VGMS vs. VUG

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. VGMS is actively managed, while VUG is passively managed. At a 0.48 correlation, their price movements are largely independent. VGMS charges 0.30%/yr vs 0.03%/yr for VUG.

Performance

VGMS vs. VUG - Performance Comparison

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

Returns By Period

In the year-to-date period, VGMS achieves a 1.06% return, which is significantly lower than VUG's 9.49% return.

VGMS

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

VUG

• 1D: -1.23%
• 1M: 6.22%
• YTD: 9.49%
• 6M: 8.72%
• 1Y: 27.84%
• 3Y*: 25.93%
• 5Y*: 15.11%
• 10Y*: 18.26%

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

VGMS vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%
VUG Vanguard Growth ETF	9.49%	15.63%

Correlation

The correlation between VGMS and VUG is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.48

Return for Risk

VGMS vs. VUG — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 43
VUG Sharpe Ratio Rank: 50
VUG Sortino Ratio Rank: 47
VUG Omega Ratio Rank: 48
VUG Calmar Ratio Rank: 33
VUG Martin Ratio Rank: 37

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. VUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Growth ETF (VUG). 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	VUG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.77	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.68	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.85	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	0.62	+1.49

Drawdowns

VGMS vs. VUG - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum VUG drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for VGMS and VUG.

Drawdown Indicators

	VGMS	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-50.68%	+48.22%
Max Drawdown (1Y) Largest decline over 1 year	—	-16.53%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-22.85%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.61%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.61%	—
Current Drawdown Current decline from peak	-0.39%	-1.51%	+1.12%
Average Drawdown Average peak-to-trough decline	-0.31%	-7.09%	+6.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.71%	—

Volatility

Volatility by Period

	VGMS	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	3.83%	—
Volatility (6M) Calculated over the trailing 6-month period	—	12.11%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	15.84%	-12.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	22.22%	-19.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	21.44%	-18.23%

VGMS vs. VUG - Expense Ratio Comparison

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

Dividends

VGMS vs. VUG - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, more than VUG's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VUG Vanguard Growth ETF	0.37%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VGMS and VUG in my portfolio?

VGMS and VUG have a correlation of 0.48, 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 VUG?

On fees, VUG is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VGMS or VUG?

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

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

VGMS has the higher dividend yield at 5.16%, compared with 0.37% for VUG.

What is the main difference between VGMS and VUG?

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