VLC.AX vs. VDBA.AX

Last updated Jul 16, 2026

VLC.AX (Vanguard MSCI Australian Large Companies Index ETF) and VDBA.AX (Vanguard Diversified Balanced Index ETF) are both exchange-traded funds - VLC.AX is a Global Equities fund tracking the Vanguard MSCI Australian Large Companies Index Index, while VDBA.AX is a Diversified Portfolio fund tracking the Balanced Composite Index. Both are passively managed. Over the past 5 years, VLC.AX returned 8.20%/yr vs 4.15%/yr for VDBA.AX. A 0.68 correlation means they provide meaningful diversification when combined.

Performance

VLC.AX vs. VDBA.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard MSCI Australian Large Companies Index ETF (VLC.AX) and Vanguard Diversified Balanced Index ETF (VDBA.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VLC.AX achieves a 7.09% return, which is significantly higher than VDBA.AX's 2.77% return.

VLC.AX

• 1D: 0.09%
• 1M: 0.91%
• 6M: 8.49%
• YTD: 7.09%
• 1Y: 9.19%
• 3Y*: 11.43%
• 5Y*: 8.20%
• 10Y*: 9.02%

VDBA.AX

• 1D: 0.12%
• 1M: 0.01%
• 6M: 2.53%
• YTD: 2.77%
• 1Y: 7.42%
• 3Y*: 8.49%
• 5Y*: 4.15%
• 10Y*: —

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

VLC.AX vs. VDBA.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLC.AX Vanguard MSCI Australian Large Companies Index ETF	7.09%	7.92%	8.78%	12.26%	3.84%	16.09%	2.10%	22.77%	-2.67%	1.54%
VDBA.AX Vanguard Diversified Balanced Index ETF	2.77%	8.27%	9.98%	10.30%	-11.15%	6.77%	5.21%	16.12%	-0.34%	0.78%

Correlation

The correlation between VLC.AX and VDBA.AX is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (All Time) Calculated using the full available price history since Nov 20, 2017	0.68

The correlation between VLC.AX and VDBA.AX has been stable across timeframes, ranging from 0.68 to 0.71 - a consistent structural relationship.

Return for Risk

VLC.AX vs. VDBA.AX — Risk / Return Rank

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

VLC.AX

VLC.AX Risk / Return Rank: 25
VLC.AX Sharpe Ratio Rank: 25
VLC.AX Sortino Ratio Rank: 24
VLC.AX Omega Ratio Rank: 23
VLC.AX Calmar Ratio Rank: 29
VLC.AX Martin Ratio Rank: 26

VDBA.AX

VDBA.AX Risk / Return Rank: 38
VDBA.AX Sharpe Ratio Rank: 38
VDBA.AX Sortino Ratio Rank: 40
VDBA.AX Omega Ratio Rank: 40
VDBA.AX Calmar Ratio Rank: 34
VDBA.AX Martin Ratio Rank: 40

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.

VLC.AX vs. VDBA.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard MSCI Australian Large Companies Index ETF (VLC.AX) and Vanguard Diversified Balanced Index ETF (VDBA.AX). 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.

	VLC.AX	VDBA.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.74	1.14	-0.40
Sortino ratio: Return per unit of downside risk	1.14	1.75	-0.62
Omega ratio: Gain probability vs. loss probability	1.13	1.22	-0.09
Calmar ratio: Return relative to maximum drawdown	1.22	1.44	-0.22
Martin ratio: Return relative to average drawdown	2.75	5.20	-2.46

VLC.AX vs. VDBA.AX - Sharpe Ratio Comparison

The current VLC.AX Sharpe Ratio is 0.74, which is lower than the VDBA.AX Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VLC.AX and VDBA.AX, 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

VLC.AX vs. VDBA.AX - Drawdown Comparison

The maximum VLC.AX drawdown since its inception was -32.68%, which is greater than VDBA.AX's maximum drawdown of -18.31%. Use the drawdown chart below to compare losses from any high point for VLC.AX and VDBA.AX.

Drawdown Indicators

	VLC.AX	VDBA.AX	Difference
Max Drawdown Largest peak-to-trough decline	-32.68%	-18.31%	-14.37%
Max Drawdown (1Y) Largest decline over 1 year	-8.04%	-5.20%	-2.84%
Max Drawdown (3Y) Largest decline over 3 years	-14.25%	-7.04%	-7.21%
Max Drawdown (5Y) Largest decline over 5 years	-14.25%	-15.06%	+0.81%
Max Drawdown (10Y) Largest decline over 10 years	-32.68%	—	—
Current Drawdown Current decline from peak	-1.15%	-0.38%	-0.77%
Average Drawdown Average peak-to-trough decline	-5.02%	-3.17%	-1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	1.46%	+2.14%

Volatility

VLC.AX vs. VDBA.AX - Volatility Comparison

Vanguard MSCI Australian Large Companies Index ETF (VLC.AX) has a higher volatility of 2.89% compared to Vanguard Diversified Balanced Index ETF (VDBA.AX) at 1.16%. This indicates that VLC.AX's price experiences larger fluctuations and is considered to be riskier than VDBA.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLC.AX	VDBA.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.89%	1.16%	+1.73%
Volatility (6M) Calculated over the trailing 6-month period	10.25%	5.68%	+4.57%
Volatility (1Y) Calculated over the trailing 1-year period	13.32%	6.59%	+6.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.61%	7.07%	+6.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.63%	7.80%	+6.83%

Dividends

VLC.AX vs. VDBA.AX - Dividend Comparison

VLC.AX's dividend yield for the trailing twelve months is around 2.42%, less than VDBA.AX's 4.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDBA.AX Vanguard Diversified Balanced Index ETF	4.70%	2.21%	1.32%	1.28%	2.83%	7.07%	4.71%	1.72%	0.96%	0.00%	0.00%	0.00%
VLC.AX Vanguard MSCI Australian Large Companies Index ETF	2.42%	4.98%	1.31%	3.86%	7.79%	4.16%	2.71%	4.76%	3.74%	3.11%	2.90%	3.14%

Frequently Asked Questions

Can I hold both VLC.AX and VDBA.AX in my portfolio?

VLC.AX and VDBA.AX have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VLC.AX and VDBA.AX?

VLC.AX is categorized as Global Equities, while VDBA.AX is Diversified Portfolio. VLC.AX tracks Vanguard MSCI Australian Large Companies Index Index, while VDBA.AX tracks Balanced Composite Index.