VMSIX vs. VBIAX

Last updated Jun 4, 2026

VMSIX (Vanguard Multi-Sector Income Bond Inv) and VBIAX (Vanguard Balanced Index Fund Admiral Shares) are both mutual funds - VMSIX is a Multisector Bonds fund actively managed by Vanguard, while VBIAX is a Diversified Portfolio fund tracking the 60% CRSP US Total Market Index / 40% Bloomberg U.S. Aggregate Float Adjusted Index. VMSIX is actively managed, while VBIAX is passively managed. Over the past 3 years, VMSIX returned 7.81%/yr vs 15.04%/yr for VBIAX. A 0.58 correlation means they provide meaningful diversification when combined. VMSIX charges 0.45%/yr vs 0.07%/yr for VBIAX.

Performance

VMSIX vs. VBIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond Inv (VMSIX) and Vanguard Balanced Index Fund Admiral Shares (VBIAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMSIX achieves a 1.14% return, which is significantly lower than VBIAX's 7.35% return.

VMSIX

• 1D: 0.11%
• 1M: 0.57%
• YTD: 1.14%
• 6M: 1.64%
• 1Y: 6.96%
• 3Y*: 7.81%
• 5Y*: —
• 10Y*: —

VBIAX

• 1D: 0.15%
• 1M: 3.71%
• YTD: 7.35%
• 6M: 7.26%
• 1Y: 19.35%
• 3Y*: 15.04%
• 5Y*: 8.01%
• 10Y*: 9.83%

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

VMSIX vs. VBIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VMSIX Vanguard Multi-Sector Income Bond Inv	1.14%	9.09%	6.68%	10.43%	-8.50%
VBIAX Vanguard Balanced Index Fund Admiral Shares	7.35%	13.61%	14.58%	17.54%	-13.37%

Correlation

The correlation between VMSIX and VBIAX is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (All Time) Calculated using the full available price history since Feb 2, 2022	0.58

The correlation between VMSIX and VBIAX has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.

Return for Risk

VMSIX vs. VBIAX — Risk / Return Rank

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

VMSIX

VMSIX Risk / Return Rank: 83
VMSIX Sharpe Ratio Rank: 88
VMSIX Sortino Ratio Rank: 90
VMSIX Omega Ratio Rank: 90
VMSIX Calmar Ratio Rank: 70
VMSIX Martin Ratio Rank: 79

VBIAX

VBIAX Risk / Return Rank: 76
VBIAX Sharpe Ratio Rank: 76
VBIAX Sortino Ratio Rank: 74
VBIAX Omega Ratio Rank: 70
VBIAX Calmar Ratio Rank: 75
VBIAX Martin Ratio Rank: 83

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.

VMSIX vs. VBIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond Inv (VMSIX) and Vanguard Balanced Index Fund Admiral Shares (VBIAX). 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.

	VMSIX	VBIAX	Difference
Sharpe ratio: Return per unit of total volatility	2.89	2.52	+0.37
Sortino ratio: Return per unit of downside risk	4.37	3.59	+0.78
Omega ratio: Gain probability vs. loss probability	1.63	1.47	+0.17
Calmar ratio: Return relative to maximum drawdown	3.23	3.42	-0.19
Martin ratio: Return relative to average drawdown	14.86	15.60	-0.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMSIX vs. VBIAX - Sharpe Ratio Comparison

The current VMSIX Sharpe Ratio is 2.89, which is comparable to the VBIAX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of VMSIX and VBIAX, 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

	VMSIX	VBIAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.89	2.52	+0.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.73	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.88	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	0.64	+0.24

Drawdowns

VMSIX vs. VBIAX - Drawdown Comparison

The maximum VMSIX drawdown since its inception was -13.11%, smaller than the maximum VBIAX drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for VMSIX and VBIAX.

Drawdown Indicators

	VMSIX	VBIAX	Difference
Max Drawdown Largest peak-to-trough decline	-13.11%	-35.90%	+22.79%
Max Drawdown (1Y) Largest decline over 1 year	-2.20%	-5.83%	+3.63%
Max Drawdown (3Y) Largest decline over 3 years	-3.82%	-11.70%	+7.88%
Max Drawdown (5Y) Largest decline over 5 years	—	-21.53%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-22.78%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-3.08%	-4.44%	+1.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.48%	1.27%	-0.79%

Volatility

VMSIX vs. VBIAX - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond Inv (VMSIX) is 0.87%, while Vanguard Balanced Index Fund Admiral Shares (VBIAX) has a volatility of 2.26%. This indicates that VMSIX experiences smaller price fluctuations and is considered to be less risky than VBIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMSIX	VBIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.87%	2.26%	-1.39%
Volatility (6M) Calculated over the trailing 6-month period	1.97%	6.11%	-4.14%
Volatility (1Y) Calculated over the trailing 1-year period	2.46%	7.90%	-5.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.69%	11.05%	-6.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.69%	11.21%	-6.52%

VMSIX vs. VBIAX - Expense Ratio Comparison

VMSIX has a 0.45% expense ratio, which is higher than VBIAX's 0.07% expense ratio.

Dividends

VMSIX vs. VBIAX - Dividend Comparison

VMSIX's dividend yield for the trailing twelve months is around 5.44%, more than VBIAX's 5.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBIAX Vanguard Balanced Index Fund Admiral Shares	5.21%	6.00%	5.27%	4.35%	2.83%	3.19%	2.65%	2.28%	2.32%	1.95%	2.09%	2.09%
VMSIX Vanguard Multi-Sector Income Bond Inv	5.44%	5.56%	6.37%	5.43%	3.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VMSIX and VBIAX in my portfolio?

VMSIX and VBIAX have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMSIX or VBIAX?

VBIAX has higher volatility (2.26%) compared to VMSIX (0.87%). In terms of maximum drawdown, VMSIX dropped -13.11% vs VBIAX's -35.90%.

Which has better risk-adjusted returns?

VMSIX currently has the higher Sharpe Ratio (2.89 vs 2.52), 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.