VBF vs. PAI

Last updated Jun 4, 2026

VBF (Invesco Bond Fund) and PAI (Western Asset Investment Grade Income Fund Inc.) are both Corporate Bonds funds. Both are actively managed. Over the past 10 years, VBF returned 2.94%/yr vs 3.32%/yr for PAI. At a 0.22 correlation, their price movements are largely independent.

Performance

VBF vs. PAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Bond Fund (VBF) and Western Asset Investment Grade Income Fund Inc. (PAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBF achieves a -0.95% return, which is significantly higher than PAI's -1.33% return. Over the past 10 years, VBF has underperformed PAI with an annualized return of 2.94%, while PAI has yielded a comparatively higher 3.32% annualized return.

VBF

• 1D: -0.07%
• 1M: -0.35%
• YTD: -0.95%
• 6M: -1.57%
• 1Y: 2.21%
• 3Y*: 5.57%
• 5Y*: -0.88%
• 10Y*: 2.94%

PAI

• 1D: -0.29%
• 1M: -0.02%
• YTD: -1.33%
• 6M: 0.15%
• 1Y: 2.93%
• 3Y*: 6.31%
• 5Y*: 0.05%
• 10Y*: 3.32%

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

VBF vs. PAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBF Invesco Bond Fund	-0.95%	5.46%	6.97%	2.27%	-17.77%	-5.37%	12.80%	30.91%	-11.16%	13.35%
PAI Western Asset Investment Grade Income Fund Inc.	-1.33%	5.34%	9.17%	9.09%	-22.50%	1.89%	6.71%	23.16%	-12.35%	15.76%

Correlation

The correlation between VBF and PAI is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Oct 28, 1994	0.22

Over the past year, VBF and PAI have become more correlated (0.43) than their long-term average of 0.22, meaning their price movements have been converging.

Return for Risk

VBF vs. PAI — Risk / Return Rank

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

VBF

VBF Risk / Return Rank: 5
VBF Sharpe Ratio Rank: 5
VBF Sortino Ratio Rank: 5
VBF Omega Ratio Rank: 4
VBF Calmar Ratio Rank: 6
VBF Martin Ratio Rank: 6

PAI

PAI Risk / Return Rank: 5
PAI Sharpe Ratio Rank: 5
PAI Sortino Ratio Rank: 5
PAI Omega Ratio Rank: 5
PAI Calmar Ratio Rank: 5
PAI Martin Ratio Rank: 5

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.

VBF vs. PAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Bond Fund (VBF) and Western Asset Investment Grade Income Fund Inc. (PAI). 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.

	VBF	PAI	Difference
Sharpe ratio Return per unit of total volatility	0.37	0.36	0.00
Sortino ratio Return per unit of downside risk	0.60	0.56	+0.04
Omega ratio Gain probability vs. loss probability	1.07	1.07	0.00
Calmar ratio Return relative to maximum drawdown	0.55	0.38	+0.17
Martin ratio Return relative to average drawdown	1.52	0.87	+0.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBF vs. PAI - Sharpe Ratio Comparison

The current VBF Sharpe Ratio is 0.37, which is comparable to the PAI Sharpe Ratio of 0.36. The chart below compares the historical Sharpe Ratios of VBF and PAI, 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

	VBF	PAI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.37	0.36	0.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.07	0.00	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.22	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.42	-0.08

Drawdowns

VBF vs. PAI - Drawdown Comparison

The maximum VBF drawdown since its inception was -32.23%, smaller than the maximum PAI drawdown of -39.03%. Use the drawdown chart below to compare losses from any high point for VBF and PAI.

Drawdown Indicators

	VBF	PAI	Difference
Max Drawdown Largest peak-to-trough decline	-32.23%	-39.03%	+6.80%
Max Drawdown (1Y) Largest decline over 1 year	-4.03%	-7.79%	+3.76%
Max Drawdown (3Y) Largest decline over 3 years	-11.52%	-8.87%	-2.65%
Max Drawdown (5Y) Largest decline over 5 years	-32.23%	-33.71%	+1.48%
Max Drawdown (10Y) Largest decline over 10 years	-32.23%	-33.71%	+1.48%
Current Drawdown Current decline from peak	-11.75%	-11.42%	-0.33%
Average Drawdown Average peak-to-trough decline	-7.25%	-7.13%	-0.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.46%	3.36%	-1.90%

Volatility

VBF vs. PAI - Volatility Comparison

Invesco Bond Fund (VBF) and Western Asset Investment Grade Income Fund Inc. (PAI) have volatilities of 1.74% and 1.67%, 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

	VBF	PAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.74%	1.67%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	4.54%	5.62%	-1.08%
Volatility (1Y) Calculated over the trailing 1-year period	6.05%	8.06%	-2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.38%	11.99%	+0.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.73%	15.42%	-2.69%

Dividends

VBF vs. PAI - Dividend Comparison

VBF's dividend yield for the trailing twelve months is around 5.54%, more than PAI's 5.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAI Western Asset Investment Grade Income Fund Inc.	5.20%	5.45%	4.83%	4.67%	4.82%	3.57%	3.82%	4.43%	5.23%	4.36%	4.82%	5.30%
VBF Invesco Bond Fund	5.54%	5.46%	5.51%	5.31%	4.60%	3.36%	6.89%	5.04%	5.40%	5.07%	4.56%	5.40%

Frequently Asked Questions

Can I hold both VBF and PAI in my portfolio?

VBF and PAI have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBF or PAI?

VBF has higher volatility (1.74%) compared to PAI (1.67%). In terms of maximum drawdown, VBF dropped -32.23% vs PAI's -39.03%.

Which has better risk-adjusted returns?

VBF currently has the higher Sharpe Ratio (0.37 vs 0.36), 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.