CGMS vs. VGMS

Last updated Jun 24, 2026

CGMS (Capital Group U.S. Multi-Sector Income ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both Multisector Bonds funds. Both are actively managed. Over the past year, CGMS returned 5.89% vs 6.52% for VGMS. Their correlation of 0.90 suggests significant overlap in exposure. CGMS charges 0.39%/yr vs 0.30%/yr for VGMS.

Performance

CGMS vs. VGMS - 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 Vanguard Multi-Sector Income Bond ETF (VGMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with CGMS having a 1.54% return and VGMS slightly lower at 1.48%.

CGMS

• 1D: 0.04%
• 1M: 0.38%
• YTD: 1.54%
• 6M: 1.60%
• 1Y: 5.89%
• 3Y*: 8.00%
• 5Y*: —
• 10Y*: —

VGMS

• 1D: 0.17%
• 1M: 0.73%
• YTD: 1.48%
• 6M: 1.55%
• 1Y: 6.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CGMS vs. VGMS - Yearly Performance Comparison

	2026 (YTD)	2025
CGMS Capital Group U.S. Multi-Sector Income ETF	1.54%	5.04%
VGMS Vanguard Multi-Sector Income Bond ETF	1.48%	5.51%

Correlation

The correlation between CGMS and VGMS is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	0.90

The correlation between CGMS and VGMS has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

Return for Risk

CGMS vs. VGMS — Risk / Return Rank

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

CGMS

CGMS Risk / Return Rank: 54
CGMS Sharpe Ratio Rank: 51
CGMS Sortino Ratio Rank: 56
CGMS Omega Ratio Rank: 53
CGMS Calmar Ratio Rank: 50
CGMS Martin Ratio Rank: 62

VGMS

VGMS Risk / Return Rank: 66
VGMS Sharpe Ratio Rank: 65
VGMS Sortino Ratio Rank: 70
VGMS Omega Ratio Rank: 69
VGMS Calmar Ratio Rank: 58
VGMS Martin Ratio Rank: 69

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. VGMS - 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 Vanguard Multi-Sector Income Bond ETF (VGMS). 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.

	CGMS	VGMS	Difference
Sharpe ratio: Return per unit of total volatility	1.69	2.01	-0.32
Sortino ratio: Return per unit of downside risk	2.54	2.99	-0.45
Omega ratio: Gain probability vs. loss probability	1.32	1.39	-0.07
Calmar ratio: Return relative to maximum drawdown	2.39	2.66	-0.26
Martin ratio: Return relative to average drawdown	10.60	12.04	-1.44

CGMS vs. VGMS - Sharpe Ratio Comparison

The current CGMS Sharpe Ratio is 1.69, which is comparable to the VGMS Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of CGMS and VGMS, 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

CGMS vs. VGMS - Drawdown Comparison

The maximum CGMS drawdown since its inception was -4.08%, which is greater than VGMS's maximum drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for CGMS and VGMS.

Drawdown Indicators

	CGMS	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-4.08%	-2.46%	-1.62%
Max Drawdown (1Y) Largest decline over 1 year	-2.47%	-2.46%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-4.08%	—	—
Current Drawdown Current decline from peak	-0.40%	-0.18%	-0.22%
Average Drawdown Average peak-to-trough decline	-0.66%	-0.30%	-0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.56%	0.54%	+0.02%

Volatility

CGMS vs. VGMS - Volatility Comparison

Capital Group U.S. Multi-Sector Income ETF (CGMS) has a higher volatility of 1.12% compared to Vanguard Multi-Sector Income Bond ETF (VGMS) at 1.06%. This indicates that CGMS's price experiences larger fluctuations and is considered to be riskier than VGMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGMS	VGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.12%	1.06%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.78%	2.64%	+0.14%
Volatility (1Y) Calculated over the trailing 1-year period	3.50%	3.27%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.12%	3.24%	+1.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.12%	3.24%	+1.88%

CGMS vs. VGMS - Expense Ratio Comparison

CGMS has a 0.39% expense ratio, which is higher than VGMS's 0.30% expense ratio.

Dividends

CGMS vs. VGMS - Dividend Comparison

CGMS's dividend yield for the trailing twelve months is around 6.09%, more than VGMS's 5.14% 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%
VGMS Vanguard Multi-Sector Income Bond ETF	5.14%	2.94%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CGMS and VGMS in my portfolio?

With a correlation of 0.91, CGMS and VGMS 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, CGMS or VGMS?

CGMS has higher volatility (1.12%) compared to VGMS (1.06%). In terms of maximum drawdown, CGMS dropped -4.08% vs VGMS's -2.46%.

Which ETF is better, CGMS or VGMS?

On 1-year performance, VGMS leads with 6.52% vs 5.89% for CGMS. On fees, VGMS is cheaper at 0.30% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGMS or VGMS?

Over the 1-year period, VGMS has performed better with a 6.52% return vs 5.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGMS or VGMS?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.39% for CGMS.

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

CGMS has the higher dividend yield at 6.09%, compared with 5.14% for VGMS.

What is the main difference between CGMS and VGMS?

They also come from different issuers: Capital Group and Vanguard. Their fees differ too: 0.39% for CGMS and 0.30% for VGMS.

Which has better risk-adjusted returns?

VGMS currently has the higher Sharpe Ratio (2.01 vs 1.69), 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.