CGSM vs. CGSD

Last updated Aug 2, 2026

CGSM (Capital Group Short Duration Municipal Income ETF) and CGSD (Capital Group Short Duration Income ETF) are both exchange-traded funds - CGSM is a Municipal Bonds fund actively managed by Capital Group, while CGSD is a Short-Term Bond fund actively managed by Capital Group. Both are actively managed. Over the past year, CGSM returned 3.07% vs 3.28% for CGSD. Their 0.41 correlation means their historical movements had little consistent relationship. Both charge a 0.25% expense ratio.

Performance

CGSM vs. CGSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group Short Duration Municipal Income ETF (CGSM) and Capital Group Short Duration Income ETF (CGSD). 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 CGSM having a 1.11% return and CGSD slightly lower at 1.06%.

CGSM

• 1D: -0.05%
• 1M: -0.42%
• 6M: 0.28%
• YTD: 1.11%
• 1Y: 3.07%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.76%

CGSD

• 1D: 0.01%
• 1M: 0.05%
• 6M: 0.74%
• YTD: 1.06%
• 1Y: 3.28%
• 3Y*: 5.29%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.07%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CGSD Capital Group Short Duration Income ETF	$12.97M	$11.74M	$11.40M
CGSM Capital Group Short Duration Municipal Income ETF	$7.33M	$6.97M	$11.44M

CGSM vs. CGSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	1.11%	4.58%	3.71%	4.06%
CGSD Capital Group Short Duration Income ETF	1.06%	6.11%	5.46%	3.14%

Correlation

The correlation between CGSM and CGSD is 0.42, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.42
Correlation (All Time) Calculated using the full available price history since Sep 28, 2023	0.41

Return for Risk

CGSM vs. CGSD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

CGSM

CGSM Risk / Return Rank: 86
CGSM Sharpe Ratio Rank: 92
CGSM Sortino Ratio Rank: 93
CGSM Omega Ratio Rank: 94
CGSM Calmar Ratio Rank: 78
CGSM Martin Ratio Rank: 71

CGSD

CGSD Risk / Return Rank: 92
CGSD Sharpe Ratio Rank: 94
CGSD Sortino Ratio Rank: 95
CGSD Omega Ratio Rank: 95
CGSD Calmar Ratio Rank: 86
CGSD Martin Ratio Rank: 92

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

CGSM vs. CGSD - Risk-Adjusted Trends Comparison

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

	CGSM	CGSD	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.61	-0.23
Sortino ratio: Return per unit of downside risk	3.52	4.09	-0.57
Omega ratio: Gain probability vs. loss probability	1.51	1.53	-0.02
Calmar ratio: Return relative to maximum drawdown	2.79	3.38	-0.59
Martin ratio: Return relative to average drawdown	8.73	15.73	-7.00

CGSM vs. CGSD - Sharpe Ratio Comparison

The current CGSM Sharpe Ratio is 2.38, which is comparable to the CGSD Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of CGSM and CGSD, 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

CGSM vs. CGSD - Drawdown Comparison

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

Drawdown Indicators

	CGSM	CGSD	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-1.75%	+0.33%
Max Drawdown (1Y) Largest decline over 1 year	-1.18%	-1.11%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.11%	—
Current Drawdown Current decline from peak	-0.50%	-0.03%	-0.47%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.28%	+0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.38%	0.24%	+0.14%

Volatility

CGSM vs. CGSD - Volatility Comparison

Capital Group Short Duration Municipal Income ETF (CGSM) has a higher volatility of 0.49% compared to Capital Group Short Duration Income ETF (CGSD) at 0.42%. This indicates that CGSM's price experiences larger fluctuations and is considered to be riskier than CGSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGSM	CGSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.49%	0.42%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	1.07%	1.10%	-0.03%
Volatility (1Y) Calculated over the trailing 1-year period	1.38%	1.45%	-0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.77%	2.14%	-0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.77%	2.14%	-0.37%

CGSM vs. CGSD - Expense Ratio Comparison

Both CGSM and CGSD 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

CGSM vs. CGSD - Dividend Comparison

CGSM's dividend yield for the trailing twelve months is around 2.93%, less than CGSD's 4.46% 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	2.93%	3.05%	3.11%	0.84%	0.00%

Frequently Asked Questions

Can I hold both CGSM and CGSD in my portfolio?

CGSM and CGSD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CGSM or CGSD?

CGSM has higher volatility (0.49%) compared to CGSD (0.42%). In terms of maximum drawdown, CGSM dropped -1.42% vs CGSD's -1.75%.

Which ETF is better, CGSM or CGSD?

On 1-year performance, CGSD leads with 3.28% vs 3.07% for CGSM. 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, CGSM or CGSD?

Over the 1-year period, CGSD has performed better with a 3.28% return vs 3.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGSM or CGSD?

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

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

CGSD has the higher dividend yield at 4.46%, compared with 2.93% for CGSM.

What is the main difference between CGSM and CGSD?

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

Which has better risk-adjusted returns?

CGSD currently has the higher Sharpe Ratio (2.61 vs 2.38), 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.