VSDM vs. CGSM

Last updated Jun 4, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and CGSM (Capital Group Short Duration Municipal Income ETF) are both Municipal Bonds funds. Both are actively managed. Over the past year, VSDM returned 4.98% vs 4.63% for CGSM. A 0.54 correlation means they provide meaningful diversification when combined. VSDM charges 0.12%/yr vs 0.25%/yr for CGSM.

Performance

VSDM vs. CGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Capital Group Short Duration Municipal Income ETF (CGSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDM achieves a 1.22% return, which is significantly lower than CGSM's 1.29% return.

VSDM

• 1D: 0.00%
• 1M: 0.47%
• YTD: 1.22%
• 6M: 1.63%
• 1Y: 4.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CGSM

• 1D: 0.08%
• 1M: 0.38%
• YTD: 1.29%
• 6M: 1.54%
• 1Y: 4.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VSDM vs. CGSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.22%	5.39%	-0.15%
CGSM Capital Group Short Duration Municipal Income ETF	1.29%	4.58%	-0.04%

Correlation

The correlation between VSDM and CGSM is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024	0.54

The correlation between VSDM and CGSM has been stable across timeframes, ranging from 0.44 to 0.54 - a consistent structural relationship.

Return for Risk

VSDM vs. CGSM — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 84
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 68
VSDM Martin Ratio Rank: 65

CGSM

CGSM Risk / Return Rank: 86
CGSM Sharpe Ratio Rank: 93
CGSM Sortino Ratio Rank: 95
CGSM Omega Ratio Rank: 96
CGSM Calmar Ratio Rank: 78
CGSM Martin Ratio Rank: 70

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.

VSDM vs. CGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Capital Group Short Duration Municipal Income ETF (CGSM). 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.

	VSDM	CGSM	Difference
Sharpe ratio: Return per unit of total volatility	3.67	3.49	+0.18
Sortino ratio: Return per unit of downside risk	5.35	5.39	-0.05
Omega ratio: Gain probability vs. loss probability	1.92	1.81	+0.11
Calmar ratio: Return relative to maximum drawdown	3.42	3.95	-0.53
Martin ratio: Return relative to average drawdown	12.07	12.91	-0.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSDM vs. CGSM - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 3.67, which is comparable to the CGSM Sharpe Ratio of 3.49. The chart below compares the historical Sharpe Ratios of VSDM and CGSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VSDM	CGSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.67	3.49	+0.18
Sharpe Ratio (All Time) Calculated using the full available price history	2.19	2.87	-0.69

Drawdowns

VSDM vs. CGSM - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, which is greater than CGSM's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for VSDM and CGSM.

Drawdown Indicators

	VSDM	CGSM	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-1.42%	-0.39%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	-1.18%	-0.28%
Current Drawdown Current decline from peak	-0.33%	-0.22%	-0.11%
Average Drawdown Average peak-to-trough decline	-0.32%	-0.24%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.36%	+0.05%

Volatility

VSDM vs. CGSM - Volatility Comparison

Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Capital Group Short Duration Municipal Income ETF (CGSM) have volatilities of 0.44% and 0.42%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	CGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.44%	0.42%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	1.07%	0.98%	+0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	1.33%	+0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.95%	1.79%	+0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.95%	1.79%	+0.16%

VSDM vs. CGSM - Expense Ratio Comparison

VSDM has a 0.12% expense ratio, which is lower than CGSM's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSDM vs. CGSM - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.11%, more than CGSM's 3.00% yield.

Position	TTM	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	3.00%	3.05%	3.11%	0.84%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.11%	3.06%	0.35%	0.00%

Frequently Asked Questions

Can I hold both VSDM and CGSM in my portfolio?

VSDM and CGSM have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSDM or CGSM?

VSDM has higher volatility (0.44%) compared to CGSM (0.42%). In terms of maximum drawdown, VSDM dropped -1.81% vs CGSM's -1.42%.

Which ETF is better, VSDM or CGSM?

On 1-year performance, VSDM leads with 4.98% vs 4.63% for CGSM. On fees, VSDM is cheaper at 0.12% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or CGSM?

Over the 1-year period, VSDM has performed better with a 4.98% return vs 4.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or CGSM?

VSDM is cheaper with a 0.12% expense ratio, compared with 0.25% for CGSM.

Which ETF pays a higher dividend yield, VSDM or CGSM?

VSDM has the higher dividend yield at 3.11%, compared with 3.00% for CGSM.

What is the main difference between VSDM and CGSM?

They also come from different issuers: Vanguard and Capital Group. Their fees differ too: 0.12% for VSDM and 0.25% for CGSM.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.67 vs 3.49), 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.