PSDM vs. CGMS

Last updated Jun 4, 2026

PSDM (PGIM Short Duration Multi-Sector Bond ETF) and CGMS (Capital Group U.S. Multi-Sector Income ETF) are both Multisector Bonds funds. Both are actively managed. Over the past year, PSDM returned 5.16% vs 7.10% for CGMS. A 0.70 correlation means they provide meaningful diversification when combined. PSDM charges 0.40%/yr vs 0.39%/yr for CGMS.

Performance

PSDM vs. CGMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Short Duration Multi-Sector Bond ETF (PSDM) and Capital Group U.S. Multi-Sector Income ETF (CGMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSDM achieves a 1.23% return, which is significantly lower than CGMS's 1.54% return.

PSDM

• 1D: -0.10%
• 1M: 0.20%
• YTD: 1.23%
• 6M: 1.61%
• 1Y: 5.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CGMS

• 1D: -0.25%
• 1M: 0.56%
• YTD: 1.54%
• 6M: 1.68%
• 1Y: 7.10%
• 3Y*: 7.92%
• 5Y*: —
• 10Y*: —

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

PSDM vs. CGMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PSDM PGIM Short Duration Multi-Sector Bond ETF	1.23%	6.16%	5.48%	3.96%
CGMS Capital Group U.S. Multi-Sector Income ETF	1.54%	7.52%	7.24%	5.82%

Correlation

The correlation between PSDM and CGMS is 0.75, 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	0.75
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.70

The correlation between PSDM and CGMS has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

Return for Risk

PSDM vs. CGMS — Risk / Return Rank

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

PSDM

PSDM Risk / Return Rank: 89
PSDM Sharpe Ratio Rank: 88
PSDM Sortino Ratio Rank: 94
PSDM Omega Ratio Rank: 93
PSDM Calmar Ratio Rank: 82
PSDM Martin Ratio Rank: 88

CGMS

CGMS Risk / Return Rank: 63
CGMS Sharpe Ratio Rank: 60
CGMS Sortino Ratio Rank: 67
CGMS Omega Ratio Rank: 64
CGMS Calmar Ratio Rank: 57
CGMS Martin Ratio Rank: 69

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.

PSDM vs. CGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Short Duration Multi-Sector Bond ETF (PSDM) and Capital Group U.S. Multi-Sector Income ETF (CGMS). 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.

	PSDM	CGMS	Difference
Sharpe ratio Return per unit of total volatility	2.96	2.08	+0.88
Sortino ratio Return per unit of downside risk	5.06	3.14	+1.92
Omega ratio Gain probability vs. loss probability	1.64	1.39	+0.25
Calmar ratio Return relative to maximum drawdown	4.35	2.88	+1.47
Martin ratio Return relative to average drawdown	19.69	12.89	+6.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSDM vs. CGMS - Sharpe Ratio Comparison

The current PSDM Sharpe Ratio is 2.96, which is higher than the CGMS Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of PSDM and CGMS, 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

	PSDM	CGMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.96	2.08	+0.88
Sharpe Ratio (All Time) Calculated using the full available price history	2.97	1.66	+1.31

Drawdowns

PSDM vs. CGMS - Drawdown Comparison

The maximum PSDM drawdown since its inception was -1.19%, smaller than the maximum CGMS drawdown of -4.08%. Use the drawdown chart below to compare losses from any high point for PSDM and CGMS.

Drawdown Indicators

	PSDM	CGMS	Difference
Max Drawdown Largest peak-to-trough decline	-1.19%	-4.08%	+2.89%
Max Drawdown (1Y) Largest decline over 1 year	-1.19%	-2.47%	+1.28%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.08%	—
Current Drawdown Current decline from peak	-0.16%	-0.25%	+0.09%
Average Drawdown Average peak-to-trough decline	-0.17%	-0.67%	+0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.26%	0.55%	-0.29%

Volatility

PSDM vs. CGMS - Volatility Comparison

The current volatility for PGIM Short Duration Multi-Sector Bond ETF (PSDM) is 0.53%, while Capital Group U.S. Multi-Sector Income ETF (CGMS) has a volatility of 1.15%. This indicates that PSDM experiences smaller price fluctuations and is considered to be less risky than CGMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSDM	CGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.53%	1.15%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	1.28%	2.66%	-1.38%
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	3.43%	-1.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.01%	5.13%	-3.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.01%	5.13%	-3.12%

PSDM vs. CGMS - Expense Ratio Comparison

PSDM has a 0.40% expense ratio, which is higher than CGMS's 0.39% expense ratio.

Dividends

PSDM vs. CGMS - Dividend Comparison

PSDM's dividend yield for the trailing twelve months is around 4.85%, less than CGMS's 6.09% yield.

Position	TTM	2025	2024	2023	2022
CGMS Capital Group U.S. Multi-Sector Income ETF	6.09%	6.00%	5.91%	5.84%	0.97%
PSDM PGIM Short Duration Multi-Sector Bond ETF	4.85%	4.57%	5.17%	2.91%	0.00%

Frequently Asked Questions

Can I hold both PSDM and CGMS in my portfolio?

PSDM and CGMS have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSDM or CGMS?

CGMS has higher volatility (1.15%) compared to PSDM (0.53%). In terms of maximum drawdown, PSDM dropped -1.19% vs CGMS's -4.08%.

Which ETF is better, PSDM or CGMS?

On 1-year performance, CGMS leads with 7.10% vs 5.16% for PSDM. On fees, CGMS is cheaper at 0.39% per year. On volatility, PSDM has been the lower-risk option at 0.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSDM or CGMS?

Over the 1-year period, CGMS has performed better with a 7.10% return vs 5.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSDM or CGMS?

CGMS is cheaper with a 0.39% expense ratio, compared with 0.40% for PSDM.

Which ETF pays a higher dividend yield, PSDM or CGMS?

CGMS has the higher dividend yield at 6.09%, compared with 4.85% for PSDM.

What is the main difference between PSDM and CGMS?

They also come from different issuers: PGIM and Capital Group. Their fees differ too: 0.40% for PSDM and 0.39% for CGMS.

Which has better risk-adjusted returns?

PSDM currently has the higher Sharpe Ratio (2.96 vs 2.08), 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.