TMSF vs. VGMS

Last updated Jun 5, 2026

TMSF (T. Rowe Price Multi-Sector Income ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both Multisector Bonds funds. Both are actively managed. A 0.69 correlation means they provide meaningful diversification when combined. TMSF charges 0.37%/yr vs 0.30%/yr for VGMS.

Performance

TMSF vs. VGMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Multi-Sector Income ETF (TMSF) 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, TMSF achieves a 1.75% return, which is significantly higher than VGMS's 1.29% return.

TMSF

• 1D: 0.04%
• 1M: 0.52%
• YTD: 1.75%
• 6M: 2.39%
• 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)

TMSF vs. VGMS - Yearly Performance Comparison

	2026 (YTD)	2025
TMSF T. Rowe Price Multi-Sector Income ETF	1.75%	1.29%
VGMS Vanguard Multi-Sector Income Bond ETF	1.29%	1.23%

Correlation

The correlation between TMSF and VGMS 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 (All Time) Calculated using the full available price history since Nov 21, 2025	0.69

Return for Risk

TMSF vs. VGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Multi-Sector Income ETF (TMSF) 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

	TMSF	VGMS	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	2.01	2.18	-0.16

Drawdowns

TMSF vs. VGMS - Drawdown Comparison

The maximum TMSF drawdown since its inception was -2.28%, smaller than the maximum VGMS drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for TMSF and VGMS.

Drawdown Indicators

	TMSF	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-2.28%	-2.46%	+0.18%
Current Drawdown Current decline from peak	-0.21%	-0.16%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.38%	-0.31%	-0.07%

Volatility

Volatility by Period

	TMSF	VGMS	Difference
Volatility (1Y) Calculated over the trailing 1-year period	2.93%	3.21%	-0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.93%	3.21%	-0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.93%	3.21%	-0.28%

TMSF vs. VGMS - Expense Ratio Comparison

TMSF has a 0.37% expense ratio, which is higher than VGMS's 0.30% expense ratio.

Dividends

TMSF vs. VGMS - Dividend Comparison

TMSF's dividend yield for the trailing twelve months is around 3.06%, less than VGMS's 5.15% yield.

Position	TTM	2025
TMSF T. Rowe Price Multi-Sector Income ETF	3.06%	0.75%
VGMS Vanguard Multi-Sector Income Bond ETF	5.15%	2.94%

Frequently Asked Questions

Can I hold both TMSF and VGMS in my portfolio?

TMSF and VGMS 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 ETF is better, TMSF 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, TMSF or VGMS?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.37% for TMSF.

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

VGMS has the higher dividend yield at 5.15%, compared with 3.06% for TMSF.

What is the main difference between TMSF and VGMS?

They also come from different issuers: T. Rowe Price and Vanguard. Their fees differ too: 0.37% for TMSF and 0.30% for VGMS.