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VAF.AX vs. IAF.AX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VAF.AX vs. IAF.AX

Last updated Jul 16, 2026
Documentation

VAF.AX (Vanguard Australian Fixed Interest Index ETF) and IAF.AX (iShares Core Composite Bond ETF) are both Total Bond Market funds - VAF.AX tracks the Vanguard Australian Fixed Interest Index Index while IAF.AX tracks the iShares Core Composite Bond Index. Both are passively managed. Over the past 10 years, VAF.AX returned 1.05%/yr vs 1.53%/yr for IAF.AX. A 0.77 correlation means they provide meaningful diversification when combined.

Performance

VAF.AX vs. IAF.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard Australian Fixed Interest Index ETF (VAF.AX) and iShares Core Composite Bond ETF (IAF.AX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VAF.AX achieves a 0.68% return, which is significantly lower than IAF.AX's 2.02% return. Over the past 10 years, VAF.AX has underperformed IAF.AX with an annualized return of 1.05%, while IAF.AX has yielded a comparatively higher 1.53% annualized return.

VAF.AX

1D
0.07%
1M
0.00%
6M
1.33%
YTD
0.68%
1Y
0.69%
3Y*
2.84%
5Y*
-0.70%
10Y*
1.05%

IAF.AX

1D
0.16%
1M
0.16%
6M
1.37%
YTD
2.02%
1Y
1.75%
3Y*
3.60%
5Y*
-0.06%
10Y*
1.53%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VAF.AX vs. IAF.AX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VAF.AX
Vanguard Australian Fixed Interest Index ETF		0.68%3.33%1.52%4.67%-10.66%-3.03%4.31%6.98%3.70%2.50%
IAF.AX
iShares Core Composite Bond ETF		2.02%2.97%2.70%4.96%-9.82%-3.09%3.92%7.29%4.19%3.38%

Correlation

The correlation between VAF.AX and IAF.AX is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.87

Correlation (3Y)
Calculated over the trailing 3-year period

0.89

Correlation (5Y)
Calculated over the trailing 5-year period

0.93

Correlation (10Y)
Calculated over the trailing 10-year period

0.86

Correlation (All Time)
Calculated using the full available price history since Oct 29, 2012

0.77

The correlation between VAF.AX and IAF.AX shifts across timeframes, from 0.77 (all time) to 0.93 (5 years), reflecting how their relationship changes across market environments.

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Vanguard Australian Fixed Interest Index ETF

iShares Core Composite Bond ETF

Return for Risk

VAF.AX vs. IAF.AX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VAF.AX
VAF.AX Risk / Return Rank: 1111
Overall Rank
VAF.AX Sharpe Ratio Rank: 1313
Sharpe Ratio Rank
VAF.AX Sortino Ratio Rank: 1111
Sortino Ratio Rank
VAF.AX Omega Ratio Rank: 1111
Omega Ratio Rank
VAF.AX Calmar Ratio Rank: 1111
Calmar Ratio Rank
VAF.AX Martin Ratio Rank: 1111
Martin Ratio Rank
IAF.AX
IAF.AX Risk / Return Rank: 1717
Overall Rank
IAF.AX Sharpe Ratio Rank: 1818
Sharpe Ratio Rank
IAF.AX Sortino Ratio Rank: 1717
Sortino Ratio Rank
IAF.AX Omega Ratio Rank: 1616
Omega Ratio Rank
IAF.AX Calmar Ratio Rank: 1717
Calmar Ratio Rank
IAF.AX Martin Ratio Rank: 1515
Martin Ratio Rank
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.

VAF.AX vs. IAF.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Australian Fixed Interest Index ETF (VAF.AX) and iShares Core Composite Bond ETF (IAF.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.

VAF.AXIAF.AXDifference
Sharpe ratioReturn per unit of total volatility
0.21
0.50

-0.29

Sortino ratioReturn per unit of downside risk
0.32
0.75

-0.43

Omega ratioGain probability vs. loss probability

1.04

1.09

-0.05

Calmar ratioReturn relative to maximum drawdown

0.17

0.51

-0.34

Martin ratioReturn relative to average drawdown

0.34

1.09

-0.75

VAF.AX vs. IAF.AX - Sharpe Ratio Comparison

The current VAF.AX Sharpe Ratio is 0.21, which is lower than the IAF.AX Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of VAF.AX and IAF.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.

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Drawdowns

VAF.AX vs. IAF.AX - Drawdown Comparison

The maximum VAF.AX drawdown since its inception was -16.26%, roughly equal to the maximum IAF.AX drawdown of -15.62%. Use the drawdown chart below to compare losses from any high point for VAF.AX and IAF.AX.

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Drawdown Indicators

VAF.AXIAF.AXDifference

Max Drawdown

Largest peak-to-trough decline

-16.26%

-15.62%

-0.64%

Max Drawdown (1Y)

Largest decline over 1 year

-4.47%

-3.57%

-0.90%

Max Drawdown (3Y)

Largest decline over 3 years

-4.47%

-3.65%

-0.82%

Max Drawdown (5Y)

Largest decline over 5 years

-15.63%

-15.10%

-0.53%

Max Drawdown (10Y)

Largest decline over 10 years

-16.26%

-15.62%

-0.64%

Current Drawdown

Current decline from peak

-5.19%

-1.92%

-3.27%

Average Drawdown

Average peak-to-trough decline

-4.17%

-3.25%

-0.92%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.31%

1.72%

+0.59%

Volatility

VAF.AX vs. IAF.AX - Volatility Comparison

The current volatility for Vanguard Australian Fixed Interest Index ETF (VAF.AX) is 0.61%, while iShares Core Composite Bond ETF (IAF.AX) has a volatility of 0.68%. This indicates that VAF.AX experiences smaller price fluctuations and is considered to be less risky than IAF.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VAF.AXIAF.AXDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.61%

0.68%

-0.07%

Volatility (6M)

Calculated over the trailing 6-month period

2.82%

2.70%

+0.12%

Volatility (1Y)

Calculated over the trailing 1-year period

3.66%

3.65%

+0.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

4.90%

5.00%

-0.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

4.29%

4.33%

-0.04%

Dividends

VAF.AX vs. IAF.AX - Dividend Comparison

VAF.AX's dividend yield for the trailing twelve months is around 2.30%, less than IAF.AX's 3.15% yield.

PositionTTM20252024202320222021202020192018201720162015
IAF.AX
iShares Core Composite Bond ETF		3.15%2.99%2.78%1.51%1.57%1.63%1.59%2.21%2.28%2.30%2.47%3.62%
VAF.AX
Vanguard Australian Fixed Interest Index ETF		2.30%3.08%1.29%0.96%0.41%2.41%3.24%2.49%1.95%2.01%3.69%2.90%

Frequently Asked Questions

VAF.AX and IAF.AX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VAF.AX tracks Vanguard Australian Fixed Interest Index Index, while IAF.AX tracks iShares Core Composite Bond Index. They also come from different issuers: Vanguard and iShares.

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