Fund Evaluator:
Vanguard Tax-Managed Balanced Adm (VTMFX)
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Best Performing in Moderately Conservative Allocation Over the Last Year
| 14.6% | Victory Growth and Tax Strategy (USBLX) |
| 14.4% | Vanguard Tax-Managed Balanced Adm (VTMFX) |
| 13.0% | Fidelity Advisor Multi-Asset Income Z (FIWBX) |
| 12.6% | Thrivent Dynamic Allocation S (IBBFX) |
| 12.4% | Goldman Sachs Income Builder Inv (GKIRX) |
Fund Details
Vanguard Tax-Managed Balanced Adm Overview
Vanguard Tax-Managed Balanced Adm (VTMFX) is an actively managed Allocation Moderately Conservative Allocation fund. Vanguard launched the fund in 1994.
The investment seeks to provide a tax-efficient return consisting of federally tax-exempt income, long-term capital appreciation, and a modest amount of taxable current income. The fund invests in both fixed income securities and equity securities. The fund invests at least 75% of its fixed income assets in municipal bonds rated in one of the top three credit-rating categories as determined by an independent bond-rating agency (e.g. Aaa, Aa, and A by Moody’s) or, if unrated, determined to be of comparable quality by the advisor.
About Vanguard Tax-Managed Balanced Adm (VTMFX)
There are 5 members of the management team with an average tenure of 5.49 years: James D'Arcy (2013), Michael Roach (2023), Walter Nejman (2021), Aurélie Denis (2023), Grace Boraas (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and DJ US Total Stock Market TR USD index with a weighting of 100%. Vanguard Tax-Managed Balanced Adm has 4721 securities in its portfolio. The top 10 holdings constitute 17.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Tax-Managed Balanced Adm is part of the Allocation global asset class and is within the Allocation fund group. Vanguard Tax-Managed Balanced Adm has 1.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 47.1%. There is 0.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 52.3% (51.5% domestic bond, 0.7% foreign bond and 0.0% convertible bond). Vanguard Tax-Managed Balanced Adm has 0.3% of the portfolio in cash.
Assets Under Management
The fund has $12 billion in total assets, which is above the $563 million average for the Moderately Conservative Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VTMFX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Tax-Managed Balanced Adm expense ratio is low compared to funds in the Moderately Conservative Allocation category. Vanguard Tax-Managed Balanced Adm has an expense ratio of 0.05%, which is 95% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Tax-Managed Balanced Adm has a portfolio turnover rate of 15%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.
Recently, in the month of June 2026, Vanguard Tax-Managed Balanced Adm returned 0.5%, which earned it a grade of B, as the Moderately Conservative Allocation category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Tax-Managed Balanced Adm has a trailing yield of 2.75%, which is below the 3.33% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Tax-Managed Balanced Adm Grades
Year to date, the fund has returned 6.3%, 1.1 percentage points better than the category, which translates into a grade of A. The fund has returned 14.4% over the past year (grade of A), 12.0% over the past three years (grade of A) and 7.1% per year over the past five years (grade of A) and 8.7% per year over the past 10 years (grade of A).
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VTMFX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VTMFX Return (NAV) | 0.5% | 8.6% | 14.4% | 12.0% | 7.1% | 8.7% |
| VTMFX Grade | B | A | A | A | A | A |
| +/- Category | 0.5% | 3.3% | 3.1% | 1.9% | 2.2% | 2.4% |
| Moderately Conservative Allocation Avg | 0.1% | 5.3% | 11.3% | 10.1% | 4.9% | 6.2% |
| VTMFX Tax Cost Ratio | na | na | 0.3% | 0.5% | 0.6% | 0.5% |
VTMFX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VTMFX Return (NAV) | 6.3% | 11.3% | 12.2% | 15.5% | -12.7% | 13.1% | 13.3% | 18.0% | -1.4% | 12.6% | 5.9% |
| VTMFX Grade | A | C | A | A | C | A | A | A | A | A | D |
| +/- Category | 1.1% | -0.2% | 3.8% | 5.5% | -0.9% | 3.1% | 5.3% | 2.4% | 2.9% | 2.8% | -2.5% |
| Moderately Conservative Allocation Avg | 5.1% | 11.5% | 8.3% | 10.0% | -11.8% | 10.0% | 8.0% | 15.6% | -4.3% | 9.8% | 8.5% |
| Risk Measures | |
| Standard Deviation: | 8.2% |
| Total Risk Index: | 0.68 - Below Average |
| Category Risk Index: | 1.13 - High |
| Category Risk Grade: | F (89% Rank) |
| Beta: | 0.82 |
| R-Squared: | 86% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 2.8% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $12262 Mil |
| Fund Total Assets: | $12,262 Mil |
| Share Class Type: | ADM |
| Portfolio Turnover: | 15% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 13.0 years | |||
| Average Tenure: 5.5 years | |||
| Managers (Year): D'Arcy James (2013), Nejman Walter (2021), Denis Aurélie (2023), Roach Michael (2023), Boraas Grace (2023) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 4721 |
| % in Top 10 Holdings: | 17.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.0% |
Portfolio Allocation |
|
| Domestic Stock: | 47.1% |
| Foreign Stock: | 0.3% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 51.5% |
| Foreign Bond: | 0.7% |
| Convertible Bond: | 0.0% |
| Other: | 0.1% |
| Cash: | 0.3% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | September 6, 1994 |
| Min. Initial Purchase: | $10,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.05% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 1.01% |
| Share Class: | Vanguard Tax-Managed Balanced Adm |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
