VAB.TO vs. TLTW

Last updated Jun 4, 2026

VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - VAB.TO is a Canadian Government Bonds fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while TLTW is a Options Trading fund tracking the CBOE TLT 2% OTM Buywrite Index (USD). Both are passively managed. Over the past 3 years, VAB.TO returned 4.12%/yr vs 1.91%/yr for TLTW. A 0.67 correlation means they provide meaningful diversification when combined. VAB.TO charges 0.09%/yr vs 0.35%/yr for TLTW.

Performance

VAB.TO vs. TLTW - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VAB.TO is traded in CAD, while TLTW is traded in USD. To make them comparable, the TLTW values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VAB.TO achieves a 1.62% return, which is significantly lower than TLTW's 2.50% return.

VAB.TO

• 1D: -0.07%
• 1M: 1.70%
• YTD: 1.62%
• 6M: 0.78%
• 1Y: 3.12%
• 3Y*: 4.12%
• 5Y*: 0.66%
• 10Y*: 1.51%

TLTW

• 1D: 0.18%
• 1M: 2.77%
• YTD: 2.50%
• 6M: -0.59%
• 1Y: 11.89%
• 3Y*: 1.91%
• 5Y*: —
• 10Y*: —

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

VAB.TO vs. TLTW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	1.62%	2.28%	3.98%	6.90%	-0.93%
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	2.50%	6.25%	6.22%	-1.48%	-7.75%

Correlation

The correlation between VAB.TO and TLTW 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	0.69
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022	0.67

The correlation between VAB.TO and TLTW has been stable across timeframes, ranging from 0.61 to 0.69 - a consistent structural relationship.

Return for Risk

VAB.TO vs. TLTW — Risk / Return Rank

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

VAB.TO

VAB.TO Risk / Return Rank: 21
VAB.TO Sharpe Ratio Rank: 20
VAB.TO Sortino Ratio Rank: 18
VAB.TO Omega Ratio Rank: 19
VAB.TO Calmar Ratio Rank: 24
VAB.TO Martin Ratio Rank: 21

TLTW

TLTW Risk / Return Rank: 36
TLTW Sharpe Ratio Rank: 37
TLTW Sortino Ratio Rank: 37
TLTW Omega Ratio Rank: 35
TLTW Calmar Ratio Rank: 35
TLTW Martin Ratio Rank: 34

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.

VAB.TO vs. TLTW - Risk-Adjusted Trends 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 BuyWrite Strategy ETF (TLTW). 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.

	VAB.TO	TLTW	Difference
Sharpe ratio: Return per unit of total volatility	0.72	1.36	-0.65
Sortino ratio: Return per unit of downside risk	0.98	1.97	-0.98
Omega ratio: Gain probability vs. loss probability	1.12	1.24	-0.12
Calmar ratio: Return relative to maximum drawdown	1.10	1.97	-0.86
Martin ratio: Return relative to average drawdown	2.61	4.73	-2.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VAB.TO vs. TLTW - Sharpe Ratio Comparison

The current VAB.TO Sharpe Ratio is 0.72, which is lower than the TLTW Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of VAB.TO and TLTW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VAB.TO	TLTW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	1.36	-0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.11	+0.28

Drawdowns

VAB.TO vs. TLTW - Drawdown Comparison

The maximum VAB.TO drawdown since its inception was -18.39%, which is greater than TLTW's maximum drawdown of -15.64%. Use the drawdown chart below to compare losses from any high point for VAB.TO and TLTW.

Drawdown Indicators

	VAB.TO	TLTW	Difference
Max Drawdown Largest peak-to-trough decline	-18.39%	-15.64%	-2.75%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-6.07%	+3.24%
Max Drawdown (3Y) Largest decline over 3 years	-5.31%	-13.78%	+8.47%
Max Drawdown (5Y) Largest decline over 5 years	-15.82%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-18.39%	—	—
Current Drawdown Current decline from peak	-1.92%	-2.23%	+0.31%
Average Drawdown Average peak-to-trough decline	-4.11%	-5.60%	+1.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.20%	2.52%	-1.32%

Volatility

VAB.TO vs. TLTW - Volatility Comparison

The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a volatility of 2.50%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than TLTW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAB.TO	TLTW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.59%	2.50%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	3.45%	6.82%	-3.37%
Volatility (1Y) Calculated over the trailing 1-year period	4.38%	8.76%	-4.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.58%	11.86%	-5.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.48%	11.86%	-5.38%

VAB.TO vs. TLTW - Expense Ratio Comparison

VAB.TO has a 0.09% expense ratio, which is lower than TLTW's 0.35% expense ratio.

Dividends

VAB.TO vs. TLTW - Dividend Comparison

VAB.TO's dividend yield for the trailing twelve months is around 3.32%, less than TLTW's 11.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	11.76%	14.82%	14.47%	19.59%	8.71%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	3.32%	3.33%	3.19%	2.95%	2.87%	2.48%	2.50%	2.65%	2.79%	2.77%	2.75%	2.78%

Frequently Asked Questions

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

VAB.TO and TLTW 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.

Which ETF is better, VAB.TO or TLTW?

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.

Which ETF is cheaper, VAB.TO or TLTW?

VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.35% for TLTW.

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

VAB.TO is categorized as Canadian Government Bonds, while TLTW is Options Trading. VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VAB.TO and 0.35% for TLTW.