VLC.AX vs. VGB.AX

Last updated Jul 16, 2026

VLC.AX (Vanguard MSCI Australian Large Companies Index ETF) and VGB.AX (Vanguard Australian Government Bond Index ETF) are both exchange-traded funds - VLC.AX is a Global Equities fund tracking the Vanguard MSCI Australian Large Companies 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, VLC.AX returned 9.02%/yr vs 0.93%/yr for VGB.AX. At a 0.02 correlation, their price movements are largely independent.

Performance

VLC.AX vs. VGB.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard MSCI Australian Large Companies Index ETF (VLC.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, VLC.AX achieves a 7.09% return, which is significantly higher than VGB.AX's 0.93% return. Over the past 10 years, VLC.AX has outperformed VGB.AX with an annualized return of 9.02%, while VGB.AX has yielded a comparatively lower 0.93% annualized return.

VLC.AX

• 1D: 0.09%
• 1M: 0.91%
• 6M: 8.49%
• YTD: 7.09%
• 1Y: 9.19%
• 3Y*: 11.43%
• 5Y*: 8.20%
• 10Y*: 9.02%

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)

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLC.AX Vanguard MSCI Australian Large Companies Index ETF	7.09%	7.92%	8.78%	12.26%	3.84%	16.09%	2.10%	22.77%	-2.67%	5.75%
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 VLC.AX and VGB.AX is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (10Y) Calculated over the trailing 10-year period	0.08
Correlation (All Time) Calculated using the full available price history since Apr 24, 2012	0.02

Over the past year, VLC.AX and VGB.AX have become more correlated (0.24) than their long-term average of 0.02, meaning their price movements have been converging.

Return for Risk

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

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

VLC.AX

VLC.AX Risk / Return Rank: 25
VLC.AX Sharpe Ratio Rank: 25
VLC.AX Sortino Ratio Rank: 24
VLC.AX Omega Ratio Rank: 23
VLC.AX Calmar Ratio Rank: 29
VLC.AX Martin Ratio Rank: 26

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard MSCI Australian Large Companies Index ETF (VLC.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.

	VLC.AX	VGB.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.74	0.15	+0.58
Sortino ratio: Return per unit of downside risk	1.14	0.24	+0.89
Omega ratio: Gain probability vs. loss probability	1.13	1.03	+0.10
Calmar ratio: Return relative to maximum drawdown	1.22	0.13	+1.09
Martin ratio: Return relative to average drawdown	2.75	0.24	+2.51

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

The current VLC.AX Sharpe Ratio is 0.74, which is higher than the VGB.AX Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of VLC.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

VLC.AX vs. VGB.AX - Drawdown Comparison

The maximum VLC.AX drawdown since its inception was -32.68%, which is greater than VGB.AX's maximum drawdown of -16.56%. Use the drawdown chart below to compare losses from any high point for VLC.AX and VGB.AX.

Drawdown Indicators

	VLC.AX	VGB.AX	Difference
Max Drawdown Largest peak-to-trough decline	-32.68%	-16.56%	-16.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.04%	-4.83%	-3.21%
Max Drawdown (3Y) Largest decline over 3 years	-14.25%	-4.83%	-9.42%
Max Drawdown (5Y) Largest decline over 5 years	-14.25%	-15.82%	+1.57%
Max Drawdown (10Y) Largest decline over 10 years	-32.68%	-16.56%	-16.12%
Current Drawdown Current decline from peak	-1.15%	-6.49%	+5.34%
Average Drawdown Average peak-to-trough decline	-5.02%	-4.48%	-0.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	2.55%	+1.05%

Volatility

VLC.AX vs. VGB.AX - Volatility Comparison

Vanguard MSCI Australian Large Companies Index ETF (VLC.AX) has a higher volatility of 2.89% compared to Vanguard Australian Government Bond Index ETF (VGB.AX) at 0.69%. This indicates that VLC.AX's price experiences larger fluctuations and is considered to be riskier than VGB.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLC.AX	VGB.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.89%	0.69%	+2.20%
Volatility (6M) Calculated over the trailing 6-month period	10.25%	3.06%	+7.19%
Volatility (1Y) Calculated over the trailing 1-year period	13.32%	3.93%	+9.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.61%	5.41%	+8.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.63%	4.66%	+9.97%

Dividends

VLC.AX vs. VGB.AX - Dividend Comparison

VLC.AX's dividend yield for the trailing twelve months is around 2.42%, more than VGB.AX's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VLC.AX Vanguard MSCI Australian Large Companies Index ETF	2.42%	4.98%	1.31%	3.86%	7.79%	4.16%	2.71%	4.76%	3.74%	3.11%	2.90%	3.14%

Frequently Asked Questions

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

VLC.AX and VGB.AX have a correlation of 0.24, 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 VLC.AX and VGB.AX?

VLC.AX is categorized as Global Equities, while VGB.AX is Government Bonds. VLC.AX tracks Vanguard MSCI Australian Large Companies Index Index, while VGB.AX tracks Vanguard Australian Government Bond Index Index.