VGMS vs. VSDM

Last updated Apr 1, 2026

Compare and contrast key facts about Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM).

VGMS and VSDM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGMS is an actively managed fund by Vanguard. It was launched on Jun 9, 2025. VSDM is an actively managed fund by Vanguard. It was launched on Nov 21, 2024.

Performance

VGMS vs. VSDM - Performance Comparison

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

VGMS vs. VSDM - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	-0.28%	5.44%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	0.30%	3.41%

Returns By Period

In the year-to-date period, VGMS achieves a -0.28% return, which is significantly lower than VSDM's 0.30% return.

VGMS

• 1D: 0.79%
• 1M: -1.38%
• YTD: -0.28%
• 6M: 1.27%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VSDM

• 1D: 0.09%
• 1M: -1.24%
• YTD: 0.30%
• 6M: 1.03%
• 1Y: 4.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGMS vs. VSDM - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is higher than VSDM's 0.12% expense ratio.

VGMS

Vanguard Multi-Sector Income Bond ETF

VSDM

Vanguard Short Duration Tax-Exempt Bond ETF

Return for Risk

VGMS vs. VSDM — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 90
VSDM Sharpe Ratio Rank: 92
VSDM Sortino Ratio Rank: 92
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 85
VSDM Martin Ratio Rank: 82

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. VSDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). 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	VSDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.13	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.08	2.04	+0.04

Correlation

The correlation between VGMS and VSDM is 0.38, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

VGMS vs. VSDM - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 3.83%, more than VSDM's 3.05% yield.

	TTM	2025	2024
VGMS Vanguard Multi-Sector Income Bond ETF	3.83%	2.94%	0.00%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.05%	3.06%	0.35%

Drawdowns

VGMS vs. VSDM - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, which is greater than VSDM's maximum drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for VGMS and VSDM.

Drawdown Indicators

	VGMS	VSDM	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-1.81%	-0.65%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.81%	—
Current Drawdown Current decline from peak	-1.51%	-1.24%	-0.27%
Average Drawdown Average peak-to-trough decline	-0.27%	-0.27%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.50%	—

Volatility

Volatility by Period

	VGMS	VSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.73%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.00%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.12%	2.08%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.12%	2.02%	+1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.12%	2.02%	+1.10%