CGSM vs. VSDM

Last updated Jun 5, 2026

CGSM (Capital Group Short Duration Municipal Income ETF) and VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) are both Municipal Bonds funds. Both are actively managed. Over the past year, CGSM returned 4.67% vs 4.92% for VSDM. A 0.54 correlation means they provide meaningful diversification when combined. CGSM charges 0.25%/yr vs 0.12%/yr for VSDM.

Performance

CGSM vs. VSDM - Performance Comparison

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

Returns By Period

In the year-to-date period, CGSM achieves a 1.37% return, which is significantly higher than VSDM's 1.29% return.

CGSM

• 1D: 0.08%
• 1M: 0.46%
• YTD: 1.37%
• 6M: 1.64%
• 1Y: 4.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VSDM

• 1D: 0.07%
• 1M: 0.49%
• YTD: 1.29%
• 6M: 1.67%
• 1Y: 4.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CGSM vs. VSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CGSM Capital Group Short Duration Municipal Income ETF	1.37%	4.58%	-0.04%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.29%	5.39%	-0.15%

Correlation

The correlation between CGSM and VSDM is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024	0.54

The correlation between CGSM and VSDM has been stable across timeframes, ranging from 0.44 to 0.54 - a consistent structural relationship.

Return for Risk

CGSM vs. VSDM — Risk / Return Rank

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

CGSM

CGSM Risk / Return Rank: 87
CGSM Sharpe Ratio Rank: 94
CGSM Sortino Ratio Rank: 96
CGSM Omega Ratio Rank: 96
CGSM Calmar Ratio Rank: 79
CGSM Martin Ratio Rank: 71

VSDM

VSDM Risk / Return Rank: 84
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 68
VSDM Martin Ratio Rank: 66

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.

CGSM vs. VSDM - Risk-Adjusted Trends Comparison

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

	CGSM	VSDM	Difference
Sharpe ratio: Return per unit of total volatility	3.52	3.64	-0.12
Sortino ratio: Return per unit of downside risk	5.44	5.29	+0.15
Omega ratio: Gain probability vs. loss probability	1.82	1.91	-0.09
Calmar ratio: Return relative to maximum drawdown	3.98	3.38	+0.60
Martin ratio: Return relative to average drawdown	13.02	11.92	+1.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CGSM vs. VSDM - Sharpe Ratio Comparison

The current CGSM Sharpe Ratio is 3.52, which is comparable to the VSDM Sharpe Ratio of 3.64. The chart below compares the historical Sharpe Ratios of CGSM and VSDM, 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

	CGSM	VSDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.52	3.64	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	2.89	2.21	+0.68

Drawdowns

CGSM vs. VSDM - Drawdown Comparison

The maximum CGSM drawdown since its inception was -1.42%, smaller than the maximum VSDM drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for CGSM and VSDM.

Drawdown Indicators

	CGSM	VSDM	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-1.81%	+0.39%
Max Drawdown (1Y) Largest decline over 1 year	-1.18%	-1.46%	+0.28%
Current Drawdown Current decline from peak	-0.14%	-0.27%	+0.13%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.32%	+0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.41%	-0.05%

Volatility

CGSM vs. VSDM - Volatility Comparison

Capital Group Short Duration Municipal Income ETF (CGSM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) have volatilities of 0.43% and 0.44%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGSM	VSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	0.44%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	0.98%	1.07%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	1.36%	-0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.79%	1.95%	-0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.79%	1.95%	-0.16%

CGSM vs. VSDM - Expense Ratio Comparison

CGSM has a 0.25% expense ratio, which is higher than VSDM's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

CGSM vs. VSDM - Dividend Comparison

CGSM's dividend yield for the trailing twelve months is around 2.99%, less than VSDM's 3.10% yield.

Position	TTM	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	2.99%	3.05%	3.11%	0.84%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.10%	3.06%	0.35%	0.00%

Frequently Asked Questions

Can I hold both CGSM and VSDM in my portfolio?

CGSM and VSDM have a correlation of 0.44, 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 VSDM?

VSDM has higher volatility (0.44%) compared to CGSM (0.43%). In terms of maximum drawdown, CGSM dropped -1.42% vs VSDM's -1.81%.

Which ETF is better, CGSM or VSDM?

On 1-year performance, VSDM leads with 4.92% vs 4.67% for CGSM. On fees, VSDM is cheaper at 0.12% 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, CGSM or VSDM?

Over the 1-year period, VSDM has performed better with a 4.92% return vs 4.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGSM or VSDM?

VSDM is cheaper with a 0.12% expense ratio, compared with 0.25% for CGSM.

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

VSDM has the higher dividend yield at 3.10%, compared with 2.99% for CGSM.

What is the main difference between CGSM and VSDM?

They also come from different issuers: Capital Group and Vanguard. Their fees differ too: 0.25% for CGSM and 0.12% for VSDM.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.64 vs 3.52), 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.