VSMGX vs. VSCGX

Last updated Jun 24, 2026

VSMGX (Vanguard LifeStrategy 60/40 Fund) and VSCGX (Vanguard LifeStrategy 40/60 Fund) are both mutual funds - VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard, while VSCGX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, VSMGX returned 9.07%/yr vs 6.72%/yr for VSCGX. With a 0.98 correlation, they move nearly in lockstep. Both charge a 0.10% expense ratio.

Performance

VSMGX vs. VSCGX - Performance Comparison

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

Returns By Period

In the year-to-date period, VSMGX achieves a 7.75% return, which is significantly higher than VSCGX's 5.32% return. Over the past 10 years, VSMGX has outperformed VSCGX with an annualized return of 9.07%, while VSCGX has yielded a comparatively lower 6.72% annualized return.

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%

VSCGX

• 1D: -0.22%
• 1M: 1.06%
• YTD: 5.32%
• 6M: 5.13%
• 1Y: 13.40%
• 3Y*: 12.15%
• 5Y*: 5.43%
• 10Y*: 6.72%

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

VSMGX vs. VSCGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VSCGX Vanguard LifeStrategy 40/60 Fund	5.32%	12.87%	11.65%	12.72%	-15.00%	6.04%	11.51%	15.69%	-2.95%	10.02%

Correlation

The correlation between VSMGX and VSCGX is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 30, 1994	0.98

The correlation between VSMGX and VSCGX has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.

Return for Risk

VSMGX vs. VSCGX — Risk / Return Rank

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

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

VSCGX

VSCGX Risk / Return Rank: 63
VSCGX Sharpe Ratio Rank: 63
VSCGX Sortino Ratio Rank: 66
VSCGX Omega Ratio Rank: 67
VSCGX Calmar Ratio Rank: 54
VSCGX Martin Ratio Rank: 62

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. VSCGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard LifeStrategy 40/60 Fund (VSCGX). 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	VSCGX	Difference
Sharpe ratio: Return per unit of total volatility	2.21	2.14	+0.07
Sortino ratio: Return per unit of downside risk	3.12	3.09	+0.02
Omega ratio: Gain probability vs. loss probability	1.42	1.41	0.00
Calmar ratio: Return relative to maximum drawdown	2.90	2.70	+0.21
Martin ratio: Return relative to average drawdown	12.43	11.58	+0.86

VSMGX vs. VSCGX - Sharpe Ratio Comparison

The current VSMGX Sharpe Ratio is 2.21, which is comparable to the VSCGX Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of VSMGX and VSCGX, 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. VSCGX - Drawdown Comparison

The maximum VSMGX drawdown since its inception was -41.13%, which is greater than VSCGX's maximum drawdown of -30.62%. Use the drawdown chart below to compare losses from any high point for VSMGX and VSCGX.

Drawdown Indicators

	VSMGX	VSCGX	Difference
Max Drawdown Largest peak-to-trough decline	-41.13%	-30.62%	-10.51%
Max Drawdown (1Y) Largest decline over 1 year	-6.64%	-5.19%	-1.45%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	-6.71%	-2.91%
Max Drawdown (5Y) Largest decline over 5 years	-22.29%	-20.15%	-2.14%
Max Drawdown (10Y) Largest decline over 10 years	-22.43%	-20.15%	-2.28%
Current Drawdown Current decline from peak	-0.45%	-0.31%	-0.14%
Average Drawdown Average peak-to-trough decline	-4.83%	-2.99%	-1.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	1.21%	+0.34%

Volatility

VSMGX vs. VSCGX - Volatility Comparison

Vanguard LifeStrategy 60/40 Fund (VSMGX) has a higher volatility of 3.47% compared to Vanguard LifeStrategy 40/60 Fund (VSCGX) at 2.58%. This indicates that VSMGX's price experiences larger fluctuations and is considered to be riskier than VSCGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMGX	VSCGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	2.58%	+0.89%
Volatility (6M) Calculated over the trailing 6-month period	7.30%	5.53%	+1.77%
Volatility (1Y) Calculated over the trailing 1-year period	8.73%	6.54%	+2.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.27%	7.76%	+2.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.40%	7.40%	+3.00%

VSMGX vs. VSCGX - Expense Ratio Comparison

Both VSMGX and VSCGX 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. VSCGX - Dividend Comparison

VSMGX's dividend yield for the trailing twelve months is around 4.87%, less than VSCGX's 5.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSCGX Vanguard LifeStrategy 40/60 Fund	5.26%	5.50%	11.03%	5.23%	2.79%	4.18%	3.28%	2.62%	3.81%	1.65%	2.43%	3.21%
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 VSMGX and VSCGX in my portfolio?

With a correlation of 0.99, VSMGX and VSCGX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VSMGX or VSCGX?

VSMGX has higher volatility (3.47%) compared to VSCGX (2.58%). In terms of maximum drawdown, VSMGX dropped -41.13% vs VSCGX's -30.62%.

Which has better risk-adjusted returns?

VSMGX currently has the higher Sharpe Ratio (2.21 vs 2.14), 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.