RSM.AX vs. VGB.AX

Last updated Jul 16, 2026

RSM.AX (Russell Investments Australian Semi-Government Bond ETF) and VGB.AX (Vanguard Australian Government Bond Index ETF) are both Government Bonds funds - RSM.AX tracks the Russell Investments Australian Semi-Government Bond Index while VGB.AX tracks the Vanguard Australian Government Bond Index Index. Both are passively managed. Over the past 10 years, RSM.AX returned 2.45%/yr vs 0.93%/yr for VGB.AX. At a 0.45 correlation, their price movements are largely independent.

Performance

RSM.AX vs. VGB.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Russell Investments Australian Semi-Government Bond ETF (RSM.AX) and Vanguard Australian Government Bond Index ETF (VGB.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RSM.AX achieves a 1.44% return, which is significantly higher than VGB.AX's 0.93% return. Over the past 10 years, RSM.AX has outperformed VGB.AX with an annualized return of 2.45%, while VGB.AX has yielded a comparatively lower 0.93% annualized return.

RSM.AX

• 1D: 0.10%
• 1M: 0.33%
• 6M: 1.24%
• YTD: 1.44%
• 1Y: 1.32%
• 3Y*: 3.70%
• 5Y*: 0.60%
• 10Y*: 2.45%

VGB.AX

• 1D: 0.00%
• 1M: 0.08%
• 6M: 1.26%
• YTD: 0.93%
• 1Y: 0.51%
• 3Y*: 2.44%
• 5Y*: -0.92%
• 10Y*: 0.93%

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

RSM.AX vs. VGB.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RSM.AX Russell Investments Australian Semi-Government Bond ETF	1.44%	3.01%	3.67%	4.81%	-7.23%	-2.38%	7.10%	6.95%	4.18%	4.25%
VGB.AX Vanguard Australian Government Bond Index ETF	0.93%	2.39%	1.19%	4.44%	-10.45%	-3.26%	4.30%	7.50%	3.89%	2.32%

Correlation

The correlation between RSM.AX and VGB.AX is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Apr 24, 2012	0.45

Over the past year, RSM.AX and VGB.AX have become more correlated (0.66) than their long-term average of 0.45, meaning their price movements have been converging.

Return for Risk

RSM.AX vs. VGB.AX — Risk / Return Rank

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

RSM.AX

RSM.AX Risk / Return Rank: 14
RSM.AX Sharpe Ratio Rank: 15
RSM.AX Sortino Ratio Rank: 13
RSM.AX Omega Ratio Rank: 13
RSM.AX Calmar Ratio Rank: 14
RSM.AX Martin Ratio Rank: 14

VGB.AX

VGB.AX Risk / Return Rank: 11
VGB.AX Sharpe Ratio Rank: 12
VGB.AX Sortino Ratio Rank: 10
VGB.AX Omega Ratio Rank: 10
VGB.AX Calmar Ratio Rank: 11
VGB.AX Martin Ratio Rank: 11

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.

RSM.AX vs. VGB.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Russell Investments Australian Semi-Government Bond ETF (RSM.AX) and Vanguard Australian Government Bond Index ETF (VGB.AX). 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.

	RSM.AX	VGB.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.33	0.15	+0.18
Sortino ratio: Return per unit of downside risk	0.49	0.24	+0.24
Omega ratio: Gain probability vs. loss probability	1.06	1.03	+0.03
Calmar ratio: Return relative to maximum drawdown	0.34	0.13	+0.21
Martin ratio: Return relative to average drawdown	0.75	0.24	+0.51

RSM.AX vs. VGB.AX - Sharpe Ratio Comparison

The current RSM.AX Sharpe Ratio is 0.33, which is higher than the VGB.AX Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of RSM.AX and VGB.AX, 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

RSM.AX vs. VGB.AX - Drawdown Comparison

The maximum RSM.AX drawdown since its inception was -12.07%, smaller than the maximum VGB.AX drawdown of -16.56%. Use the drawdown chart below to compare losses from any high point for RSM.AX and VGB.AX.

Drawdown Indicators

	RSM.AX	VGB.AX	Difference
Max Drawdown Largest peak-to-trough decline	-12.07%	-16.56%	+4.49%
Max Drawdown (1Y) Largest decline over 1 year	-3.96%	-4.83%	+0.87%
Max Drawdown (3Y) Largest decline over 3 years	-3.96%	-4.83%	+0.87%
Max Drawdown (5Y) Largest decline over 5 years	-12.07%	-15.82%	+3.75%
Max Drawdown (10Y) Largest decline over 10 years	-12.07%	-16.56%	+4.49%
Current Drawdown Current decline from peak	-0.69%	-6.49%	+5.80%
Average Drawdown Average peak-to-trough decline	-1.93%	-4.48%	+2.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	2.55%	-0.75%

Volatility

RSM.AX vs. VGB.AX - Volatility Comparison

Russell Investments Australian Semi-Government Bond ETF (RSM.AX) has a higher volatility of 0.74% compared to Vanguard Australian Government Bond Index ETF (VGB.AX) at 0.69%. This indicates that RSM.AX's price experiences larger fluctuations and is considered to be riskier than VGB.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RSM.AX	VGB.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.74%	0.69%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.81%	3.06%	-0.25%
Volatility (1Y) Calculated over the trailing 1-year period	4.05%	3.93%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.77%	5.41%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.50%	4.66%	-0.16%

Dividends

RSM.AX vs. VGB.AX - Dividend Comparison

RSM.AX's dividend yield for the trailing twelve months is around 3.94%, more than VGB.AX's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RSM.AX Russell Investments Australian Semi-Government Bond ETF	3.94%	2.12%	0.00%	0.00%	0.00%	2.59%	7.27%	3.90%	3.05%	3.66%	5.23%	4.54%
VGB.AX Vanguard Australian Government Bond Index ETF	2.32%	3.32%	1.14%	1.00%	0.50%	2.10%	2.94%	1.95%	2.04%	1.83%	1.90%	1.94%

Frequently Asked Questions

Can I hold both RSM.AX and VGB.AX in my portfolio?

RSM.AX and VGB.AX have a correlation of 0.66, 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 RSM.AX and VGB.AX?

RSM.AX tracks Russell Investments Australian Semi-Government Bond Index, while VGB.AX tracks Vanguard Australian Government Bond Index Index. They also come from different issuers: Russell and Vanguard.