VBITX vs. ALFAX

Last updated Jun 5, 2026

VBITX (Vanguard Short-Term Bond Index Fund Institutional Shares) and ALFAX (Lord Abbett Alpha Strategy Fund) are both mutual funds - VBITX is a Total Bond Market fund managed by Vanguard, while ALFAX is a Small Cap Growth Equities fund managed by Lord Abbett. Over the past 10 years, VBITX returned 1.89%/yr vs 10.49%/yr for ALFAX. At a correlation of -0.08, they often move in opposite directions. VBITX charges 0.05%/yr vs 1.40%/yr for ALFAX.

Performance

VBITX vs. ALFAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) and Lord Abbett Alpha Strategy Fund (ALFAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBITX achieves a 0.21% return, which is significantly lower than ALFAX's 18.47% return. Over the past 10 years, VBITX has underperformed ALFAX with an annualized return of 1.89%, while ALFAX has yielded a comparatively higher 10.49% annualized return.

VBITX

• 1D: -0.10%
• 1M: -0.05%
• YTD: 0.21%
• 6M: 0.55%
• 1Y: 3.45%
• 3Y*: 4.32%
• 5Y*: 1.52%
• 10Y*: 1.89%

ALFAX

• 1D: -0.19%
• 1M: 2.22%
• YTD: 18.47%
• 6M: 17.29%
• 1Y: 32.20%
• 3Y*: 15.66%
• 5Y*: 5.07%
• 10Y*: 10.49%

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

VBITX vs. ALFAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	0.21%	6.11%	3.77%	4.43%	-5.61%	-1.18%	4.72%	4.89%	1.38%	1.20%
ALFAX Lord Abbett Alpha Strategy Fund	18.47%	8.80%	13.18%	13.92%	-23.50%	15.01%	26.16%	24.95%	-9.72%	20.61%

Correlation

The correlation between VBITX and ALFAX is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	-0.08

The correlation between VBITX and ALFAX shifts across timeframes, from -0.08 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VBITX vs. ALFAX — Risk / Return Rank

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

VBITX

VBITX Risk / Return Rank: 37
VBITX Sharpe Ratio Rank: 31
VBITX Sortino Ratio Rank: 42
VBITX Omega Ratio Rank: 36
VBITX Calmar Ratio Rank: 40
VBITX Martin Ratio Rank: 35

ALFAX

ALFAX Risk / Return Rank: 53
ALFAX Sharpe Ratio Rank: 45
ALFAX Sortino Ratio Rank: 45
ALFAX Omega Ratio Rank: 41
ALFAX Calmar Ratio Rank: 70
ALFAX Martin Ratio Rank: 62

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.

VBITX vs. ALFAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) and Lord Abbett Alpha Strategy Fund (ALFAX). 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.

	VBITX	ALFAX	Difference
Sharpe ratio: Return per unit of total volatility	1.61	1.94	-0.33
Sortino ratio: Return per unit of downside risk	2.73	2.76	-0.04
Omega ratio: Gain probability vs. loss probability	1.32	1.34	-0.02
Calmar ratio: Return relative to maximum drawdown	2.38	3.17	-0.79
Martin ratio: Return relative to average drawdown	7.79	12.20	-4.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBITX vs. ALFAX - Sharpe Ratio Comparison

The current VBITX Sharpe Ratio is 1.61, which is comparable to the ALFAX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VBITX and ALFAX, 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

	VBITX	ALFAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.61	1.94	-0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.26	+0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.51	+0.28
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.43	+0.35

Drawdowns

VBITX vs. ALFAX - Drawdown Comparison

The maximum VBITX drawdown since its inception was -8.65%, smaller than the maximum ALFAX drawdown of -57.11%. Use the drawdown chart below to compare losses from any high point for VBITX and ALFAX.

Drawdown Indicators

	VBITX	ALFAX	Difference
Max Drawdown Largest peak-to-trough decline	-8.65%	-57.11%	+48.46%
Max Drawdown (1Y) Largest decline over 1 year	-1.54%	-10.31%	+8.77%
Max Drawdown (3Y) Largest decline over 3 years	-1.54%	-25.01%	+23.47%
Max Drawdown (5Y) Largest decline over 5 years	-8.61%	-33.88%	+25.27%
Max Drawdown (10Y) Largest decline over 10 years	-8.65%	-40.29%	+31.64%
Current Drawdown Current decline from peak	-0.72%	-0.50%	-0.22%
Average Drawdown Average peak-to-trough decline	-1.18%	-12.87%	+11.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.47%	2.67%	-2.20%

Volatility

VBITX vs. ALFAX - Volatility Comparison

The current volatility for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) is 0.71%, while Lord Abbett Alpha Strategy Fund (ALFAX) has a volatility of 5.82%. This indicates that VBITX experiences smaller price fluctuations and is considered to be less risky than ALFAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBITX	ALFAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.71%	5.82%	-5.11%
Volatility (6M) Calculated over the trailing 6-month period	1.61%	13.06%	-11.45%
Volatility (1Y) Calculated over the trailing 1-year period	2.27%	16.86%	-14.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.96%	19.86%	-16.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.40%	20.72%	-18.32%

VBITX vs. ALFAX - Expense Ratio Comparison

VBITX has a 0.05% expense ratio, which is lower than ALFAX's 1.40% expense ratio.

Dividends

VBITX vs. ALFAX - Dividend Comparison

VBITX's dividend yield for the trailing twelve months is around 4.02%, less than ALFAX's 4.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALFAX Lord Abbett Alpha Strategy Fund	4.48%	5.30%	0.80%	0.46%	6.94%	5.38%	7.99%	14.66%	16.61%	11.96%	11.85%	15.83%
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	4.02%	3.85%	3.39%	1.99%	1.48%	1.24%	1.80%	2.26%	2.03%	1.69%	1.52%	1.44%

Frequently Asked Questions

Can I hold both VBITX and ALFAX in my portfolio?

VBITX and ALFAX have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBITX or ALFAX?

ALFAX has higher volatility (5.82%) compared to VBITX (0.71%). In terms of maximum drawdown, VBITX dropped -8.65% vs ALFAX's -57.11%.

Which has better risk-adjusted returns?

ALFAX currently has the higher Sharpe Ratio (1.94 vs 1.61), 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.