CGMS vs VOO
CGMS vs VOO
Capital Group US Multi Sector Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. CGMS offers more diversification with 831 holdings.
Side-by-Side Comparison
| Metric | CGMS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $5.3B | $979.0B | |
| Dividend Yield | 6.12% | 1.09% | |
| Holdings | 1,447 | 509 | |
| YTD Return | +1.59% | +13.11% | |
| 1Y Return | +4.13% | +22.88% | |
| 3Y Return (annualized) | +7.63% | +21.08% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 5.1% | 14.1% | |
| Max Drawdown | -4.1% | -34.3% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Sep 7, 2010 |
CGMS vs VOO Performance
Capital Group US Multi Sector Income ETF (CGMS) is a ETF from Capital Group (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year CGMS returned +4.13% while VOO returned +22.88%. Year to date, CGMS is up 1.59% versus a gain of 13.11% for VOO.
Over three years, CGMS compounded at +7.63% per year against +21.08% for VOO. Across the full 4-year window we track, VOO has the edge at +13.54% annualized vs +8.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, CGMS currently yields 6.12% against 1.09% for VOO.
Holdings Overlap
CGMS and VOO share 0 holdings out of 1336 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 VOO?
CGMS has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, CGMS or VOO?
Over the past year CGMS returned +4.13% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), CGMS annualized +8.08% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, CGMS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 5.1% for CGMS. Worst drawdown: CGMS -4.1% vs VOO -34.3%.
Should I hold both CGMS and VOO?
CGMS and VOO 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 VOO?
CGMS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1336 unique securities.
Which pays a higher dividend, CGMS or VOO?
CGMS yields 6.12% while VOO yields 1.09%, so CGMS currently pays the higher dividend yield.
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