VCRM vs. VGMS
VCRM (Vanguard Core Tax-Exempt Bond ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both exchange-traded funds - VCRM is a Municipal Bonds fund tracking the S&P Broad AMT-Free Municipal Bond Index, while VGMS is a Multisector Bonds fund actively managed by Vanguard. VCRM is passively managed, while VGMS is actively managed. A 0.50 correlation means they provide meaningful diversification when combined. VCRM charges 0.12%/yr vs 0.30%/yr for VGMS.
Performance
VCRM vs. VGMS - Performance Comparison
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Returns By Period
In the year-to-date period, VCRM achieves a 1.95% return, which is significantly higher than VGMS's 1.06% return.
VCRM
- 1D
- -0.06%
- 1M
- 0.74%
- YTD
- 1.95%
- 6M
- 2.36%
- 1Y
- 8.18%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VGMS
- 1D
- -0.36%
- 1M
- 0.29%
- YTD
- 1.06%
- 6M
- 1.35%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VCRM vs. VGMS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VCRM Vanguard Core Tax-Exempt Bond ETF | 1.95% | 5.76% |
VGMS Vanguard Multi-Sector Income Bond ETF | 1.06% | 5.44% |
Correlation
The correlation between VCRM and VGMS is 0.50, 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 | 0.50 |
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Return for Risk
VCRM vs. VGMS — Risk / Return Rank
VCRM
VGMS
VCRM vs. VGMS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Tax-Exempt Bond ETF (VCRM) 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.
| VCRM | VGMS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.59 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 3.02 | — | — |
| Martin ratioReturn relative to average drawdown | 11.19 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VCRM | VGMS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.70 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.07 | 2.11 | -1.04 |
Drawdowns
VCRM vs. VGMS - Drawdown Comparison
The maximum VCRM drawdown since its inception was -4.12%, which is greater than VGMS's maximum drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for VCRM and VGMS.
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Drawdown Indicators
| VCRM | VGMS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.12% | -2.46% | -1.66% |
Max Drawdown (1Y)Largest decline over 1 year | -2.72% | — | — |
Current DrawdownCurrent decline from peak | -0.26% | -0.39% | +0.13% |
Average DrawdownAverage peak-to-trough decline | -1.13% | -0.31% | -0.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | — | — |
Volatility
VCRM vs. VGMS - Volatility Comparison
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Volatility by Period
| VCRM | VGMS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.17% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 3.05% | 3.21% | -0.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.89% | 3.21% | +0.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.89% | 3.21% | +0.68% |
VCRM vs. VGMS - Expense Ratio Comparison
VCRM has a 0.12% expense ratio, which is lower than VGMS's 0.30% expense ratio.
Dividends
VCRM vs. VGMS - Dividend Comparison
VCRM's dividend yield for the trailing twelve months is around 3.64%, less than VGMS's 5.16% yield.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
VCRM Vanguard Core Tax-Exempt Bond ETF | 3.64% | 3.42% | 0.40% |
VGMS Vanguard Multi-Sector Income Bond ETF | 5.16% | 2.94% | 0.00% |
Frequently Asked Questions
VCRM and VGMS have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VCRM is cheaper at 0.12% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VCRM is cheaper with a 0.12% expense ratio, compared with 0.30% for VGMS.
VGMS has the higher dividend yield at 5.16%, compared with 3.64% for VCRM.
VCRM is categorized as Municipal Bonds, while VGMS is Multisector Bonds. Their fees differ too: 0.12% for VCRM and 0.30% for VGMS.
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