VAB.TO vs. TLT
Compare and contrast key facts about Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and iShares 20+ Year Treasury Bond ETF (TLT).
VAB.TO and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VAB.TO is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. It was launched on Nov 30, 2011. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both VAB.TO and TLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VAB.TO or TLT.
Key characteristics
| VAB.TO | TLT | |
|---|---|---|
| YTD Return | 3.69% | -3.33% |
| 1Y Return | 10.33% | 9.94% |
| 3Y Return (Ann) | -0.22% | -12.43% |
| 5Y Return (Ann) | 0.61% | -4.96% |
| 10Y Return (Ann) | 1.96% | -0.01% |
| Sharpe Ratio | 1.53 | 0.49 |
| Sortino Ratio | 2.23 | 0.79 |
| Omega Ratio | 1.27 | 1.09 |
| Calmar Ratio | 0.64 | 0.16 |
| Martin Ratio | 5.27 | 1.23 |
| Ulcer Index | 1.78% | 6.00% |
| Daily Std Dev | 6.11% | 15.09% |
| Max Drawdown | -18.39% | -48.35% |
| Current Drawdown | -5.90% | -39.77% |
Correlation
The correlation between VAB.TO and TLT is 0.35, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VAB.TO vs. TLT - Performance Comparison
In the year-to-date period, VAB.TO achieves a 3.69% return, which is significantly higher than TLT's -3.33% return. Over the past 10 years, VAB.TO has outperformed TLT with an annualized return of 1.96%, while TLT has yielded a comparatively lower -0.01% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VAB.TO vs. TLT - Expense Ratio Comparison
VAB.TO has a 0.09% expense ratio, which is lower than TLT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VAB.TO vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
Dividends
VAB.TO vs. TLT - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.17%, less than TLT's 3.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.17% | 2.95% | 2.87% | 2.48% | 2.50% | 2.65% | 2.79% | 2.77% | 2.75% | 2.78% | 2.87% | 3.21% |
TLT iShares 20+ Year Treasury Bond ETF | 3.98% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
VAB.TO vs. TLT - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for VAB.TO and TLT. For additional features, visit the drawdowns tool.
Volatility
VAB.TO vs. TLT - Volatility Comparison
The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 2.49%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 5.01%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.