PSDM vs. VGMS

Last updated Jun 4, 2026

PSDM (PGIM Short Duration Multi-Sector Bond ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both Multisector Bonds funds. Both are actively managed. A 0.72 correlation means they provide meaningful diversification when combined. PSDM charges 0.40%/yr vs 0.30%/yr for VGMS.

Performance

PSDM vs. VGMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Short Duration Multi-Sector Bond ETF (PSDM) and Vanguard Multi-Sector Income Bond ETF (VGMS). 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 VGMS's 1.06% return.

PSDM

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

VGMS

• 1D: -0.36%
• 1M: 0.29%
• YTD: 1.06%
• 6M: 1.35%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PSDM vs. VGMS - Yearly Performance Comparison

	2026 (YTD)	2025
PSDM PGIM Short Duration Multi-Sector Bond ETF	1.23%	3.59%
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%

Correlation

The correlation between PSDM and VGMS is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.72

Return for Risk

PSDM vs. VGMS — 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

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. VGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Short Duration Multi-Sector Bond ETF (PSDM) and Vanguard Multi-Sector Income Bond ETF (VGMS). 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	VGMS	Difference
Sharpe ratio: Return per unit of total volatility	2.96	—	—
Sortino ratio: Return per unit of downside risk	5.06	—	—
Omega ratio: Gain probability vs. loss probability	1.64	—	—
Calmar ratio: Return relative to maximum drawdown	4.35	—	—
Martin ratio: Return relative to average drawdown	19.69	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	PSDM	VGMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.96	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.97	2.11	+0.86

Drawdowns

PSDM vs. VGMS - Drawdown Comparison

The maximum PSDM drawdown since its inception was -1.19%, smaller than the maximum VGMS drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for PSDM and VGMS.

Drawdown Indicators

	PSDM	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-1.19%	-2.46%	+1.27%
Max Drawdown (1Y) Largest decline over 1 year	-1.19%	—	—
Current Drawdown Current decline from peak	-0.16%	-0.39%	+0.23%
Average Drawdown Average peak-to-trough decline	-0.17%	-0.31%	+0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.26%	—	—

Volatility

Volatility by Period

	PSDM	VGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.53%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.28%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	3.21%	-1.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.01%	3.21%	-1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.01%	3.21%	-1.20%

PSDM vs. VGMS - Expense Ratio Comparison

PSDM has a 0.40% expense ratio, which is higher than VGMS's 0.30% expense ratio.

Dividends

PSDM vs. VGMS - Dividend Comparison

PSDM's dividend yield for the trailing twelve months is around 4.85%, less than VGMS's 5.16% yield.

Position	TTM	2025	2024	2023
PSDM PGIM Short Duration Multi-Sector Bond ETF	4.85%	4.57%	5.17%	2.91%
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSDM and VGMS in my portfolio?

PSDM and VGMS have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PSDM or VGMS?

On fees, VGMS is cheaper at 0.30% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PSDM or VGMS?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.40% for PSDM.

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

VGMS has the higher dividend yield at 5.16%, compared with 4.85% for PSDM.

What is the main difference between PSDM and VGMS?

They also come from different issuers: PGIM and Vanguard. Their fees differ too: 0.40% for PSDM and 0.30% for VGMS.