VAB.TO vs. VBU.NEO
VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and VBU.NEO (Vanguard U.S. Aggregate Bond Index 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 VBU.NEO is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Bond Index (CAD Hedged). Both are passively managed. Over the past 10 years, VAB.TO returned 1.51%/yr vs -0.19%/yr for VBU.NEO. A 0.68 correlation means they provide meaningful diversification when combined. VAB.TO charges 0.09%/yr vs 0.22%/yr for VBU.NEO.
Performance
VAB.TO vs. VBU.NEO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VAB.TO achieves a 1.62% return, which is significantly higher than VBU.NEO's -2.27% return. Over the past 10 years, VAB.TO has outperformed VBU.NEO with an annualized return of 1.51%, while VBU.NEO has yielded a comparatively lower -0.19% annualized 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%
VBU.NEO
- 1D
- -0.19%
- 1M
- -0.19%
- YTD
- -2.27%
- 6M
- -2.80%
- 1Y
- -0.52%
- 3Y*
- -0.50%
- 5Y*
- -2.73%
- 10Y*
- -0.19%
VAB.TO vs. VBU.NEO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.62% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.26% | 6.77% | 1.13% | 2.30% |
VBU.NEO Vanguard U.S. Aggregate Bond Index ETF | -2.27% | 1.31% | -2.90% | 4.56% | -13.69% | -2.10% | 7.24% | 7.76% | -1.05% | 3.47% |
Correlation
The correlation between VAB.TO and VBU.NEO is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.75 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Jul 2, 2014 | 0.68 |
The correlation between VAB.TO and VBU.NEO shifts across timeframes, from 0.67 (1 year) to 0.78 (5 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VAB.TO vs. VBU.NEO — Risk / Return Rank
VAB.TO
VBU.NEO
VAB.TO vs. VBU.NEO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO). 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 | VBU.NEO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.82 | ||
| Sortino ratioReturn per unit of downside risk | +1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 0.98 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.10 | -0.11 | +1.22 |
| Martin ratioReturn relative to average drawdown | 2.61 | -0.30 | +2.91 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VAB.TO | VBU.NEO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.72 | -0.11 | +0.82 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | -0.43 | +0.53 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | -0.03 | +0.27 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.07 | +0.32 |
Drawdowns
VAB.TO vs. VBU.NEO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum VBU.NEO drawdown of -19.38%. Use the drawdown chart below to compare losses from any high point for VAB.TO and VBU.NEO.
Loading charts...
Drawdown Indicators
| VAB.TO | VBU.NEO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.39% | -19.38% | +0.99% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -4.55% | +1.72% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -6.80% | +1.49% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -18.46% | +2.64% |
Max Drawdown (10Y)Largest decline over 10 years | -18.39% | -19.38% | +0.99% |
Current DrawdownCurrent decline from peak | -1.92% | -15.59% | +13.67% |
Average DrawdownAverage peak-to-trough decline | -4.11% | -6.05% | +1.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 1.72% | -0.52% |
Volatility
VAB.TO vs. VBU.NEO - Volatility Comparison
The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO) has a volatility of 2.45%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than VBU.NEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VAB.TO | VBU.NEO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 2.45% | -0.86% |
Volatility (6M)Calculated over the trailing 6-month period | 3.45% | 3.49% | -0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 4.79% | -0.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 6.33% | +0.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.48% | 5.97% | +0.51% |
VAB.TO vs. VBU.NEO - Expense Ratio Comparison
VAB.TO has a 0.09% expense ratio, which is lower than VBU.NEO's 0.22% 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%.
Dividends
VAB.TO vs. VBU.NEO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.32%, while VBU.NEO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VBU.NEO Vanguard U.S. Aggregate Bond Index ETF | 0.00% | 0.00% | 0.24% | 2.72% | 2.31% | 1.83% | 2.14% | 2.36% | 2.28% | 2.20% | 2.19% | 2.18% |
Frequently Asked Questions
VAB.TO and VBU.NEO have a correlation of 0.67, 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 0.22% for VBU.NEO.
VAB.TO is categorized as Canadian Government Bonds, while VBU.NEO is Total Bond Market. VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while VBU.NEO tracks Bloomberg U.S. Aggregate Float Adjusted Bond Index (CAD Hedged). Their fees differ too: 0.09% for VAB.TO and 0.22% for VBU.NEO.
Find the right allocation for VAB.TO and VBU.NEO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer