VBINX vs. IRSOX

Last updated Aug 1, 2026

VBINX (Vanguard Balanced Index Fund Investor Shares) and IRSOX (Voya Target Retirement 2040 Fund) are both mutual funds - VBINX is a Diversified Portfolio fund tracking the Balanced Composite Index, while IRSOX is a Target Retirement Date fund managed by Voya. Over the past 10 years, VBINX returned 9.49%/yr vs 10.71%/yr for IRSOX. Their correlation of 0.95 means they have usually moved in the same direction. VBINX charges 0.18%/yr vs 0.23%/yr for IRSOX.

Performance

VBINX vs. IRSOX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Balanced Index Fund Investor Shares (VBINX) and Voya Target Retirement 2040 Fund (IRSOX). 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 IRSOX's 9.53% return. Over the past 10 years, VBINX has underperformed IRSOX with an annualized return of 9.49%, while IRSOX has yielded a comparatively higher 10.71% annualized return.

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%

IRSOX

• 1D: 1.68%
• 1M: -0.65%
• 6M: 5.89%
• YTD: 9.53%
• 1Y: 20.16%
• 3Y*: 15.44%
• 5Y*: 8.62%
• 10Y*: 10.71%
• ALL TIME*: 10.21%

*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)
IRSOX Voya Target Retirement 2040 Fund	$0.00	$0.00	$0.00
VBINX Vanguard Balanced Index Fund Investor Shares	$0.00	$0.00	$0.00

VBINX vs. IRSOX - 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%
IRSOX Voya Target Retirement 2040 Fund	9.53%	19.10%	13.74%	19.25%	-18.43%	17.65%	16.93%	23.69%	-8.31%	20.15%

Correlation

The correlation between VBINX and IRSOX is 0.88, 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.	0.88
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since Dec 24, 2012	0.95

The correlation between VBINX and IRSOX has been stable across timeframes, ranging from 0.88 to 0.95 - a consistent structural relationship.

Return for Risk

VBINX vs. IRSOX — 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

IRSOX

IRSOX Risk / Return Rank: 75
IRSOX Sharpe Ratio Rank: 72
IRSOX Sortino Ratio Rank: 73
IRSOX Omega Ratio Rank: 70
IRSOX Calmar Ratio Rank: 73
IRSOX Martin Ratio Rank: 84

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. IRSOX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced Index Fund Investor Shares (VBINX) and Voya Target Retirement 2040 Fund (IRSOX). 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	IRSOX	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.72	-0.29
Sortino ratio: Return per unit of downside risk	2.05	2.51	-0.46
Omega ratio: Gain probability vs. loss probability	1.26	1.31	-0.06
Calmar ratio: Return relative to maximum drawdown	2.11	2.43	-0.32
Martin ratio: Return relative to average drawdown	8.97	10.76	-1.79

VBINX vs. IRSOX - Sharpe Ratio Comparison

The current VBINX Sharpe Ratio is 1.43, which is comparable to the IRSOX Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of VBINX and IRSOX, 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. IRSOX - Drawdown Comparison

The maximum VBINX drawdown since its inception was -35.97%, which is greater than IRSOX's maximum drawdown of -31.25%. Use the drawdown chart below to compare losses from any high point for VBINX and IRSOX.

Drawdown Indicators

	VBINX	IRSOX	Difference
Max Drawdown Largest peak-to-trough decline	-35.97%	-31.25%	-4.72%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-8.38%	+2.54%
Max Drawdown (3Y) Largest decline over 3 years	-11.60%	-13.84%	+2.24%
Max Drawdown (5Y) Largest decline over 5 years	-21.61%	-25.24%	+3.63%
Max Drawdown (10Y) Largest decline over 10 years	-22.78%	-31.25%	+8.47%
Current Drawdown Current decline from peak	-1.45%	-1.92%	+0.47%
Average Drawdown Average peak-to-trough decline	-4.13%	-4.25%	+0.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.37%	1.83%	-0.46%

Volatility

VBINX vs. IRSOX - Volatility Comparison

The current volatility for Vanguard Balanced Index Fund Investor Shares (VBINX) is 2.31%, while Voya Target Retirement 2040 Fund (IRSOX) has a volatility of 3.44%. This indicates that VBINX experiences smaller price fluctuations and is considered to be less risky than IRSOX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBINX	IRSOX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.31%	3.44%	-1.13%
Volatility (6M) Calculated over the trailing 6-month period	6.84%	9.61%	-2.77%
Volatility (1Y) Calculated over the trailing 1-year period	8.57%	11.83%	-3.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.19%	14.00%	-2.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.26%	14.77%	-3.51%

VBINX vs. IRSOX - Expense Ratio Comparison

VBINX has a 0.18% expense ratio, which is lower than IRSOX's 0.23% 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

VBINX vs. IRSOX - Dividend Comparison

VBINX's dividend yield for the trailing twelve months is around 5.26%, less than IRSOX's 12.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IRSOX Voya Target Retirement 2040 Fund	12.51%	13.71%	2.25%	2.13%	6.01%	17.52%	3.71%	4.14%	5.84%	5.86%	1.98%	0.41%
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 IRSOX in my portfolio?

VBINX and IRSOX have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBINX or IRSOX?

IRSOX has higher volatility (3.44%) compared to VBINX (2.31%). In terms of maximum drawdown, VBINX dropped -35.97% vs IRSOX's -31.25%.

Which has better risk-adjusted returns?

IRSOX currently has the higher Sharpe Ratio (1.72 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.