A Current-Perpendicular-to-Plane (CPP) Giant Magneto-Resistance (GMR) sensor (700/800) has either a composite film (708) embedded into a ferromagnetic reference layer (710) or a composite film (806) embedded into a ferromagnetic keeper layer (804). The embedded composite film is deposited by sputtering from a ferromagnetic metallic target and a non-magnetic oxide target simultaneously or sequentially. Varying sputtering powers of the ferromagnetic metallic and non-magnetic oxide targets leads to various volume fractions of ferromagnetic metallic and non-magnetic oxide phases. By carefully adjusting these volume fractions, the product of junction resistance and area of the CPP GMR sensor (700/800) can be finely tuned to a designed value and thus provide optimum read performance of the CPP GMR sensor (700/800) for magnetic recording at ultrahigh densities.