VGMS vs. MUSI

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and MUSI (American Century Multisector Income ETF) are both Multisector Bonds funds. Both are actively managed. Their correlation of 0.80 suggests significant overlap in exposure. VGMS charges 0.30%/yr vs 0.36%/yr for MUSI.

Performance

VGMS vs. MUSI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond ETF (VGMS) and American Century Multisector Income ETF (MUSI). 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 higher than MUSI's 0.59% return.

VGMS

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

MUSI

• 1D: -0.20%
• 1M: 0.29%
• YTD: 0.59%
• 6M: 0.68%
• 1Y: 5.99%
• 3Y*: 6.30%
• 5Y*: —
• 10Y*: —

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

VGMS vs. MUSI - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%
MUSI American Century Multisector Income ETF	0.59%	4.90%

Correlation

The correlation between VGMS and MUSI is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.80

Return for Risk

VGMS vs. MUSI — Risk / Return Rank

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

MUSI

MUSI Risk / Return Rank: 51
MUSI Sharpe Ratio Rank: 53
MUSI Sortino Ratio Rank: 57
MUSI Omega Ratio Rank: 54
MUSI Calmar Ratio Rank: 44
MUSI Martin Ratio Rank: 47

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. MUSI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and American Century Multisector Income ETF (MUSI). 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	MUSI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.80	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	0.45	+1.66

Drawdowns

VGMS vs. MUSI - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum MUSI drawdown of -13.91%. Use the drawdown chart below to compare losses from any high point for VGMS and MUSI.

Drawdown Indicators

	VGMS	MUSI	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-13.91%	+11.45%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.78%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-4.16%	—
Current Drawdown Current decline from peak	-0.39%	-1.14%	+0.75%
Average Drawdown Average peak-to-trough decline	-0.31%	-4.22%	+3.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.77%	—

Volatility

Volatility by Period

	VGMS	MUSI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.24%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.60%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	3.34%	-0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	4.85%	-1.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	4.85%	-1.64%

VGMS vs. MUSI - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than MUSI's 0.36% expense ratio.

Dividends

VGMS vs. MUSI - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, which matches MUSI's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021
MUSI American Century Multisector Income ETF	5.15%	5.74%	6.00%	5.20%	4.02%	1.62%
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGMS and MUSI in my portfolio?

VGMS and MUSI have a correlation of 0.80, 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 MUSI?

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 MUSI?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.36% for MUSI.

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

VGMS has the higher dividend yield at 5.16%, compared with 5.15% for MUSI.

What is the main difference between VGMS and MUSI?

They also come from different issuers: Vanguard and American Century. Their fees differ too: 0.30% for VGMS and 0.36% for MUSI.