VGMS vs. SCYB

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and SCYB (Schwab High Yield Bond ETF) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while SCYB is a High Yield Bonds fund tracking the ICE BofA US Cash Pay High Yield Constrained Index. VGMS is actively managed, while SCYB is passively managed. Their correlation of 0.82 suggests significant overlap in exposure. VGMS charges 0.30%/yr vs 0.03%/yr for SCYB.

Performance

VGMS vs. SCYB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond ETF (VGMS) and Schwab High Yield Bond ETF (SCYB). 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 SCYB's 1.55% return.

VGMS

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

SCYB

• 1D: -0.29%
• 1M: 0.36%
• YTD: 1.55%
• 6M: 1.87%
• 1Y: 6.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGMS vs. SCYB - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%
SCYB Schwab High Yield Bond ETF	1.55%	5.08%

Correlation

The correlation between VGMS and SCYB is 0.82, 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	0.82

Return for Risk

VGMS vs. SCYB — Risk / Return Rank

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

SCYB

SCYB Risk / Return Rank: 59
SCYB Sharpe Ratio Rank: 54
SCYB Sortino Ratio Rank: 58
SCYB Omega Ratio Rank: 59
SCYB Calmar Ratio Rank: 57
SCYB Martin Ratio Rank: 68

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. SCYB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Schwab High Yield Bond ETF (SCYB). 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	SCYB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.88	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	1.68	+0.42

Drawdowns

VGMS vs. SCYB - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum SCYB drawdown of -4.92%. Use the drawdown chart below to compare losses from any high point for VGMS and SCYB.

Drawdown Indicators

	VGMS	SCYB	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-4.92%	+2.46%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.44%	—
Current Drawdown Current decline from peak	-0.39%	-0.33%	-0.06%
Average Drawdown Average peak-to-trough decline	-0.31%	-0.52%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.54%	—

Volatility

Volatility by Period

	VGMS	SCYB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.07%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.93%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	3.76%	-0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	5.13%	-1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	5.13%	-1.92%

VGMS vs. SCYB - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is higher than SCYB's 0.03% expense ratio.

Dividends

VGMS vs. SCYB - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, less than SCYB's 6.94% yield.

Position	TTM	2025	2024	2023
SCYB Schwab High Yield Bond ETF	6.94%	6.99%	7.06%	3.36%
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGMS and SCYB in my portfolio?

VGMS and SCYB have a correlation of 0.82, 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 SCYB?

On fees, SCYB is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VGMS or SCYB?

SCYB is cheaper with a 0.03% expense ratio, compared with 0.30% for VGMS.

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

SCYB has the higher dividend yield at 6.94%, compared with 5.16% for VGMS.

What is the main difference between VGMS and SCYB?

VGMS is categorized as Multisector Bonds, while SCYB is High Yield Bonds. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.30% for VGMS and 0.03% for SCYB.