CGNG vs VYM
Capital Group New Geography Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. CGNG delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | CGNG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.64% | 0.04% | |
| AUM | $2.9B | $81.6B | |
| Dividend Yield | 0.62% | 2.24% | |
| Holdings | 239 | 616 | |
| YTD Return | +12.09% | +14.66% | |
| 1Y Return | +25.92% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 13.7% | 14.6% | |
| Max Drawdown | -15.9% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 25, 2024 | Nov 10, 2006 |
CGNG vs VYM Performance
Capital Group New Geography Equity ETF (CGNG) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGNG returned +25.92% while VYM returned +22.16%. Year to date, CGNG is up 12.09% 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 13.7% for CGNG. 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 -15.9% for CGNG 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGNG charges 0.64% per year while VYM charges 0.04%. On a $10,000 position that is $64 vs $4 annually, a gap of $60 per year that compounds over a long holding period. On income, CGNG currently yields 0.62% against 2.24% for VYM.
Holdings Overlap
CGNG and VYM share 10 holdings out of 836 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGNG or VYM?
CGNG has an expense ratio of 0.64% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, CGNG or VYM?
Over the past year CGNG returned +25.92% vs +22.16% for VYM, so CGNG leads on 1-year performance. Over the longest common window we track (2 years), CGNG annualized +19.66% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, CGNG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.7% for CGNG. Worst drawdown: CGNG -15.9% vs VYM -58.8%.
Should I hold both CGNG and VYM?
CGNG and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGNG and VYM?
CGNG and VYM share 10 common holdings with a 2.5% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, CGNG or VYM?
CGNG yields 0.62% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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