VCRB vs. CGSM

Last updated Jun 5, 2026

VCRB (Vanguard Core Bond ETF) and CGSM (Capital Group Short Duration Municipal Income ETF) are both exchange-traded funds - VCRB is a Intermediate Core Bond fund actively managed by Vanguard, while CGSM is a Municipal Bonds fund actively managed by Capital Group. Both are actively managed. Over the past year, VCRB returned 5.07% vs 4.67% for CGSM. A 0.54 correlation means they provide meaningful diversification when combined. VCRB charges 0.10%/yr vs 0.25%/yr for CGSM.

Performance

VCRB vs. CGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core Bond ETF (VCRB) and Capital Group Short Duration Municipal Income ETF (CGSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCRB achieves a 0.58% return, which is significantly lower than CGSM's 1.37% return.

VCRB

• 1D: 0.12%
• 1M: 0.29%
• YTD: 0.58%
• 6M: 0.63%
• 1Y: 5.07%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CGSM

• 1D: 0.08%
• 1M: 0.46%
• YTD: 1.37%
• 6M: 1.64%
• 1Y: 4.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VCRB vs. CGSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VCRB Vanguard Core Bond ETF	0.58%	7.56%	2.21%	0.65%
CGSM Capital Group Short Duration Municipal Income ETF	1.37%	4.58%	3.71%	0.50%

Correlation

The correlation between VCRB and CGSM is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Dec 15, 2023	0.54

The correlation between VCRB and CGSM shifts across timeframes, from 0.36 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VCRB vs. CGSM — Risk / Return Rank

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

VCRB

VCRB Risk / Return Rank: 39
VCRB Sharpe Ratio Rank: 40
VCRB Sortino Ratio Rank: 41
VCRB Omega Ratio Rank: 38
VCRB Calmar Ratio Rank: 40
VCRB Martin Ratio Rank: 38

CGSM

CGSM Risk / Return Rank: 87
CGSM Sharpe Ratio Rank: 94
CGSM Sortino Ratio Rank: 96
CGSM Omega Ratio Rank: 96
CGSM Calmar Ratio Rank: 79
CGSM Martin Ratio Rank: 71

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.

VCRB vs. CGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Bond ETF (VCRB) and Capital Group Short Duration Municipal Income ETF (CGSM). 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.

	VCRB	CGSM	Difference
Sharpe ratio: Return per unit of total volatility	1.40	3.52	-2.12
Sortino ratio: Return per unit of downside risk	2.07	5.44	-3.37
Omega ratio: Gain probability vs. loss probability	1.24	1.82	-0.57
Calmar ratio: Return relative to maximum drawdown	1.93	3.98	-2.05
Martin ratio: Return relative to average drawdown	5.77	13.02	-7.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCRB vs. CGSM - Sharpe Ratio Comparison

The current VCRB Sharpe Ratio is 1.40, which is lower than the CGSM Sharpe Ratio of 3.52. The chart below compares the historical Sharpe Ratios of VCRB and CGSM, 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

	VCRB	CGSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	3.52	-2.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.94	2.89	-1.95

Drawdowns

VCRB vs. CGSM - Drawdown Comparison

The maximum VCRB drawdown since its inception was -4.59%, which is greater than CGSM's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for VCRB and CGSM.

Drawdown Indicators

	VCRB	CGSM	Difference
Max Drawdown Largest peak-to-trough decline	-4.59%	-1.42%	-3.17%
Max Drawdown (1Y) Largest decline over 1 year	-2.63%	-1.18%	-1.45%
Current Drawdown Current decline from peak	-1.28%	-0.14%	-1.14%
Average Drawdown Average peak-to-trough decline	-1.16%	-0.24%	-0.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.36%	+0.52%

Volatility

VCRB vs. CGSM - Volatility Comparison

Vanguard Core Bond ETF (VCRB) has a higher volatility of 1.17% compared to Capital Group Short Duration Municipal Income ETF (CGSM) at 0.43%. This indicates that VCRB's price experiences larger fluctuations and is considered to be riskier than CGSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCRB	CGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.17%	0.43%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	2.61%	0.98%	+1.63%
Volatility (1Y) Calculated over the trailing 1-year period	3.69%	1.33%	+2.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.74%	1.79%	+2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.74%	1.79%	+2.95%

VCRB vs. CGSM - Expense Ratio Comparison

VCRB has a 0.10% expense ratio, which is lower than CGSM's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VCRB vs. CGSM - Dividend Comparison

VCRB's dividend yield for the trailing twelve months is around 4.60%, more than CGSM's 2.99% yield.

Position	TTM	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	2.99%	3.05%	3.11%	0.84%
VCRB Vanguard Core Bond ETF	4.60%	4.55%	4.22%	0.16%

Frequently Asked Questions

Can I hold both VCRB and CGSM in my portfolio?

VCRB and CGSM have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCRB or CGSM?

VCRB has higher volatility (1.17%) compared to CGSM (0.43%). In terms of maximum drawdown, VCRB dropped -4.59% vs CGSM's -1.42%.

Which ETF is better, VCRB or CGSM?

On 1-year performance, VCRB leads with 5.07% vs 4.67% for CGSM. On fees, VCRB is cheaper at 0.10% per year. On volatility, CGSM has been the lower-risk option at 0.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCRB or CGSM?

Over the 1-year period, VCRB has performed better with a 5.07% return vs 4.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCRB or CGSM?

VCRB is cheaper with a 0.10% expense ratio, compared with 0.25% for CGSM.

Which ETF pays a higher dividend yield, VCRB or CGSM?

VCRB has the higher dividend yield at 4.60%, compared with 2.99% for CGSM.

What is the main difference between VCRB and CGSM?

VCRB is categorized as Intermediate Core Bond, while CGSM is Municipal Bonds. They also come from different issuers: Vanguard and Capital Group. Their fees differ too: 0.10% for VCRB and 0.25% for CGSM.

Which has better risk-adjusted returns?

CGSM currently has the higher Sharpe Ratio (3.52 vs 1.40), 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.