VTI vs. BALFX

Last updated Jun 10, 2026

VTI (Vanguard Total Stock Market ETF) and BALFX (American Funds American Balanced Fund) are both funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while BALFX is a Diversified Portfolio fund managed by American Funds. Over the past 10 years, VTI returned 14.82%/yr vs 9.83%/yr for BALFX. With a 0.95 correlation, they move nearly in lockstep. VTI charges 0.03%/yr vs 0.62%/yr for BALFX.

Performance

VTI vs. BALFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) and American Funds American Balanced Fund (BALFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTI achieves a 8.81% return, which is significantly higher than BALFX's 7.61% return. Over the past 10 years, VTI has outperformed BALFX with an annualized return of 14.82%, while BALFX has yielded a comparatively lower 9.83% annualized return.

VTI

• 1D: -0.22%
• 1M: 0.22%
• YTD: 8.81%
• 6M: 8.81%
• 1Y: 24.58%
• 3Y*: 20.96%
• 5Y*: 12.10%
• 10Y*: 14.82%

BALFX

• 1D: 0.30%
• 1M: -0.27%
• YTD: 7.61%
• 6M: 8.26%
• 1Y: 21.61%
• 3Y*: 16.60%
• 5Y*: 9.14%
• 10Y*: 9.83%

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

VTI vs. BALFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTI Vanguard Total Stock Market ETF	8.81%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%
BALFX American Funds American Balanced Fund	7.61%	18.40%	14.91%	13.62%	-12.19%	15.69%	10.81%	18.50%	-3.54%	14.63%

Correlation

The correlation between VTI and BALFX is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since May 31, 2001	0.95

The correlation between VTI and BALFX has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

Return for Risk

VTI vs. BALFX — Risk / Return Rank

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

VTI

VTI Risk / Return Rank: 68
VTI Sharpe Ratio Rank: 68
VTI Sortino Ratio Rank: 66
VTI Omega Ratio Rank: 68
VTI Calmar Ratio Rank: 62
VTI Martin Ratio Rank: 75

BALFX

BALFX Risk / Return Rank: 81
BALFX Sharpe Ratio Rank: 84
BALFX Sortino Ratio Rank: 81
BALFX Omega Ratio Rank: 80
BALFX Calmar Ratio Rank: 78
BALFX Martin Ratio Rank: 85

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.

VTI vs. BALFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) and American Funds American Balanced Fund (BALFX). 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.

	VTI	BALFX	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.44	-0.45
Sortino ratio: Return per unit of downside risk	2.69	3.37	-0.67
Omega ratio: Gain probability vs. loss probability	1.36	1.46	-0.10
Calmar ratio: Return relative to maximum drawdown	2.77	3.10	-0.33
Martin ratio: Return relative to average drawdown	12.60	13.88	-1.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTI vs. BALFX - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 1.99, which is comparable to the BALFX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of VTI and BALFX, 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

	VTI	BALFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.99	2.44	-0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.87	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.92	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.68	-0.18

Drawdowns

VTI vs. BALFX - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, which is greater than BALFX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for VTI and BALFX.

Drawdown Indicators

	VTI	BALFX	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-40.20%	-15.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-7.03%	-1.89%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-10.67%	-8.63%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-18.81%	-6.55%
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	-22.34%	-12.66%
Current Drawdown Current decline from peak	-2.86%	-2.12%	-0.74%
Average Drawdown Average peak-to-trough decline	-8.02%	-4.16%	-3.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	1.57%	+0.39%

Volatility

VTI vs. BALFX - Volatility Comparison

Vanguard Total Stock Market ETF (VTI) has a higher volatility of 3.82% compared to American Funds American Balanced Fund (BALFX) at 3.08%. This indicates that VTI's price experiences larger fluctuations and is considered to be riskier than BALFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTI	BALFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.82%	3.08%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	9.55%	7.11%	+2.44%
Volatility (1Y) Calculated over the trailing 1-year period	12.42%	8.97%	+3.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	10.52%	+6.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.32%	10.68%	+7.64%

VTI vs. BALFX - Expense Ratio Comparison

VTI has a 0.03% expense ratio, which is lower than BALFX's 0.62% expense ratio.

Dividends

VTI vs. BALFX - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.04%, less than BALFX's 6.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BALFX American Funds American Balanced Fund	6.91%	8.22%	7.14%	2.02%	2.24%	4.24%	4.31%	3.44%	5.30%	4.66%	4.18%	5.54%
VTI Vanguard Total Stock Market ETF	1.04%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VTI and BALFX in my portfolio?

With a correlation of 0.93, VTI and BALFX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VTI or BALFX?

VTI has higher volatility (3.82%) compared to BALFX (3.08%). In terms of maximum drawdown, VTI dropped -55.45% vs BALFX's -40.20%.

Which has better risk-adjusted returns?

BALFX currently has the higher Sharpe Ratio (2.44 vs 1.99), 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.