VAF.AX vs. VGB.AX

Last updated Jul 16, 2026

VAF.AX (Vanguard Australian Fixed Interest Index ETF) and VGB.AX (Vanguard Australian Government Bond Index ETF) are both exchange-traded funds - VAF.AX is a Total Bond Market fund tracking the Vanguard Australian Fixed Interest Index Index, while VGB.AX is a Government Bonds fund tracking the Vanguard Australian Government Bond Index Index. Both are passively managed. Over the past 10 years, VAF.AX returned 1.05%/yr vs 0.93%/yr for VGB.AX. A 0.77 correlation means they provide meaningful diversification when combined.

Performance

VAF.AX vs. VGB.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 Vanguard Australian Government Bond Index ETF (VGB.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VAF.AX achieves a 0.68% return, which is significantly lower than VGB.AX's 0.93% return. Over the past 10 years, VAF.AX has outperformed VGB.AX with an annualized return of 1.05%, while VGB.AX has yielded a comparatively lower 0.93% 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%

VGB.AX

• 1D: 0.00%
• 1M: 0.08%
• 6M: 1.26%
• YTD: 0.93%
• 1Y: 0.51%
• 3Y*: 2.44%
• 5Y*: -0.92%
• 10Y*: 0.93%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VGB.AX Vanguard Australian Government Bond Index ETF	0.93%	2.39%	1.19%	4.44%	-10.45%	-3.26%	4.30%	7.50%	3.89%	2.32%

Correlation

The correlation between VAF.AX and VGB.AX is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Oct 29, 2012	0.77

The correlation between VAF.AX and VGB.AX shifts across timeframes, from 0.77 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VAF.AX vs. VGB.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: 11
VAF.AX Sharpe Ratio Rank: 13
VAF.AX Sortino Ratio Rank: 11
VAF.AX Omega Ratio Rank: 11
VAF.AX Calmar Ratio Rank: 11
VAF.AX Martin Ratio Rank: 11

VGB.AX

VGB.AX Risk / Return Rank: 11
VGB.AX Sharpe Ratio Rank: 12
VGB.AX Sortino Ratio Rank: 10
VGB.AX Omega Ratio Rank: 10
VGB.AX Calmar Ratio Rank: 11
VGB.AX Martin Ratio Rank: 11

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. VGB.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 Vanguard Australian Government Bond Index ETF (VGB.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.AX	VGB.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.21	0.15	+0.06
Sortino ratio: Return per unit of downside risk	0.32	0.24	+0.08
Omega ratio: Gain probability vs. loss probability	1.04	1.03	+0.01
Calmar ratio: Return relative to maximum drawdown	0.17	0.13	+0.05
Martin ratio: Return relative to average drawdown	0.34	0.24	+0.10

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

The current VAF.AX Sharpe Ratio is 0.21, which is higher than the VGB.AX Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of VAF.AX and VGB.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.

Drawdowns

VAF.AX vs. VGB.AX - Drawdown Comparison

The maximum VAF.AX drawdown since its inception was -16.26%, roughly equal to the maximum VGB.AX drawdown of -16.56%. Use the drawdown chart below to compare losses from any high point for VAF.AX and VGB.AX.

Drawdown Indicators

	VAF.AX	VGB.AX	Difference
Max Drawdown Largest peak-to-trough decline	-16.26%	-16.56%	+0.30%
Max Drawdown (1Y) Largest decline over 1 year	-4.47%	-4.83%	+0.36%
Max Drawdown (3Y) Largest decline over 3 years	-4.47%	-4.83%	+0.36%
Max Drawdown (5Y) Largest decline over 5 years	-15.63%	-15.82%	+0.19%
Max Drawdown (10Y) Largest decline over 10 years	-16.26%	-16.56%	+0.30%
Current Drawdown Current decline from peak	-5.19%	-6.49%	+1.30%
Average Drawdown Average peak-to-trough decline	-4.17%	-4.48%	+0.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.31%	2.55%	-0.24%

Volatility

VAF.AX vs. VGB.AX - Volatility Comparison

The current volatility for Vanguard Australian Fixed Interest Index ETF (VAF.AX) is 0.61%, while Vanguard Australian Government Bond Index ETF (VGB.AX) has a volatility of 0.69%. This indicates that VAF.AX experiences smaller price fluctuations and is considered to be less risky than VGB.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAF.AX	VGB.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	0.69%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.82%	3.06%	-0.24%
Volatility (1Y) Calculated over the trailing 1-year period	3.66%	3.93%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.90%	5.41%	-0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.29%	4.66%	-0.37%

Dividends

VAF.AX vs. VGB.AX - Dividend Comparison

VAF.AX's dividend yield for the trailing twelve months is around 2.30%, which matches VGB.AX's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VGB.AX Vanguard Australian Government Bond Index ETF	2.32%	3.32%	1.14%	1.00%	0.50%	2.10%	2.94%	1.95%	2.04%	1.83%	1.90%	1.94%

Frequently Asked Questions

Can I hold both VAF.AX and VGB.AX in my portfolio?

VAF.AX and VGB.AX have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VAF.AX and VGB.AX?

VAF.AX is categorized as Total Bond Market, while VGB.AX is Government Bonds. VAF.AX tracks Vanguard Australian Fixed Interest Index Index, while VGB.AX tracks Vanguard Australian Government Bond Index Index.