VGMS vs. VTI

Last updated Aug 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. VGMS is actively managed, while VTI is passively managed. Over the past year, VGMS returned 5.10% vs 23.70% for VTI. Their 0.59 correlation means they have sometimes moved together and sometimes differently. VGMS charges 0.30%/yr vs 0.03%/yr for VTI.

Performance

VGMS vs. VTI - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.40% return, which is significantly lower than VTI's 12.18% return.

VGMS

• 1D: 0.23%
• 1M: -0.32%
• 6M: 0.87%
• YTD: 1.40%
• 1Y: 5.10%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.08%

VTI

• 1D: 1.53%
• 1M: 1.38%
• 6M: 9.81%
• YTD: 12.18%
• 1Y: 23.70%
• 3Y*: 20.38%
• 5Y*: 12.06%
• 10Y*: 14.66%
• ALL TIME*: 9.64%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VGMS Vanguard Multi-Sector Income Bond ETF	$2.49M	$2.36M	$2.04M
VTI Vanguard Total Stock Market ETF	$1.08B	$1.16B	$1.24B

VGMS vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.40%	5.51%
VTI Vanguard Total Stock Market ETF	12.18%	13.89%

Correlation

The correlation between VGMS and VTI is 0.62, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.62
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	0.59

The correlation between VGMS and VTI has been stable across timeframes, ranging from 0.59 to 0.62 - a consistent structural relationship.

Return for Risk

VGMS vs. VTI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGMS

VGMS Risk / Return Rank: 66
VGMS Sharpe Ratio Rank: 66
VGMS Sortino Ratio Rank: 69
VGMS Omega Ratio Rank: 68
VGMS Calmar Ratio Rank: 56
VGMS Martin Ratio Rank: 72

VTI

VTI Risk / Return Rank: 78
VTI Sharpe Ratio Rank: 79
VTI Sortino Ratio Rank: 77
VTI Omega Ratio Rank: 77
VTI Calmar Ratio Rank: 75
VTI Martin Ratio Rank: 83

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGMS vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Total Stock Market ETF (VTI). 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	VTI	Difference
Sharpe ratio: Return per unit of total volatility	1.58	1.82	-0.24
Sortino ratio: Return per unit of downside risk	2.33	2.52	-0.19
Omega ratio: Gain probability vs. loss probability	1.30	1.32	-0.03
Calmar ratio: Return relative to maximum drawdown	2.08	2.67	-0.59
Martin ratio: Return relative to average drawdown	9.14	11.50	-2.36

VGMS vs. VTI - Sharpe Ratio Comparison

The current VGMS Sharpe Ratio is 1.58, which is comparable to the VTI Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of VGMS and VTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGMS vs. VTI - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VGMS and VTI.

Drawdown Indicators

	VGMS	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-55.45%	+52.99%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-8.92%	+6.46%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.30%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.36%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.00%	—
Current Drawdown Current decline from peak	-0.49%	0.00%	-0.49%
Average Drawdown Average peak-to-trough decline	-0.31%	-7.98%	+7.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.56%	2.07%	-1.51%

Volatility

VGMS vs. VTI - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond ETF (VGMS) is 0.76%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 3.78%. This indicates that VGMS experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGMS	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.76%	3.78%	-3.02%
Volatility (6M) Calculated over the trailing 6-month period	2.71%	10.33%	-7.62%
Volatility (1Y) Calculated over the trailing 1-year period	3.24%	13.08%	-9.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.17%	17.53%	-14.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.17%	18.31%	-15.14%

VGMS vs. VTI - Expense Ratio Comparison

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

Dividends

VGMS vs. VTI - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.43%, more than VTI's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGMS Vanguard Multi-Sector Income Bond ETF	5.43%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTI Vanguard Total Stock Market ETF	1.04%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VGMS and VTI in my portfolio?

VGMS and VTI have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGMS or VTI?

VTI has higher volatility (3.78%) compared to VGMS (0.76%). In terms of maximum drawdown, VGMS dropped -2.46% vs VTI's -55.45%.

Which ETF is better, VGMS or VTI?

On 1-year performance, VTI leads with 23.70% vs 5.10% for VGMS. On fees, VTI is cheaper at 0.03% per year. On volatility, VGMS has been the lower-risk option at 0.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGMS or VTI?

Over the 1-year period, VTI has performed better with a 23.70% return vs 5.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGMS or VTI?

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

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

VGMS has the higher dividend yield at 5.43%, compared with 1.04% for VTI.

What is the main difference between VGMS and VTI?

VGMS is categorized as Multisector Bonds, while VTI is Large Cap Blend Equities. Their fees differ too: 0.30% for VGMS and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.82 vs 1.58), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.