VGMS vs. TMSF

Last updated Jun 25, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and TMSF (T. Rowe Price Multi-Sector Income ETF) are both Multisector Bonds funds. Both are actively managed. A 0.68 correlation means they provide meaningful diversification when combined. VGMS charges 0.30%/yr vs 0.37%/yr for TMSF.

Performance

VGMS vs. TMSF - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.67% return, which is significantly lower than TMSF's 1.77% return.

VGMS

• 1D: 0.20%
• 1M: 0.93%
• YTD: 1.67%
• 6M: 1.67%
• 1Y: 6.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TMSF

• 1D: -0.05%
• 1M: 0.55%
• YTD: 1.77%
• 6M: 2.12%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGMS vs. TMSF - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.67%	1.27%
TMSF T. Rowe Price Multi-Sector Income ETF	1.77%	1.29%

Correlation

The correlation between VGMS and TMSF is 0.68, 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 Nov 20, 2025	0.68

Return for Risk

VGMS vs. TMSF — Risk / Return Rank

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

VGMS

VGMS Risk / Return Rank: 69
VGMS Sharpe Ratio Rank: 68
VGMS Sortino Ratio Rank: 73
VGMS Omega Ratio Rank: 72
VGMS Calmar Ratio Rank: 59
VGMS Martin Ratio Rank: 72

TMSF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. TMSF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and T. Rowe Price Multi-Sector Income ETF (TMSF). 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	TMSF	Difference
Sharpe ratio: Return per unit of total volatility	1.97	—	—
Sortino ratio: Return per unit of downside risk	2.93	—	—
Omega ratio: Gain probability vs. loss probability	1.38	—	—
Calmar ratio: Return relative to maximum drawdown	2.60	—	—
Martin ratio: Return relative to average drawdown	11.76	—	—

Drawdowns

VGMS vs. TMSF - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, which is greater than TMSF's maximum drawdown of -2.28%. Use the drawdown chart below to compare losses from any high point for VGMS and TMSF.

Drawdown Indicators

	VGMS	TMSF	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-2.28%	-0.18%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	—	—
Current Drawdown Current decline from peak	0.00%	-0.35%	+0.35%
Average Drawdown Average peak-to-trough decline	-0.30%	-0.37%	+0.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.54%	—	—

Volatility

Volatility by Period

	VGMS	TMSF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.07%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.64%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	3.26%	2.93%	+0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.24%	2.93%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.24%	2.93%	+0.31%

VGMS vs. TMSF - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than TMSF's 0.37% expense ratio.

Dividends

VGMS vs. TMSF - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.13%, more than TMSF's 3.06% yield.

Position	TTM	2025
TMSF T. Rowe Price Multi-Sector Income ETF	3.06%	0.75%
VGMS Vanguard Multi-Sector Income Bond ETF	5.13%	2.94%

Frequently Asked Questions

Can I hold both VGMS and TMSF in my portfolio?

VGMS and TMSF have a correlation of 0.68, 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 TMSF?

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 TMSF?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.37% for TMSF.

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

VGMS has the higher dividend yield at 5.13%, compared with 3.06% for TMSF.

What is the main difference between VGMS and TMSF?

They also come from different issuers: Vanguard and T. Rowe Price. Their fees differ too: 0.30% for VGMS and 0.37% for TMSF.