VGOV.L vs. ERNS.L
VGOV.L (Vanguard UK Gilt UCITS ETF Distributing) and ERNS.L (iShares £ Ultrashort Bond UCITS ETF GBP (Dist)) are both exchange-traded funds - VGOV.L is a European Government Bonds fund tracking the FTSE Actuaries UK Conventional Gilts All Stocks Index, while ERNS.L is a Ultrashort Bond fund tracking the Markit iBoxx GBP Liquid Investment Grade Ultrashort Index. Both are passively managed. Over the past 10 years, VGOV.L returned -1.77%/yr vs 2.22%/yr for ERNS.L. At a 0.08 correlation, their price movements are largely independent. VGOV.L charges 0.07%/yr vs 0.09%/yr for ERNS.L.
Performance
VGOV.L vs. ERNS.L - Performance Comparison
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Returns By Period
In the year-to-date period, VGOV.L achieves a -1.10% return, which is significantly lower than ERNS.L's 1.98% return. Over the past 10 years, VGOV.L has underperformed ERNS.L with an annualized return of -1.77%, while ERNS.L has yielded a comparatively higher 2.22% annualized return.
VGOV.L
- 1D
- 0.13%
- 1M
- -0.55%
- 6M
- -2.14%
- YTD
- -1.10%
- 1Y
- 2.46%
- 3Y*
- 2.47%
- 5Y*
- -5.78%
- 10Y*
- -1.77%
ERNS.L
- 1D
- 0.04%
- 1M
- 0.27%
- 6M
- 1.99%
- YTD
- 1.98%
- 1Y
- 4.24%
- 3Y*
- 5.01%
- 5Y*
- 3.71%
- 10Y*
- 2.22%
VGOV.L vs. ERNS.L - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGOV.L Vanguard UK Gilt UCITS ETF Distributing | -1.10% | 4.79% | -4.32% | 3.33% | -27.01% | -5.36% | 9.33% | 7.66% | 0.31% | 1.90% |
ERNS.L iShares £ Ultrashort Bond UCITS ETF GBP (Dist) | 1.98% | 4.84% | 5.55% | 4.76% | 1.53% | 0.14% | 0.77% | 1.28% | 0.58% | 0.57% |
Correlation
The correlation between VGOV.L and ERNS.L is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.09 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2013 | 0.08 |
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Return for Risk
VGOV.L vs. ERNS.L — Risk / Return Rank
VGOV.L
ERNS.L
VGOV.L vs. ERNS.L - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard UK Gilt UCITS ETF Distributing (VGOV.L) and iShares £ Ultrashort Bond UCITS ETF GBP (Dist) (ERNS.L). 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.
| VGOV.L | ERNS.L | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.96 | ||
| Sortino ratioReturn per unit of downside risk | -9.31 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 2.40 | -1.33 |
| Calmar ratioReturn relative to maximum drawdown | 0.42 | 19.43 | -19.00 |
| Martin ratioReturn relative to average drawdown | 1.05 | 108.42 | -107.37 |
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Drawdowns
VGOV.L vs. ERNS.L - Drawdown Comparison
The maximum VGOV.L drawdown since its inception was -39.28%, which is greater than ERNS.L's maximum drawdown of -1.51%. Use the drawdown chart below to compare losses from any high point for VGOV.L and ERNS.L.
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Drawdown Indicators
| VGOV.L | ERNS.L | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.28% | -1.51% | -37.77% |
Max Drawdown (1Y)Largest decline over 1 year | -5.76% | -0.22% | -5.54% |
Max Drawdown (3Y)Largest decline over 3 years | -8.00% | -0.22% | -7.78% |
Max Drawdown (5Y)Largest decline over 5 years | -37.38% | -0.36% | -37.02% |
Max Drawdown (10Y)Largest decline over 10 years | -39.28% | -1.51% | -37.77% |
Current DrawdownCurrent decline from peak | -30.62% | -0.03% | -30.59% |
Average DrawdownAverage peak-to-trough decline | -12.19% | -0.05% | -12.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.34% | 0.04% | +2.30% |
Volatility
VGOV.L vs. ERNS.L - Volatility Comparison
Vanguard UK Gilt UCITS ETF Distributing (VGOV.L) has a higher volatility of 1.89% compared to iShares £ Ultrashort Bond UCITS ETF GBP (Dist) (ERNS.L) at 0.19%. This indicates that VGOV.L's price experiences larger fluctuations and is considered to be riskier than ERNS.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGOV.L | ERNS.L | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.89% | 0.19% | +1.70% |
Volatility (6M)Calculated over the trailing 6-month period | 5.44% | 0.65% | +4.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.47% | 0.79% | +5.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.42% | 0.82% | +10.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.08% | 0.92% | +9.16% |
VGOV.L vs. ERNS.L - Expense Ratio Comparison
VGOV.L has a 0.07% expense ratio, which is lower than ERNS.L's 0.09% 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
VGOV.L vs. ERNS.L - Dividend Comparison
VGOV.L's dividend yield for the trailing twelve months is around 4.62%, more than ERNS.L's 4.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ERNS.L iShares £ Ultrashort Bond UCITS ETF GBP (Dist) | 4.28% | 4.65% | 5.42% | 4.54% | 1.14% | 0.28% | 0.75% | 1.04% | 0.74% | 0.52% | 0.81% | 0.72% |
VGOV.L Vanguard UK Gilt UCITS ETF Distributing | 4.62% | 4.51% | 4.14% | 3.16% | 1.87% | 1.09% | 1.16% | 1.38% | 1.57% | 1.62% | 1.62% | 1.92% |
Frequently Asked Questions
VGOV.L and ERNS.L have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VGOV.L is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VGOV.L is cheaper with a 0.07% expense ratio, compared with 0.09% for ERNS.L.
VGOV.L is categorized as European Government Bonds, while ERNS.L is Ultrashort Bond. VGOV.L tracks FTSE Actuaries UK Conventional Gilts All Stocks Index, while ERNS.L tracks Markit iBoxx GBP Liquid Investment Grade Ultrashort Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VGOV.L and 0.09% for ERNS.L.
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