CGSM vs IVV
Capital Group Short Duration Municipal Income ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. CGSM offers more diversification with 2,062 holdings.
Side-by-Side Comparison
| Metric | CGSM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $1.6B | $907.0B | |
| Dividend Yield | 2.92% | 1.10% | |
| Holdings | 2,062 | 508 | |
| YTD Return | +1.46% | +12.71% | |
| 1Y Return | +3.19% | +21.89% | |
| 3Y Return (annualized) | +4.82% | +22.08% | |
| 5Y Return (annualized) | - | +12.96% | |
| Volatility (annualized) | 2.2% | 15.1% | |
| Max Drawdown | -1.4% | -56.5% | |
| Fund Family | Capital Group (US) | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 26, 2023 | May 15, 2000 |
CGSM vs IVV Performance
Capital Group Short Duration Municipal Income ETF (CGSM) is a ETF from Capital Group (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year CGSM returned +3.19% while IVV returned +21.89%. Year to date, CGSM is up 1.46% versus a gain of 12.71% for IVV.
Over three years, CGSM compounded at +4.82% per year against +22.08% for IVV. Across the full 3-year window we track, IVV has the edge at +7.00% annualized vs +4.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.2% for CGSM. 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 -1.4% for CGSM and -56.5% for IVV. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSM charges 0.25% per year while IVV charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, CGSM currently yields 2.92% against 1.10% for IVV.
Holdings Overlap
CGSM and IVV share 0 holdings out of 703 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, CGSM or IVV?
CGSM has an expense ratio of 0.25% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, CGSM or IVV?
Over the past year CGSM returned +3.19% vs +21.89% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (3 years), CGSM annualized +4.82% vs +7.00% for IVV. Past performance does not guarantee future results.
Which is riskier, CGSM or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 2.2% for CGSM. Worst drawdown: CGSM -1.4% vs IVV -56.5%.
Should I hold both CGSM and IVV?
CGSM and IVV have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSM and IVV?
CGSM and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, CGSM or IVV?
CGSM yields 2.92% while IVV yields 1.10%, so CGSM currently pays the higher dividend yield.
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