CGCB vs VYM
Capital Group Core Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, CGCB or VYM?
High Yield Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | CGCB | VYM |
|---|---|---|
| Expense Ratio | 0.27% | 0.04%Best |
| AUM | $6.5B | $81.6B |
| Dividend Yield | 4.24% | 2.22% |
| Holdings | 811 | 613 |
| YTD Return | -1.27% | +13.91%Best |
| 1Y Return | -0.89% | +17.57%Best |
| 3Y Return (annualized) | +4.72% | +18.12%Best |
| 5Y Return (annualized) | - | +12.17% |
| Volatility (annualized) | 5.5%Best | 10.6% |
| Max Drawdown | -5.2%Best | -14.5% |
| $10,000 over 3 years | $11,484 | $17,065Best |
| Fund Family | Capital Group (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Sep 26, 2023 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 28, 2023 to Sep 11, 2026 (3 years).
CGCB vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
CGCB vs VYM Performance
Capital Group Core Bond ETF (CGCB) is an ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year CGCB returned -0.89% while VYM returned +17.57%. Year to date, CGCB is down 1.27% versus a gain of 13.91% for VYM.
Over three years, CGCB compounded at +4.72% per year against +18.12% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.6% 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.63. They move together some of the time, and apart the rest.
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 4.24% against 2.22% for VYM.
Holdings Overlap
At least 0.3% of VYM's money is in holdings CGCB also owns.
Stated as a floor: for CGCB, our book for it covers 63.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 335 positions we hold weights for in CGCB and 603 in VYM, against full books of 811 and 613.
Top Shared Holdings
| Stock | Weight in CGCB | Weight in VYM | Difference |
|---|---|---|---|
| TMUST-Mobile Usa, Inc. 3.875% 15-Apr-2030 | 0.46% | 0.34% | 0.12% |
You are not choosing between two funds in isolation.
Whichever of CGCB and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $23 a year on a $10,000 investment.
Which performed better, CGCB or VYM?
Over the past year CGCB returned -0.89% vs +17.57% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CGCB or VYM?
VYM has been the more volatile fund at 10.6% annualized versus 5.5% for CGCB. Worst drawdown: CGCB -5.2% vs VYM -14.5%.
Should I hold both CGCB and VYM?
CGCB and VYM have a monthly-return correlation of 0.63, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, CGCB or VYM?
CGCB yields 4.24% while VYM yields 2.22%, so CGCB currently pays the higher dividend yield.
Is VYM better than CGCB?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.