VTSMX vs. VBMFX
VTSMX (Vanguard Total Stock Market Index Fund Investor Shares) and VBMFX (Vanguard Total Bond Market Index Fund) are both mutual funds - VTSMX is a Large Cap Blend Equities fund managed by Vanguard, while VBMFX is a Intermediate Core Bond fund managed by Vanguard. Over the past 10 years, VTSMX returned 14.94%/yr vs 1.46%/yr for VBMFX. At a correlation of -0.08, they often move in opposite directions. VTSMX charges 0.14%/yr vs 0.15%/yr for VBMFX.
Performance
VTSMX vs. VBMFX - Performance Comparison
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Returns By Period
In the year-to-date period, VTSMX achieves a 11.96% return, which is significantly higher than VBMFX's 0.38% return. Over the past 10 years, VTSMX has outperformed VBMFX with an annualized return of 14.94%, while VBMFX has yielded a comparatively lower 1.46% annualized return.
VTSMX
- 1D
- 0.24%
- 1M
- 5.75%
- YTD
- 11.96%
- 6M
- 11.85%
- 1Y
- 29.00%
- 3Y*
- 21.99%
- 5Y*
- 12.80%
- 10Y*
- 14.94%
VBMFX
- 1D
- 0.00%
- 1M
- 0.54%
- YTD
- 0.38%
- 6M
- 0.29%
- 1Y
- 5.22%
- 3Y*
- 3.93%
- 5Y*
- 0.10%
- 10Y*
- 1.46%
VTSMX vs. VBMFX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTSMX Vanguard Total Stock Market Index Fund Investor Shares | 11.96% | 16.63% | 22.76% | 26.38% | -19.60% | 25.59% | 20.87% | 30.63% | -5.27% | 21.05% |
VBMFX Vanguard Total Bond Market Index Fund | 0.38% | 7.05% | 1.15% | 5.62% | -13.25% | -2.04% | 7.63% | 8.61% | -0.34% | 3.45% |
Correlation
The correlation between VTSMX and VBMFX is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Apr 28, 1992 | -0.08 |
The correlation between VTSMX and VBMFX shifts across timeframes, from -0.08 (all time) to 0.24 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTSMX vs. VBMFX — Risk / Return Rank
VTSMX
VBMFX
VTSMX vs. VBMFX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) and Vanguard Total Bond Market Index Fund (VBMFX). 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.
| VTSMX | VBMFX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.13 | ||
| Sortino ratioReturn per unit of downside risk | +1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.24 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 3.36 | 1.80 | +1.56 |
| Martin ratioReturn relative to average drawdown | 15.51 | 5.43 | +10.08 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTSMX | VBMFX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.46 | 1.33 | +1.13 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.74 | 0.02 | +0.72 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.81 | 0.29 | +0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.96 | -0.38 |
Drawdowns
VTSMX vs. VBMFX - Drawdown Comparison
The maximum VTSMX drawdown since its inception was -55.38%, which is greater than VBMFX's maximum drawdown of -19.08%. Use the drawdown chart below to compare losses from any high point for VTSMX and VBMFX.
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Drawdown Indicators
| VTSMX | VBMFX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.38% | -19.08% | -36.30% |
Max Drawdown (1Y)Largest decline over 1 year | -8.93% | -2.91% | -6.02% |
Max Drawdown (3Y)Largest decline over 3 years | -19.63% | -6.02% | -13.61% |
Max Drawdown (5Y)Largest decline over 5 years | -25.43% | -18.24% | -7.19% |
Max Drawdown (10Y)Largest decline over 10 years | -34.98% | -19.08% | -15.90% |
Current DrawdownCurrent decline from peak | 0.00% | -2.90% | +2.90% |
Average DrawdownAverage peak-to-trough decline | -8.90% | -2.70% | -6.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 0.96% | +0.97% |
Volatility
VTSMX vs. VBMFX - Volatility Comparison
Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) has a higher volatility of 2.95% compared to Vanguard Total Bond Market Index Fund (VBMFX) at 1.37%. This indicates that VTSMX's price experiences larger fluctuations and is considered to be riskier than VBMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTSMX | VBMFX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.95% | 1.37% | +1.58% |
Volatility (6M)Calculated over the trailing 6-month period | 9.19% | 2.79% | +6.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.19% | 3.96% | +8.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.36% | 6.01% | +11.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.41% | 4.98% | +13.43% |
VTSMX vs. VBMFX - Expense Ratio Comparison
VTSMX has a 0.14% expense ratio, which is lower than VBMFX's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VTSMX vs. VBMFX - Dividend Comparison
VTSMX's dividend yield for the trailing twelve months is around 0.93%, less than VBMFX's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBMFX Vanguard Total Bond Market Index Fund | 3.87% | 3.76% | 3.57% | 2.99% | 2.49% | 1.72% | 2.31% | 2.63% | 2.47% | 2.45% | 2.43% | 2.71% |
VTSMX Vanguard Total Stock Market Index Fund Investor Shares | 0.93% | 0.75% | 0.89% | 1.33% | 1.54% | 1.11% | 1.33% | 1.67% | 1.92% | 1.61% | 1.83% | 1.86% |
Frequently Asked Questions
VTSMX and VBMFX have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTSMX has higher volatility (2.95%) compared to VBMFX (1.37%). In terms of maximum drawdown, VTSMX dropped -55.38% vs VBMFX's -19.08%.
VTSMX currently has the higher Sharpe Ratio (2.46 vs 1.33), 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.
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