VAB.TO vs. VDY.TO
VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield 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 VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, VAB.TO returned 1.51%/yr vs 14.02%/yr for VDY.TO. At a correlation of -0.09, they often move in opposite directions. VAB.TO charges 0.09%/yr vs 0.22%/yr for VDY.TO.
Performance
VAB.TO vs. VDY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VAB.TO achieves a 1.62% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, VAB.TO has underperformed VDY.TO with an annualized return of 1.51%, while VDY.TO has yielded a comparatively higher 14.02% 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%
VDY.TO
- 1D
- -0.07%
- 1M
- 4.52%
- YTD
- 20.59%
- 6M
- 22.32%
- 1Y
- 46.18%
- 3Y*
- 26.00%
- 5Y*
- 17.21%
- 10Y*
- 14.02%
VAB.TO vs. VDY.TO - 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% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 20.59% | 29.20% | 20.71% | 8.40% | -0.23% | 36.78% | -1.37% | 21.43% | -10.09% | 8.75% |
Correlation
The correlation between VAB.TO and VDY.TO is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012 | -0.09 |
The correlation between VAB.TO and VDY.TO shifts across timeframes, from -0.09 (all time) to 0.18 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VAB.TO vs. VDY.TO — Risk / Return Rank
VAB.TO
VDY.TO
VAB.TO vs. VDY.TO - 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 FTSE Canadian High Dividend Yield Index ETF (VDY.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.
| VAB.TO | VDY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.94 | ||
| Sortino ratioReturn per unit of downside risk | -7.16 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 2.14 | -1.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.10 | 14.88 | -13.78 |
| Martin ratioReturn relative to average drawdown | 2.61 | 60.75 | -58.13 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VAB.TO | VDY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.72 | 5.65 | -4.94 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | 1.50 | -1.40 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.88 | -0.65 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.84 | -0.45 |
Drawdowns
VAB.TO vs. VDY.TO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for VAB.TO and VDY.TO.
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Drawdown Indicators
| VAB.TO | VDY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.39% | -39.21% | +20.82% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -3.12% | +0.29% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -10.87% | +5.56% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -16.18% | +0.36% |
Max Drawdown (10Y)Largest decline over 10 years | -18.39% | -39.21% | +20.82% |
Current DrawdownCurrent decline from peak | -1.92% | -0.77% | -1.15% |
Average DrawdownAverage peak-to-trough decline | -4.11% | -4.61% | +0.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 0.76% | +0.44% |
Volatility
VAB.TO vs. VDY.TO - Volatility Comparison
The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.31%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VAB.TO | VDY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 3.31% | -1.72% |
Volatility (6M)Calculated over the trailing 6-month period | 3.45% | 6.87% | -3.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 8.21% | -3.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 11.56% | -4.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.48% | 15.96% | -9.48% |
VAB.TO vs. VDY.TO - Expense Ratio Comparison
VAB.TO has a 0.09% expense ratio, which is lower than VDY.TO'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. VDY.TO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.32%, more than VDY.TO's 2.90% yield.
| 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% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.90% | 3.59% | 4.40% | 4.64% | 4.42% | 3.58% | 4.59% | 4.25% | 4.43% | 3.82% | 3.25% | 4.11% |
Frequently Asked Questions
VAB.TO and VDY.TO have a correlation of 0.14, 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 VDY.TO.
VAB.TO is categorized as Canadian Government Bonds, while VDY.TO is Dividend. VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while VDY.TO tracks FTSE Canada High Dividend Yield Index. Their fees differ too: 0.09% for VAB.TO and 0.22% for VDY.TO.
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