MUSI vs. GOVZ

Last updated Jun 3, 2026

MUSI (American Century Multisector Income ETF) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both exchange-traded funds - MUSI is a Multisector Bonds fund actively managed by American Century, while GOVZ is a Government Bonds fund tracking the ICE BofA Long US Treasury Principal STRIPS Index. MUSI is actively managed, while GOVZ is passively managed. Over the past 3 years, MUSI returned 6.37%/yr vs -7.28%/yr for GOVZ. A 0.62 correlation means they provide meaningful diversification when combined. MUSI charges 0.36%/yr vs 0.15%/yr for GOVZ.

Performance

MUSI vs. GOVZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Multisector Income ETF (MUSI) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUSI achieves a 0.80% return, which is significantly higher than GOVZ's -0.44% return.

MUSI

• 1D: 0.09%
• 1M: 0.13%
• YTD: 0.80%
• 6M: 1.02%
• 1Y: 6.20%
• 3Y*: 6.37%
• 5Y*: —
• 10Y*: —

GOVZ

• 1D: 0.45%
• 1M: 0.87%
• YTD: -0.44%
• 6M: -3.52%
• 1Y: 4.32%
• 3Y*: -7.28%
• 5Y*: -11.12%
• 10Y*: —

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

MUSI vs. GOVZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
MUSI American Century Multisector Income ETF	0.80%	8.32%	5.14%	7.51%	-10.33%	0.58%
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	-0.44%	-1.81%	-16.24%	0.90%	-41.03%	6.46%

Correlation

The correlation between MUSI and GOVZ is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jul 2, 2021	0.62

The correlation between MUSI and GOVZ has been stable across timeframes, ranging from 0.62 to 0.71 - a consistent structural relationship.

Return for Risk

MUSI vs. GOVZ — Risk / Return Rank

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

MUSI

MUSI Risk / Return Rank: 52
MUSI Sharpe Ratio Rank: 54
MUSI Sortino Ratio Rank: 59
MUSI Omega Ratio Rank: 56
MUSI Calmar Ratio Rank: 44
MUSI Martin Ratio Rank: 47

GOVZ

GOVZ Risk / Return Rank: 12
GOVZ Sharpe Ratio Rank: 13
GOVZ Sortino Ratio Rank: 12
GOVZ Omega Ratio Rank: 12
GOVZ Calmar Ratio Rank: 10
GOVZ Martin Ratio Rank: 10

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.

MUSI vs. GOVZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century Multisector Income ETF (MUSI) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.

	MUSI	GOVZ	Difference
Sharpe ratio Return per unit of total volatility	1.87	0.27	+1.60
Sortino ratio Return per unit of downside risk	2.81	0.50	+2.31
Omega ratio Gain probability vs. loss probability	1.35	1.06	+0.30
Calmar ratio Return relative to maximum drawdown	2.19	0.18	+2.00
Martin ratio Return relative to average drawdown	7.91	0.42	+7.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MUSI vs. GOVZ - Sharpe Ratio Comparison

The current MUSI Sharpe Ratio is 1.87, which is higher than the GOVZ Sharpe Ratio of 0.27. The chart below compares the historical Sharpe Ratios of MUSI and GOVZ, 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

	MUSI	GOVZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	0.27	+1.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.47	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	-0.58	+1.04

Drawdowns

MUSI vs. GOVZ - Drawdown Comparison

The maximum MUSI drawdown since its inception was -13.91%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for MUSI and GOVZ.

Drawdown Indicators

	MUSI	GOVZ	Difference
Max Drawdown Largest peak-to-trough decline	-13.91%	-59.65%	+45.74%
Max Drawdown (1Y) Largest decline over 1 year	-2.78%	-14.16%	+11.38%
Max Drawdown (3Y) Largest decline over 3 years	-4.16%	-28.72%	+24.56%
Max Drawdown (5Y) Largest decline over 5 years	—	-57.63%	—
Current Drawdown Current decline from peak	-0.95%	-56.25%	+55.30%
Average Drawdown Average peak-to-trough decline	-4.22%	-39.90%	+35.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	6.19%	-5.42%

Volatility

MUSI vs. GOVZ - Volatility Comparison

The current volatility for American Century Multisector Income ETF (MUSI) is 1.27%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 4.47%. This indicates that MUSI experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUSI	GOVZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.27%	4.47%	-3.20%
Volatility (6M) Calculated over the trailing 6-month period	2.60%	10.66%	-8.06%
Volatility (1Y) Calculated over the trailing 1-year period	3.34%	16.34%	-13.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.85%	23.93%	-19.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.85%	23.36%	-18.51%

MUSI vs. GOVZ - Expense Ratio Comparison

MUSI has a 0.36% expense ratio, which is higher than GOVZ's 0.15% expense ratio.

Dividends

MUSI vs. GOVZ - Dividend Comparison

MUSI's dividend yield for the trailing twelve months is around 5.14%, which matches GOVZ's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	5.15%	5.00%	4.68%	3.84%	3.69%	1.76%	0.39%
MUSI American Century Multisector Income ETF	5.14%	5.74%	6.00%	5.20%	4.02%	1.62%	0.00%

Frequently Asked Questions

Can I hold both MUSI and GOVZ in my portfolio?

MUSI and GOVZ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUSI or GOVZ?

GOVZ has higher volatility (4.47%) compared to MUSI (1.27%). In terms of maximum drawdown, MUSI dropped -13.91% vs GOVZ's -59.65%.

Which ETF is better, MUSI or GOVZ?

On 3-year performance, MUSI leads with 6.37% vs -7.28% for GOVZ. On fees, GOVZ is cheaper at 0.15% per year. On volatility, MUSI has been the lower-risk option at 1.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MUSI or GOVZ?

Over the 3-year period, MUSI has performed better with a 6.37% return vs -7.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MUSI or GOVZ?

GOVZ is cheaper with a 0.15% expense ratio, compared with 0.36% for MUSI.

Which ETF pays a higher dividend yield, MUSI or GOVZ?

MUSI and GOVZ have nearly identical dividend yields, around 5.14%.

What is the main difference between MUSI and GOVZ?

MUSI is categorized as Multisector Bonds, while GOVZ is Government Bonds. They also come from different issuers: American Century and iShares. Their fees differ too: 0.36% for MUSI and 0.15% for GOVZ.

Which has better risk-adjusted returns?

MUSI currently has the higher Sharpe Ratio (1.87 vs 0.27), 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.