VGMS vs. VTV

Last updated Jun 24, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and VTV (Vanguard Value ETF) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while VTV is a Large Cap Value Equities fund tracking the CRSP US Large Cap Value Index. VGMS is actively managed, while VTV is passively managed. Over the past year, VGMS returned 6.52% vs 27.19% for VTV. A 0.50 correlation means they provide meaningful diversification when combined. VGMS charges 0.30%/yr vs 0.04%/yr for VTV.

Performance

VGMS vs. VTV - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.48% return, which is significantly lower than VTV's 14.47% return.

VGMS

• 1D: 0.17%
• 1M: 0.73%
• YTD: 1.48%
• 6M: 1.55%
• 1Y: 6.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTV

• 1D: -0.56%
• 1M: 3.10%
• YTD: 14.47%
• 6M: 13.93%
• 1Y: 27.19%
• 3Y*: 18.66%
• 5Y*: 12.22%
• 10Y*: 12.95%

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

VGMS vs. VTV - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.48%	5.51%
VTV Vanguard Value ETF	14.47%	11.50%

Correlation

The correlation between VGMS and VTV is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	0.50

The correlation between VGMS and VTV has been stable across timeframes, ranging from 0.50 to 0.50 - a consistent structural relationship.

Return for Risk

VGMS vs. VTV — Risk / Return Rank

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

VGMS

VGMS Risk / Return Rank: 66
VGMS Sharpe Ratio Rank: 65
VGMS Sortino Ratio Rank: 70
VGMS Omega Ratio Rank: 69
VGMS Calmar Ratio Rank: 58
VGMS Martin Ratio Rank: 69

VTV

VTV Risk / Return Rank: 84
VTV Sharpe Ratio Rank: 85
VTV Sortino Ratio Rank: 87
VTV Omega Ratio Rank: 82
VTV Calmar Ratio Rank: 83
VTV Martin Ratio Rank: 83

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. VTV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Value ETF (VTV). 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	VTV	Difference
Sharpe ratio: Return per unit of total volatility	2.01	2.63	-0.62
Sortino ratio: Return per unit of downside risk	2.99	3.75	-0.76
Omega ratio: Gain probability vs. loss probability	1.39	1.47	-0.08
Calmar ratio: Return relative to maximum drawdown	2.66	4.30	-1.64
Martin ratio: Return relative to average drawdown	12.04	16.20	-4.17

VGMS vs. VTV - Sharpe Ratio Comparison

The current VGMS Sharpe Ratio is 2.01, which is comparable to the VTV Sharpe Ratio of 2.63. The chart below compares the historical Sharpe Ratios of VGMS and VTV, 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. VTV - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum VTV drawdown of -59.27%. Use the drawdown chart below to compare losses from any high point for VGMS and VTV.

Drawdown Indicators

	VGMS	VTV	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-59.27%	+56.81%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-6.35%	+3.89%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.52%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.04%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.78%	—
Current Drawdown Current decline from peak	-0.18%	-0.56%	+0.38%
Average Drawdown Average peak-to-trough decline	-0.30%	-7.85%	+7.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.54%	1.68%	-1.14%

Volatility

VGMS vs. VTV - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond ETF (VGMS) is 1.06%, while Vanguard Value ETF (VTV) has a volatility of 3.41%. This indicates that VGMS experiences smaller price fluctuations and is considered to be less risky than VTV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGMS	VTV	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.06%	3.41%	-2.35%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	7.85%	-5.21%
Volatility (1Y) Calculated over the trailing 1-year period	3.27%	10.39%	-7.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.24%	13.88%	-10.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.24%	16.65%	-13.41%

VGMS vs. VTV - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is higher than VTV's 0.04% expense ratio.

Dividends

VGMS vs. VTV - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.14%, more than VTV's 1.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGMS Vanguard Multi-Sector Income Bond ETF	5.14%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTV Vanguard Value ETF	1.83%	2.05%	2.31%	2.46%	2.52%	2.15%	2.56%	2.50%	2.73%	2.29%	2.44%	2.60%

Frequently Asked Questions

Can I hold both VGMS and VTV in my portfolio?

VGMS and VTV have a correlation of 0.50, 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 VTV?

VTV has higher volatility (3.41%) compared to VGMS (1.06%). In terms of maximum drawdown, VGMS dropped -2.46% vs VTV's -59.27%.

Which ETF is better, VGMS or VTV?

On 1-year performance, VTV leads with 27.19% vs 6.52% for VGMS. On fees, VTV is cheaper at 0.04% per year. On volatility, VGMS has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGMS or VTV?

Over the 1-year period, VTV has performed better with a 27.19% return vs 6.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGMS or VTV?

VTV is cheaper with a 0.04% expense ratio, compared with 0.30% for VGMS.

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

VGMS has the higher dividend yield at 5.14%, compared with 1.83% for VTV.

What is the main difference between VGMS and VTV?

VGMS is categorized as Multisector Bonds, while VTV is Large Cap Value Equities. Their fees differ too: 0.30% for VGMS and 0.04% for VTV.

Which has better risk-adjusted returns?

VTV currently has the higher Sharpe Ratio (2.63 vs 2.01), 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.