VFORX vs. BALCX
Compare and contrast key facts about Vanguard Target Retirement 2040 Fund (VFORX) and American Funds American Balanced Fund Class C (BALCX).
VFORX is managed by Vanguard. It was launched on Jun 7, 2006. BALCX is managed by American Funds. It was launched on Jul 26, 1975.
Performance
VFORX vs. BALCX - Performance Comparison
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VFORX vs. BALCX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | -3.32% | 18.77% | 12.90% | 18.56% | -17.00% | 14.55% | 15.48% | 23.86% | -7.32% | 18.45% |
BALCX American Funds American Balanced Fund Class C | -3.02% | 17.58% | 14.00% | 12.97% | -12.77% | 14.87% | 10.06% | 17.66% | -4.09% | 14.02% |
Returns By Period
In the year-to-date period, VFORX achieves a -3.32% return, which is significantly lower than BALCX's -3.02% return. Over the past 10 years, VFORX has outperformed BALCX with an annualized return of 9.48%, while BALCX has yielded a comparatively lower 8.21% annualized return.
VFORX
- 1D
- -0.14%
- 1M
- -7.37%
- YTD
- -3.32%
- 6M
- -0.71%
- 1Y
- 15.06%
- 3Y*
- 13.11%
- 5Y*
- 7.08%
- 10Y*
- 9.48%
BALCX
- 1D
- -0.11%
- 1M
- -6.86%
- YTD
- -3.02%
- 6M
- 0.47%
- 1Y
- 14.48%
- 3Y*
- 12.70%
- 5Y*
- 7.28%
- 10Y*
- 8.21%
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VFORX vs. BALCX - Expense Ratio Comparison
VFORX has a 0.08% expense ratio, which is lower than BALCX's 1.31% expense ratio.
Return for Risk
VFORX vs. BALCX — Risk / Return Rank
VFORX
BALCX
VFORX vs. BALCX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and American Funds American Balanced Fund Class C (BALCX). 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.
| VFORX | BALCX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.22 | 1.35 | -0.13 |
Sortino ratioReturn per unit of downside risk | 1.76 | 1.98 | -0.22 |
Omega ratioGain probability vs. loss probability | 1.26 | 1.28 | -0.02 |
Calmar ratioReturn relative to maximum drawdown | 1.55 | 1.88 | -0.33 |
Martin ratioReturn relative to average drawdown | 7.04 | 7.95 | -0.91 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VFORX | BALCX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.22 | 1.35 | -0.13 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.70 | -0.13 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.70 | 0.78 | -0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.58 | -0.11 |
Correlation
The correlation between VFORX and BALCX is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
VFORX vs. BALCX - Dividend Comparison
VFORX's dividend yield for the trailing twelve months is around 2.86%, less than BALCX's 7.83% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | 2.86% | 2.77% | 2.86% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 0.04% | 2.40% | 2.99% |
BALCX American Funds American Balanced Fund Class C | 7.83% | 7.61% | 6.37% | 1.54% | 1.53% | 3.60% | 3.68% | 2.79% | 4.67% | 4.17% | 3.51% | 4.81% |
Drawdowns
VFORX vs. BALCX - Drawdown Comparison
The maximum VFORX drawdown since its inception was -51.63%, which is greater than BALCX's maximum drawdown of -40.88%. Use the drawdown chart below to compare losses from any high point for VFORX and BALCX.
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Drawdown Indicators
| VFORX | BALCX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.63% | -40.88% | -10.75% |
Max Drawdown (1Y)Largest decline over 1 year | -8.88% | -7.36% | -1.52% |
Max Drawdown (5Y)Largest decline over 5 years | -24.32% | -19.22% | -5.10% |
Max Drawdown (10Y)Largest decline over 10 years | -29.35% | -22.38% | -6.97% |
Current DrawdownCurrent decline from peak | -7.70% | -7.08% | -0.62% |
Average DrawdownAverage peak-to-trough decline | -6.82% | -4.48% | -2.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.96% | 1.74% | +0.22% |
Volatility
VFORX vs. BALCX - Volatility Comparison
Vanguard Target Retirement 2040 Fund (VFORX) has a higher volatility of 4.11% compared to American Funds American Balanced Fund Class C (BALCX) at 3.28%. This indicates that VFORX's price experiences larger fluctuations and is considered to be riskier than BALCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFORX | BALCX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.11% | 3.28% | +0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 7.24% | 6.75% | +0.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.42% | 11.09% | +1.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 10.41% | +1.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.64% | 10.61% | +3.03% |