VSMGX vs. VT

Last updated Jun 23, 2026

VSMGX (Vanguard LifeStrategy 60/40 Fund) and VT (Vanguard Total World Stock ETF) are both funds - VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. Over the past 10 years, VSMGX returned 8.91%/yr vs 13.20%/yr for VT. With a 0.96 correlation, they move nearly in lockstep. VSMGX charges 0.10%/yr vs 0.06%/yr for VT.

Performance

VSMGX vs. VT - Performance Comparison

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

Returns By Period

In the year-to-date period, VSMGX achieves a 7.95% return, which is significantly lower than VT's 12.36% return. Over the past 10 years, VSMGX has underperformed VT with an annualized return of 8.91%, while VT has yielded a comparatively higher 13.20% annualized return.

VSMGX

• 1D: 0.81%
• 1M: 1.44%
• YTD: 7.95%
• 6M: 7.93%
• 1Y: 19.41%
• 3Y*: 15.25%
• 5Y*: 7.92%
• 10Y*: 8.91%

VT

• 1D: -0.06%
• 1M: 1.64%
• YTD: 12.36%
• 6M: 12.14%
• 1Y: 29.57%
• 3Y*: 20.75%
• 5Y*: 11.13%
• 10Y*: 13.20%

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

VSMGX vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSMGX Vanguard LifeStrategy 60/40 Fund	7.95%	16.26%	15.03%	15.70%	-16.01%	10.08%	13.59%	19.37%	-4.91%	13.66%
VT Vanguard Total World Stock ETF	12.36%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%

Correlation

The correlation between VSMGX and VT 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	0.96
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 Jun 26, 2008	0.96

The correlation between VSMGX and VT has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

Return for Risk

VSMGX vs. VT — 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: 67
VSMGX Sortino Ratio Rank: 67
VSMGX Omega Ratio Rank: 68
VSMGX Calmar Ratio Rank: 62
VSMGX Martin Ratio Rank: 68

VT

VT Risk / Return Rank: 70
VT Sharpe Ratio Rank: 71
VT Sortino Ratio Rank: 70
VT Omega Ratio Rank: 71
VT Calmar Ratio Rank: 64
VT Martin Ratio Rank: 73

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. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard LifeStrategy 60/40 Fund (VSMGX) and Vanguard Total World Stock ETF (VT). 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	VT	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.21	-0.01
Sortino ratio: Return per unit of downside risk	3.11	3.03	+0.08
Omega ratio: Gain probability vs. loss probability	1.42	1.40	+0.01
Calmar ratio: Return relative to maximum drawdown	2.89	3.07	-0.18
Martin ratio: Return relative to average drawdown	12.39	13.35	-0.96

VSMGX vs. VT - Sharpe Ratio Comparison

The current VSMGX Sharpe Ratio is 2.20, which is comparable to the VT Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of VSMGX and VT, 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. VT - Drawdown Comparison

The maximum VSMGX drawdown since its inception was -41.13%, smaller than the maximum VT drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for VSMGX and VT.

Drawdown Indicators

	VSMGX	VT	Difference
Max Drawdown Largest peak-to-trough decline	-41.13%	-50.27%	+9.14%
Max Drawdown (1Y) Largest decline over 1 year	-6.64%	-9.67%	+3.03%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	-16.51%	+6.89%
Max Drawdown (5Y) Largest decline over 5 years	-22.29%	-26.38%	+4.09%
Max Drawdown (10Y) Largest decline over 10 years	-22.43%	-34.24%	+11.81%
Current Drawdown Current decline from peak	-0.27%	-0.77%	+0.50%
Average Drawdown Average peak-to-trough decline	-4.83%	-7.00%	+2.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	2.22%	-0.67%

Volatility

VSMGX vs. VT - Volatility Comparison

The current volatility for Vanguard LifeStrategy 60/40 Fund (VSMGX) is 3.57%, while Vanguard Total World Stock ETF (VT) has a volatility of 5.23%. This indicates that VSMGX experiences smaller price fluctuations and is considered to be less risky than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMGX	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.57%	5.23%	-1.66%
Volatility (6M) Calculated over the trailing 6-month period	7.32%	11.12%	-3.80%
Volatility (1Y) Calculated over the trailing 1-year period	8.71%	13.44%	-4.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.27%	16.16%	-5.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.40%	17.27%	-6.87%

VSMGX vs. VT - Expense Ratio Comparison

VSMGX has a 0.10% expense ratio, which is higher than VT's 0.06% expense ratio. However, 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. VT - Dividend Comparison

VSMGX's dividend yield for the trailing twelve months is around 4.86%, more than VT's 1.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSMGX Vanguard LifeStrategy 60/40 Fund	4.86%	5.25%	11.49%	4.01%	2.66%	3.86%	3.46%	2.52%	4.11%	1.09%	2.26%	3.89%
VT Vanguard Total World Stock ETF	1.58%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both VSMGX and VT in my portfolio?

With a correlation of 0.99, VSMGX and VT 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 VT?

VT has higher volatility (5.23%) compared to VSMGX (3.57%). In terms of maximum drawdown, VSMGX dropped -41.13% vs VT's -50.27%.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (2.21 vs 2.20), 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.