VPLS vs. VGMS

Last updated Jul 12, 2026

VPLS (Vanguard Core-Plus Bond ETF) and VGMS (Vanguard Multi-Sector Income Bond ETF) are both exchange-traded funds - VPLS is a Intermediate Core-Plus Bond fund actively managed by Vanguard, while VGMS is a Multisector Bonds fund actively managed by Vanguard. Both are actively managed. Over the past year, VPLS returned 4.77% vs 6.10% for VGMS. Their correlation of 0.82 suggests significant overlap in exposure. VPLS charges 0.20%/yr vs 0.30%/yr for VGMS.

Performance

VPLS vs. VGMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core-Plus Bond ETF (VPLS) 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, VPLS achieves a 0.65% return, which is significantly lower than VGMS's 1.60% return.

VPLS

• 1D: -0.06%
• 1M: -0.25%
• 6M: 0.34%
• YTD: 0.65%
• 1Y: 4.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGMS

• 1D: -0.12%
• 1M: 0.15%
• 6M: 1.35%
• YTD: 1.60%
• 1Y: 6.10%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VPLS vs. VGMS - Yearly Performance Comparison

	2026 (YTD)	2025
VPLS Vanguard Core-Plus Bond ETF	0.65%	4.96%
VGMS Vanguard Multi-Sector Income Bond ETF	1.60%	5.51%

Correlation

The correlation between VPLS and VGMS is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	0.83

The correlation between VPLS and VGMS has been stable across timeframes, ranging from 0.82 to 0.83 - a consistent structural relationship.

Return for Risk

VPLS vs. VGMS — Risk / Return Rank

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

VPLS

VPLS Risk / Return Rank: 41
VPLS Sharpe Ratio Rank: 43
VPLS Sortino Ratio Rank: 44
VPLS Omega Ratio Rank: 41
VPLS Calmar Ratio Rank: 40
VPLS Martin Ratio Rank: 40

VGMS

VGMS Risk / Return Rank: 72
VGMS Sharpe Ratio Rank: 73
VGMS Sortino Ratio Rank: 77
VGMS Omega Ratio Rank: 76
VGMS Calmar Ratio Rank: 61
VGMS Martin Ratio Rank: 75

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.

VPLS vs. VGMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core-Plus Bond ETF (VPLS) 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.

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.

	VPLS	VGMS	Difference
Sharpe ratio: Return per unit of total volatility	1.23	1.85	-0.62
Sortino ratio: Return per unit of downside risk	1.81	2.74	-0.93
Omega ratio: Gain probability vs. loss probability	1.22	1.35	-0.14
Calmar ratio: Return relative to maximum drawdown	1.62	2.42	-0.80
Martin ratio: Return relative to average drawdown	5.02	11.05	-6.03

VPLS vs. VGMS - Sharpe Ratio Comparison

The current VPLS Sharpe Ratio is 1.23, which is lower than the VGMS Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of VPLS and VGMS, 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

VPLS vs. VGMS - Drawdown Comparison

The maximum VPLS drawdown since its inception was -4.17%, which is greater than VGMS's maximum drawdown of -2.46%. Use the drawdown chart below to compare losses from any high point for VPLS and VGMS.

Drawdown Indicators

	VPLS	VGMS	Difference
Max Drawdown Largest peak-to-trough decline	-4.17%	-2.46%	-1.71%
Max Drawdown (1Y) Largest decline over 1 year	-2.72%	-2.46%	-0.26%
Current Drawdown Current decline from peak	-1.20%	-0.29%	-0.91%
Average Drawdown Average peak-to-trough decline	-1.00%	-0.30%	-0.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.54%	+0.34%

Volatility

VPLS vs. VGMS - Volatility Comparison

Vanguard Core-Plus Bond ETF (VPLS) has a higher volatility of 1.03% compared to Vanguard Multi-Sector Income Bond ETF (VGMS) at 0.89%. This indicates that VPLS's price experiences larger fluctuations and is considered to be riskier than VGMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPLS	VGMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.03%	0.89%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	2.82%	2.66%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.59%	3.22%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.57%	3.20%	+1.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.57%	3.20%	+1.37%

VPLS vs. VGMS - Expense Ratio Comparison

VPLS has a 0.20% expense ratio, which is lower than VGMS's 0.30% expense ratio.

Dividends

VPLS vs. VGMS - Dividend Comparison

VPLS's dividend yield for the trailing twelve months is around 4.78%, less than VGMS's 5.37% yield.

Position	TTM	2025	2024	2023
VGMS Vanguard Multi-Sector Income Bond ETF	5.37%	2.94%	0.00%	0.00%
VPLS Vanguard Core-Plus Bond ETF	4.78%	4.78%	4.52%	0.18%

Frequently Asked Questions

Can I hold both VPLS and VGMS in my portfolio?

VPLS and VGMS have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPLS or VGMS?

VPLS has higher volatility (1.03%) compared to VGMS (0.89%). In terms of maximum drawdown, VPLS dropped -4.17% vs VGMS's -2.46%.

Which ETF is better, VPLS or VGMS?

On 1-year performance, VGMS leads with 6.10% vs 4.77% for VPLS. On fees, VPLS is cheaper at 0.20% per year. On volatility, VGMS has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPLS or VGMS?

Over the 1-year period, VGMS has performed better with a 6.10% return vs 4.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPLS or VGMS?

VPLS is cheaper with a 0.20% expense ratio, compared with 0.30% for VGMS.

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

VGMS has the higher dividend yield at 5.37%, compared with 4.78% for VPLS.

What is the main difference between VPLS and VGMS?

VPLS is categorized as Intermediate Core-Plus Bond, while VGMS is Multisector Bonds. Their fees differ too: 0.20% for VPLS and 0.30% for VGMS.

Which has better risk-adjusted returns?

VGMS currently has the higher Sharpe Ratio (1.85 vs 1.23), 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.