PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan

Vanguard Canadian Government Bond Index ETF (VGV.TO) Sharpe Ratio: 0.80

ETF · Currency in CAD · Last updated Jun 17, 2026

Vanguard Canadian Government Bond Index ETF seeks to track the performance of the Bloomberg Global Aggregate Canadian Government Float Adjusted Bond Index. The fund invests primarily in public, investment-grade fixed income securities issued or guaranteed by Canadian federal, provincial, and municipal governments. Managed by Vanguard, it provides low-cost, diversified exposure to the Canadian government bond market across the maturity spectrum. It launched in January 2017 and trades on the Toronto Stock Exchange.

VGV.TO's Sharpe Ratio of 0.80 indicates that for each unit of volatility, it generates 0.80 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 17, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

VGV.TO Sharpe Ratio Rank

VGV.TO Sharpe Ratio Rank: 23.023
Below Average

VGV.TO ranks above 23.0% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns may not adequately compensate for volatility taken
  • Consider smaller allocation given below-average risk-adjusted profile
  • Explore higher-ranked investments with better consistency
  • Assess whether the volatility profile aligns with your portfolio goals

VGV.TO Sharpe Ratio Market Positioning

The chart shows VGV.TO's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.88 or lower
  • Yellow zone (middle 50%): 0.88 to 2.21
  • Green zone (top 25%): 2.21 or higher
  • Top 1%: 7.40+
  • Median: 1.63 — half of all investments score higher

How it compares to other similar ETFs

The table compares Vanguard Canadian Government Bond Index ETF's Sharpe Ratio with other ETFs in the Canadian Government Bonds category across multiple time periods, showing how VGV.TO's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 17, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
CBIL.TOGlobal X 0-3 Month T-Bill ETF9.21
VVSG.TOVanguard Canadian Ultra-Short Government Bond Index ETF7.27
TCSH.TOTD Cash Management ETF5.81
XFR.TOiShares Floating Rate Index ETF4.34
ZBI.TOBMO Canadian Bank Income Index ETF2.36
XSHG.TOiShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF2.22
ZCS.TOBMO Short Corporate Bond Index ETF2.05
XSH.TOiShares Core Canadian Short Term Corporate Bond Index ETF1.98
VSB.TOVanguard Canadian Short Term Bond1.78
CBO.TOiShares 1-5 Year Laddered Corporate Bond Index ETF1.77
VGV.TOVanguard Canadian Government Bond Index ETF0.80

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows VGV.TO's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when VGV.TO consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

Loading charts...

Sharpe Ratio Calculator

How does VGV.TO fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

Analyze Your Portfolio