VGMS vs. DBO

Last updated Aug 1, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and DBO (Invesco DB Oil Fund) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while DBO is a Oil & Gas fund tracking the DBIQ Optimum Yield Crude Oil Index Excess Return. VGMS is actively managed, while DBO is passively managed. Over the past year, VGMS returned 4.87% vs 60.30% for DBO. Their -0.37 correlation means they have often moved in opposite directions in the past. VGMS charges 0.30%/yr vs 0.78%/yr for DBO.

Performance

VGMS vs. DBO - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.17% return, which is significantly lower than DBO's 76.48% return.

VGMS

• 1D: 0.01%
• 1M: -0.55%
• 6M: 0.55%
• YTD: 1.17%
• 1Y: 4.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.92%

DBO

• 1D: 1.56%
• 1M: 24.59%
• 6M: 53.46%
• YTD: 76.48%
• 1Y: 60.30%
• 3Y*: 14.86%
• 5Y*: 13.46%
• 10Y*: 12.59%
• ALL TIME*: 0.52%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DBO Invesco DB Oil Fund	$11.01M	$10.23M	$13.95M
VGMS Vanguard Multi-Sector Income Bond ETF	$2.48M	$2.33M	$2.03M

VGMS vs. DBO - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.17%	5.51%
DBO Invesco DB Oil Fund	76.48%	-3.63%

Correlation

The correlation between VGMS and DBO is -0.38, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.38
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	-0.37

Return for Risk

VGMS vs. DBO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGMS

VGMS Risk / Return Rank: 70
VGMS Sharpe Ratio Rank: 70
VGMS Sortino Ratio Rank: 74
VGMS Omega Ratio Rank: 72
VGMS Calmar Ratio Rank: 60
VGMS Martin Ratio Rank: 75

DBO

DBO Risk / Return Rank: 58
DBO Sharpe Ratio Rank: 62
DBO Sortino Ratio Rank: 61
DBO Omega Ratio Rank: 57
DBO Calmar Ratio Rank: 57
DBO Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGMS vs. DBO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Invesco DB Oil Fund (DBO). 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	DBO	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.45	+0.15
Sortino ratio: Return per unit of downside risk	2.35	2.05	+0.30
Omega ratio: Gain probability vs. loss probability	1.30	1.25	+0.05
Calmar ratio: Return relative to maximum drawdown	2.10	2.01	+0.10
Martin ratio: Return relative to average drawdown	9.26	6.09	+3.17

VGMS vs. DBO - Sharpe Ratio Comparison

The current VGMS Sharpe Ratio is 1.60, which is comparable to the DBO Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of VGMS and DBO, 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. DBO - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum DBO drawdown of -90.18%. Use the drawdown chart below to compare losses from any high point for VGMS and DBO.

Drawdown Indicators

	VGMS	DBO	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-90.18%	+87.72%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-27.73%	+25.27%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.20%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-37.68%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-61.69%	—
Current Drawdown Current decline from peak	-0.71%	-53.56%	+52.85%
Average Drawdown Average peak-to-trough decline	-0.31%	-62.20%	+61.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.56%	9.96%	-9.40%

Volatility

VGMS vs. DBO - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond ETF (VGMS) is 0.74%, while Invesco DB Oil Fund (DBO) has a volatility of 17.75%. This indicates that VGMS experiences smaller price fluctuations and is considered to be less risky than DBO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGMS	DBO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.74%	17.75%	-17.01%
Volatility (6M) Calculated over the trailing 6-month period	2.70%	33.77%	-31.07%
Volatility (1Y) Calculated over the trailing 1-year period	3.24%	38.53%	-35.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.17%	33.35%	-30.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.17%	32.20%	-29.03%

VGMS vs. DBO - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than DBO's 0.78% expense ratio.

Dividends

VGMS vs. DBO - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.40%, more than DBO's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
DBO Invesco DB Oil Fund	1.99%	3.51%	4.68%	4.59%	0.66%	0.00%	0.00%	1.63%	1.58%
VGMS Vanguard Multi-Sector Income Bond ETF	4.96%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGMS and DBO in my portfolio?

VGMS and DBO have a correlation of -0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGMS or DBO?

DBO has higher volatility (17.75%) compared to VGMS (0.74%). In terms of maximum drawdown, VGMS dropped -2.46% vs DBO's -90.18%.

Which ETF is better, VGMS or DBO?

On 1-year performance, DBO leads with 60.30% vs 4.87% for VGMS. On fees, VGMS is cheaper at 0.30% per year. On volatility, VGMS has been the lower-risk option at 0.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGMS or DBO?

Over the 1-year period, DBO has performed better with a 60.30% return vs 4.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGMS or DBO?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.78% for DBO.

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

VGMS has the higher dividend yield at 4.96%, compared with 1.99% for DBO.

What is the main difference between VGMS and DBO?

VGMS is categorized as Multisector Bonds, while DBO is Oil & Gas. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.30% for VGMS and 0.78% for DBO.

Which has better risk-adjusted returns?

VGMS currently has the higher Sharpe Ratio (1.60 vs 1.45), 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.