VWELX vs. VBAIX

Last updated Jul 15, 2026

VWELX (Vanguard Wellington Fund Investor Shares) and VBAIX (Vanguard Balanced Index Fund Institutional Shares) are both Diversified Portfolio funds from Vanguard. VWELX is actively managed, while VBAIX is passively managed. Over the past 10 years, VWELX returned 9.80%/yr vs 9.79%/yr for VBAIX. With a 0.96 correlation, they move nearly in lockstep. VWELX charges 0.24%/yr vs 0.04%/yr for VBAIX.

Performance

VWELX vs. VBAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Wellington Fund Investor Shares (VWELX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWELX achieves a 5.78% return, which is significantly lower than VBAIX's 6.53% return. Both investments have delivered pretty close results over the past 10 years, with VWELX having a 9.80% annualized return and VBAIX not far behind at 9.79%.

VWELX

• 1D: -0.72%
• 1M: 0.32%
• 6M: 4.84%
• YTD: 5.78%
• 1Y: 14.98%
• 3Y*: 14.24%
• 5Y*: 8.12%
• 10Y*: 9.80%

VBAIX

• 1D: -0.62%
• 1M: 0.49%
• 6M: 5.05%
• YTD: 6.53%
• 1Y: 14.31%
• 3Y*: 14.51%
• 5Y*: 7.83%
• 10Y*: 9.79%

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

VWELX vs. VBAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWELX Vanguard Wellington Fund Investor Shares	5.78%	16.54%	14.73%	14.29%	-14.36%	18.99%	10.57%	22.51%	-3.43%	13.98%
VBAIX Vanguard Balanced Index Fund Institutional Shares	6.53%	13.60%	17.78%	17.55%	-16.87%	14.20%	16.40%	21.79%	-2.83%	13.86%

Correlation

The correlation between VWELX and VBAIX is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Nov 30, 2000	0.96

The correlation between VWELX and VBAIX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

VWELX vs. VBAIX — Risk / Return Rank

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

VWELX

VWELX Risk / Return Rank: 58
VWELX Sharpe Ratio Rank: 57
VWELX Sortino Ratio Rank: 56
VWELX Omega Ratio Rank: 57
VWELX Calmar Ratio Rank: 53
VWELX Martin Ratio Rank: 67

VBAIX

VBAIX Risk / Return Rank: 65
VBAIX Sharpe Ratio Rank: 62
VBAIX Sortino Ratio Rank: 62
VBAIX Omega Ratio Rank: 59
VBAIX Calmar Ratio Rank: 66
VBAIX Martin Ratio Rank: 77

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.

VWELX vs. VBAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Wellington Fund Investor Shares (VWELX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). 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.

	VWELX	VBAIX	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.74	-0.05
Sortino ratio: Return per unit of downside risk	2.37	2.47	-0.09
Omega ratio: Gain probability vs. loss probability	1.31	1.32	-0.01
Calmar ratio: Return relative to maximum drawdown	2.24	2.49	-0.25
Martin ratio: Return relative to average drawdown	9.91	10.90	-0.99

VWELX vs. VBAIX - Sharpe Ratio Comparison

The current VWELX Sharpe Ratio is 1.69, which is comparable to the VBAIX Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of VWELX and VBAIX, 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

VWELX vs. VBAIX - Drawdown Comparison

The maximum VWELX drawdown since its inception was -36.12%, roughly equal to the maximum VBAIX drawdown of -35.82%. Use the drawdown chart below to compare losses from any high point for VWELX and VBAIX.

Drawdown Indicators

	VWELX	VBAIX	Difference
Max Drawdown Largest peak-to-trough decline	-36.12%	-35.82%	-0.30%
Max Drawdown (1Y) Largest decline over 1 year	-6.78%	-5.84%	-0.94%
Max Drawdown (3Y) Largest decline over 3 years	-11.98%	-11.57%	-0.41%
Max Drawdown (5Y) Largest decline over 5 years	-20.88%	-21.52%	+0.64%
Max Drawdown (10Y) Largest decline over 10 years	-25.33%	-22.77%	-2.56%
Current Drawdown Current decline from peak	-1.24%	-0.81%	-0.43%
Average Drawdown Average peak-to-trough decline	-3.92%	-4.41%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.53%	1.33%	+0.20%

Volatility

VWELX vs. VBAIX - Volatility Comparison

Vanguard Wellington Fund Investor Shares (VWELX) has a higher volatility of 3.05% compared to Vanguard Balanced Index Fund Institutional Shares (VBAIX) at 2.70%. This indicates that VWELX's price experiences larger fluctuations and is considered to be riskier than VBAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWELX	VBAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	2.70%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	7.45%	6.78%	+0.67%
Volatility (1Y) Calculated over the trailing 1-year period	9.03%	8.39%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.23%	11.18%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.53%	11.24%	+0.29%

VWELX vs. VBAIX - Expense Ratio Comparison

VWELX has a 0.24% expense ratio, which is higher than VBAIX'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

VWELX vs. VBAIX - Dividend Comparison

VWELX's dividend yield for the trailing twelve months is around 10.93%, more than VBAIX's 5.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBAIX Vanguard Balanced Index Fund Institutional Shares	5.35%	6.01%	8.01%	4.36%	2.84%	3.20%	2.65%	2.29%	2.33%	1.96%	2.10%	2.10%
VWELX Vanguard Wellington Fund Investor Shares	10.93%	11.46%	10.76%	6.01%	8.19%	8.64%	7.77%	4.67%	9.49%	5.82%	4.44%	7.03%

Frequently Asked Questions

Can I hold both VWELX and VBAIX in my portfolio?

With a correlation of 0.97, VWELX and VBAIX 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, VWELX or VBAIX?

VWELX has higher volatility (3.05%) compared to VBAIX (2.70%). In terms of maximum drawdown, VWELX dropped -36.12% vs VBAIX's -35.82%.

Which has better risk-adjusted returns?

VBAIX currently has the higher Sharpe Ratio (1.74 vs 1.69), 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.