CGMS vs VTI
CGMS vs VTI
Capital Group US Multi Sector Income ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | CGMS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $5.3B | $663.5B | |
| Dividend Yield | 6.12% | 1.07% | |
| Holdings | 1,447 | 3,543 | |
| YTD Return | +1.74% | +13.92% | |
| 1Y Return | +4.48% | +24.07% | |
| 3Y Return (annualized) | +7.70% | +20.88% | |
| 5Y Return (annualized) | - | +12.47% | |
| Volatility (annualized) | 5.1% | 15.3% | |
| Max Drawdown | -4.1% | -56.6% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | May 24, 2001 |
CGMS vs VTI Performance
Capital Group US Multi Sector Income ETF (CGMS) is a ETF from Capital Group (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year CGMS returned +4.48% while VTI returned +24.07%. Year to date, CGMS is up 1.74% versus a gain of 13.92% for VTI.
Over three years, CGMS compounded at +7.70% per year against +20.88% for VTI. Across the full 4-year window we track, CGMS has the edge at +8.13% annualized vs +8.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
CGMS and VTI share 1 holdings out of 3613 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGMS | Weight in VTI | Difference |
|---|---|---|---|
| DBD | 0.01% | 0.00% | 0.01% |
Frequently Asked Questions
Which is cheaper, CGMS or VTI?
CGMS has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, CGMS or VTI?
Over the past year CGMS returned +4.48% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), CGMS annualized +8.13% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, CGMS or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.1% for CGMS. Worst drawdown: CGMS -4.1% vs VTI -56.6%.
Should I hold both CGMS and VTI?
CGMS and VTI 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 VTI?
CGMS and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3613 unique securities.
Which pays a higher dividend, CGMS or VTI?
CGMS yields 6.12% while VTI yields 1.07%, so CGMS currently pays the higher dividend yield.
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