CGMS vs. PSDM

Last updated Jun 4, 2026

CGMS (Capital Group U.S. Multi-Sector Income ETF) and PSDM (PGIM Short Duration Multi-Sector Bond ETF) are both Multisector Bonds funds. Both are actively managed. Over the past year, CGMS returned 7.10% vs 5.16% for PSDM. A 0.70 correlation means they provide meaningful diversification when combined. CGMS charges 0.39%/yr vs 0.40%/yr for PSDM.

Performance

CGMS vs. PSDM - 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 PGIM Short Duration Multi-Sector Bond ETF (PSDM). 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 PSDM's 1.23% return.

CGMS

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

PSDM

• 1D: -0.10%
• 1M: 0.20%
• YTD: 1.23%
• 6M: 1.61%
• 1Y: 5.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CGMS vs. PSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CGMS Capital Group U.S. Multi-Sector Income ETF	1.54%	7.52%	7.24%	5.82%
PSDM PGIM Short Duration Multi-Sector Bond ETF	1.23%	6.16%	5.48%	3.96%

Correlation

The correlation between CGMS and PSDM is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.70

The correlation between CGMS and PSDM has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

Return for Risk

CGMS vs. PSDM — 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

PSDM

PSDM Risk / Return Rank: 89
PSDM Sharpe Ratio Rank: 88
PSDM Sortino Ratio Rank: 94
PSDM Omega Ratio Rank: 93
PSDM Calmar Ratio Rank: 82
PSDM Martin Ratio Rank: 88

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. PSDM - 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 PGIM Short Duration Multi-Sector Bond ETF (PSDM). 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	PSDM	Difference
Sharpe ratio: Return per unit of total volatility	2.08	2.96	-0.88
Sortino ratio: Return per unit of downside risk	3.14	5.06	-1.92
Omega ratio: Gain probability vs. loss probability	1.39	1.64	-0.25
Calmar ratio: Return relative to maximum drawdown	2.88	4.35	-1.47
Martin ratio: Return relative to average drawdown	12.89	19.69	-6.80
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. PSDM - Sharpe Ratio Comparison

The current CGMS Sharpe Ratio is 2.08, which is comparable to the PSDM Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of CGMS and PSDM, 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	PSDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	2.96	-0.88
Sharpe Ratio (All Time) Calculated using the full available price history	1.66	2.97	-1.31

Drawdowns

CGMS vs. PSDM - Drawdown Comparison

The maximum CGMS drawdown since its inception was -4.08%, which is greater than PSDM's maximum drawdown of -1.19%. Use the drawdown chart below to compare losses from any high point for CGMS and PSDM.

Drawdown Indicators

	CGMS	PSDM	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-1.19%	-2.89%
Max Drawdown (1Y) Largest decline over 1 year	-2.47%	-1.19%	-1.28%
Max Drawdown (3Y) Largest decline over 3 years	-4.08%	—	—
Current Drawdown Current decline from peak	-0.25%	-0.16%	-0.09%
Average Drawdown Average peak-to-trough decline	-0.67%	-0.17%	-0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.26%	+0.29%

Volatility

CGMS vs. PSDM - Volatility Comparison

Capital Group U.S. Multi-Sector Income ETF (CGMS) has a higher volatility of 1.15% compared to PGIM Short Duration Multi-Sector Bond ETF (PSDM) at 0.53%. This indicates that CGMS's price experiences larger fluctuations and is considered to be riskier than PSDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGMS	PSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	0.53%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	2.66%	1.28%	+1.38%
Volatility (1Y) Calculated over the trailing 1-year period	3.43%	1.75%	+1.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	2.01%	+3.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.13%	2.01%	+3.12%

CGMS vs. PSDM - Expense Ratio Comparison

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

Dividends

CGMS vs. PSDM - Dividend Comparison

CGMS's dividend yield for the trailing twelve months is around 6.09%, more than PSDM's 4.85% 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%
PSDM PGIM Short Duration Multi-Sector Bond ETF	4.85%	4.57%	5.17%	2.91%	0.00%

Frequently Asked Questions

Can I hold both CGMS and PSDM in my portfolio?

CGMS and PSDM have a correlation of 0.75, 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 PSDM?

CGMS has higher volatility (1.15%) compared to PSDM (0.53%). In terms of maximum drawdown, CGMS dropped -4.08% vs PSDM's -1.19%.

Which ETF is better, CGMS or PSDM?

On 1-year performance, CGMS leads with 7.10% vs 5.16% for PSDM. On fees, CGMS is cheaper at 0.39% per year. On volatility, PSDM has been the lower-risk option at 0.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGMS or PSDM?

Over the 1-year period, CGMS has performed better with a 7.10% return vs 5.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGMS or PSDM?

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

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

CGMS has the higher dividend yield at 6.09%, compared with 4.85% for PSDM.

What is the main difference between CGMS and PSDM?

They also come from different issuers: Capital Group and PGIM. Their fees differ too: 0.39% for CGMS and 0.40% for PSDM.

Which has better risk-adjusted returns?

PSDM currently has the higher Sharpe Ratio (2.96 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.