VSMGX vs. VAIPX

Last updated Jun 13, 2026

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

Performance

VSMGX vs. VAIPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSMGX achieves a 6.62% return, which is significantly higher than VAIPX's 1.35% return. Over the past 10 years, VSMGX has outperformed VAIPX with an annualized return of 8.83%, while VAIPX has yielded a comparatively lower 2.56% annualized return.

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%

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%

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

VSMGX vs. VAIPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

The correlation between VSMGX and VAIPX 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, VSMGX and VAIPX have become more correlated (0.35) than their long-term average of 0.01, meaning their price movements have been converging.

Return for Risk

VSMGX vs. VAIPX — Risk / Return Rank

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

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

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

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.

VSMGX vs. VAIPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX). 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.

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

VSMGX vs. VAIPX - Sharpe Ratio Comparison

The current VSMGX Sharpe Ratio is 1.98, which is higher than the VAIPX Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of VSMGX and VAIPX, 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

VSMGX vs. VAIPX - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

VSMGX vs. VAIPX - Volatility Comparison

Vanguard LifeStrategy 60/40 Fund (VSMGX) has a higher volatility of 3.63% compared to Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) at 1.15%. This indicates that VSMGX's price experiences larger fluctuations and is considered to be riskier than VAIPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

VSMGX vs. VAIPX - Expense Ratio Comparison

Both VSMGX and VAIPX 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

VSMGX vs. VAIPX - Dividend Comparison

VSMGX's dividend yield for the trailing twelve months is around 4.92%, more than VAIPX's 4.50% 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 VSMGX and VAIPX in my portfolio?

VSMGX and VAIPX 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, VSMGX or VAIPX?

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

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.