TMB vs. VGMS

Last updated Jun 5, 2026

TMB (Thornburg Multi Sector Bond ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both Multisector Bonds funds. Both are actively managed. Their correlation of 0.86 suggests significant overlap in exposure. TMB charges 0.55%/yr vs 0.30%/yr for VGMS.

Performance

TMB vs. VGMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Thornburg Multi Sector Bond ETF (TMB) and Vanguard Multi-Sector Income Bond ETF (VGMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

TMB

• 1D: 0.17%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGMS

• 1D: 0.23%
• 1M: 0.38%
• YTD: 1.29%
• 6M: 1.72%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TMB vs. VGMS - Yearly Performance Comparison

	2026 (YTD)
TMB Thornburg Multi Sector Bond ETF	0.34%
VGMS Vanguard Multi-Sector Income Bond ETF	0.25%

Correlation

The correlation between TMB and VGMS is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since May 27, 2026	0.86

Return for Risk

TMB vs. VGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Thornburg Multi Sector Bond ETF (TMB) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	TMB	VGMS	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	5.77	2.18	+3.59

Drawdowns

TMB vs. VGMS - Drawdown Comparison

The maximum TMB drawdown since its inception was -0.24%, smaller than the maximum VGMS drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for TMB and VGMS.

Drawdown Indicators

	TMB	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-0.24%	-2.46%	+2.22%
Current Drawdown Current decline from peak	-0.06%	-0.16%	+0.10%
Average Drawdown Average peak-to-trough decline	-0.06%	-0.31%	+0.25%

Volatility

Volatility by Period

	TMB	VGMS	Difference
Volatility (1Y) Calculated over the trailing 1-year period	2.46%	3.21%	-0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.46%	3.21%	-0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.46%	3.21%	-0.75%

TMB vs. VGMS - Expense Ratio Comparison

TMB has a 0.55% expense ratio, which is higher than VGMS's 0.30% expense ratio.

Dividends

TMB vs. VGMS - Dividend Comparison

TMB's dividend yield for the trailing twelve months is around 0.36%, less than VGMS's 5.15% yield.

Position	TTM	2025
TMB Thornburg Multi Sector Bond ETF	0.36%	0.00%
VGMS Vanguard Multi-Sector Income Bond ETF	5.15%	2.94%

Frequently Asked Questions

Can I hold both TMB and VGMS in my portfolio?

TMB and VGMS have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TMB 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, TMB or VGMS?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.55% for TMB.

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

VGMS has the higher dividend yield at 5.15%, compared with 0.36% for TMB.

What is the main difference between TMB and VGMS?

They also come from different issuers: Thornburg and Vanguard. Their fees differ too: 0.55% for TMB and 0.30% for VGMS.