RBO.TO vs. VAB.TO

Last updated Jul 16, 2026

RBO.TO (RBC 1-5 Year Laddered Canadian Corporate Bond ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - RBO.TO is a Corporate Bonds fund actively managed by RBC, while VAB.TO is a Total Bond Market fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. RBO.TO is actively managed, while VAB.TO is passively managed. Over the past 10 years, RBO.TO returned 2.40%/yr vs 1.43%/yr for VAB.TO. At a 0.45 correlation, their price movements are largely independent.

Performance

RBO.TO vs. VAB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in RBC 1-5 Year Laddered Canadian Corporate Bond ETF (RBO.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RBO.TO achieves a 1.41% return, which is significantly higher than VAB.TO's 1.23% return. Over the past 10 years, RBO.TO has outperformed VAB.TO with an annualized return of 2.40%, while VAB.TO has yielded a comparatively lower 1.43% annualized return.

RBO.TO

• 1D: 0.16%
• 1M: -0.08%
• 6M: 0.93%
• YTD: 1.41%
• 1Y: 3.34%
• 3Y*: 5.41%
• 5Y*: 2.32%
• 10Y*: 2.40%

VAB.TO

• 1D: 0.26%
• 1M: -0.49%
• 6M: 0.66%
• YTD: 1.23%
• 1Y: 4.33%
• 3Y*: 4.15%
• 5Y*: 0.31%
• 10Y*: 1.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RBO.TO vs. VAB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RBO.TO RBC 1-5 Year Laddered Canadian Corporate Bond ETF	1.41%	4.23%	6.06%	6.16%	-5.32%	-1.20%	6.09%	5.07%	0.88%	0.75%
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	1.23%	2.28%	3.98%	6.90%	-11.86%	-2.88%	8.27%	6.78%	1.14%	2.54%

Correlation

The correlation between RBO.TO and VAB.TO is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jan 17, 2014	0.45

The correlation between RBO.TO and VAB.TO shifts across timeframes, from 0.45 (all time) to 0.59 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

RBO.TO vs. VAB.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RBO.TO

RBO.TO Risk / Return Rank: 53
RBO.TO Sharpe Ratio Rank: 55
RBO.TO Sortino Ratio Rank: 55
RBO.TO Omega Ratio Rank: 60
RBO.TO Calmar Ratio Rank: 46
RBO.TO Martin Ratio Rank: 50

VAB.TO

VAB.TO Risk / Return Rank: 33
VAB.TO Sharpe Ratio Rank: 34
VAB.TO Sortino Ratio Rank: 30
VAB.TO Omega Ratio Rank: 32
VAB.TO Calmar Ratio Rank: 37
VAB.TO Martin Ratio Rank: 32

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RBO.TO vs. VAB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for RBC 1-5 Year Laddered Canadian Corporate Bond ETF (RBO.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.

	RBO.TO	VAB.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.01	+0.54
Sortino ratio: Return per unit of downside risk	2.20	1.38	+0.81
Omega ratio: Gain probability vs. loss probability	1.30	1.18	+0.12
Calmar ratio: Return relative to maximum drawdown	1.92	1.53	+0.39
Martin ratio: Return relative to average drawdown	6.93	3.85	+3.08

RBO.TO vs. VAB.TO - Sharpe Ratio Comparison

The current RBO.TO Sharpe Ratio is 1.54, which is higher than the VAB.TO Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of RBO.TO and VAB.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

RBO.TO vs. VAB.TO - Drawdown Comparison

The maximum RBO.TO drawdown since its inception was -20.46%, which is greater than VAB.TO's maximum drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for RBO.TO and VAB.TO.

Drawdown Indicators

	RBO.TO	VAB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-20.46%	-18.39%	-2.07%
Max Drawdown (1Y) Largest decline over 1 year	-1.75%	-2.83%	+1.08%
Max Drawdown (3Y) Largest decline over 3 years	-1.75%	-4.84%	+3.09%
Max Drawdown (5Y) Largest decline over 5 years	-7.89%	-15.82%	+7.93%
Max Drawdown (10Y) Largest decline over 10 years	-20.46%	-18.39%	-2.07%
Current Drawdown Current decline from peak	-0.16%	-2.29%	+2.13%
Average Drawdown Average peak-to-trough decline	-1.34%	-4.06%	+2.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.48%	1.13%	-0.65%

Volatility

RBO.TO vs. VAB.TO - Volatility Comparison

The current volatility for RBC 1-5 Year Laddered Canadian Corporate Bond ETF (RBO.TO) is 0.41%, while Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) has a volatility of 1.24%. This indicates that RBO.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.

Volatility by Period

	RBO.TO	VAB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.41%	1.24%	-0.83%
Volatility (6M) Calculated over the trailing 6-month period	1.81%	3.42%	-1.61%
Volatility (1Y) Calculated over the trailing 1-year period	2.18%	4.37%	-2.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.95%	6.58%	-3.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.74%	6.46%	+1.28%

Dividends

RBO.TO vs. VAB.TO - Dividend Comparison

RBO.TO's dividend yield for the trailing twelve months is around 3.90%, more than VAB.TO's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RBO.TO RBC 1-5 Year Laddered Canadian Corporate Bond ETF	3.90%	3.67%	3.35%	2.56%	2.64%	2.32%	2.41%	2.77%	2.96%	3.02%	3.26%	3.54%
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	3.35%	3.33%	3.19%	2.95%	2.87%	2.48%	2.51%	2.65%	2.80%	2.99%	2.75%	2.79%

Frequently Asked Questions

Can I hold both RBO.TO and VAB.TO in my portfolio?

RBO.TO and VAB.TO have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between RBO.TO and VAB.TO?

RBO.TO is categorized as Corporate Bonds, while VAB.TO is Total Bond Market. They also come from different issuers: RBC and Vanguard.