FLMI vs. CGSM

Last updated Jun 24, 2026

FLMI (Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF) and CGSM (Capital Group Short Duration Municipal Income ETF) are both Municipal Bonds funds. Both are actively managed. Over the past year, FLMI returned 7.87% vs 4.24% for CGSM. A 0.56 correlation means they provide meaningful diversification when combined. FLMI charges 0.30%/yr vs 0.25%/yr for CGSM.

Performance

FLMI vs. CGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (FLMI) 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, FLMI achieves a 2.47% return, which is significantly higher than CGSM's 1.42% return.

FLMI

• 1D: -0.04%
• 1M: 1.42%
• YTD: 2.47%
• 6M: 2.68%
• 1Y: 7.87%
• 3Y*: 5.72%
• 5Y*: 2.17%
• 10Y*: —

CGSM

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

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

FLMI vs. CGSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FLMI Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF	2.47%	5.89%	4.91%	6.92%
CGSM Capital Group Short Duration Municipal Income ETF	1.42%	4.58%	3.71%	4.06%

Correlation

The correlation between FLMI and CGSM is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (All Time) Calculated using the full available price history since Sep 28, 2023	0.56

The correlation between FLMI and CGSM has been stable across timeframes, ranging from 0.52 to 0.56 - a consistent structural relationship.

Return for Risk

FLMI vs. CGSM — Risk / Return Rank

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

FLMI

FLMI Risk / Return Rank: 78
FLMI Sharpe Ratio Rank: 87
FLMI Sortino Ratio Rank: 91
FLMI Omega Ratio Rank: 93
FLMI Calmar Ratio Rank: 59
FLMI Martin Ratio Rank: 58

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

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.

FLMI vs. CGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (FLMI) 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.

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.

	FLMI	CGSM	Difference
Sharpe ratio: Return per unit of total volatility	2.70	3.20	-0.51
Sortino ratio: Return per unit of downside risk	4.10	4.87	-0.77
Omega ratio: Gain probability vs. loss probability	1.61	1.72	-0.11
Calmar ratio: Return relative to maximum drawdown	2.73	3.62	-0.89
Martin ratio: Return relative to average drawdown	9.81	11.72	-1.91

FLMI vs. CGSM - Sharpe Ratio Comparison

The current FLMI Sharpe Ratio is 2.70, which is comparable to the CGSM Sharpe Ratio of 3.20. The chart below compares the historical Sharpe Ratios of FLMI 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.

Drawdowns

FLMI vs. CGSM - Drawdown Comparison

The maximum FLMI drawdown since its inception was -14.66%, which is greater than CGSM's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for FLMI and CGSM.

Drawdown Indicators

	FLMI	CGSM	Difference
Max Drawdown Largest peak-to-trough decline	-14.66%	-1.42%	-13.24%
Max Drawdown (1Y) Largest decline over 1 year	-2.90%	-1.18%	-1.72%
Max Drawdown (3Y) Largest decline over 3 years	-5.31%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-14.66%	—	—
Current Drawdown Current decline from peak	-0.17%	-0.10%	-0.07%
Average Drawdown Average peak-to-trough decline	-2.81%	-0.24%	-2.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.36%	+0.44%

Volatility

FLMI vs. CGSM - Volatility Comparison

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (FLMI) has a higher volatility of 0.67% compared to Capital Group Short Duration Municipal Income ETF (CGSM) at 0.32%. This indicates that FLMI's price experiences larger fluctuations and is considered to be riskier than CGSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLMI	CGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	0.32%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	2.06%	0.98%	+1.08%
Volatility (1Y) Calculated over the trailing 1-year period	2.93%	1.33%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.43%	1.78%	+2.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.71%	1.78%	+2.93%

FLMI vs. CGSM - Expense Ratio Comparison

FLMI has a 0.30% expense ratio, which is higher than CGSM's 0.25% expense ratio.

Dividends

FLMI vs. CGSM - Dividend Comparison

FLMI's dividend yield for the trailing twelve months is around 3.87%, more than CGSM's 2.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
FLMI Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF	3.87%	3.89%	4.08%	3.71%	3.08%	2.22%	2.09%	2.71%	2.41%	0.34%

Frequently Asked Questions

Can I hold both FLMI and CGSM in my portfolio?

FLMI and CGSM have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLMI or CGSM?

FLMI has higher volatility (0.67%) compared to CGSM (0.32%). In terms of maximum drawdown, FLMI dropped -14.66% vs CGSM's -1.42%.

Which ETF is better, FLMI or CGSM?

On 1-year performance, FLMI leads with 7.87% vs 4.24% for CGSM. On fees, CGSM is cheaper at 0.25% 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, FLMI or CGSM?

Over the 1-year period, FLMI has performed better with a 7.87% return vs 4.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLMI or CGSM?

CGSM is cheaper with a 0.25% expense ratio, compared with 0.30% for FLMI.

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

FLMI has the higher dividend yield at 3.87%, compared with 2.99% for CGSM.

What is the main difference between FLMI and CGSM?

They also come from different issuers: Franklin Templeton and Capital Group. Their fees differ too: 0.30% for FLMI and 0.25% for CGSM.

Which has better risk-adjusted returns?

CGSM currently has the higher Sharpe Ratio (3.20 vs 2.70), 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.