PSB.TO vs. VAB.TO
PSB.TO (Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - PSB.TO is a Corporate Bonds fund tracking the FTSE Canada Investment Grade 1-5 Year Laddered Corporate Bond Index, while VAB.TO is a Total Bond Market fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, PSB.TO returned 2.68%/yr vs 1.27%/yr for VAB.TO. A 0.57 correlation means they provide meaningful diversification when combined. PSB.TO charges 0.28%/yr vs 0.09%/yr for VAB.TO.
Performance
PSB.TO vs. VAB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, PSB.TO achieves a 1.49% return, which is significantly lower than VAB.TO's 1.72% return. Over the past 10 years, PSB.TO has outperformed VAB.TO with an annualized return of 2.68%, while VAB.TO has yielded a comparatively lower 1.27% annualized return.
PSB.TO
- 1D
- 0.11%
- 1M
- 0.21%
- 6M
- 1.49%
- YTD
- 1.49%
- 1Y
- 3.77%
- 3Y*
- 6.00%
- 5Y*
- 2.96%
- 10Y*
- 2.68%
VAB.TO
- 1D
- 0.04%
- 1M
- 0.08%
- 6M
- 2.03%
- YTD
- 1.72%
- 1Y
- 3.51%
- 3Y*
- 3.83%
- 5Y*
- 0.35%
- 10Y*
- 1.27%
PSB.TO vs. VAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PSB.TO Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF | 1.49% | 4.68% | 7.08% | 6.44% | -3.89% | -0.97% | 6.08% | 4.25% | 1.59% | 0.23% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.72% | 2.00% | 3.26% | 6.90% | -11.86% | -2.88% | 8.27% | 6.78% | 1.14% | 2.31% |
Correlation
The correlation between PSB.TO and VAB.TO is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.71 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Dec 6, 2011 | 0.57 |
The correlation between PSB.TO and VAB.TO shifts across timeframes, from 0.57 (all time) to 0.72 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
PSB.TO vs. VAB.TO — Risk / Return Rank
PSB.TO
VAB.TO
PSB.TO vs. VAB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF (PSB.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.TO). 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.
| PSB.TO | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.56 | ||
| Sortino ratioReturn per unit of downside risk | +0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.14 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.74 | 1.24 | +1.49 |
| Martin ratioReturn relative to average drawdown | 8.23 | 3.07 | +5.16 |
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Drawdowns
PSB.TO vs. VAB.TO - Drawdown Comparison
The maximum PSB.TO drawdown since its inception was -13.24%, smaller than the maximum VAB.TO drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for PSB.TO and VAB.TO.
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Drawdown Indicators
| PSB.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.24% | -18.39% | +5.15% |
Max Drawdown (1Y)Largest decline over 1 year | -1.38% | -2.83% | +1.45% |
Max Drawdown (3Y)Largest decline over 3 years | -1.89% | -4.84% | +2.95% |
Max Drawdown (5Y)Largest decline over 5 years | -7.93% | -15.82% | +7.89% |
Max Drawdown (10Y)Largest decline over 10 years | -13.24% | -18.39% | +5.15% |
Current DrawdownCurrent decline from peak | -0.23% | -2.76% | +2.53% |
Average DrawdownAverage peak-to-trough decline | -1.00% | -4.20% | +3.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 1.14% | -0.68% |
Volatility
PSB.TO vs. VAB.TO - Volatility Comparison
The current volatility for Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF (PSB.TO) is 0.61%, while Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) has a volatility of 1.14%. This indicates that PSB.TO experiences smaller price fluctuations and is considered to be less risky than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PSB.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.61% | 1.14% | -0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 1.91% | 3.37% | -1.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.77% | 4.36% | -1.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.31% | 6.59% | -3.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.85% | 6.47% | -1.62% |
PSB.TO vs. VAB.TO - Expense Ratio Comparison
PSB.TO has a 0.28% expense ratio, which is higher than VAB.TO's 0.09% expense ratio.
Dividends
PSB.TO vs. VAB.TO - Dividend Comparison
PSB.TO's dividend yield for the trailing twelve months is around 3.21%, less than VAB.TO's 3.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PSB.TO Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF | 3.21% | 3.18% | 3.12% | 3.09% | 3.13% | 2.91% | 2.74% | 3.00% | 3.37% | 3.61% | 4.01% | 4.04% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.33% | 3.05% | 2.50% | 2.95% | 2.87% | 2.48% | 2.51% | 2.65% | 2.80% | 2.77% | 2.75% | 2.79% |
Frequently Asked Questions
PSB.TO and VAB.TO have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VAB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.28% for PSB.TO.
PSB.TO is categorized as Corporate Bonds, while VAB.TO is Total Bond Market. PSB.TO tracks FTSE Canada Investment Grade 1-5 Year Laddered Corporate Bond Index, while VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.28% for PSB.TO and 0.09% for VAB.TO.
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