VAIPX vs. VSMGX

Last updated Jun 13, 2026

VAIPX (Vanguard Inflation-Protected Securities Fund Admiral Shares) and VSMGX (Vanguard LifeStrategy 60/40 Fund) are both mutual funds - VAIPX is a Inflation-Protected Bonds fund managed by Vanguard, while VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard. Over the past 10 years, VAIPX returned 2.56%/yr vs 8.83%/yr for VSMGX. At a 0.01 correlation, their price movements are largely independent. Both charge a 0.10% expense ratio.

Performance

VAIPX vs. VSMGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) 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, VAIPX achieves a 1.35% return, which is significantly lower than VSMGX's 6.62% return. Over the past 10 years, VAIPX has underperformed VSMGX with an annualized return of 2.56%, while VSMGX has yielded a comparatively higher 8.83% annualized return.

VAIPX

• 1D: 0.35%
• 1M: 0.00%
• YTD: 1.35%
• 6M: 1.49%
• 1Y: 4.95%
• 3Y*: 3.92%
• 5Y*: 1.01%
• 10Y*: 2.56%

VSMGX

• 1D: 1.65%
• 1M: -0.05%
• YTD: 6.62%
• 6M: 7.29%
• 1Y: 17.69%
• 3Y*: 15.19%
• 5Y*: 7.36%
• 10Y*: 8.83%

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

VAIPX vs. VSMGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAIPX Vanguard Inflation-Protected Securities Fund Admiral Shares	1.35%	6.87%	1.85%	3.83%	-11.92%	5.69%	10.96%	8.16%	-1.39%	2.91%
VSMGX Vanguard LifeStrategy 60/40 Fund	6.62%	16.26%	15.03%	15.70%	-16.01%	10.08%	13.59%	19.37%	-4.91%	13.66%

Correlation

The correlation between VAIPX and VSMGX is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.20
Correlation (All Time) Calculated using the full available price history since Jun 10, 2005	0.01

Over the past year, VAIPX and VSMGX have become more correlated (0.35) than their long-term average of 0.01, meaning their price movements have been converging.

Return for Risk

VAIPX vs. VSMGX — Risk / Return Rank

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

VAIPX

VAIPX Risk / Return Rank: 48
VAIPX Sharpe Ratio Rank: 43
VAIPX Sortino Ratio Rank: 50
VAIPX Omega Ratio Rank: 41
VAIPX Calmar Ratio Rank: 62
VAIPX Martin Ratio Rank: 45

VSMGX

VSMGX Risk / Return Rank: 72
VSMGX Sharpe Ratio Rank: 72
VSMGX Sortino Ratio Rank: 71
VSMGX Omega Ratio Rank: 72
VSMGX Calmar Ratio Rank: 68
VSMGX Martin Ratio Rank: 75

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.

VAIPX vs. VSMGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) 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.

	VAIPX	VSMGX	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.98	-0.46
Sortino ratio: Return per unit of downside risk	2.33	2.78	-0.46
Omega ratio: Gain probability vs. loss probability	1.27	1.37	-0.10
Calmar ratio: Return relative to maximum drawdown	2.46	2.58	-0.12
Martin ratio: Return relative to average drawdown	7.79	11.06	-3.27

VAIPX vs. VSMGX - Sharpe Ratio Comparison

The current VAIPX Sharpe Ratio is 1.52, which is comparable to the VSMGX Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of VAIPX 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

VAIPX vs. VSMGX - Drawdown Comparison

The maximum VAIPX drawdown since its inception was -15.04%, smaller than the maximum VSMGX drawdown of -41.13%. Use the drawdown chart below to compare losses from any high point for VAIPX and VSMGX.

Drawdown Indicators

	VAIPX	VSMGX	Difference
Max Drawdown Largest peak-to-trough decline	-15.04%	-41.13%	+26.09%
Max Drawdown (1Y) Largest decline over 1 year	-2.05%	-6.64%	+4.59%
Max Drawdown (3Y) Largest decline over 3 years	-4.52%	-9.62%	+5.10%
Max Drawdown (5Y) Largest decline over 5 years	-14.40%	-22.29%	+7.89%
Max Drawdown (10Y) Largest decline over 10 years	-14.40%	-22.43%	+8.03%
Current Drawdown Current decline from peak	-0.39%	-1.50%	+1.11%
Average Drawdown Average peak-to-trough decline	-3.81%	-4.84%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.65%	1.55%	-0.90%

Volatility

VAIPX vs. VSMGX - Volatility Comparison

The current volatility for Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) is 1.15%, while Vanguard LifeStrategy 60/40 Fund (VSMGX) has a volatility of 3.63%. This indicates that VAIPX 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

	VAIPX	VSMGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	3.63%	-2.48%
Volatility (6M) Calculated over the trailing 6-month period	2.36%	7.24%	-4.88%
Volatility (1Y) Calculated over the trailing 1-year period	3.34%	8.67%	-5.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.99%	10.26%	-4.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.32%	10.39%	-5.07%

VAIPX vs. VSMGX - Expense Ratio Comparison

Both VAIPX and VSMGX have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VAIPX vs. VSMGX - Dividend Comparison

VAIPX's dividend yield for the trailing twelve months is around 4.50%, less than VSMGX's 4.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAIPX Vanguard Inflation-Protected Securities Fund Admiral Shares	4.50%	4.74%	4.17%	4.31%	8.45%	5.13%	1.38%	2.29%	3.12%	2.41%	3.49%	0.88%
VSMGX Vanguard LifeStrategy 60/40 Fund	4.92%	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 VAIPX and VSMGX in my portfolio?

VAIPX and VSMGX have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VAIPX or VSMGX?

VSMGX has higher volatility (3.63%) compared to VAIPX (1.15%). In terms of maximum drawdown, VAIPX dropped -15.04% vs VSMGX's -41.13%.

Which has better risk-adjusted returns?

VSMGX currently has the higher Sharpe Ratio (1.98 vs 1.52), 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.