VBAL is Vanguard's classic 60/40 balanced portfolio — the textbook retiree allocation. 0.24% MER, 60% global equity, 40% high-quality bonds. Lower volatility than VEQT, lower returns. The right tradeoff for anyone within 10 years of retirement or who needs to spend portfolio income.
★ The 2022 outlier: bonds AND stocks fell together that year as rates rose. The 60/40 didn't help. That's a once-every-50-year event — but it happens.
VBAL is the right answer for anyone within 5-10 years of retirement, or who can't stomach a 30%+ drawdown without selling. The 40% bond allocation smooths the ride at a cost of ~2%/yr in long-term returns. For the right investor — that's worth every basis point.