CGCB vs VYM
Capital Group Core Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. CGCB offers more diversification with 766 holdings.
Side-by-Side Comparison
| Metric | CGCB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.04% | |
| AUM | $6.4B | $81.6B | |
| Dividend Yield | 4.27% | 2.24% | |
| Holdings | 766 | 616 | |
| YTD Return | -0.12% | +15.34% | |
| 1Y Return | +2.45% | +23.24% | |
| 3Y Return (annualized) | +5.23% | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 5.5% | 14.6% | |
| Max Drawdown | -5.2% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 26, 2023 | Nov 10, 2006 |
CGCB vs VYM Performance
Capital Group Core Bond ETF (CGCB) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGCB returned +2.45% while VYM returned +23.24%. Year to date, CGCB is down 0.12% versus a gain of 15.34% for VYM.
Over three years, CGCB compounded at +5.23% per year against +19.22% for VYM. Across the full 3-year window we track, VYM has the edge at +7.04% annualized vs +5.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.5% for CGCB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -5.2% for CGCB and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGCB charges 0.27% per year while VYM charges 0.04%. On a $10,000 position that is $27 vs $4 annually, a gap of $23 per year that compounds over a long holding period. On income, CGCB currently yields 4.27% against 2.24% for VYM.
Holdings Overlap
CGCB and VYM share 1 holdings out of 945 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGCB | Weight in VYM | Difference |
|---|---|---|---|
| TMUS | 0.46% | 0.34% | 0.12% |
Frequently Asked Questions
Which is cheaper, CGCB or VYM?
CGCB has an expense ratio of 0.27% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, CGCB or VYM?
Over the past year CGCB returned +2.45% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), CGCB annualized +5.23% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, CGCB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.5% for CGCB. Worst drawdown: CGCB -5.2% vs VYM -58.8%.
Should I hold both CGCB and VYM?
CGCB and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGCB and VYM?
CGCB and VYM share 1 common holdings with a 0.3% weight overlap. Combined, they hold 945 unique securities.
Which pays a higher dividend, CGCB or VYM?
CGCB yields 4.27% while VYM yields 2.24%, so CGCB currently pays the higher dividend yield.
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