CGSM vs. VYM

Last updated Jun 24, 2026

CGSM (Capital Group Short Duration Municipal Income ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - CGSM is a Municipal Bonds fund actively managed by Capital Group, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. CGSM is actively managed, while VYM is passively managed. Over the past year, CGSM returned 4.24% vs 24.08% for VYM. At a 0.14 correlation, their price movements are largely independent. CGSM charges 0.25%/yr vs 0.04%/yr for VYM.

Performance

CGSM vs. VYM - 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 High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CGSM achieves a 1.42% return, which is significantly lower than VYM's 11.51% return.

CGSM

• 1D: 0.05%
• 1M: 0.70%
• YTD: 1.42%
• 6M: 1.52%
• 1Y: 4.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VYM

• 1D: -0.16%
• 1M: 0.26%
• YTD: 11.51%
• 6M: 10.83%
• 1Y: 24.08%
• 3Y*: 18.41%
• 5Y*: 11.88%
• 10Y*: 11.98%

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

CGSM vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	1.42%	4.58%	3.71%	4.06%
VYM Vanguard High Dividend Yield ETF	11.51%	15.42%	17.60%	8.86%

Correlation

The correlation between CGSM and VYM is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (All Time) Calculated using the full available price history since Sep 28, 2023	0.14

Return for Risk

CGSM vs. VYM — Risk / Return Rank

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

CGSM

CGSM Risk / Return Rank: 86
CGSM Sharpe Ratio Rank: 93
CGSM Sortino Ratio Rank: 95
CGSM Omega Ratio Rank: 95
CGSM Calmar Ratio Rank: 76
CGSM Martin Ratio Rank: 68

VYM

VYM Risk / Return Rank: 75
VYM Sharpe Ratio Rank: 76
VYM Sortino Ratio Rank: 79
VYM Omega Ratio Rank: 75
VYM Calmar Ratio Rank: 73
VYM Martin Ratio Rank: 74

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. VYM - 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 High Dividend Yield ETF (VYM). 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	VYM	Difference
Sharpe ratio: Return per unit of total volatility	3.20	2.33	+0.87
Sortino ratio: Return per unit of downside risk	4.87	3.33	+1.54
Omega ratio: Gain probability vs. loss probability	1.72	1.42	+0.30
Calmar ratio: Return relative to maximum drawdown	3.62	3.61	0.00
Martin ratio: Return relative to average drawdown	11.72	13.43	-1.71

CGSM vs. VYM - Sharpe Ratio Comparison

The current CGSM Sharpe Ratio is 3.20, which is higher than the VYM Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of CGSM and VYM, 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. VYM - Drawdown Comparison

The maximum CGSM drawdown since its inception was -1.42%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for CGSM and VYM.

Drawdown Indicators

	CGSM	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-56.98%	+55.56%
Max Drawdown (1Y) Largest decline over 1 year	-1.18%	-6.69%	+5.51%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.84%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.21%	—
Current Drawdown Current decline from peak	-0.10%	-1.28%	+1.18%
Average Drawdown Average peak-to-trough decline	-0.24%	-7.18%	+6.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	1.80%	-1.44%

Volatility

CGSM vs. VYM - Volatility Comparison

The current volatility for Capital Group Short Duration Municipal Income ETF (CGSM) is 0.32%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 3.02%. This indicates that CGSM experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CGSM	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.32%	3.02%	-2.70%
Volatility (6M) Calculated over the trailing 6-month period	0.98%	7.64%	-6.66%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	10.39%	-9.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.78%	13.93%	-12.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.78%	16.32%	-14.54%

CGSM vs. VYM - Expense Ratio Comparison

CGSM has a 0.25% expense ratio, which is higher than VYM's 0.04% 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. VYM - Dividend Comparison

CGSM's dividend yield for the trailing twelve months is around 2.99%, more than VYM's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CGSM Capital Group Short Duration Municipal Income ETF	2.99%	3.05%	3.11%	0.84%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VYM Vanguard High Dividend Yield ETF	2.30%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both CGSM and VYM in my portfolio?

CGSM and VYM have a correlation of 0.19, 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 VYM?

VYM has higher volatility (3.02%) compared to CGSM (0.32%). In terms of maximum drawdown, CGSM dropped -1.42% vs VYM's -56.98%.

Which ETF is better, CGSM or VYM?

On 1-year performance, VYM leads with 24.08% vs 4.24% for CGSM. On fees, VYM is cheaper at 0.04% per year. On volatility, CGSM has been the lower-risk option at 0.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGSM or VYM?

Over the 1-year period, VYM has performed better with a 24.08% return vs 4.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGSM or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.25% for CGSM.

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

CGSM has the higher dividend yield at 2.99%, compared with 2.30% for VYM.

What is the main difference between CGSM and VYM?

CGSM is categorized as Municipal Bonds, while VYM is Dividend. They also come from different issuers: Capital Group and Vanguard. Their fees differ too: 0.25% for CGSM and 0.04% for VYM.

Which has better risk-adjusted returns?

CGSM currently has the higher Sharpe Ratio (3.20 vs 2.33), 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.