AAXJ vs. GOVT
AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, AAXJ returned 10.34%/yr vs 0.84%/yr for GOVT. At a correlation of -0.11, they often move in opposite directions. AAXJ charges 0.68%/yr vs 0.05%/yr for GOVT.
Performance
AAXJ vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, AAXJ achieves a 26.46% return, which is significantly higher than GOVT's 0.11% return. Over the past 10 years, AAXJ has outperformed GOVT with an annualized return of 10.34%, while GOVT has yielded a comparatively lower 0.84% annualized return.
AAXJ
- 1D
- 0.46%
- 1M
- 4.42%
- YTD
- 26.46%
- 6M
- 29.76%
- 1Y
- 48.69%
- 3Y*
- 22.11%
- 5Y*
- 6.41%
- 10Y*
- 10.34%
GOVT
- 1D
- -0.09%
- 1M
- 0.96%
- YTD
- 0.11%
- 6M
- 0.47%
- 1Y
- 3.64%
- 3Y*
- 3.10%
- 5Y*
- -0.50%
- 10Y*
- 0.84%
AAXJ vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAXJ iShares MSCI All Country Asia ex-Japan ETF | 26.46% | 31.53% | 10.41% | 4.79% | -20.35% | -5.73% | 23.35% | 17.93% | -15.04% | 41.76% |
GOVT iShares U.S. Treasury Bond ETF | 0.11% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between AAXJ and GOVT is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | -0.11 |
The correlation between AAXJ and GOVT shifts across timeframes, from -0.11 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
AAXJ vs. GOVT — Risk / Return Rank
AAXJ
GOVT
AAXJ vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and iShares U.S. Treasury Bond ETF (GOVT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AAXJ | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.32 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.16 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 3.41 | 1.17 | +2.24 |
| Martin ratioReturn relative to average drawdown | 12.55 | 3.27 | +9.27 |
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Drawdowns
AAXJ vs. GOVT - Drawdown Comparison
The maximum AAXJ drawdown since its inception was -49.37%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for AAXJ and GOVT.
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Drawdown Indicators
| AAXJ | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.37% | -19.07% | -30.30% |
Max Drawdown (1Y)Largest decline over 1 year | -13.66% | -2.85% | -10.81% |
Max Drawdown (3Y)Largest decline over 3 years | -19.74% | -5.43% | -14.31% |
Max Drawdown (5Y)Largest decline over 5 years | -40.64% | -16.60% | -24.04% |
Max Drawdown (10Y)Largest decline over 10 years | -44.52% | -19.07% | -25.45% |
Current DrawdownCurrent decline from peak | -4.62% | -6.97% | +2.35% |
Average DrawdownAverage peak-to-trough decline | -14.01% | -5.25% | -8.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.71% | 1.02% | +2.69% |
Volatility
AAXJ vs. GOVT - Volatility Comparison
iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 11.46% compared to iShares U.S. Treasury Bond ETF (GOVT) at 1.15%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAXJ | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.46% | 1.15% | +10.31% |
Volatility (6M)Calculated over the trailing 6-month period | 19.71% | 2.58% | +17.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.12% | 3.59% | +18.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.32% | 6.04% | +14.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.42% | 5.23% | +15.19% |
AAXJ vs. GOVT - Expense Ratio Comparison
AAXJ has a 0.68% expense ratio, which is higher than GOVT's 0.05% expense ratio.
Dividends
AAXJ vs. GOVT - Dividend Comparison
AAXJ's dividend yield for the trailing twelve months is around 1.43%, less than GOVT's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAXJ iShares MSCI All Country Asia ex-Japan ETF | 1.43% | 1.81% | 1.86% | 1.95% | 1.74% | 2.21% | 1.06% | 1.83% | 2.10% | 1.99% | 1.77% | 2.44% |
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
Frequently Asked Questions
AAXJ and GOVT have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAXJ has higher volatility (11.46%) compared to GOVT (1.15%). In terms of maximum drawdown, AAXJ dropped -49.37% vs GOVT's -19.07%.
On 10-year performance, AAXJ leads with 10.34% vs 0.84% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.15%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AAXJ has performed better with a 10.34% return vs 0.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.68% for AAXJ.
GOVT has the higher dividend yield at 3.58%, compared with 1.43% for AAXJ.
AAXJ is categorized as Asia Pacific Equities, while GOVT is Government Bonds. AAXJ tracks MSCI All Country Asia ex Japan Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.68% for AAXJ and 0.05% for GOVT.
AAXJ currently has the higher Sharpe Ratio (2.11 vs 0.93), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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