CGSM vs VYM
Capital Group Short Duration Municipal Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. CGSM offers more diversification with 2,062 holdings.
Side-by-Side Comparison
| Metric | CGSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $1.6B | $81.6B | |
| Dividend Yield | 2.92% | 2.24% | |
| Holdings | 2,062 | 616 | |
| YTD Return | +1.30% | +14.66% | |
| 1Y Return | +3.07% | +22.16% | |
| 3Y Return (annualized) | +4.77% | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 2.2% | 14.6% | |
| Max Drawdown | -1.4% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 26, 2023 | Nov 10, 2006 |
CGSM vs VYM Performance
Capital Group Short Duration Municipal Income ETF (CGSM) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGSM returned +3.07% while VYM returned +22.16%. Year to date, CGSM is up 1.30% versus a gain of 14.66% for VYM.
Over three years, CGSM compounded at +4.77% per year against +18.72% for VYM. Across the full 3-year window we track, VYM has the edge at +7.01% annualized vs +4.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSM charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, CGSM currently yields 2.92% against 2.24% for VYM.
Holdings Overlap
CGSM and VYM share 0 holdings out of 801 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 VYM?
CGSM has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, CGSM or VYM?
Over the past year CGSM returned +3.07% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), CGSM annualized +4.77% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, CGSM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.2% for CGSM. Worst drawdown: CGSM -1.4% vs VYM -58.8%.
Should I hold both CGSM and VYM?
CGSM and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSM and VYM?
CGSM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 801 unique securities.
Which pays a higher dividend, CGSM or VYM?
CGSM yields 2.92% while VYM yields 2.24%, so CGSM currently pays the higher dividend yield.
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