Executive Summary: Vanguard’s balanced funds deliver low-cost, diversified solutions, but not all are created equal. This guide rates each fund from top picks to funds to avoid. Whether U.S.-focused, globally diversified, active or index-based, you’ll see which funds truly deserve a place in your portfolio.
Balanced funds can be one of the simplest, most effective tools in your investing toolkit. With a single fund, you get a diversified mix of stocks and bonds with built-in discipline, often at a low cost.
And when it comes to balanced funds, Vanguard offers some of the best in the business.
Recently, I took a deep dive into Vanguard’s Target Retirement and LifeStrategy funds—you’ll find that analysis here. And last week, I shared a framework to help you zero in on the Vanguard balanced fund that might be right for you. For your convenience, I’ve included the summary table from that piece below.
Balancing Pros and Cons
| LifeStrat. Growth | Wellington | Global Wellington | STAR | Balanced Index | LifeStrat. Mod. Growth | Tax-Managed Balanced | LifeStrat. Conserv. Growth | Wellesley Income | Global Wellesley Income | LifeStrat. Income | |
| Minimum investment? | $3,000 | $3,000 | $3,000 | $1,000 | $3,000 | $3,000 | $10,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Taxable or tax-deferred account?* | Either | Either | Either | Either | Either | Either | Taxable | Either | Tax-Deferred | Tax-Deferred | Tax-Deferred |
| How much in stocks versus bonds? | |||||||||||
| Stocks | 80% | 66% | 66% | 63% | 60% | 60% | 47% | 40% | 38% | 37% | 19% |
| Bonds | 19% | 32% | 30% | 37% | 39% | 39% | 53% | 59% | 61% | 57% | 80% |
| Cash | 1% | 2% | 4% | 0% | 1% | 1% | 0% | 1% | 1% | 6% | 1% |
| A domestic or global portfolio? | Global | Domestic | Global | Global | Domestic | Global | Domestic | Global | Domestic | Global | Global |
| Active or index fund? | Index | Active | Active | Active (fund-of-funds) | Index | Index | Index | Index | Active | Active | Index |
| *These are broad recommendations. Consult your accountant if you have questions about your unique situation. | |||||||||||
| Allocations as of 5/31/2025. Source: Vanguard and The IVA | |||||||||||
So, with the stage set, let’s get straight to my detailed take on Vanguard’s balanced fund lineup.