CGMS vs. LVHI

Last updated Jun 5, 2026

CGMS (Capital Group U.S. Multi-Sector Income ETF) and LVHI (Franklin International Low Volatility High Dividend Index ETF) are both exchange-traded funds - CGMS is a Multisector Bonds fund actively managed by Capital Group, while LVHI is a Volatility Hedged Equity fund tracking the Franklin International Low Volatility High Dividend Hedged Index-NR. CGMS is actively managed, while LVHI is passively managed. Over the past 3 years, CGMS returned 8.03%/yr vs 21.26%/yr for LVHI. At a 0.36 correlation, their price movements are largely independent. CGMS charges 0.39%/yr vs 0.40%/yr for LVHI.

Performance

CGMS vs. LVHI - 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 Franklin International Low Volatility High Dividend Index ETF (LVHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CGMS achieves a 1.69% return, which is significantly lower than LVHI's 12.09% return.

CGMS

• 1D: 0.15%
• 1M: 0.49%
• YTD: 1.69%
• 6M: 1.97%
• 1Y: 6.78%
• 3Y*: 8.03%
• 5Y*: —
• 10Y*: —

LVHI

• 1D: 0.34%
• 1M: 0.75%
• YTD: 12.09%
• 6M: 13.88%
• 1Y: 30.86%
• 3Y*: 21.26%
• 5Y*: 15.88%
• 10Y*: —

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

CGMS vs. LVHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CGMS Capital Group U.S. Multi-Sector Income ETF	1.69%	7.52%	7.24%	11.51%	2.61%
LVHI Franklin International Low Volatility High Dividend Index ETF	12.09%	27.12%	14.81%	17.45%	6.20%

Correlation

The correlation between CGMS and LVHI is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (All Time) Calculated using the full available price history since Oct 28, 2022	0.36

CGMS vs. LVHI - Sectors Allocation Comparison

Sectors	CGMS	LVHI
Real Estate	91.8%	1.9%
Technology	8.2%	0.1%
Basic Materials	-	6.1%
Communication Services	-	5.8%
Consumer Cyclical	-	5.3%
Consumer Defensive	-	8.7%
Energy	-	17.4%
Financial Services	-	23.6%
Healthcare	-	7.4%
Industrials	-	13.4%
Utilities	-	10.4%

Return for Risk

CGMS vs. LVHI — 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: 63
CGMS Calmar Ratio Rank: 56
CGMS Martin Ratio Rank: 68

LVHI

LVHI Risk / Return Rank: 91
LVHI Sharpe Ratio Rank: 92
LVHI Sortino Ratio Rank: 92
LVHI Omega Ratio Rank: 92
LVHI Calmar Ratio Rank: 88
LVHI Martin Ratio Rank: 91

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. LVHI - 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 Franklin International Low Volatility High Dividend Index ETF (LVHI). 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	LVHI	Difference
Sharpe ratio: Return per unit of total volatility	2.00	3.28	-1.29
Sortino ratio: Return per unit of downside risk	3.00	4.49	-1.49
Omega ratio: Gain probability vs. loss probability	1.38	1.62	-0.24
Calmar ratio: Return relative to maximum drawdown	2.76	5.10	-2.35
Martin ratio: Return relative to average drawdown	12.33	21.22	-8.90
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. LVHI - Sharpe Ratio Comparison

The current CGMS Sharpe Ratio is 2.00, which is lower than the LVHI Sharpe Ratio of 3.28. The chart below compares the historical Sharpe Ratios of CGMS and LVHI, 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	LVHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	3.28	-1.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.44	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.67	0.82	+0.85

Drawdowns

CGMS vs. LVHI - Drawdown Comparison

The maximum CGMS drawdown since its inception was -4.08%, smaller than the maximum LVHI drawdown of -32.31%. Use the drawdown chart below to compare losses from any high point for CGMS and LVHI.

Drawdown Indicators

	CGMS	LVHI	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-32.31%	+28.23%
Max Drawdown (1Y) Largest decline over 1 year	-2.47%	-6.08%	+3.61%
Max Drawdown (3Y) Largest decline over 3 years	-4.08%	-11.99%	+7.91%
Max Drawdown (5Y) Largest decline over 5 years	—	-11.99%	—
Current Drawdown Current decline from peak	-0.11%	-1.23%	+1.12%
Average Drawdown Average peak-to-trough decline	-0.67%	-3.52%	+2.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	1.46%	-0.91%

Volatility

CGMS vs. LVHI - Volatility Comparison

The current volatility for Capital Group U.S. Multi-Sector Income ETF (CGMS) is 1.14%, while Franklin International Low Volatility High Dividend Index ETF (LVHI) has a volatility of 2.89%. This indicates that CGMS experiences smaller price fluctuations and is considered to be less risky than LVHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGMS	LVHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	2.89%	-1.75%
Volatility (6M) Calculated over the trailing 6-month period	2.66%	7.50%	-4.84%
Volatility (1Y) Calculated over the trailing 1-year period	3.43%	9.45%	-6.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	11.06%	-5.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.13%	13.76%	-8.63%

CGMS vs. LVHI - Expense Ratio Comparison

CGMS has a 0.39% expense ratio, which is lower than LVHI's 0.40% expense ratio.

Dividends

CGMS vs. LVHI - Dividend Comparison

CGMS's dividend yield for the trailing twelve months is around 6.09%, which matches LVHI's 6.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
CGMS Capital Group U.S. Multi-Sector Income ETF	6.09%	6.00%	5.91%	5.84%	0.97%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LVHI Franklin International Low Volatility High Dividend Index ETF	6.10%	4.92%	3.98%	8.12%	7.74%	4.13%	3.97%	6.67%	10.67%	3.38%	2.02%

Frequently Asked Questions

Can I hold both CGMS and LVHI in my portfolio?

CGMS and LVHI have a correlation of 0.30, 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 LVHI?

LVHI has higher volatility (2.89%) compared to CGMS (1.14%). In terms of maximum drawdown, CGMS dropped -4.08% vs LVHI's -32.31%.

Which ETF is better, CGMS or LVHI?

On 3-year performance, LVHI leads with 21.26% vs 8.03% for CGMS. On fees, CGMS is cheaper at 0.39% per year. On volatility, CGMS has been the lower-risk option at 1.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGMS or LVHI?

Over the 3-year period, LVHI has performed better with a 21.26% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGMS or LVHI?

CGMS is cheaper with a 0.39% expense ratio, compared with 0.40% for LVHI.

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

CGMS and LVHI have nearly identical dividend yields, around 6.09%.

What is the main difference between CGMS and LVHI?

CGMS is categorized as Multisector Bonds, while LVHI is Volatility Hedged Equity. They also come from different issuers: Capital Group and Franklin Templeton. Their fees differ too: 0.39% for CGMS and 0.40% for LVHI.

Which has better risk-adjusted returns?

LVHI currently has the higher Sharpe Ratio (3.28 vs 2.00), 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.