CGMS vs SPY
CGMS vs SPY
Capital Group US Multi Sector Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. CGMS offers more diversification with 831 holdings.
Side-by-Side Comparison
| Metric | CGMS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.09% | |
| AUM | $5.3B | $789.1B | |
| Dividend Yield | 6.12% | 1.01% | |
| Holdings | 1,447 | 505 | |
| YTD Return | +1.70% | +13.28% | |
| 1Y Return | +4.32% | +23.94% | |
| 3Y Return (annualized) | +7.68% | +21.07% | |
| 5Y Return (annualized) | - | +13.27% | |
| Volatility (annualized) | 5.1% | 15.3% | |
| Max Drawdown | -4.1% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Jan 22, 1993 |
CGMS vs SPY Performance
Capital Group US Multi Sector Income ETF (CGMS) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGMS returned +4.32% while SPY returned +23.94%. Year to date, CGMS is up 1.70% versus a gain of 13.28% for SPY.
Over three years, CGMS compounded at +7.68% per year against +21.07% for SPY. Across the full 4-year window we track, SPY has the edge at +8.84% annualized vs +8.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGMS charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, CGMS currently yields 6.12% against 1.01% for SPY.
Holdings Overlap
CGMS and SPY share 0 holdings out of 1334 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 SPY?
CGMS has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, CGMS or SPY?
Over the past year CGMS returned +4.32% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), CGMS annualized +8.12% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, CGMS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.1% for CGMS. Worst drawdown: CGMS -4.1% vs SPY -56.5%.
Should I hold both CGMS and SPY?
CGMS and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMS and SPY?
CGMS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1334 unique securities.
Which pays a higher dividend, CGMS or SPY?
CGMS yields 6.12% while SPY yields 1.01%, so CGMS currently pays the higher dividend yield.
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