CGSD vs. CGSM

Last updated Jun 4, 2026

CGSD (Capital Group Short Duration Income ETF) and CGSM (Capital Group Short Duration Municipal Income ETF) are both exchange-traded funds - CGSD is a Short-Term Bond fund actively managed by Capital Group, while CGSM is a Municipal Bonds fund actively managed by Capital Group. Both are actively managed. Over the past year, CGSD returned 4.30% vs 4.63% for CGSM. At a 0.41 correlation, their price movements are largely independent. Both charge a 0.25% expense ratio.

Performance

CGSD vs. CGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group Short Duration Income ETF (CGSD) and Capital Group Short Duration Municipal Income ETF (CGSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CGSD achieves a 0.70% return, which is significantly lower than CGSM's 1.29% return.

CGSD

• 1D: -0.10%
• 1M: 0.14%
• YTD: 0.70%
• 6M: 1.09%
• 1Y: 4.30%
• 3Y*: 5.21%
• 5Y*: —
• 10Y*: —

CGSM

• 1D: 0.08%
• 1M: 0.38%
• YTD: 1.29%
• 6M: 1.54%
• 1Y: 4.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CGSD vs. CGSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CGSD Capital Group Short Duration Income ETF	0.70%	6.11%	5.46%	3.14%
CGSM Capital Group Short Duration Municipal Income ETF	1.29%	4.58%	3.71%	4.04%

Correlation

The correlation between CGSD and CGSM 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 (All Time) Calculated using the full available price history since Sep 29, 2023	0.41

The correlation between CGSD and CGSM shifts across timeframes, from 0.30 (1 year) to 0.41 (all time), reflecting how their relationship changes across market environments.

Return for Risk

CGSD vs. CGSM — Risk / Return Rank

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

CGSD

CGSD Risk / Return Rank: 87
CGSD Sharpe Ratio Rank: 87
CGSD Sortino Ratio Rank: 93
CGSD Omega Ratio Rank: 91
CGSD Calmar Ratio Rank: 77
CGSD Martin Ratio Rank: 86

CGSM

CGSM Risk / Return Rank: 86
CGSM Sharpe Ratio Rank: 93
CGSM Sortino Ratio Rank: 95
CGSM Omega Ratio Rank: 96
CGSM Calmar Ratio Rank: 78
CGSM Martin Ratio Rank: 70

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.

CGSD vs. CGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Group Short Duration Income ETF (CGSD) and Capital Group Short Duration Municipal Income ETF (CGSM). 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.

	CGSD	CGSM	Difference
Sharpe ratio Return per unit of total volatility	2.94	3.49	-0.55
Sortino ratio Return per unit of downside risk	4.65	5.39	-0.74
Omega ratio Gain probability vs. loss probability	1.61	1.81	-0.20
Calmar ratio Return relative to maximum drawdown	3.88	3.95	-0.07
Martin ratio Return relative to average drawdown	18.36	12.91	+5.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CGSD vs. CGSM - Sharpe Ratio Comparison

The current CGSD Sharpe Ratio is 2.94, which is comparable to the CGSM Sharpe Ratio of 3.49. The chart below compares the historical Sharpe Ratios of CGSD and CGSM, 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

	CGSD	CGSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	3.49	-0.55
Sharpe Ratio (All Time) Calculated using the full available price history	2.41	2.87	-0.46

Drawdowns

CGSD vs. CGSM - Drawdown Comparison

The maximum CGSD drawdown since its inception was -1.75%, which is greater than CGSM's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for CGSD and CGSM.

Drawdown Indicators

	CGSD	CGSM	Difference
Max Drawdown Largest peak-to-trough decline	-1.75%	-1.42%	-0.33%
Max Drawdown (1Y) Largest decline over 1 year	-1.11%	-1.18%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-1.11%	—	—
Current Drawdown Current decline from peak	-0.14%	-0.22%	+0.08%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.24%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	0.36%	-0.13%

Volatility

CGSD vs. CGSM - Volatility Comparison

The current volatility for Capital Group Short Duration Income ETF (CGSD) is 0.39%, while Capital Group Short Duration Municipal Income ETF (CGSM) has a volatility of 0.42%. This indicates that CGSD experiences smaller price fluctuations and is considered to be less risky than CGSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGSD	CGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.39%	0.42%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.01%	0.98%	+0.03%
Volatility (1Y) Calculated over the trailing 1-year period	1.47%	1.33%	+0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	1.79%	+0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	1.79%	+0.37%

CGSD vs. CGSM - Expense Ratio Comparison

Both CGSD and CGSM have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

CGSD vs. CGSM - Dividend Comparison

CGSD's dividend yield for the trailing twelve months is around 4.46%, more than CGSM's 3.00% yield.

Position	TTM	2025	2024	2023	2022
CGSD Capital Group Short Duration Income ETF	4.46%	4.48%	4.57%	4.43%	0.64%
CGSM Capital Group Short Duration Municipal Income ETF	3.00%	3.05%	3.11%	0.84%	0.00%

Frequently Asked Questions

Can I hold both CGSD and CGSM in my portfolio?

CGSD and CGSM 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, CGSD or CGSM?

CGSM has higher volatility (0.42%) compared to CGSD (0.39%). In terms of maximum drawdown, CGSD dropped -1.75% vs CGSM's -1.42%.

Which ETF is better, CGSD or CGSM?

On 1-year performance, CGSM leads with 4.63% vs 4.30% for CGSD. Both ETFs have the same 0.25% expense ratio. 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, CGSD or CGSM?

Over the 1-year period, CGSM has performed better with a 4.63% return vs 4.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGSD or CGSM?

CGSD and CGSM have the same expense ratio: 0.25% per year.

Which ETF pays a higher dividend yield, CGSD or CGSM?

CGSD has the higher dividend yield at 4.46%, compared with 3.00% for CGSM.

What is the main difference between CGSD and CGSM?

CGSD is categorized as Short-Term Bond, while CGSM is Municipal Bonds.

Which has better risk-adjusted returns?

CGSM currently has the higher Sharpe Ratio (3.49 vs 2.94), 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.