VGB.AX vs. VAF.AX

Last updated Jul 16, 2026

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

Performance

VGB.AX vs. VAF.AX - Performance Comparison

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

Returns By Period

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

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%

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%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

The correlation between VGB.AX and VAF.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 VGB.AX and VAF.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

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

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

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

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

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.

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

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

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

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

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

VGB.AX vs. VAF.AX - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

VGB.AX vs. VAF.AX - Volatility Comparison

Vanguard Australian Government Bond Index ETF (VGB.AX) has a higher volatility of 0.69% compared to Vanguard Australian Fixed Interest Index ETF (VAF.AX) at 0.61%. This indicates that VGB.AX's price experiences larger fluctuations and is considered to be riskier than VAF.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

VGB.AX vs. VAF.AX - Dividend Comparison

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

VGB.AX and VAF.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 VGB.AX and VAF.AX?

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