CGMS vs SCHD
CGMS vs SCHD
Capital Group US Multi Sector Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGMS offers more diversification with 831 holdings.
Side-by-Side Comparison
| Metric | CGMS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $5.3B | $103.7B | |
| Dividend Yield | 6.12% | 3.31% | |
| Holdings | 1,447 | 104 | |
| YTD Return | +1.74% | +24.08% | |
| 1Y Return | +4.48% | +31.88% | |
| 3Y Return (annualized) | +7.70% | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 5.1% | 13.6% | |
| Max Drawdown | -4.1% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Oct 20, 2011 |
CGMS vs SCHD Performance
Capital Group US Multi Sector Income ETF (CGMS) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGMS returned +4.48% while SCHD returned +31.88%. Year to date, CGMS is up 1.74% versus a gain of 24.08% for SCHD.
Over three years, CGMS compounded at +7.70% per year against +14.92% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +8.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.1% for CGMS. 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 -4.1% for CGMS and -33.4% for SCHD. 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
CGMS charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, CGMS currently yields 6.12% against 3.31% for SCHD.
Holdings Overlap
CGMS and SCHD share 0 holdings out of 931 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, CGMS or SCHD?
CGMS has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, CGMS or SCHD?
Over the past year CGMS returned +4.48% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), CGMS annualized +8.13% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGMS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.1% for CGMS. Worst drawdown: CGMS -4.1% vs SCHD -33.4%.
Should I hold both CGMS and SCHD?
CGMS and SCHD 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 CGMS and SCHD?
CGMS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 931 unique securities.
Which pays a higher dividend, CGMS or SCHD?
CGMS yields 6.12% while SCHD yields 3.31%, so CGMS currently pays the higher dividend yield.
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