	3.60	3.60	0.00
Omega ratio: Gain probability vs. loss probability	1.47	1.48	-0.01
Calmar ratio: Return relative to maximum drawdown	3.42	3.17	+0.25
Martin ratio: Return relative to average drawdown	15.63	14.69	+0.94
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. VWELX - Sharpe Ratio Comparison

The current VBAIX Sharpe Ratio is 2.53, which is comparable to the VWELX Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of VBAIX 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

	VBAIX	VWELX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	2.56	-0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.81	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.89	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.84	-0.18

Drawdowns

VBAIX vs. VWELX - Drawdown Comparison

The maximum VBAIX drawdown since its inception was -35.82%, roughly equal to the maximum VWELX drawdown of -36.12%. Use the drawdown chart below to compare losses from any high point for VBAIX and VWELX.

Drawdown Indicators

	VBAIX	VWELX	Difference
Max Drawdown Largest peak-to-trough decline	-35.82%	-36.12%	+0.30%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-6.78%	+0.94%
Max Drawdown (3Y) Largest decline over 3 years	-11.57%	-11.98%	+0.41%
Max Drawdown (5Y) Largest decline over 5 years	-21.52%	-20.88%	-0.64%
Max Drawdown (10Y) Largest decline over 10 years	-22.77%	-25.33%	+2.56%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.42%	-3.92%	-0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.27%	1.46%	-0.19%

Volatility

VBAIX vs. VWELX - Volatility Comparison

The current volatility for Vanguard Balanced Index Fund Institutional Shares (VBAIX) is 2.26%, while Vanguard Wellington Fund Investor Shares (VWELX) has a volatility of 2.52%. This indicates that VBAIX 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

	VBAIX	VWELX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.26%	2.52%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	6.11%	6.67%	-0.56%
Volatility (1Y) Calculated over the trailing 1-year period	7.90%	8.38%	-0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.10%	11.13%	-0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.23%	11.53%	-0.30%

VBAIX vs. VWELX - Expense Ratio Comparison

VBAIX has a 0.06% expense ratio, which is lower than VWELX's 0.24% 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. VWELX - Dividend Comparison

VBAIX's dividend yield for the trailing twelve months is around 5.22%, less than VWELX's 10.76% 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%
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 VBAIX and VWELX in my portfolio?

With a correlation of 0.97, VBAIX 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, VBAIX or VWELX?

VWELX has higher volatility (2.52%) compared to VBAIX (2.26%). In terms of maximum drawdown, VBAIX dropped -35.82% vs VWELX's -36.12%.

Which has better risk-adjusted returns?

VWELX currently has the higher Sharpe Ratio (2.56 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.