CGCP vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. CGCP offers more diversification with 737 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: CGCP

Side-by-Side Comparison

MetricCGCPVYMWinner
Expense Ratio0.34%0.04%
AUM$8.4B$79.0B
Dividend Yield5.12%2.86%
Holdings1,462568
YTD Return-0.44%+13.24%
1Y Return+3.03%+23.76%
3Y Return (annualized)+4.94%+16.97%
5Y Return (annualized)-+12.26%
Volatility (annualized)7.0%14.6%
Max Drawdown-15.1%-58.8%
Fund FamilyCapital Group (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 22, 2022Nov 10, 2006

CGCP vs VYM Performance

Capital Group Core Plus Income ETF (CGCP) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGCP returned +3.03% while VYM returned +23.76%. Year to date, CGCP is down 0.44% versus a gain of 13.24% for VYM.

Over three years, CGCP compounded at +4.94% per year against +16.97% for VYM. Across the full 4-year window we track, VYM has the edge at +6.96% annualized vs +1.41%. 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 7.0% for CGCP. 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 -15.1% for CGCP 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CGCP charges 0.34% per year while VYM charges 0.04%. On a $10,000 position that is $34 vs $4 annually, a gap of $30 per year that compounds over a long holding period. On income, CGCP currently yields 5.12% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

CGCP and VYM share 0 holdings out of 1295 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, CGCP or VYM?

CGCP has an expense ratio of 0.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, CGCP or VYM?

Over the past year CGCP returned +3.03% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), CGCP annualized +1.41% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, CGCP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.0% for CGCP. Worst drawdown: CGCP -15.1% vs VYM -58.8%.

Should I hold both CGCP and VYM?

CGCP and VYM 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 CGCP and VYM?

CGCP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1295 unique securities.

Which pays a higher dividend, CGCP or VYM?

CGCP yields 5.12% while VYM yields 2.86%, so CGCP currently pays the higher dividend yield.

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