CGSD vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricCGSDSPYWinner
Expense Ratio0.25%0.09%
AUM$2.4B$789.1B
Dividend Yield4.46%1.01%
Holdings1,035505
YTD Return+1.18%+11.49%
1Y Return+3.26%+21.37%
3Y Return (annualized)+5.25%+20.76%
5Y Return (annualized)-+12.94%
Volatility (annualized)1.9%15.3%
Max Drawdown-1.8%-56.5%
Fund FamilyCapital Group (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionOct 25, 2022Jan 22, 1993

CGSD vs SPY Performance

Capital Group Short Duration Income ETF (CGSD) 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 CGSD returned +3.26% while SPY returned +21.37%. Year to date, CGSD is up 1.18% versus a gain of 11.49% for SPY.

Over three years, CGSD compounded at +5.25% per year against +20.76% for SPY. Across the full 4-year window we track, SPY has the edge at +8.78% annualized vs +5.05%. 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 1.9% for CGSD. 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 -1.8% for CGSD 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CGSD charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, CGSD currently yields 4.46% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

CGSD and SPY share 0 holdings out of 1005 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, CGSD or SPY?

CGSD has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, CGSD or SPY?

Over the past year CGSD returned +3.26% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), CGSD annualized +5.05% vs +8.78% for SPY. Past performance does not guarantee future results.

Which is riskier, CGSD or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 1.9% for CGSD. Worst drawdown: CGSD -1.8% vs SPY -56.5%.

Should I hold both CGSD and SPY?

CGSD and SPY have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CGSD and SPY?

CGSD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1005 unique securities.

Which pays a higher dividend, CGSD or SPY?

CGSD yields 4.46% while SPY yields 1.01%, so CGSD currently pays the higher dividend yield.

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