Vanguard Balanced Index Fund Investor Shares

VBINX Summary

Fund FamilyVanguard
CategoryAllocation--50% to 70% Equity
Inception Date1992-11-09
Expense RatioNA
Net Assets50.32B
Avg. VolumeNA

Report Card

VBINX provides average risk protection. It generates 5.3% returns above inflation with 7.9% downside volatility and 4.9% 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 9.3% annual returns over the last three years which ranks better than 60% of all funds. It has a 0.9 Sortino ratio and 1.4 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 12.2% but also reduces annual returns by 17.2%. Diversifying with VBINX reduces the risk-adjusted performance of the S&P 500 by 8.8% to a 1.8 UPI.

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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-15.51%-22.78%-22.78%
Recovery TimeOngoing152 days152 days
Ulcer Index5.75%4.93%4.25%
Downside Volatility9.54%7.86%7.06%
Downside Beta0.800.730.70


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 Returns-5.63%9.32%8.17%
Sortino Ratio-0.590.901.01
Sharpe Ratio-0.510.590.67
Jensen's Alpha-5.37%-2.17%-0.69%


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 Index6.08%6.15%5.40%
Downside Volatility11.15%9.96%9.21%
Annual Returns-2.49%13.55%11.31%
Sortino Ratio-


Ulcer impact
Value Per 10K$13,064$11,468$13,883
Total Returns30.64%14.68%38.83%
Annual Returns9.32%4.67%11.56%
Standard Deviation 12.01%8.22%10.68%
Downside Deviation 7.86%5.77%4.75%
Max Drawdown -22.78%-16.90%-11.49%
Recovery Time 152 days152 days314 days
Ulcer Index 4.93%3.92%4.42%
Sharpe Ratio 0.590.300.87
Sortino Ratio 0.900.421.96
Ulcer Perf. Index 1.440.622.11
Beta 0.650.430.29
Downside Beta 0.730.520.14
Treynor Ratio
Jensen's Alpha -2.17%-3.66%5.24%
Mac's Alpha -3.26%-4.95%7.41%

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?