VGMS vs. TMB

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and TMB (Thornburg Multi Sector Bond ETF) are both Multisector Bonds funds. Both are actively managed. A 0.77 correlation means they provide meaningful diversification when combined. VGMS charges 0.30%/yr vs 0.55%/yr for TMB.

Performance

VGMS vs. TMB - Performance Comparison

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

Returns By Period

VGMS

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

TMB

• 1D: -0.23%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGMS vs. TMB - Yearly Performance Comparison

	2026 (YTD)
VGMS Vanguard Multi-Sector Income Bond ETF	0.03%
TMB Thornburg Multi Sector Bond ETF	0.17%

Correlation

The correlation between VGMS and TMB is 0.77, 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 May 27, 2026	0.77

Return for Risk

VGMS vs. TMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Thornburg Multi Sector Bond ETF (TMB). 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	TMB	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	3.18	-1.07

Drawdowns

VGMS vs. TMB - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, which is greater than TMB's maximum drawdown of -0.24%. Use the drawdown chart below to compare losses from any high point for VGMS and TMB.

Drawdown Indicators

	VGMS	TMB	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-0.24%	-2.22%
Current Drawdown Current decline from peak	-0.39%	-0.24%	-0.15%
Average Drawdown Average peak-to-trough decline	-0.31%	-0.06%	-0.25%

Volatility

Volatility by Period

	VGMS	TMB	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	2.52%	+0.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	2.52%	+0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	2.52%	+0.69%

VGMS vs. TMB - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than TMB's 0.55% expense ratio.

Dividends

VGMS vs. TMB - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, more than TMB's 0.36% yield.

Position	TTM	2025
TMB Thornburg Multi Sector Bond ETF	0.36%	0.00%
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%

Frequently Asked Questions

Can I hold both VGMS and TMB in my portfolio?

VGMS and TMB have a correlation of 0.77, 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 TMB?

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 TMB?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.55% for TMB.

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

VGMS has the higher dividend yield at 5.16%, compared with 0.36% for TMB.

What is the main difference between VGMS and TMB?

They also come from different issuers: Vanguard and Thornburg. Their fees differ too: 0.30% for VGMS and 0.55% for TMB.