VMSIX vs. VGMS

Last updated Jun 4, 2026

VMSIX (Vanguard Multi-Sector Income Bond Inv) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both Multisector Bonds funds from Vanguard. Both are actively managed. Their correlation of 0.82 suggests significant overlap in exposure. VMSIX charges 0.45%/yr vs 0.30%/yr for VGMS.

Performance

VMSIX vs. VGMS - Performance Comparison

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

Returns By Period

In the year-to-date period, VMSIX achieves a 1.14% return, which is significantly higher than VGMS's 1.06% return.

VMSIX

• 1D: 0.11%
• 1M: 0.57%
• YTD: 1.14%
• 6M: 1.64%
• 1Y: 6.96%
• 3Y*: 7.81%
• 5Y*: —
• 10Y*: —

VGMS

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

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

VMSIX vs. VGMS - Yearly Performance Comparison

	2026 (YTD)	2025
VMSIX Vanguard Multi-Sector Income Bond Inv	1.14%	5.29%
VGMS Vanguard Multi-Sector Income Bond ETF	1.06%	5.44%

Correlation

The correlation between VMSIX and VGMS is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.82

Return for Risk

VMSIX vs. VGMS — Risk / Return Rank

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

VMSIX

VMSIX Risk / Return Rank: 83
VMSIX Sharpe Ratio Rank: 88
VMSIX Sortino Ratio Rank: 90
VMSIX Omega Ratio Rank: 90
VMSIX Calmar Ratio Rank: 70
VMSIX Martin Ratio Rank: 79

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.

VMSIX vs. VGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond Inv (VMSIX) and Vanguard Multi-Sector Income Bond ETF (VGMS). 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.

	VMSIX	VGMS	Difference
Sharpe ratio: Return per unit of total volatility	2.89	—	—
Sortino ratio: Return per unit of downside risk	4.37	—	—
Omega ratio: Gain probability vs. loss probability	1.63	—	—
Calmar ratio: Return relative to maximum drawdown	3.23	—	—
Martin ratio: Return relative to average drawdown	14.86	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	VMSIX	VGMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.89	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	2.11	-1.23

Drawdowns

VMSIX vs. VGMS - Drawdown Comparison

The maximum VMSIX drawdown since its inception was -13.11%, which is greater than VGMS's maximum drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for VMSIX and VGMS.

Drawdown Indicators

	VMSIX	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-13.11%	-2.46%	-10.65%
Max Drawdown (1Y) Largest decline over 1 year	-2.20%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-3.82%	—	—
Current Drawdown Current decline from peak	0.00%	-0.39%	+0.39%
Average Drawdown Average peak-to-trough decline	-3.08%	-0.31%	-2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.48%	—	—

Volatility

Volatility by Period

	VMSIX	VGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.87%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.97%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.46%	3.21%	-0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.69%	3.21%	+1.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.69%	3.21%	+1.48%

VMSIX vs. VGMS - Expense Ratio Comparison

VMSIX has a 0.45% expense ratio, which is higher than VGMS's 0.30% expense ratio.

Dividends

VMSIX vs. VGMS - Dividend Comparison

VMSIX's dividend yield for the trailing twelve months is around 5.44%, more than VGMS's 5.16% yield.

Position	TTM	2025	2024	2023	2022
VGMS Vanguard Multi-Sector Income Bond ETF	5.16%	2.94%	0.00%	0.00%	0.00%
VMSIX Vanguard Multi-Sector Income Bond Inv	5.44%	5.56%	6.37%	5.43%	3.66%

Frequently Asked Questions

Can I hold both VMSIX and VGMS in my portfolio?

VMSIX and VGMS have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.