CGHM vs VYM
CGHM vs VYM
Capital Group Municipal High-Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. CGHM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | CGHM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.04% | |
| AUM | $3.3B | $79.0B | |
| Dividend Yield | 3.54% | 2.86% | |
| Holdings | 3,277 | 568 | |
| YTD Return | +2.12% | +15.20% | |
| 1Y Return | +7.86% | +25.56% | |
| 3Y Return (annualized) | - | +17.86% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 4.5% | 14.6% | |
| Max Drawdown | -5.9% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 25, 2024 | Nov 10, 2006 |
CGHM vs VYM Performance
Capital Group Municipal High-Income ETF (CGHM) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGHM returned +7.86% while VYM returned +25.56%. Year to date, CGHM is up 2.12% versus a gain of 15.20% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.5% for CGHM. 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 -5.9% for CGHM 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGHM 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, CGHM currently yields 3.54% against 2.86% for VYM.
Holdings Overlap
CGHM and VYM share 0 holdings out of 1120 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, CGHM or VYM?
CGHM 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, CGHM or VYM?
Over the past year CGHM returned +7.86% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), CGHM annualized +4.45% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, CGHM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.5% for CGHM. Worst drawdown: CGHM -5.9% vs VYM -58.8%.
Should I hold both CGHM and VYM?
CGHM and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHM and VYM?
CGHM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1120 unique securities.
Which pays a higher dividend, CGHM or VYM?
CGHM yields 3.54% while VYM yields 2.86%, so CGHM currently pays the higher dividend yield.
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