CGSM vs SPY
Capital Group Short Duration Municipal Income ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, CGSM or SPY?
Municipal Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | CGSM | SPY |
|---|---|---|
| Expense Ratio | 0.25% | 0.09%Best |
| AUM | $1.6B | $804.7B |
| Dividend Yield | 2.91% | 0.98% |
| Holdings | 2,062 | 505 |
| YTD Return | +0.68% | +12.47%Best |
| 1Y Return | +1.34% | +17.51%Best |
| 3Y Return (annualized) | +4.45% | +21.18%Best |
| 5Y Return (annualized) | - | +12.88% |
| Volatility (annualized) | 2.3%Best | 12.4% |
| Max Drawdown | -1.4%Best | -18.8% |
| $10,000 over 3 years | $11,395 | $18,622Best |
| Fund Family | Capital Group (US) | State Street Investment Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Sep 26, 2023 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 28, 2023 to Sep 11, 2026 (3 years).
CGSM vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
CGSM vs SPY Performance
Capital Group Short Duration Municipal Income ETF (CGSM) is an ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year CGSM returned +1.34% while SPY returned +17.51%. Year to date, CGSM is up 0.68% versus a gain of 12.47% for SPY.
Over three years, CGSM compounded at +4.45% per year against +21.18% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 12.4% compared with 2.3% 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
CGSM charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, CGSM currently yields 2.91% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 193 holdings in CGSM and 504 in SPY, totalling 19.2% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 193 positions we hold weights for in CGSM and 504 in SPY, against full books of 2,062 and 505.
You are not choosing between two funds in isolation.
Whichever of CGSM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, CGSM or SPY?
CGSM has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, CGSM or SPY?
Over the past year CGSM returned +1.34% vs +17.51% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CGSM or SPY?
SPY has been the more volatile fund at 12.4% annualized versus 2.3% for CGSM. Worst drawdown: CGSM -1.4% vs SPY -18.8%.
Should I hold both CGSM and SPY?
CGSM and SPY have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, CGSM or SPY?
CGSM yields 2.91% while SPY yields 0.98%, so CGSM currently pays the higher dividend yield.
Is SPY better than CGSM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.