VGMS vs. BLUI

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and BLUI (Bluemonte Diversified Income ETF) are both Multisector Bonds funds. A 0.74 correlation means they provide meaningful diversification when combined. VGMS charges 0.30%/yr vs 0.75%/yr for BLUI.

Performance

VGMS vs. BLUI - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.06% return, which is significantly lower than BLUI's 3.27% return.

VGMS

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

BLUI

• 1D: -0.19%
• 1M: 0.02%
• YTD: 3.27%
• 6M: 3.18%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGMS vs. BLUI - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	4.97%
BLUI Bluemonte Diversified Income ETF	3.27%	3.80%

Correlation

The correlation between VGMS and BLUI is 0.74, 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 24, 2025	0.74

Return for Risk

VGMS vs. BLUI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Bluemonte Diversified Income ETF (BLUI). 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

	VGMS	BLUI	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	1.97	+0.14

Drawdowns

VGMS vs. BLUI - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, roughly equal to the maximum BLUI drawdown of -2.43%. Use the drawdown chart below to compare losses from any high point for VGMS and BLUI.

Drawdown Indicators

	VGMS	BLUI	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-2.43%	-0.03%
Current Drawdown Current decline from peak	-0.39%	-0.43%	+0.04%
Average Drawdown Average peak-to-trough decline	-0.31%	-0.37%	+0.06%

Volatility

Volatility by Period

	VGMS	BLUI	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	3.89%	-0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	3.89%	-0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	3.89%	-0.68%

VGMS vs. BLUI - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than BLUI's 0.75% expense ratio.

Dividends

VGMS vs. BLUI - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, more than BLUI's 4.72% yield.

Position	TTM	2025
BLUI Bluemonte Diversified Income ETF	4.72%	2.91%
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%

Frequently Asked Questions

Can I hold both VGMS and BLUI in my portfolio?

VGMS and BLUI have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VGMS or BLUI?

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, VGMS or BLUI?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.75% for BLUI.

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

VGMS has the higher dividend yield at 5.16%, compared with 4.72% for BLUI.

What is the main difference between VGMS and BLUI?

They also come from different issuers: Vanguard and Bluemonte. Their fees differ too: 0.30% for VGMS and 0.75% for BLUI.