CGMM vs VYM
Capital Group US Small and Mid Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | CGMM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.04% | |
| AUM | $3.5B | $81.6B | |
| Dividend Yield | 0.38% | 2.24% | |
| Holdings | 236 | 616 | |
| YTD Return | +12.63% | +14.66% | |
| 1Y Return | +19.53% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -21.0% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2025 | Nov 10, 2006 |
CGMM vs VYM Performance
Capital Group US Small and Mid Cap ETF (CGMM) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGMM returned +19.53% while VYM returned +22.16%. Year to date, CGMM is up 12.63% versus a gain of 14.66% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.3% for CGMM. 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 -21.0% for CGMM 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGMM charges 0.51% per year while VYM charges 0.04%. On a $10,000 position that is $51 vs $4 annually, a gap of $47 per year that compounds over a long holding period. On income, CGMM currently yields 0.38% against 2.24% for VYM.
Holdings Overlap
CGMM and VYM share 27 holdings out of 692 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGMM or VYM?
CGMM has an expense ratio of 0.51% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, CGMM or VYM?
Over the past year CGMM returned +19.53% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), CGMM annualized +16.33% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, CGMM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for CGMM. Worst drawdown: CGMM -21.0% vs VYM -58.8%.
Should I hold both CGMM and VYM?
CGMM and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMM and VYM?
CGMM and VYM share 27 common holdings with a 3.8% weight overlap. Combined, they hold 692 unique securities.
Which pays a higher dividend, CGMM or VYM?
CGMM yields 0.38% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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