Vanguard Balanced Index Fund (Admiral Shares) Offers Steady Growth with Low Fees

The Vanguard Balanced Index Fund Admiral Shares (VBIAX) remains a solid choice for long-term investors seeking a diversified, low-cost portfolio with moderate risk. As of the latest update, the fund is priced at $48.79 per share, reflecting a minor daily gain of $0.02 or 0.04%.

Over the past year, the fund has traded between $43.37 and $51.72. Year-to-date, it has posted a return of 2.64%, while its five-year performance stands at a robust 51.09%. These numbers underscore the fund’s consistency and its appeal for investors aiming for steady capital appreciation and income.

With total net assets reaching $45.66 billion, the Vanguard Balanced Index Fund is one of the largest in its category. The fund delivers a 2.19% yield, offering a reliable income stream, particularly attractive to income-focused investors.

One of the key advantages of this fund lies in its extremely low net expense ratio of 0.07%, meaning investors retain more of their returns over time. Additionally, its turnover rate of 22% suggests a relatively passive investment strategy, which tends to be more tax-efficient and cost-effective for shareholders.

The investment strategy of the fund is designed to provide broad market exposure through a 60/40 asset allocation. Specifically, 60% of the fund’s assets are invested in the CRSP U.S. Total Market Index, which represents nearly the entire U.S. equity market. The remaining 40% is allocated to the Bloomberg U.S. Aggregate Float Adjusted Index, a benchmark that tracks the performance of U.S. investment-grade bonds.

This combination offers a balanced mix of growth potential from equities and stability from fixed-income securities, making the fund suitable for investors looking to manage risk while still pursuing long-term gains.

Over the past 52 weeks, the fund has delivered an average return of 8.48%, highlighting its resilience and consistency across various market conditions.

Overall, the Vanguard Balanced Index Fund Admiral Shares continues to serve as a reliable core holding for a diversified investment portfolio. Its blend of growth, income, and low costs makes it a popular choice for both new and experienced investors aiming to build long-term wealth.