Vanguard Balanced Index Fund Investor Shares

VBINX Summary

Fund FamilyNA
Inception DateNA
Expense RatioNA
Net AssetsNA
Avg. VolumeNA

Report Card

VBINX provides average risk protection. It generates 2.6% returns above inflation with 8.5% downside volatility and 8.7% Ulcer Index. These downside risk measures rank in the middle 20% of all funds that generate real returns.

VBINX provides good risk-adjusted returns. It has generated 6.6% annual returns over the last three years which ranks better than 60% of all funds. It has a 0.5 Sortino ratio and 0.5 UPI, ranking in the top 40% of all competing funds for risk-adjusted returns.

VBINX has failed to provided any S&P 500 diversification advantage over the last three years. A 60% SPY/40% VBINX portfolio reduces downside risk by 6.0% but also reduces annual returns by 17.9%. Diversifying with VBINX reduces the risk-adjusted performance of the S&P 500 by 17.4% to a 0.8 UPI.


We cross examine over 500 alternative funds to uncover the best means of delivering strong risk-adjusted returns for your portfolio.

Click Hear to Raise Your GPA...

Key Performance Metrics


We measure a funds ability to protect on against stock market declines by comparing various downside specific risk measures. Max drawdown is the largest decline for the security while the Ulcer Index quantifies both the depth and breath of all drawdowns. We also look at downside volatility and beta, both of which are measured relative to the S&P 500.
Statistic1 Year3 Years5 Years
Max Drawdown-9.67%-21.61%-22.78%
Recovery Time136 daysOngoing152 days
Ulcer Index3.62%9.82%8.23%
Downside Volatility9.08%8.47%8.51%
Downside Beta0.720.760.70


We measure a securities ability to Perform by comparing net annual returns relative to our benchmarks. To measure absolute performance, we use the well-known Sharpe and Sortino ratios but prefer a risk-adjusted ratio such as Jenson's Alpha. Ultimately, performance is the most critical variable in fund selection so we take a much deeper dive into this measure.
Statistic1 Year3 Years5 Years
Annual Returns7.56%3.75%6.33%
Sortino Ratio0.490.430.49
Sharpe Ratio0.330.290.33
Jensen's Alpha-4.59%-3.51%-1.70%


Participate measures the ability of a security to improve the effecient frontier of a stock portfolio. If the letter grade for this fund is an F, the fund does not provide any diversification or participation benefit. The Statistics presented are calculated using an either an optimal mix of VBINX or, if no participation benefit exists, a 60% S&P 500 and 40% VBINX.
Statistic1 Year3 Years5 Years
Ulcer Index4.18%10.03%8.90%
Downside Volatility10.71%10.12%10.80%
Annual Returns12.52%7.83%9.22%
Sortino Ratio0.880.760.65


Ulcer impact
Value Per 10K$11,168$10,253$11,142
Total Returns11.68%2.53%11.42%
Annual Returns3.75%0.84%3.67%
Standard Deviation 12.44%9.71%11.27%
Downside Deviation 8.47%6.81%6.65%
Max Drawdown -21.61%-19.96%-17.74%
Recovery Time OngoingOngoingOngoing
Ulcer Index 9.82%8.75%9.79%
Sharpe Ratio
Sortino Ratio 0.430.110.54
Ulcer Perf. Index 0.370.080.36
Beta 0.690.510.33
Downside Beta 0.760.560.19
Treynor Ratio
Jensen's Alpha -3.51%-4.55%0.11%
Mac's Alpha -4.26%-5.09%1.61%

Free Risk Profile Assessment

Risk management is a critical factor in creating long-term financial security, especially for those in retirement. Too often bear markets can sabotage a lifetime of savings. And quantifying risk using yesterday’s data is too often insufficient.

For an extensive, forward-looking risk assessment profile for your investment account, fill out the form and we’ll contact you soon. Our report will answer the following:

  • Does my portfolio match my level of risk aversion?
  • Do my investments properly account for sequence of return risk?
  • What is my interest rate risk exposure?
  • What is my downside risk if the S&P 500 falls 50%?
  • Is my portfolio adequately hedged for inflation?
  • What is the upside expectation for my portfolio when the S&P 500 appreciates?
  • How will my portfolio react in various economic climates?
  • Are there more effective ways to hedge risk than my current approach?