CGSM vs VOO
Capital Group Short Duration Municipal Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. CGSM offers more diversification with 2,062 holdings.
Side-by-Side Comparison
| Metric | CGSM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $1.6B | $997.4B | |
| Dividend Yield | 2.92% | 1.08% | |
| Holdings | 2,062 | 509 | |
| YTD Return | +1.50% | +14.27% | |
| 1Y Return | +3.38% | +21.79% | |
| 3Y Return (annualized) | +4.87% | +22.19% | |
| 5Y Return (annualized) | - | +13.28% | |
| Volatility (annualized) | 2.2% | 14.2% | |
| Max Drawdown | -1.4% | -34.3% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 26, 2023 | Sep 7, 2010 |
CGSM vs VOO Performance
Capital Group Short Duration Municipal Income ETF (CGSM) is a ETF from Capital Group (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year CGSM returned +3.38% while VOO returned +21.79%. Year to date, CGSM is up 1.50% versus a gain of 14.27% for VOO.
Over three years, CGSM compounded at +4.87% per year against +22.19% for VOO. Across the full 3-year window we track, VOO has the edge at +13.59% annualized vs +4.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.3% for VOO. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSM charges 0.25% per year while VOO 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 1.08% for VOO.
Holdings Overlap
CGSM and VOO 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 VOO?
CGSM has an expense ratio of 0.25% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, CGSM or VOO?
Over the past year CGSM returned +3.38% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), CGSM annualized +4.87% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, CGSM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 2.2% for CGSM. Worst drawdown: CGSM -1.4% vs VOO -34.3%.
Should I hold both CGSM and VOO?
CGSM and VOO have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSM and VOO?
CGSM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, CGSM or VOO?
CGSM yields 2.92% while VOO yields 1.08%, so CGSM currently pays the higher dividend yield.
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