CGMS vs VYM
Capital Group US Multi Sector Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. CGMS offers more diversification with 3,084 holdings.
Side-by-Side Comparison
| Metric | CGMS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $5.5B | $81.6B | |
| Dividend Yield | 6.07% | 2.24% | |
| Holdings | 3,084 | 613 | |
| YTD Return | +1.18% | +14.57% | |
| 1Y Return | +3.35% | +21.08% | |
| 3Y Return (annualized) | +7.36% | +18.16% | |
| 5Y Return (annualized) | - | +12.00% | |
| Volatility (annualized) | 5.1% | 14.6% | |
| Max Drawdown | -4.1% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Nov 10, 2006 |
CGMS vs VYM Performance
Capital Group US Multi Sector Income ETF (CGMS) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGMS returned +3.35% while VYM returned +21.08%. Year to date, CGMS is up 1.18% versus a gain of 14.57% for VYM.
Over three years, CGMS compounded at +7.36% per year against +18.16% for VYM. Across the full 4-year window we track, CGMS has the edge at +7.81% annualized vs +6.99%. 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 5.1% for CGMS. 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 -4.1% for CGMS 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGMS charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, CGMS currently yields 6.07% against 2.24% for VYM.
Holdings Overlap
CGMS and VYM share 1 holdings out of 1219 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGMS | Weight in VYM | Difference |
|---|---|---|---|
| RCL 5.5 04/01/28 144 | 0.05% | 0.33% | 0.28% |
Frequently Asked Questions
Which is cheaper, CGMS or VYM?
CGMS has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, CGMS or VYM?
Over the past year CGMS returned +3.35% vs +21.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), CGMS annualized +7.81% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, CGMS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.1% for CGMS. Worst drawdown: CGMS -4.1% vs VYM -58.8%.
Should I hold both CGMS and VYM?
CGMS and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMS and VYM?
CGMS and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1219 unique securities.
Which pays a higher dividend, CGMS or VYM?
CGMS yields 6.07% while VYM yields 2.24%, so CGMS currently pays the higher dividend yield.
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