AMEFX vs. VSMGX

Last updated Jun 24, 2026

AMEFX (American Funds The Income Fund of America® Class F-2) and VSMGX (Vanguard LifeStrategy 60/40 Fund) are both mutual funds - AMEFX is a Diversified Portfolio fund tracking the 65%/35% S&P 500 Index/Bloomberg U.S. Aggregate Index, while VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard. Over the past 10 years, AMEFX returned 8.78%/yr vs 9.07%/yr for VSMGX. Their correlation of 0.92 suggests significant overlap in exposure. AMEFX charges 0.37%/yr vs 0.10%/yr for VSMGX.

Performance

AMEFX vs. VSMGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds The Income Fund of America® Class F-2 (AMEFX) and Vanguard LifeStrategy 60/40 Fund (VSMGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AMEFX achieves a 5.82% return, which is significantly lower than VSMGX's 7.75% return. Both investments have delivered pretty close results over the past 10 years, with AMEFX having a 8.78% annualized return and VSMGX not far ahead at 9.07%.

AMEFX

• 1D: 0.22%
• 1M: -0.76%
• YTD: 5.82%
• 6M: 5.58%
• 1Y: 14.47%
• 3Y*: 13.70%
• 5Y*: 8.15%
• 10Y*: 8.78%

VSMGX

• 1D: -0.19%
• 1M: 1.25%
• YTD: 7.75%
• 6M: 7.38%
• 1Y: 18.53%
• 3Y*: 15.70%
• 5Y*: 7.72%
• 10Y*: 9.07%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AMEFX vs. VSMGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AMEFX American Funds The Income Fund of America® Class F-2	5.82%	18.03%	11.08%	6.92%	-6.22%	17.63%	4.67%	18.74%	-5.11%	12.73%
VSMGX Vanguard LifeStrategy 60/40 Fund	7.75%	16.26%	15.03%	15.70%	-16.01%	10.08%	13.59%	19.37%	-4.91%	13.66%

Correlation

The correlation between AMEFX and VSMGX is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Aug 1, 2008	0.92

The correlation between AMEFX and VSMGX shifts across timeframes, from 0.76 (1 year) to 0.92 (all time), reflecting how their relationship changes across market environments.

Return for Risk

AMEFX vs. VSMGX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AMEFX

AMEFX Risk / Return Rank: 49
AMEFX Sharpe Ratio Rank: 54
AMEFX Sortino Ratio Rank: 54
AMEFX Omega Ratio Rank: 50
AMEFX Calmar Ratio Rank: 45
AMEFX Martin Ratio Rank: 44

VSMGX

VSMGX Risk / Return Rank: 67
VSMGX Sharpe Ratio Rank: 68
VSMGX Sortino Ratio Rank: 68
VSMGX Omega Ratio Rank: 68
VSMGX Calmar Ratio Rank: 63
VSMGX Martin Ratio Rank: 69

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AMEFX vs. VSMGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds The Income Fund of America® Class F-2 (AMEFX) and Vanguard LifeStrategy 60/40 Fund (VSMGX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AMEFX	VSMGX	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.21	-0.22
Sortino ratio: Return per unit of downside risk	2.82	3.12	-0.29
Omega ratio: Gain probability vs. loss probability	1.36	1.42	-0.06
Calmar ratio: Return relative to maximum drawdown	2.42	2.90	-0.48
Martin ratio: Return relative to average drawdown	8.93	12.43	-3.50

AMEFX vs. VSMGX - Sharpe Ratio Comparison

The current AMEFX Sharpe Ratio is 1.99, which is comparable to the VSMGX Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of AMEFX and VSMGX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AMEFX vs. VSMGX - Drawdown Comparison

The maximum AMEFX drawdown since its inception was -37.22%, smaller than the maximum VSMGX drawdown of -41.13%. Use the drawdown chart below to compare losses from any high point for AMEFX and VSMGX.

Drawdown Indicators

	AMEFX	VSMGX	Difference
Max Drawdown Largest peak-to-trough decline	-37.22%	-41.13%	+3.91%
Max Drawdown (1Y) Largest decline over 1 year	-6.10%	-6.64%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-8.59%	-9.62%	+1.03%
Max Drawdown (5Y) Largest decline over 5 years	-15.67%	-22.29%	+6.62%
Max Drawdown (10Y) Largest decline over 10 years	-26.10%	-22.43%	-3.67%
Current Drawdown Current decline from peak	-1.72%	-0.45%	-1.27%
Average Drawdown Average peak-to-trough decline	-3.83%	-4.83%	+1.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.65%	1.55%	+0.10%

Volatility

AMEFX vs. VSMGX - Volatility Comparison

The current volatility for American Funds The Income Fund of America® Class F-2 (AMEFX) is 2.27%, while Vanguard LifeStrategy 60/40 Fund (VSMGX) has a volatility of 3.47%. This indicates that AMEFX experiences smaller price fluctuations and is considered to be less risky than VSMGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AMEFX	VSMGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.27%	3.47%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	5.83%	7.30%	-1.47%
Volatility (1Y) Calculated over the trailing 1-year period	7.42%	8.73%	-1.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.48%	10.27%	-0.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.70%	10.40%	+0.30%

AMEFX vs. VSMGX - Expense Ratio Comparison

AMEFX has a 0.37% expense ratio, which is higher than VSMGX's 0.10% expense ratio.

Dividends

AMEFX vs. VSMGX - Dividend Comparison

AMEFX's dividend yield for the trailing twelve months is around 9.73%, more than VSMGX's 4.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMEFX American Funds The Income Fund of America® Class F-2	9.73%	10.16%	6.60%	3.09%	7.21%	6.87%	3.00%	5.19%	7.67%	4.38%	3.27%	5.27%
VSMGX Vanguard LifeStrategy 60/40 Fund	4.87%	5.25%	11.49%	4.01%	2.66%	3.86%	3.46%	2.52%	4.11%	1.09%	2.26%	3.89%

Frequently Asked Questions

Can I hold both AMEFX and VSMGX in my portfolio?

AMEFX and VSMGX have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AMEFX or VSMGX?

VSMGX has higher volatility (3.47%) compared to AMEFX (2.27%). In terms of maximum drawdown, AMEFX dropped -37.22% vs VSMGX's -41.13%.

Which has better risk-adjusted returns?

VSMGX currently has the higher Sharpe Ratio (2.21 vs 1.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.