VGMS vs. CGMS

Last updated Jun 24, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and CGMS (Capital Group U.S. Multi-Sector Income ETF) are both Multisector Bonds funds. Both are actively managed. Over the past year, VGMS returned 6.52% vs 5.89% for CGMS. Their correlation of 0.90 suggests significant overlap in exposure. VGMS charges 0.30%/yr vs 0.39%/yr for CGMS.

Performance

VGMS vs. CGMS - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VGMS having a 1.48% return and CGMS slightly higher at 1.54%.

VGMS

• 1D: 0.17%
• 1M: 0.73%
• YTD: 1.48%
• 6M: 1.55%
• 1Y: 6.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CGMS

• 1D: 0.04%
• 1M: 0.38%
• YTD: 1.54%
• 6M: 1.60%
• 1Y: 5.89%
• 3Y*: 8.00%
• 5Y*: —
• 10Y*: —

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

VGMS vs. CGMS - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.48%	5.51%
CGMS Capital Group U.S. Multi-Sector Income ETF	1.54%	5.04%

Correlation

The correlation between VGMS and CGMS is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	0.90

The correlation between VGMS and CGMS has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

Return for Risk

VGMS vs. CGMS — Risk / Return Rank

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

VGMS

VGMS Risk / Return Rank: 66
VGMS Sharpe Ratio Rank: 65
VGMS Sortino Ratio Rank: 70
VGMS Omega Ratio Rank: 69
VGMS Calmar Ratio Rank: 58
VGMS Martin Ratio Rank: 69

CGMS

CGMS Risk / Return Rank: 54
CGMS Sharpe Ratio Rank: 51
CGMS Sortino Ratio Rank: 56
CGMS Omega Ratio Rank: 53
CGMS Calmar Ratio Rank: 50
CGMS Martin Ratio Rank: 62

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.

VGMS vs. CGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Capital Group U.S. Multi-Sector Income ETF (CGMS). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VGMS	CGMS	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.69	+0.32
Sortino ratio: Return per unit of downside risk	2.99	2.54	+0.45
Omega ratio: Gain probability vs. loss probability	1.39	1.32	+0.07
Calmar ratio: Return relative to maximum drawdown	2.66	2.39	+0.26
Martin ratio: Return relative to average drawdown	12.04	10.60	+1.44

VGMS vs. CGMS - Sharpe Ratio Comparison

The current VGMS Sharpe Ratio is 2.01, which is comparable to the CGMS Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of VGMS and CGMS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGMS vs. CGMS - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum CGMS drawdown of -4.08%. Use the drawdown chart below to compare losses from any high point for VGMS and CGMS.

Drawdown Indicators

	VGMS	CGMS	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-4.08%	+1.62%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-2.47%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.08%	—
Current Drawdown Current decline from peak	-0.18%	-0.40%	+0.22%
Average Drawdown Average peak-to-trough decline	-0.30%	-0.66%	+0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.54%	0.56%	-0.02%

Volatility

VGMS vs. CGMS - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond ETF (VGMS) is 1.06%, while Capital Group U.S. Multi-Sector Income ETF (CGMS) has a volatility of 1.12%. This indicates that VGMS experiences smaller price fluctuations and is considered to be less risky than CGMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGMS	CGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.06%	1.12%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	2.78%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	3.27%	3.50%	-0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.24%	5.12%	-1.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.24%	5.12%	-1.88%

VGMS vs. CGMS - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than CGMS's 0.39% expense ratio.

Dividends

VGMS vs. CGMS - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.14%, less than CGMS's 6.09% yield.

Position	TTM	2025	2024	2023	2022
CGMS Capital Group U.S. Multi-Sector Income ETF	6.09%	6.00%	5.91%	5.84%	0.97%
VGMS Vanguard Multi-Sector Income Bond ETF	5.14%	2.94%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGMS and CGMS in my portfolio?

With a correlation of 0.91, VGMS and CGMS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VGMS or CGMS?

CGMS has higher volatility (1.12%) compared to VGMS (1.06%). In terms of maximum drawdown, VGMS dropped -2.46% vs CGMS's -4.08%.

Which ETF is better, VGMS or CGMS?

On 1-year performance, VGMS leads with 6.52% vs 5.89% for CGMS. On fees, VGMS is cheaper at 0.30% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGMS or CGMS?

Over the 1-year period, VGMS has performed better with a 6.52% return vs 5.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGMS or CGMS?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.39% for CGMS.

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

CGMS has the higher dividend yield at 6.09%, compared with 5.14% for VGMS.

What is the main difference between VGMS and CGMS?

They also come from different issuers: Vanguard and Capital Group. Their fees differ too: 0.30% for VGMS and 0.39% for CGMS.

Which has better risk-adjusted returns?

VGMS currently has the higher Sharpe Ratio (2.01 vs 1.69), 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.