PSDM vs. MUSI

Last updated Jun 4, 2026

PSDM (PGIM Short Duration Multi-Sector Bond ETF) and MUSI (American Century Multisector Income ETF) are both Multisector Bonds funds. Both are actively managed. Over the past year, PSDM returned 5.16% vs 5.99% for MUSI. A 0.77 correlation means they provide meaningful diversification when combined. PSDM charges 0.40%/yr vs 0.36%/yr for MUSI.

Performance

PSDM vs. MUSI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Short Duration Multi-Sector Bond ETF (PSDM) and American Century Multisector Income ETF (MUSI). 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 higher than MUSI's 0.59% return.

PSDM

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

MUSI

• 1D: -0.20%
• 1M: 0.29%
• YTD: 0.59%
• 6M: 0.68%
• 1Y: 5.99%
• 3Y*: 6.30%
• 5Y*: —
• 10Y*: —

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

PSDM vs. MUSI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PSDM PGIM Short Duration Multi-Sector Bond ETF	1.23%	6.16%	5.48%	3.96%
MUSI American Century Multisector Income ETF	0.59%	8.32%	5.14%	4.54%

Correlation

The correlation between PSDM and MUSI is 0.77, 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	0.77
Correlation (All Time) Calculated using the full available price history since Jul 27, 2023	0.77

The correlation between PSDM and MUSI has been stable across timeframes, ranging from 0.77 to 0.77 - a consistent structural relationship.

Return for Risk

PSDM vs. MUSI — 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

MUSI

MUSI Risk / Return Rank: 51
MUSI Sharpe Ratio Rank: 53
MUSI Sortino Ratio Rank: 57
MUSI Omega Ratio Rank: 54
MUSI Calmar Ratio Rank: 44
MUSI Martin Ratio Rank: 47

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. MUSI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Short Duration Multi-Sector Bond ETF (PSDM) and American Century Multisector Income ETF (MUSI). 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	MUSI	Difference
Sharpe ratio Return per unit of total volatility	2.96	1.80	+1.16
Sortino ratio Return per unit of downside risk	5.06	2.71	+2.35
Omega ratio Gain probability vs. loss probability	1.64	1.34	+0.31
Calmar ratio Return relative to maximum drawdown	4.35	2.16	+2.20
Martin ratio Return relative to average drawdown	19.69	7.76	+11.94
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. MUSI - Sharpe Ratio Comparison

The current PSDM Sharpe Ratio is 2.96, which is higher than the MUSI Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of PSDM and MUSI, 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	MUSI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.96	1.80	+1.16
Sharpe Ratio (All Time) Calculated using the full available price history	2.97	0.45	+2.52

Drawdowns

PSDM vs. MUSI - Drawdown Comparison

The maximum PSDM drawdown since its inception was -1.19%, smaller than the maximum MUSI drawdown of -13.91%. Use the drawdown chart below to compare losses from any high point for PSDM and MUSI.

Drawdown Indicators

	PSDM	MUSI	Difference
Max Drawdown Largest peak-to-trough decline	-1.19%	-13.91%	+12.72%
Max Drawdown (1Y) Largest decline over 1 year	-1.19%	-2.78%	+1.59%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.16%	—
Current Drawdown Current decline from peak	-0.16%	-1.14%	+0.98%
Average Drawdown Average peak-to-trough decline	-0.17%	-4.22%	+4.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.26%	0.77%	-0.51%

Volatility

PSDM vs. MUSI - Volatility Comparison

The current volatility for PGIM Short Duration Multi-Sector Bond ETF (PSDM) is 0.53%, while American Century Multisector Income ETF (MUSI) has a volatility of 1.24%. This indicates that PSDM experiences smaller price fluctuations and is considered to be less risky than MUSI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSDM	MUSI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.53%	1.24%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	1.28%	2.60%	-1.32%
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	3.34%	-1.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.01%	4.85%	-2.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.01%	4.85%	-2.84%

PSDM vs. MUSI - Expense Ratio Comparison

PSDM has a 0.40% expense ratio, which is higher than MUSI's 0.36% expense ratio.

Dividends

PSDM vs. MUSI - Dividend Comparison

PSDM's dividend yield for the trailing twelve months is around 4.85%, less than MUSI's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021
MUSI American Century Multisector Income ETF	5.15%	5.74%	6.00%	5.20%	4.02%	1.62%
PSDM PGIM Short Duration Multi-Sector Bond ETF	4.85%	4.57%	5.17%	2.91%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSDM and MUSI in my portfolio?

PSDM and MUSI have a correlation of 0.77, 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 MUSI?

MUSI has higher volatility (1.24%) compared to PSDM (0.53%). In terms of maximum drawdown, PSDM dropped -1.19% vs MUSI's -13.91%.

Which ETF is better, PSDM or MUSI?

On 1-year performance, MUSI leads with 5.99% vs 5.16% for PSDM. On fees, MUSI is cheaper at 0.36% 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 MUSI?

Over the 1-year period, MUSI has performed better with a 5.99% 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 MUSI?

MUSI is cheaper with a 0.36% expense ratio, compared with 0.40% for PSDM.

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

MUSI has the higher dividend yield at 5.15%, compared with 4.85% for PSDM.

What is the main difference between PSDM and MUSI?

They also come from different issuers: PGIM and American Century. Their fees differ too: 0.40% for PSDM and 0.36% for MUSI.

Which has better risk-adjusted returns?

PSDM currently has the higher Sharpe Ratio (2.96 vs 1.80), 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.