CGMS vs. CGMU

Last updated Jun 4, 2026

CGMS (Capital Group U.S. Multi-Sector Income ETF) and CGMU (Capital Group Municipal Income ETF) are both exchange-traded funds - CGMS is a Multisector Bonds fund actively managed by Capital Group, while CGMU is a Municipal Bonds fund actively managed by Capital Group. Both are actively managed. Over the past 3 years, CGMS returned 7.92%/yr vs 4.70%/yr for CGMU. A 0.57 correlation means they provide meaningful diversification when combined. CGMS charges 0.39%/yr vs 0.27%/yr for CGMU.

Performance

CGMS vs. CGMU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group U.S. Multi-Sector Income ETF (CGMS) and Capital Group Municipal Income ETF (CGMU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CGMS achieves a 1.54% return, which is significantly higher than CGMU's 1.39% return.

CGMS

• 1D: -0.25%
• 1M: 0.56%
• YTD: 1.54%
• 6M: 1.68%
• 1Y: 7.10%
• 3Y*: 7.92%
• 5Y*: —
• 10Y*: —

CGMU

• 1D: -0.11%
• 1M: 0.45%
• YTD: 1.39%
• 6M: 1.79%
• 1Y: 6.72%
• 3Y*: 4.70%
• 5Y*: —
• 10Y*: —

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

CGMS vs. CGMU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CGMS Capital Group U.S. Multi-Sector Income ETF	1.54%	7.52%	7.24%	11.51%	2.61%
CGMU Capital Group Municipal Income ETF	1.39%	5.19%	2.64%	6.76%	4.53%

Correlation

The correlation between CGMS and CGMU is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (All Time) Calculated using the full available price history since Oct 28, 2022	0.57

The correlation between CGMS and CGMU shifts across timeframes, from 0.45 (1 year) to 0.59 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

CGMS vs. CGMU — Risk / Return Rank

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

CGMS

CGMS Risk / Return Rank: 63
CGMS Sharpe Ratio Rank: 60
CGMS Sortino Ratio Rank: 67
CGMS Omega Ratio Rank: 64
CGMS Calmar Ratio Rank: 57
CGMS Martin Ratio Rank: 69

CGMU

CGMU Risk / Return Rank: 75
CGMU Sharpe Ratio Rank: 87
CGMU Sortino Ratio Rank: 89
CGMU Omega Ratio Rank: 92
CGMU Calmar Ratio Rank: 53
CGMU Martin Ratio Rank: 51

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.

CGMS vs. CGMU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Group U.S. Multi-Sector Income ETF (CGMS) and Capital Group Municipal Income ETF (CGMU). 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.

	CGMS	CGMU	Difference
Sharpe ratio: Return per unit of total volatility	2.08	2.94	-0.87
Sortino ratio: Return per unit of downside risk	3.14	4.18	-1.05
Omega ratio: Gain probability vs. loss probability	1.39	1.64	-0.24
Calmar ratio: Return relative to maximum drawdown	2.88	2.65	+0.24
Martin ratio: Return relative to average drawdown	12.89	8.61	+4.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CGMS vs. CGMU - Sharpe Ratio Comparison

The current CGMS Sharpe Ratio is 2.08, which is comparable to the CGMU Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of CGMS and CGMU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CGMS	CGMU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	2.94	-0.87
Sharpe Ratio (All Time) Calculated using the full available price history	1.66	1.66	0.00

Drawdowns

CGMS vs. CGMU - Drawdown Comparison

The maximum CGMS drawdown since its inception was -4.08%, roughly equal to the maximum CGMU drawdown of -4.11%. Use the drawdown chart below to compare losses from any high point for CGMS and CGMU.

Drawdown Indicators

	CGMS	CGMU	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-4.11%	+0.03%
Max Drawdown (1Y) Largest decline over 1 year	-2.47%	-2.55%	+0.08%
Max Drawdown (3Y) Largest decline over 3 years	-4.08%	-3.89%	-0.19%
Current Drawdown Current decline from peak	-0.25%	-0.89%	+0.64%
Average Drawdown Average peak-to-trough decline	-0.67%	-0.84%	+0.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.78%	-0.23%

Volatility

CGMS vs. CGMU - Volatility Comparison

Capital Group U.S. Multi-Sector Income ETF (CGMS) has a higher volatility of 1.15% compared to Capital Group Municipal Income ETF (CGMU) at 0.79%. This indicates that CGMS's price experiences larger fluctuations and is considered to be riskier than CGMU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGMS	CGMU	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	0.79%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	2.66%	1.72%	+0.94%
Volatility (1Y) Calculated over the trailing 1-year period	3.43%	2.29%	+1.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	3.48%	+1.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.13%	3.48%	+1.65%

CGMS vs. CGMU - Expense Ratio Comparison

CGMS has a 0.39% expense ratio, which is higher than CGMU's 0.27% expense ratio.

Dividends

CGMS vs. CGMU - Dividend Comparison

CGMS's dividend yield for the trailing twelve months is around 6.09%, more than CGMU's 3.33% yield.

Position	TTM	2025	2024	2023	2022
CGMS Capital Group U.S. Multi-Sector Income ETF	6.09%	6.00%	5.91%	5.84%	0.97%
CGMU Capital Group Municipal Income ETF	3.33%	3.32%	3.21%	3.08%	0.49%

Frequently Asked Questions

Can I hold both CGMS and CGMU in my portfolio?

CGMS and CGMU have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CGMS or CGMU?

CGMS has higher volatility (1.15%) compared to CGMU (0.79%). In terms of maximum drawdown, CGMS dropped -4.08% vs CGMU's -4.11%.

Which ETF is better, CGMS or CGMU?

On 3-year performance, CGMS leads with 7.92% vs 4.70% for CGMU. On fees, CGMU is cheaper at 0.27% per year. On volatility, CGMU has been the lower-risk option at 0.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGMS or CGMU?

Over the 3-year period, CGMS has performed better with a 7.92% return vs 4.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGMS or CGMU?

CGMU is cheaper with a 0.27% expense ratio, compared with 0.39% for CGMS.

Which ETF pays a higher dividend yield, CGMS or CGMU?

CGMS has the higher dividend yield at 6.09%, compared with 3.33% for CGMU.

What is the main difference between CGMS and CGMU?

CGMS is categorized as Multisector Bonds, while CGMU is Municipal Bonds. Their fees differ too: 0.39% for CGMS and 0.27% for CGMU.

Which has better risk-adjusted returns?

CGMU currently has the higher Sharpe Ratio (2.94 vs 2.08), 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.