VTMFX vs. BWBIX

Last updated Jul 14, 2026

VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) and BWBIX (Baron WealthBuilder Fund) are both Diversified Portfolio funds. Over the past 5 years, VTMFX returned 6.80%/yr vs 4.14%/yr for BWBIX. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.05% expense ratio.

Performance

VTMFX vs. BWBIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) and Baron WealthBuilder Fund (BWBIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTMFX achieves a 6.01% return, which is significantly higher than BWBIX's 4.93% return.

VTMFX

• 1D: 0.16%
• 1M: 1.13%
• 6M: 4.62%
• YTD: 6.01%
• 1Y: 13.53%
• 3Y*: 11.95%
• 5Y*: 6.80%
• 10Y*: 8.49%

BWBIX

• 1D: -0.52%
• 1M: 1.43%
• 6M: 2.85%
• YTD: 4.93%
• 1Y: 13.21%
• 3Y*: 13.24%
• 5Y*: 4.14%
• 10Y*: —

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

VTMFX vs. BWBIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	6.01%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-2.09%
BWBIX Baron WealthBuilder Fund	4.93%	10.23%	19.62%	25.77%	-32.58%	14.76%	62.85%	36.41%	-12.02%

Correlation

The correlation between VTMFX and BWBIX is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since May 21, 2018	0.89

The correlation between VTMFX and BWBIX shifts across timeframes, from 0.79 (1 year) to 0.89 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VTMFX vs. BWBIX — Risk / Return Rank

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

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 80
VTMFX Sortino Ratio Rank: 78
VTMFX Omega Ratio Rank: 78
VTMFX Calmar Ratio Rank: 65
VTMFX Martin Ratio Rank: 81

BWBIX

BWBIX Risk / Return Rank: 17
BWBIX Sharpe Ratio Rank: 16
BWBIX Sortino Ratio Rank: 18
BWBIX Omega Ratio Rank: 16
BWBIX Calmar Ratio Rank: 18
BWBIX Martin Ratio Rank: 20

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.

VTMFX vs. BWBIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) and Baron WealthBuilder Fund (BWBIX). 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.

	VTMFX	BWBIX	Difference
Sharpe ratio: Return per unit of total volatility	2.06	0.82	+1.24
Sortino ratio: Return per unit of downside risk	2.91	1.33	+1.58
Omega ratio: Gain probability vs. loss probability	1.39	1.16	+0.23
Calmar ratio: Return relative to maximum drawdown	2.48	1.12	+1.36
Martin ratio: Return relative to average drawdown	11.44	3.59	+7.85

VTMFX vs. BWBIX - Sharpe Ratio Comparison

The current VTMFX Sharpe Ratio is 2.06, which is higher than the BWBIX Sharpe Ratio of 0.82. The chart below compares the historical Sharpe Ratios of VTMFX and BWBIX, 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

VTMFX vs. BWBIX - Drawdown Comparison

The maximum VTMFX drawdown since its inception was -28.49%, smaller than the maximum BWBIX drawdown of -39.14%. Use the drawdown chart below to compare losses from any high point for VTMFX and BWBIX.

Drawdown Indicators

	VTMFX	BWBIX	Difference
Max Drawdown Largest peak-to-trough decline	-28.49%	-39.14%	+10.65%
Max Drawdown (1Y) Largest decline over 1 year	-5.38%	-11.65%	+6.27%
Max Drawdown (3Y) Largest decline over 3 years	-10.61%	-21.59%	+10.98%
Max Drawdown (5Y) Largest decline over 5 years	-17.40%	-39.14%	+21.74%
Max Drawdown (10Y) Largest decline over 10 years	-21.87%	—	—
Current Drawdown Current decline from peak	-0.02%	-2.02%	+2.00%
Average Drawdown Average peak-to-trough decline	-3.54%	-11.60%	+8.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.16%	3.61%	-2.45%

Volatility

VTMFX vs. BWBIX - Volatility Comparison

The current volatility for Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) is 2.18%, while Baron WealthBuilder Fund (BWBIX) has a volatility of 6.83%. This indicates that VTMFX experiences smaller price fluctuations and is considered to be less risky than BWBIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTMFX	BWBIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.18%	6.83%	-4.65%
Volatility (6M) Calculated over the trailing 6-month period	5.25%	12.03%	-6.78%
Volatility (1Y) Calculated over the trailing 1-year period	6.48%	15.82%	-9.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.57%	21.29%	-12.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.13%	23.14%	-14.01%

VTMFX vs. BWBIX - Expense Ratio Comparison

Both VTMFX and BWBIX have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTMFX vs. BWBIX - Dividend Comparison

VTMFX's dividend yield for the trailing twelve months is around 2.19%, less than BWBIX's 7.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BWBIX Baron WealthBuilder Fund	7.25%	7.61%	0.77%	0.06%	3.21%	3.75%	1.24%	3.51%	0.14%	0.00%	0.00%	0.00%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.19%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%

Frequently Asked Questions

Can I hold both VTMFX and BWBIX in my portfolio?

VTMFX and BWBIX have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTMFX or BWBIX?

BWBIX has higher volatility (6.83%) compared to VTMFX (2.18%). In terms of maximum drawdown, VTMFX dropped -28.49% vs BWBIX's -39.14%.

Which has better risk-adjusted returns?

VTMFX currently has the higher Sharpe Ratio (2.06 vs 0.82), 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.