CGMU vs VTI
Capital Group Municipal Income ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | CGMU | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.03% | |
| AUM | $6.6B | $666.9B | |
| Dividend Yield | 3.38% | 1.07% | |
| Holdings | 1,810 | 3,543 | |
| YTD Return | +0.82% | +13.14% | |
| 1Y Return | +4.56% | +22.35% | |
| 3Y Return (annualized) | +4.50% | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 5.0% | 15.3% | |
| Max Drawdown | -4.1% | -56.6% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | May 24, 2001 |
CGMU vs VTI Performance
Capital Group Municipal Income ETF (CGMU) is a ETF from Capital Group (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year CGMU returned +4.56% while VTI returned +22.35%. Year to date, CGMU is up 0.82% versus a gain of 13.14% for VTI.
Over three years, CGMU compounded at +4.50% per year against +21.83% for VTI. Across the full 4-year window we track, VTI has the edge at +8.09% annualized vs +5.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.0% for CGMU. 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 CGMU and -56.6% for VTI. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGMU charges 0.27% per year while VTI charges 0.03%. On a $10,000 position that is $27 vs $3 annually, a gap of $24 per year that compounds over a long holding period. On income, CGMU currently yields 3.38% against 1.07% for VTI.
Holdings Overlap
CGMU and VTI share 0 holdings out of 3185 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGMU or VTI?
CGMU has an expense ratio of 0.27% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, CGMU or VTI?
Over the past year CGMU returned +4.56% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), CGMU annualized +5.25% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, CGMU or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.0% for CGMU. Worst drawdown: CGMU -4.1% vs VTI -56.6%.
Should I hold both CGMU and VTI?
CGMU and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMU and VTI?
CGMU and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3185 unique securities.
Which pays a higher dividend, CGMU or VTI?
CGMU yields 3.38% while VTI yields 1.07%, so CGMU currently pays the higher dividend yield.
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