VBINX vs. BALFX

Last updated Aug 1, 2026

VBINX (Vanguard Balanced Index Fund Investor Shares) and BALFX (American Funds American Balanced Fund Class F-1) are both Diversified Portfolio funds. VBINX is passively managed, while BALFX is actively managed. Over the past 10 years, VBINX returned 9.49%/yr vs 9.67%/yr for BALFX. Their 0.97 correlation means they have historically moved very closely together. VBINX charges 0.18%/yr vs 0.61%/yr for BALFX.

Performance

VBINX vs. BALFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Balanced Index Fund Investor Shares (VBINX) and American Funds American Balanced Fund Class F-1 (BALFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBINX achieves a 5.76% return, which is significantly lower than BALFX's 8.18% return. Both investments have delivered pretty close results over the past 10 years, with VBINX having a 9.49% annualized return and BALFX not far ahead at 9.67%.

VBINX

• 1D: 1.01%
• 1M: -0.81%
• 6M: 4.69%
• YTD: 5.76%
• 1Y: 13.26%
• 3Y*: 13.70%
• 5Y*: 7.41%
• 10Y*: 9.49%
• ALL TIME*: 8.48%

BALFX

• 1D: 1.08%
• 1M: -0.98%
• 6M: 5.43%
• YTD: 8.18%
• 1Y: 18.29%
• 3Y*: 15.33%
• 5Y*: 8.97%
• 10Y*: 9.67%
• ALL TIME*: 7.86%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BALFX American Funds American Balanced Fund Class F-1	$0.00	$0.00	$0.00
VBINX Vanguard Balanced Index Fund Investor Shares	$0.00	$0.00	$0.00

VBINX vs. BALFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBINX Vanguard Balanced Index Fund Investor Shares	5.76%	13.46%	17.63%	17.41%	-16.98%	13.62%	16.26%	21.67%	-2.97%	13.75%
BALFX American Funds American Balanced Fund Class F-1	8.18%	18.40%	14.91%	13.62%	-12.19%	15.69%	10.81%	18.50%	-3.54%	14.63%

Correlation

The correlation between VBINX and BALFX is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Mar 15, 2001	0.97

The correlation between VBINX and BALFX has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

Return for Risk

VBINX vs. BALFX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VBINX

VBINX Risk / Return Rank: 64
VBINX Sharpe Ratio Rank: 60
VBINX Sortino Ratio Rank: 59
VBINX Omega Ratio Rank: 57
VBINX Calmar Ratio Rank: 66
VBINX Martin Ratio Rank: 76

BALFX

BALFX Risk / Return Rank: 79
BALFX Sharpe Ratio Rank: 79
BALFX Sortino Ratio Rank: 77
BALFX Omega Ratio Rank: 77
BALFX Calmar Ratio Rank: 77
BALFX Martin Ratio Rank: 85

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VBINX vs. BALFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced Index Fund Investor Shares (VBINX) and American Funds American Balanced Fund Class F-1 (BALFX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VBINX	BALFX	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.82	-0.39
Sortino ratio: Return per unit of downside risk	2.05	2.57	-0.52
Omega ratio: Gain probability vs. loss probability	1.26	1.33	-0.08
Calmar ratio: Return relative to maximum drawdown	2.11	2.44	-0.34
Martin ratio: Return relative to average drawdown	8.97	10.42	-1.45

VBINX vs. BALFX - Sharpe Ratio Comparison

The current VBINX Sharpe Ratio is 1.43, which is comparable to the BALFX Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of VBINX and BALFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VBINX vs. BALFX - Drawdown Comparison

The maximum VBINX drawdown since its inception was -35.97%, smaller than the maximum BALFX drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for VBINX and BALFX.

Drawdown Indicators

	VBINX	BALFX	Difference
Max Drawdown Largest peak-to-trough decline	-35.97%	-40.20%	+4.23%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-7.03%	+1.19%
Max Drawdown (3Y) Largest decline over 3 years	-11.60%	-10.67%	-0.93%
Max Drawdown (5Y) Largest decline over 5 years	-21.61%	-18.81%	-2.80%
Max Drawdown (10Y) Largest decline over 10 years	-22.78%	-22.34%	-0.44%
Current Drawdown Current decline from peak	-1.45%	-1.71%	+0.26%
Average Drawdown Average peak-to-trough decline	-4.13%	-4.14%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.37%	1.65%	-0.28%

Volatility

VBINX vs. BALFX - Volatility Comparison

Vanguard Balanced Index Fund Investor Shares (VBINX) and American Funds American Balanced Fund Class F-1 (BALFX) have volatilities of 2.31% and 2.33%, 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

	VBINX	BALFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.31%	2.33%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	6.84%	7.38%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	8.57%	9.42%	-0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.19%	10.59%	+0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.26%	10.69%	+0.57%

VBINX vs. BALFX - Expense Ratio Comparison

VBINX has a 0.18% expense ratio, which is lower than BALFX's 0.61% expense ratio.

Dividends

VBINX vs. BALFX - Dividend Comparison

VBINX's dividend yield for the trailing twelve months is around 5.26%, less than BALFX's 7.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALFX American Funds American Balanced Fund Class F-1	7.15%	8.22%	7.14%	2.02%	2.24%	4.24%	4.31%	3.44%	5.30%	4.66%	4.18%	5.54%
VBINX Vanguard Balanced Index Fund Investor Shares	5.26%	5.89%	7.88%	4.25%	2.71%	2.71%	2.54%	2.19%	2.20%	1.83%	1.97%	1.95%

Frequently Asked Questions

Can I hold both VBINX and BALFX in my portfolio?

With a correlation of 0.94, VBINX and BALFX 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, VBINX or BALFX?

BALFX has higher volatility (2.33%) compared to VBINX (2.31%). In terms of maximum drawdown, VBINX dropped -35.97% vs BALFX's -40.20%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (1.82 vs 1.43), 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.