Balanced Index Fund Institutional Shares (VBAIX)

OPTIONS as of
04/25/2018

Options Expense ratio Minimum
Admiral 0.07% N/A
Investor 0.19% N/A
Inst 0.06% $5.0 Million

About our options  


 

Fees

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Product type: Moderate Allocation
VBAIX
 inception on 12/01/2000
Earliest share class inception on 11/09/1992
$36.5 billion

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 12/31/2018
$9.5 billion net assets for
VBAIX
 as of 12/31/2018
10,782 holdings as of 12/31/2018
Indexed to the Balanced Composite Index
Turnover rate (Fiscal year-end  12/31/2018) 45.40%
CUSIP: 921931309

STYLEBOX

Stock


Index portfolio of large-, mid-, and small-capitalization stocks diversified across investment styles.



Bond
Portfolio of U.S. Treasury, investment-grade corporate, and asset-backed securities.



Central tendency
Expected range

How to read our stylebox  

Investment approach



  • Balanced allocation: 60% stocks, 40% bonds.
  • Seeks capital appreciation, current income, and long-term growth of income.
  • Equity portfolio seeks to track the CRSP US Total Market Index; fixed income portfolio seeks to track the Bloomberg Barclays U.S. Aggregate Float Adjusted Index.
  • Passively managed approach, using index sampling.
  • Low expenses minimize net tracking error.

Total returns

as of 12/31/2018

View as:

as of 12/31/2018

10%
5
0
-5%
 
 
 
 
 
  1 year 3 year 5 year 10 year

12/01/2000

NAV 
– 2.82% 6.38% 5.89% 9.56% 5.91%

Balanced Composite Index

*
– 2.80% 6.44% 5.99% 9.65%

Note: Fee adjusted for mutual funds where applicable.

* Weighted 60% Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) and 40% Lehman Brothers U.S. Aggregate Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; 60% MSCI US Broad Market Index and 40% Bloomberg Barclays U.S. Aggregate Float Adjusted Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Sector weightings as of 12/31/2018

  Sector  VBAIX

Balanced Composite Index

+/- Weight
Financials 19.5% 19.5% 0.0%
Technology 19.4% 19.4% 0.0%
Health Care 13.9% 13.9% 0.0%
Consumer Services 13.6% 13.6% 0.0%
Industrials 12.9% 12.9% 0.0%
Consumer Goods 7.9% 7.9% 0.0%
Oil & Gas 5.0% 5.0% 0.0%
Utilities 3.3% 3.3% 0.0%
Basic Materials 2.5% 2.5% 0.0%
Telecommunications 2.0% 2.0% 0.0%
Other 0.0% 0.0% 0.0%
0%
20%
Total 100.0% 100.0%

Sector categories are based on the Industry Classification Benchmark, except for the "Other" category (if applicable), which includes securities that have not been provided a Industry Classification Benchmark as of the effective reporting period.

Distribution by credit quality(% of fund) as of 12/31/2018

  Credit rating  VBAIX
U.S. Government 64.4%
Aaa 6.1%
Aa 3.4%
A 11.0%
Baa 15.1%
< Baa 0.0%
0%
65%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). ”NR” is used to classify securities for which a rating is not available. NR securities may include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under ”U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service (Moody’s), Fitch Ratings (Fitch), and Standard & Poor’s (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Top 10 Equity Holdings as of 12/31/2018

Rank Holding
1 Microsoft Corp.
2 Apple Inc.
3 Amazon.com Inc.
4 Alphabet Inc.
5 Berkshire Hathaway Inc.
6 Johnson & Johnson
7 JPMorgan Chase & Co.
8 Facebook Inc.
9 Exxon Mobil Corp.
10 Pfizer Inc.
Top 10 equals: 11.1% of net assets & 18.6% of net equities

Portfolio holdings may exclude any temporary cash investments and equity index products.

Asset allocation as of 12/31/2018

Asset class VBAIX
 Stock 59.96%
 Bond 39.41%
 Short-term reserves 0.63%
Total 100.00%

Fundamentals

Balancedas of 12/31/2018 VBAIX

Balanced Composite Index

Turnover rate 45.4% Fiscal year end 12/2018 N/A
Short-term reserves 0.00% N/A

Stock

as of 12/31/2018
VBAIX

Balanced Composite Index

Number of stock 3,462 3,607
Avg market cap $168.0 billion $167.9 billion
Median market cap $66.8 billion $66.8 billion
P/E ratio 16.0x 16.1x
P/B ratio 2.7x 2.7x
Bond
as of 12/31/2018
VBAIX

Balanced Composite Index

Number of bonds 7,320
Yield to maturity 3.28%
Average duration 5.9 (years)

Average effective maturity (taxable bond funds and balanced funds except Tax-Managed Balanced)
Average Effective Maturity is defined as the average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration that an action such as a call or refunding may cause some bonds to be repaid before they mature.

Average stated maturity (municipal bond funds and Tax-Managed Balanced)
Average stated maturity represents the average of the stated maturity dates for all fixed income securities held by the fund.

Average maturity (money market funds only)
Average maturity represents the weighted average maturity of the fund's holdings using the date of the next interest rate adjustment for certain adjustable-rate securities held by the fund.

8.3 (years)
Average coupon 3.18%

Risk and volatility as of 12/31/2018

  VBAIX

Balanced Composite Index

R-squared N/A 1.00
Beta N/A 1.00
Alpha – 0.02 N/A
Standard deviation 6.71% 6.71%
Sharpe ratio 0.78 0.81

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

The fund is subject to several stock and bond market risks, any of which could cause an investor to lose money. However, because stock and bond prices can move in different directions or to different degrees, the fund’s bond and short-term investment holdings may counteract some of the volatility experienced by the fund’s stock holdings. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices. The fund’s target index may, at times, become focused in stocks of a particular sector, category, or group of companies.
  • Interest rate risk: The chance that bond prices will decline because of rising interest rates.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Call risk: The chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. The fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income.
  • Credit risk: The chance that a bond issuer will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit risk should be low for the fund because it purchases only bonds that are of investment-grade quality.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.