VSMGX vs. VMFXX

Last updated Jun 13, 2026

VSMGX (Vanguard LifeStrategy 60/40 Fund) and VMFXX (Vanguard Federal Money Market Fund) are both mutual funds - VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard, while VMFXX is a Money Market fund managed by Vanguard. Over the past 5 years, VSMGX returned 7.36%/yr vs 2.39%/yr for VMFXX. At a 0.04 correlation, their price movements are largely independent. VSMGX charges 0.10%/yr vs 0.11%/yr for VMFXX.

Performance

VSMGX vs. VMFXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Federal Money Market Fund (VMFXX). 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 VMFXX's 1.50% 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%

VMFXX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.50%
• 6M: 1.82%
• 1Y: 3.95%
• 3Y*: 3.35%
• 5Y*: 2.39%
• 10Y*: —

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

VSMGX vs. VMFXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VSMGX Vanguard LifeStrategy 60/40 Fund	6.62%	16.26%	15.03%	15.70%	-16.01%	4.62%
VMFXX Vanguard Federal Money Market Fund	1.50%	4.24%	1.64%	4.64%	0.00%	0.00%

Correlation

The correlation between VSMGX and VMFXX is 0.00, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.00
Correlation (3Y) Calculated over the trailing 3-year period	0.02
Correlation (5Y) Calculated over the trailing 5-year period	0.04
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.04

VSMGX vs. VMFXX - Sectors Allocation Comparison

Sectors	VSMGX	VMFXX
Technology	27.3%	-
Financial Services	16.1%	17.5%
Industrials	12.4%	-
Consumer Cyclical	9.4%	-
Healthcare	8.3%	-
Communication Services	8.0%	-
Consumer Defensive	4.8%	-
Energy	4.3%	-
Basic Materials	4.3%	-
Utilities	2.7%	-
Real Estate	2.5%	-

Return for Risk

VSMGX vs. VMFXX — 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

VMFXX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. VMFXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Federal Money Market Fund (VMFXX). 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	VMFXX	Difference
Sharpe ratio: Return per unit of total volatility	1.98	3.67	-1.70
Sortino ratio: Return per unit of downside risk	2.78	—	—
Omega ratio: Gain probability vs. loss probability	1.37	—	—
Calmar ratio: Return relative to maximum drawdown	2.58	—	—
Martin ratio: Return relative to average drawdown	11.06	—	—

VSMGX vs. VMFXX - Sharpe Ratio Comparison

The current VSMGX Sharpe Ratio is 1.98, which is lower than the VMFXX Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of VSMGX and VMFXX, 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. VMFXX - Drawdown Comparison

The maximum VSMGX drawdown since its inception was -41.13%, which is greater than VMFXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for VSMGX and VMFXX.

Drawdown Indicators

	VSMGX	VMFXX	Difference
Max Drawdown Largest peak-to-trough decline	-41.13%	0.00%	-41.13%
Max Drawdown (1Y) Largest decline over 1 year	-6.64%	0.00%	-6.64%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	0.00%	-9.62%
Max Drawdown (5Y) Largest decline over 5 years	-22.29%	0.00%	-22.29%
Max Drawdown (10Y) Largest decline over 10 years	-22.43%	—	—
Current Drawdown Current decline from peak	-1.50%	0.00%	-1.50%
Average Drawdown Average peak-to-trough decline	-4.84%	0.00%	-4.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	0.00%	+1.55%

Volatility

VSMGX vs. VMFXX - Volatility Comparison

Vanguard LifeStrategy 60/40 Fund (VSMGX) has a higher volatility of 3.63% compared to Vanguard Federal Money Market Fund (VMFXX) at 0.30%. This indicates that VSMGX's price experiences larger fluctuations and is considered to be riskier than VMFXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMGX	VMFXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.63%	0.30%	+3.33%
Volatility (6M) Calculated over the trailing 6-month period	7.24%	0.79%	+6.45%
Volatility (1Y) Calculated over the trailing 1-year period	8.67%	1.12%	+7.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.26%	0.94%	+9.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.39%	0.94%	+9.45%

VSMGX vs. VMFXX - Expense Ratio Comparison

VSMGX has a 0.10% expense ratio, which is lower than VMFXX's 0.11% 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. VMFXX - Dividend Comparison

VSMGX's dividend yield for the trailing twelve months is around 4.92%, more than VMFXX's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VMFXX Vanguard Federal Money Market Fund	3.87%	4.14%	1.63%	4.53%	0.00%	0.00%	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 VMFXX in my portfolio?

VSMGX and VMFXX have a correlation of 0.00, 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 VMFXX?

VSMGX has higher volatility (3.63%) compared to VMFXX (0.30%). In terms of maximum drawdown, VSMGX dropped -41.13% vs VMFXX's 0.00%.

Which has better risk-adjusted returns?

VMFXX currently has the higher Sharpe Ratio (3.67 vs 1.98), 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.