VGB vs IAF - Compare ETFs side by side

At a glance

Comparing VGB and IAF. IAF has the lower management fee at 0.1% a year, IAF has the higher 10 years return at 1.5% a year, and VGB offers the higher at 3.27%.

Lower fee

IAF 0.1% p.a.

Higher 10 years return

IAF 1.5% p.a.

Higher yield

VGB 3.27%

Lower volatility

IAF 4.5% (10y)

Larger fund

IAF $3.8bn

Side-by-side comparison

Metric	VGB Vanguard Australian Government Bond Index ETF	IAF iShares Core Composite Bond ETF
Snapshot
Provider	Vanguard	iShares
Tracks index	Bloomberg AusBond Govt 0+ Yr Index	Bloomberg AusBond Composite 0+ Yr Index
Categories	AU, Bonds	AU, Bonds
Listed since	2012 (14 yrs)	2012 (14 yrs)
Fund size (AUM)	$1.4bn	$3.8bn
Cost & income
Management fee	0.16%	0.1%
Dividend yield	3.27%	3.15%
Franking	0%	0%
Turnover	25%	35%
Tax drag	1.65%	1.85%
Returns	Tax bracket - adjusts tax drag & net returns
1-year return	0.7% net	1% net
3-year return	3.2% net	3.6% net
5-year return	-0.6% net	-0.2% net
10-year return	1.3% net	1.5% net
Risk
Volatility (3y)	4.3%	4%
Volatility (5y)	5.8%	5.4%
Volatility (10y)	4.8%	4.5%
Sharpe ratio (3y)	—	—
Sharpe ratio (5y)	—	—
Sharpe ratio (10y)	—	—
Bid/ask spread	—	—

marks the strongest fund in each row. “net” shows the after-tax return at your selected bracket. “—” means we don’t have that data point yet.

Each fund at a glance

VGB Vanguard Australian Government Bond Index ETF

Low-cost: a 0.16% management fee keeps more of the return in your pocket.
Low volatility (4.84% over 10 years) for a smoother ride.

Has lagged most peers over 10 years (102nd of 108).

Full VGB analysis →

IAF iShares Core Composite Bond ETF

Low-cost: a 0.1% management fee keeps more of the return in your pocket.
Low volatility (4.45% over 10 years) for a smoother ride.

Has lagged most peers over 10 years (97th of 108).

Full IAF analysis →

Frequently Asked Questions

What's the difference between VGB vs IAF?

VGB and IAF are 2 Australian-listed ETFs we compare side by side. IAF carries the lower management fee (0.1%). Over 10 years, IAF has delivered the higher total return (1.5% a year). The table above breaks down fees, returns, income and risk for each.

Which has the lower fees - VGB vs IAF?

IAF has the lower management fee at 0.1% a year, versus VGB 0.16%.

Which has performed higher - VGB vs IAF?

Over the past 10 years, IAF has delivered the higher total return at 1.5% a year. Past performance is not a reliable indicator of future returns.

Which pays the higher dividend yield?

VGB pays the higher at 3.27%. Remember distributions are taxed each year at your marginal rate.

Which is the larger and most liquid?

IAF is the larger fund by assets ($3.8bn). Larger funds are typically more liquid and trade on tighter spreads.

Related comparisons

VGB vs VAF VGB vs ILB VGB vs VIF VGB vs OZBD VGB vs 1GOV VGB vs 5GOV IAF vs VAF IAF vs OZBD

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General information only, generated from each fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.