VBMFX vs. VWELX

Last updated Jun 5, 2026

VBMFX (Vanguard Total Bond Market Index Fund) and VWELX (Vanguard Wellington Fund Investor Shares) are both mutual funds - VBMFX is a Intermediate Core Bond fund managed by Vanguard, while VWELX is a Diversified Portfolio fund actively managed by Vanguard. Over the past 10 years, VBMFX returned 1.44%/yr vs 10.12%/yr for VWELX. At a 0.13 correlation, their price movements are largely independent. VBMFX charges 0.15%/yr vs 0.24%/yr for VWELX.

Performance

VBMFX vs. VWELX - Performance Comparison

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

Returns By Period

In the year-to-date period, VBMFX achieves a 0.17% return, which is significantly lower than VWELX's 6.39% return. Over the past 10 years, VBMFX has underperformed VWELX with an annualized return of 1.44%, while VWELX has yielded a comparatively higher 10.12% annualized return.

VBMFX

• 1D: -0.21%
• 1M: 0.12%
• YTD: 0.17%
• 6M: 0.29%
• 1Y: 4.35%
• 3Y*: 3.86%
• 5Y*: -0.01%
• 10Y*: 1.44%

VWELX

• 1D: -0.67%
• 1M: 2.71%
• YTD: 6.39%
• 6M: 6.66%
• 1Y: 19.88%
• 3Y*: 15.35%
• 5Y*: 8.69%
• 10Y*: 10.12%

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

VBMFX vs. VWELX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBMFX Vanguard Total Bond Market Index Fund	0.17%	7.05%	1.15%	5.62%	-13.25%	-2.04%	7.63%	8.61%	-0.34%	3.45%
VWELX Vanguard Wellington Fund Investor Shares	6.39%	16.54%	14.73%	14.29%	-14.36%	18.99%	10.57%	22.51%	-3.43%	13.98%

Correlation

The correlation between VBMFX and VWELX is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Dec 12, 1986	0.13

Over the past year, VBMFX and VWELX have become more correlated (0.34) than their long-term average of 0.13, meaning their price movements have been converging.

Return for Risk

VBMFX vs. VWELX — Risk / Return Rank

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

VBMFX

VBMFX Risk / Return Rank: 20
VBMFX Sharpe Ratio Rank: 20
VBMFX Sortino Ratio Rank: 21
VBMFX Omega Ratio Rank: 18
VBMFX Calmar Ratio Rank: 22
VBMFX Martin Ratio Rank: 20

VWELX

VWELX Risk / Return Rank: 66
VWELX Sharpe Ratio Rank: 67
VWELX Sortino Ratio Rank: 65
VWELX Omega Ratio Rank: 65
VWELX Calmar Ratio Rank: 60
VWELX Martin Ratio Rank: 73

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.

VBMFX vs. VWELX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market Index Fund (VBMFX) 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.

	VBMFX	VWELX	Difference
Sharpe ratio: Return per unit of total volatility	1.27	2.41	-1.14
Sortino ratio: Return per unit of downside risk	1.91	3.40	-1.49
Omega ratio: Gain probability vs. loss probability	1.23	1.45	-0.22
Calmar ratio: Return relative to maximum drawdown	1.73	2.99	-1.27
Martin ratio: Return relative to average drawdown	5.18	13.88	-8.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBMFX vs. VWELX - Sharpe Ratio Comparison

The current VBMFX Sharpe Ratio is 1.27, which is lower than the VWELX Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of VBMFX 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

	VBMFX	VWELX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.27	2.41	-1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	0.78	-0.79
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.88	-0.59
Sharpe Ratio (All Time) Calculated using the full available price history	0.96	0.84	+0.12

Drawdowns

VBMFX vs. VWELX - Drawdown Comparison

The maximum VBMFX drawdown since its inception was -19.08%, smaller than the maximum VWELX drawdown of -36.12%. Use the drawdown chart below to compare losses from any high point for VBMFX and VWELX.

Drawdown Indicators

	VBMFX	VWELX	Difference
Max Drawdown Largest peak-to-trough decline	-19.08%	-36.12%	+17.04%
Max Drawdown (1Y) Largest decline over 1 year	-2.91%	-6.78%	+3.87%
Max Drawdown (3Y) Largest decline over 3 years	-6.02%	-11.98%	+5.96%
Max Drawdown (5Y) Largest decline over 5 years	-18.24%	-20.88%	+2.64%
Max Drawdown (10Y) Largest decline over 10 years	-19.08%	-25.33%	+6.25%
Current Drawdown Current decline from peak	-3.11%	-0.67%	-2.44%
Average Drawdown Average peak-to-trough decline	-2.70%	-3.92%	+1.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.97%	1.46%	-0.49%

Volatility

VBMFX vs. VWELX - Volatility Comparison

The current volatility for Vanguard Total Bond Market Index Fund (VBMFX) is 1.32%, while Vanguard Wellington Fund Investor Shares (VWELX) has a volatility of 2.61%. This indicates that VBMFX 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

	VBMFX	VWELX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	2.61%	-1.29%
Volatility (6M) Calculated over the trailing 6-month period	2.77%	6.68%	-3.91%
Volatility (1Y) Calculated over the trailing 1-year period	3.95%	8.41%	-4.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.01%	11.14%	-5.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.98%	11.53%	-6.55%

VBMFX vs. VWELX - Expense Ratio Comparison

VBMFX has a 0.15% 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

VBMFX vs. VWELX - Dividend Comparison

VBMFX's dividend yield for the trailing twelve months is around 3.88%, less than VWELX's 10.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBMFX Vanguard Total Bond Market Index Fund	3.88%	3.76%	3.57%	2.99%	2.49%	1.72%	2.31%	2.63%	2.47%	2.45%	2.43%	2.71%
VWELX Vanguard Wellington Fund Investor Shares	10.83%	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 VBMFX and VWELX in my portfolio?

VBMFX and VWELX have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBMFX or VWELX?

VWELX has higher volatility (2.61%) compared to VBMFX (1.32%). In terms of maximum drawdown, VBMFX dropped -19.08% vs VWELX's -36.12%.

Which has better risk-adjusted returns?

VWELX currently has the higher Sharpe Ratio (2.41 vs 1.27), 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.