XZWG.L vs. IAAA.L

Last updated Jun 5, 2026

XZWG.L (Xtrackers II ESG Global Government Bond UCITS ETF) and IAAA.L (iShares Global AAA-AA Government Bond UCITS) are both Global Bonds funds - XZWG.L tracks the Bloomberg Global Aggregate TR Hdg EUR while IAAA.L tracks the Bloomberg Global Aggregate TR USD. Both are passively managed. Over the past 3 years, XZWG.L returned 2.54%/yr vs 3.96%/yr for IAAA.L. A 0.65 correlation means they provide meaningful diversification when combined. Both charge a 0.20% expense ratio.

Performance

XZWG.L vs. IAAA.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers II ESG Global Government Bond UCITS ETF (XZWG.L) and iShares Global AAA-AA Government Bond UCITS (IAAA.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XZWG.L achieves a -0.93% return, which is significantly lower than IAAA.L's 0.13% return.

XZWG.L

• 1D: 0.17%
• 1M: -0.13%
• YTD: -0.93%
• 6M: -0.55%
• 1Y: 0.34%
• 3Y*: 2.54%
• 5Y*: —
• 10Y*: —

IAAA.L

• 1D: 0.19%
• 1M: 0.02%
• YTD: 0.13%
• 6M: 1.27%
• 1Y: 2.00%
• 3Y*: 3.96%
• 5Y*: -3.01%
• 10Y*: -0.36%

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

XZWG.L vs. IAAA.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XZWG.L Xtrackers II ESG Global Government Bond UCITS ETF	-0.93%	7.85%	-4.18%	6.19%	-21.45%	-0.83%
IAAA.L iShares Global AAA-AA Government Bond UCITS	0.13%	10.70%	-5.21%	8.69%	-21.12%	-1.03%

Correlation

The correlation between XZWG.L and IAAA.L is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (All Time) Calculated using the full available price history since Dec 16, 2021	0.65

The correlation between XZWG.L and IAAA.L has been stable across timeframes, ranging from 0.63 to 0.65 - a consistent structural relationship.

Return for Risk

XZWG.L vs. IAAA.L — Risk / Return Rank

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

XZWG.L

XZWG.L Risk / Return Rank: 9
XZWG.L Sharpe Ratio Rank: 10
XZWG.L Sortino Ratio Rank: 9
XZWG.L Omega Ratio Rank: 9
XZWG.L Calmar Ratio Rank: 10
XZWG.L Martin Ratio Rank: 10

IAAA.L

IAAA.L Risk / Return Rank: 16
IAAA.L Sharpe Ratio Rank: 15
IAAA.L Sortino Ratio Rank: 14
IAAA.L Omega Ratio Rank: 13
IAAA.L Calmar Ratio Rank: 19
IAAA.L Martin Ratio Rank: 18

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.

XZWG.L vs. IAAA.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers II ESG Global Government Bond UCITS ETF (XZWG.L) and iShares Global AAA-AA Government Bond UCITS (IAAA.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.

	XZWG.L	IAAA.L	Difference
Sharpe ratio: Return per unit of total volatility	0.05	0.36	-0.30
Sortino ratio: Return per unit of downside risk	0.12	0.59	-0.47
Omega ratio: Gain probability vs. loss probability	1.01	1.07	-0.05
Calmar ratio: Return relative to maximum drawdown	0.08	0.77	-0.69
Martin ratio: Return relative to average drawdown	0.19	1.90	-1.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XZWG.L vs. IAAA.L - Sharpe Ratio Comparison

The current XZWG.L Sharpe Ratio is 0.05, which is lower than the IAAA.L Sharpe Ratio of 0.36. The chart below compares the historical Sharpe Ratios of XZWG.L and IAAA.L, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XZWG.L	IAAA.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.05	0.36	-0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.42	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.42	-0.07	-0.35

Drawdowns

XZWG.L vs. IAAA.L - Drawdown Comparison

The maximum XZWG.L drawdown since its inception was -27.49%, smaller than the maximum IAAA.L drawdown of -32.79%. Use the drawdown chart below to compare losses from any high point for XZWG.L and IAAA.L.

Drawdown Indicators

	XZWG.L	IAAA.L	Difference
Max Drawdown Largest peak-to-trough decline	-27.49%	-32.79%	+5.30%
Max Drawdown (1Y) Largest decline over 1 year	-4.29%	-4.11%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	-9.10%	-10.21%	+1.11%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.57%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-32.79%	—
Current Drawdown Current decline from peak	-15.46%	-17.30%	+1.84%
Average Drawdown Average peak-to-trough decline	-17.81%	-10.59%	-7.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	1.98%	-0.18%

Volatility

XZWG.L vs. IAAA.L - Volatility Comparison

The current volatility for Xtrackers II ESG Global Government Bond UCITS ETF (XZWG.L) is 2.37%, while iShares Global AAA-AA Government Bond UCITS (IAAA.L) has a volatility of 2.59%. This indicates that XZWG.L experiences smaller price fluctuations and is considered to be less risky than IAAA.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XZWG.L	IAAA.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.37%	2.59%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	4.91%	5.78%	-0.87%
Volatility (1Y) Calculated over the trailing 1-year period	6.35%	8.83%	-2.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.63%	11.26%	-2.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.63%	9.36%	-0.73%

XZWG.L vs. IAAA.L - Expense Ratio Comparison

Both XZWG.L and IAAA.L have an expense ratio of 0.20%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XZWG.L vs. IAAA.L - Dividend Comparison

XZWG.L's dividend yield for the trailing twelve months is around 2.59%, less than IAAA.L's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAAA.L iShares Global AAA-AA Government Bond UCITS	2.69%	2.46%	2.37%	1.52%	0.76%	0.49%	0.56%	0.88%	0.94%	0.77%	0.89%	1.08%
XZWG.L Xtrackers II ESG Global Government Bond UCITS ETF	2.59%	2.42%	2.65%	1.69%	1.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XZWG.L and IAAA.L in my portfolio?

XZWG.L and IAAA.L have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XZWG.L or IAAA.L?

Both ETFs have the same 0.20% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XZWG.L or IAAA.L?

XZWG.L and IAAA.L have the same expense ratio: 0.20% per year.

What is the main difference between XZWG.L and IAAA.L?

XZWG.L tracks Bloomberg Global Aggregate TR Hdg EUR, while IAAA.L tracks Bloomberg Global Aggregate TR USD. They also come from different issuers: DWS and iShares.