VSMGX vs. VCPAX

Last updated Jun 26, 2026

VSMGX (Vanguard LifeStrategy 60/40 Fund) and VCPAX (Vanguard Core-Plus Bond Fund Admiral Shares) are both mutual funds - VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard, while VCPAX is a Total Bond Market fund managed by Vanguard. Over the past 3 years, VSMGX returned 15.28%/yr vs 5.47%/yr for VCPAX. At a 0.42 correlation, their price movements are largely independent. VSMGX charges 0.10%/yr vs 0.20%/yr for VCPAX.

Performance

VSMGX vs. VCPAX - Performance Comparison

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

Returns By Period

In the year-to-date period, VSMGX achieves a 6.59% return, which is significantly higher than VCPAX's 1.25% return.

VSMGX

• 1D: 0.14%
• 1M: -0.65%
• YTD: 6.59%
• 6M: 6.04%
• 1Y: 16.31%
• 3Y*: 15.28%
• 5Y*: 7.35%
• 10Y*: 8.95%

VCPAX

• 1D: 0.41%
• 1M: 0.81%
• YTD: 1.25%
• 6M: 1.19%
• 1Y: 5.15%
• 3Y*: 5.47%
• 5Y*: —
• 10Y*: —

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

VSMGX vs. VCPAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VSMGX Vanguard LifeStrategy 60/40 Fund	6.59%	16.26%	15.03%	15.70%	-16.01%	2.96%
VCPAX Vanguard Core-Plus Bond Fund Admiral Shares	1.25%	8.06%	2.95%	6.80%	-12.60%	0.32%

Correlation

The correlation between VSMGX and VCPAX is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (All Time) Calculated using the full available price history since Oct 14, 2021	0.42

The correlation between VSMGX and VCPAX has been stable across timeframes, ranging from 0.42 to 0.51 - a consistent structural relationship.

Return for Risk

VSMGX vs. VCPAX — Risk / Return Rank

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

VSMGX

VSMGX Risk / Return Rank: 57
VSMGX Sharpe Ratio Rank: 57
VSMGX Sortino Ratio Rank: 57
VSMGX Omega Ratio Rank: 59
VSMGX Calmar Ratio Rank: 53
VSMGX Martin Ratio Rank: 62

VCPAX

VCPAX Risk / Return Rank: 36
VCPAX Sharpe Ratio Rank: 37
VCPAX Sortino Ratio Rank: 39
VCPAX Omega Ratio Rank: 36
VCPAX Calmar Ratio Rank: 36
VCPAX Martin Ratio Rank: 31

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. VCPAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Core-Plus Bond Fund Admiral Shares (VCPAX). 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	VCPAX	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.48	+0.38
Sortino ratio: Return per unit of downside risk	2.62	2.22	+0.40
Omega ratio: Gain probability vs. loss probability	1.35	1.27	+0.08
Calmar ratio: Return relative to maximum drawdown	2.45	1.97	+0.48
Martin ratio: Return relative to average drawdown	10.46	6.01	+4.45

VSMGX vs. VCPAX - Sharpe Ratio Comparison

The current VSMGX Sharpe Ratio is 1.86, which is comparable to the VCPAX Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of VSMGX and VCPAX, 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. VCPAX - Drawdown Comparison

The maximum VSMGX drawdown since its inception was -41.13%, which is greater than VCPAX's maximum drawdown of -17.25%. Use the drawdown chart below to compare losses from any high point for VSMGX and VCPAX.

Drawdown Indicators

	VSMGX	VCPAX	Difference
Max Drawdown Largest peak-to-trough decline	-41.13%	-17.25%	-23.88%
Max Drawdown (1Y) Largest decline over 1 year	-6.64%	-2.65%	-3.99%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	-5.71%	-3.91%
Max Drawdown (5Y) Largest decline over 5 years	-22.29%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-22.43%	—	—
Current Drawdown Current decline from peak	-1.52%	-0.57%	-0.95%
Average Drawdown Average peak-to-trough decline	-4.83%	-6.38%	+1.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	0.87%	+0.68%

Volatility

VSMGX vs. VCPAX - Volatility Comparison

Vanguard LifeStrategy 60/40 Fund (VSMGX) has a higher volatility of 3.69% compared to Vanguard Core-Plus Bond Fund Admiral Shares (VCPAX) at 1.14%. This indicates that VSMGX's price experiences larger fluctuations and is considered to be riskier than VCPAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMGX	VCPAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.69%	1.14%	+2.55%
Volatility (6M) Calculated over the trailing 6-month period	7.39%	2.72%	+4.67%
Volatility (1Y) Calculated over the trailing 1-year period	8.79%	3.55%	+5.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.28%	5.62%	+4.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.37%	5.62%	+4.75%

VSMGX vs. VCPAX - Expense Ratio Comparison

VSMGX has a 0.10% expense ratio, which is lower than VCPAX's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSMGX vs. VCPAX - Dividend Comparison

VSMGX's dividend yield for the trailing twelve months is around 4.92%, more than VCPAX's 4.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCPAX Vanguard Core-Plus Bond Fund Admiral Shares	4.82%	4.86%	5.19%	4.55%	3.26%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 VCPAX in my portfolio?

VSMGX and VCPAX have a correlation of 0.51, 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 VCPAX?

VSMGX has higher volatility (3.69%) compared to VCPAX (1.14%). In terms of maximum drawdown, VSMGX dropped -41.13% vs VCPAX's -17.25%.

Which has better risk-adjusted returns?

VSMGX currently has the higher Sharpe Ratio (1.86 vs 1.48), 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.