VTMFX vs. VTSAX

Last updated Jun 23, 2026

VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) and VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) are both mutual funds - VTMFX is a Diversified Portfolio fund tracking the Composite benchmark: Russell 1000 Index and Bloomberg 1-15 Year Municipal Bond Index, while VTSAX is a Large Cap Blend Equities fund managed by Vanguard. Over the past 10 years, VTMFX returned 8.63%/yr vs 15.06%/yr for VTSAX. With a 0.98 correlation, they move nearly in lockstep. VTMFX charges 0.05%/yr vs 0.04%/yr for VTSAX.

Performance

VTMFX vs. VTSAX - Performance Comparison

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

Returns By Period

In the year-to-date period, VTMFX achieves a 5.44% return, which is significantly lower than VTSAX's 10.72% return. Over the past 10 years, VTMFX has underperformed VTSAX with an annualized return of 8.63%, while VTSAX has yielded a comparatively higher 15.06% annualized return.

VTMFX

• 1D: 0.57%
• 1M: 0.96%
• YTD: 5.44%
• 6M: 5.27%
• 1Y: 15.82%
• 3Y*: 11.93%
• 5Y*: 7.23%
• 10Y*: 8.63%

VTSAX

• 1D: 1.14%
• 1M: 0.90%
• YTD: 10.72%
• 6M: 9.93%
• 1Y: 27.56%
• 3Y*: 20.66%
• 5Y*: 12.87%
• 10Y*: 15.06%

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

VTMFX vs. VTSAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.44%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares	10.72%	17.12%	23.23%	26.51%	-19.52%	25.72%	20.98%	30.79%	-5.18%	21.16%

Correlation

The correlation between VTMFX and VTSAX is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Nov 13, 2000	0.98

The correlation between VTMFX and VTSAX has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

Return for Risk

VTMFX vs. VTSAX — 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: 81
VTMFX Sortino Ratio Rank: 79
VTMFX Omega Ratio Rank: 79
VTMFX Calmar Ratio Rank: 64
VTMFX Martin Ratio Rank: 79

VTSAX

VTSAX Risk / Return Rank: 65
VTSAX Sharpe Ratio Rank: 63
VTSAX Sortino Ratio Rank: 57
VTSAX Omega Ratio Rank: 58
VTSAX Calmar Ratio Rank: 70
VTSAX Martin Ratio Rank: 80

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. VTSAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) and Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). 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	VTSAX	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.14	+0.31
Sortino ratio: Return per unit of downside risk	3.45	2.90	+0.55
Omega ratio: Gain probability vs. loss probability	1.47	1.38	+0.08
Calmar ratio: Return relative to maximum drawdown	2.93	3.07	-0.14
Martin ratio: Return relative to average drawdown	13.72	13.77	-0.05

VTMFX vs. VTSAX - Sharpe Ratio Comparison

The current VTMFX Sharpe Ratio is 2.45, which is comparable to the VTSAX Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of VTMFX and VTSAX, 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. VTSAX - Drawdown Comparison

The maximum VTMFX drawdown since its inception was -28.49%, smaller than the maximum VTSAX drawdown of -55.33%. Use the drawdown chart below to compare losses from any high point for VTMFX and VTSAX.

Drawdown Indicators

	VTMFX	VTSAX	Difference
Max Drawdown Largest peak-to-trough decline	-28.49%	-55.33%	+26.84%
Max Drawdown (1Y) Largest decline over 1 year	-5.38%	-8.92%	+3.54%
Max Drawdown (3Y) Largest decline over 3 years	-10.61%	-19.36%	+8.75%
Max Drawdown (5Y) Largest decline over 5 years	-17.40%	-25.36%	+7.96%
Max Drawdown (10Y) Largest decline over 10 years	-21.87%	-34.97%	+13.10%
Current Drawdown Current decline from peak	-0.56%	-1.13%	+0.57%
Average Drawdown Average peak-to-trough decline	-3.54%	-8.99%	+5.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.15%	1.99%	-0.84%

Volatility

VTMFX vs. VTSAX - Volatility Comparison

The current volatility for Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) is 2.50%, while Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) has a volatility of 4.88%. This indicates that VTMFX experiences smaller price fluctuations and is considered to be less risky than VTSAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTMFX	VTSAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.50%	4.88%	-2.38%
Volatility (6M) Calculated over the trailing 6-month period	5.21%	10.11%	-4.90%
Volatility (1Y) Calculated over the trailing 1-year period	6.45%	12.80%	-6.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.57%	17.45%	-8.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.15%	18.45%	-9.30%

VTMFX vs. VTSAX - Expense Ratio Comparison

VTMFX has a 0.05% expense ratio, which is higher than VTSAX's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTMFX vs. VTSAX - Dividend Comparison

VTMFX's dividend yield for the trailing twelve months is around 2.12%, more than VTSAX's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.12%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares	1.01%	1.11%	1.26%	1.42%	1.65%	1.20%	1.41%	1.76%	2.03%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VTMFX and VTSAX in my portfolio?

With a correlation of 0.98, VTMFX and VTSAX 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, VTMFX or VTSAX?

VTSAX has higher volatility (4.88%) compared to VTMFX (2.50%). In terms of maximum drawdown, VTMFX dropped -28.49% vs VTSAX's -55.33%.

Which has better risk-adjusted returns?

VTMFX currently has the higher Sharpe Ratio (2.45 vs 2.14), 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.