VAF and IAF overlap by about 100%: owning both mostly doubles up. They charge the same fee (0.10% a year). VAF is the bigger fund ($3.9b vs $3.7b). Close to the same investment: both track the Bloomberg AusBond Composite 0+ Yr Index of Australian government and investment-grade bonds, for the same fee.
📅 As at 30 September 2026: fees, size, flows and returns from the TMX Australia funds report; overlap from published holdings as at 30 September 2026.
VAF
Vanguard Australian Fixed Interest Index ETFVAF invests in Australian government, semi-government and investment-grade corporate bonds.
IAF
iShares Core Composite Bond ETFIAF invests in Australian government, semi-government and investment-grade corporate bonds.
VAF vs IAF side by side
Green marks the cheaper, bigger or better-performing fund on each line. Past returns are not a reliable guide to the future.
| VAF | IAF | |
|---|---|---|
| Issuer | Vanguard | iShares |
| Index | Bloomberg AusBond Composite 0+ Yr Index | Bloomberg AusBond Composite 0+ Yr Index |
| Fee (a year) | 0.10% | 0.10% |
| Size | $3.9b | $3.7b |
| Net money in, September | +$66m | −$15m |
| 1-year return | -0.4% | -0.4% |
| 5-year return | -1% | -1% |
| Listed | 2012 | 2012 |
| Top 10 holdings | 100% of fund | 100% of fund |
| Trend now | Base | Base |
How much do VAF and IAF overlap?
About 100% of their holdings are the same, by weight: high overlap, so owning both mostly doubles up.
Only in VAF
- No holdings above 0.5%: the differences are all small positions.
Only in IAF
- No holdings above 0.5%: the differences are all small positions.
Sectors and countries
Sectors
Countries
Trend: base, uptrend or downtrend?
Past year of prices, shaded by trend stage. The dashed line is the 200-day exponential average. As at 4 November 2026. How base and trend works.
VAF or IAF: which suits who?
Where either fits depends on the rest of your portfolio: whether it’s your core or a satellite. See core and satellite investing.
See the exact overlap with everything you hold, plus the trend of each ETF, in our free calculator.
More comparisons
VAF vs IAF FAQs
Is VAF or IAF better?
Neither is better for everyone. Close to the same investment: both track the Bloomberg AusBond Composite 0+ Yr Index of Australian government and investment-grade bonds, for the same fee. Choose VAF if you prefer Vanguard. There is little else between them. Choose IAF if you prefer iShares. There is little else between them.
What is the difference between VAF and IAF?
VAF and IAF overlap by about 100%: owning both mostly doubles up. They charge the same fee (0.10% a year). VAF is the bigger fund ($3.9b vs $3.7b). Close to the same investment: both track the Bloomberg AusBond Composite 0+ Yr Index of Australian government and investment-grade bonds, for the same fee.
Should I own both VAF and IAF?
Usually there’s little point. With 100% overlap, owning both mostly doubles up on the same companies. Pick one.
Which is cheaper, VAF or IAF?
They charge the same fee (0.10% a year). Fees are taken from the fund’s returns, not charged separately.
Fees, size, flows and returns: TMX Australia Funds Report to 30 September 2026; returns are total returns and the 5-year figure is cumulative. Overlap, sectors and countries are based on each fund’s published holdings, scaled to the part of each fund we can see. Trend stages are a technical indicator based on 10, 20, 50 and 200-day exponential moving averages; they describe the past, not the future. General information only, not a recommendation to buy or sell VAF or IAF. Consider the PDS and TMD, and your own circumstances, before investing.