CGSM vs VXUS
Capital Group Short Duration Municipal Income ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | CGSM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.05% | |
| AUM | $1.6B | $156.5B | |
| Dividend Yield | 2.95% | 2.60% | |
| Holdings | 857 | 8,747 | |
| YTD Return | +1.50% | +15.00% | |
| 1Y Return | +3.19% | +26.87% | |
| 3Y Return (annualized) | - | +19.79% | |
| 5Y Return (annualized) | - | +9.26% | |
| Volatility (annualized) | 2.2% | 15.1% | |
| Max Drawdown | -1.4% | -39.9% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 26, 2023 | Jan 26, 2011 |
CGSM vs VXUS Performance
Capital Group Short Duration Municipal Income ETF (CGSM) is a ETF from Capital Group (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year CGSM returned +3.19% while VXUS returned +26.87%. Year to date, CGSM is up 1.50% versus a gain of 15.00% for VXUS.
Risk: Volatility and Drawdowns
VXUS 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 -39.9% for VXUS. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSM charges 0.25% per year while VXUS charges 0.05%. On a $10,000 position that is $25 vs $5 annually, a gap of $20 per year that compounds over a long holding period. On income, CGSM currently yields 2.95% against 2.60% for VXUS.
Holdings Overlap
CGSM and VXUS share 0 holdings out of 8059 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 VXUS?
CGSM has an expense ratio of 0.25% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, CGSM or VXUS?
Over the past year CGSM returned +3.19% vs +26.87% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), CGSM annualized +4.88% vs +4.88% for VXUS. Past performance does not guarantee future results.
Which is riskier, CGSM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.2% for CGSM. Worst drawdown: CGSM -1.4% vs VXUS -39.9%.
Should I hold both CGSM and VXUS?
CGSM and VXUS have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSM and VXUS?
CGSM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8059 unique securities.
Which pays a higher dividend, CGSM or VXUS?
CGSM yields 2.95% while VXUS yields 2.60%, so CGSM currently pays the higher dividend yield.
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