VGMS vs. VUSB

Last updated Jun 4, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and VUSB (Vanguard Ultra-Short Bond ETF) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while VUSB is a Ultrashort Bond fund actively managed by Vanguard. Both are actively managed. A 0.57 correlation means they provide meaningful diversification when combined. VGMS charges 0.30%/yr vs 0.10%/yr for VUSB.

Performance

VGMS vs. VUSB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Ultra-Short Bond ETF (VUSB). 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 VUSB's 1.39% return.

VGMS

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

VUSB

• 1D: -0.02%
• 1M: 0.40%
• YTD: 1.39%
• 6M: 1.76%
• 1Y: 4.59%
• 3Y*: 5.34%
• 5Y*: 3.43%
• 10Y*: —

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

VGMS vs. VUSB - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%
VUSB Vanguard Ultra-Short Bond ETF	1.39%	2.97%

Correlation

The correlation between VGMS and VUSB is 0.57, 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 Jun 12, 2025	0.57

Return for Risk

VGMS vs. VUSB — Risk / Return Rank

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

VUSB

VUSB Risk / Return Rank: 98
VUSB Sharpe Ratio Rank: 99
VUSB Sortino Ratio Rank: 99
VUSB Omega Ratio Rank: 99
VUSB Calmar Ratio Rank: 97
VUSB Martin Ratio Rank: 98

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. VUSB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Vanguard Ultra-Short Bond ETF (VUSB). 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	VUSB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	7.10	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	4.14	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.11	4.09	-1.98

Drawdowns

VGMS vs. VUSB - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, which is greater than VUSB's maximum drawdown of -1.79%. Use the drawdown chart below to compare losses from any high point for VGMS and VUSB.

Drawdown Indicators

	VGMS	VUSB	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-1.79%	-0.67%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.37%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-0.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-1.79%	—
Current Drawdown Current decline from peak	-0.39%	-0.02%	-0.37%
Average Drawdown Average peak-to-trough decline	-0.31%	-0.27%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.06%	—

Volatility

Volatility by Period

	VGMS	VUSB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.18%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.52%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	0.65%	+2.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	0.83%	+2.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	0.82%	+2.39%

VGMS vs. VUSB - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is higher than VUSB's 0.10% expense ratio.

Dividends

VGMS vs. VUSB - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.16%, more than VUSB's 4.39% yield.

Position	TTM	2025	2024	2023	2022	2021
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%	0.00%	0.00%
VUSB Vanguard Ultra-Short Bond ETF	4.39%	4.63%	5.16%	4.45%	1.56%	0.26%

Frequently Asked Questions

Can I hold both VGMS and VUSB in my portfolio?

VGMS and VUSB have a correlation of 0.57, 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 VUSB?

On fees, VUSB is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VGMS or VUSB?

VUSB is cheaper with a 0.10% expense ratio, compared with 0.30% for VGMS.

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

VGMS has the higher dividend yield at 5.16%, compared with 4.39% for VUSB.

What is the main difference between VGMS and VUSB?

VGMS is categorized as Multisector Bonds, while VUSB is Ultrashort Bond. Their fees differ too: 0.30% for VGMS and 0.10% for VUSB.