Vanguard Australian Government Bond Index ETF (VGB) Review & Analysis
- −0.7% in September (total return), behind the median Australian bonds ETF at −0.4%.
- Investors added a net $5.7m (0.4% of the fund).
- The unit price closed the month at $45.41, 5% below its 12-month high (range $45.07 to $47.67).
About VGB
VGB holds bonds issued by the Australian federal government and the state government borrowing authorities. It tracks the Bloomberg AusBond Govt 0+ Yr Index, is passively managed, and owns a wide spread of bonds across short, medium and long maturities.
Government bonds carry very little default risk, so the main thing that moves VGB is interest rates. When rates rise, existing bonds lose value and the unit price falls; when rates fall, prices rise. Because the fund holds some long-dated bonds, those swings can be noticeable, as investors saw when rates rose sharply in recent years. Income comes from interest and is paid quarterly, unfranked. There is no currency risk. In a sharemarket slump, high-quality government bonds have often held up or risen, which is the main reason people own them.
VGB is often used as the defensive core of a portfolio, particularly for retirees balancing shares. Alternatives include AGVT, which holds longer-dated bonds, and XGOV; see VGB vs AGVT and VGB vs XGOV.
VGB distributions and dividend dates
VGB pays distributions quarterly, usually going ex-distribution in January, April, July and October, with payment about 16 days after the ex-date.
The latest distribution was $0.2752 per unit (0% franked), ex-distribution on 1 October 2026 and paid on 16 October 2026. To receive it you need to own VGB before the ex-date.
Its distribution yield over the past 12 months is about 3.3%. Distributions vary and past payments are not a guide to future ones.
From ASX announcements, updated nightly. See every ETF in the dividend calendar.
Compare VGB with
| Fee | 0.16% | 0.22% |
| 1 year | −0.7% | −1.8% |
| 5 yrs p.a. | −0.5% | −1.6% |
| Size | $1.4bn | $1.1bn |
| Fee | 0.16% | 0.18% |
| 1 year | −0.7% | −0.4% |
| 5 yrs p.a. | −0.5% | +0.3% |
| Size | $1.4bn | $1.6bn |
| Fee | 0.16% | 0.22% |
| 1 year | −0.7% | −2.5% |
| 5 yrs p.a. | −0.5% | – |
| Size | $1.4bn | $477m |
| Fee | 0.16% | 0.15% |
| 1 year | −0.7% | −5.9% |
| 5 yrs p.a. | −0.5% | – |
| Size | $1.4bn | $315m |
VGB price by TradingView
| Stock Code | VGB |
|---|---|
| Fund Manager | Vanguard |
| Asset Class | Australian bonds |
| AUM | $1.4bn |
| MER (%) | 0.16% |
| Net flows (Sep) | +$5.7m |
| Last Price | $45.41 |
| 52-Week Range | $45.07 – $47.67 |
| Bid/Ask Spread | 0.04% |
| Listing Date | 30/04/2012 |
| Exchange | ASX |
| Index tracked | Bloomberg AusBond Government 0+ Yr Index |
| Issuer website | Vanguard ↗ |
Performance (% return)
$10,000 invested…
Value at 30 September 2026 with distributions reinvested, before tax and brokerage.
Total returns including distributions, to 30 September 2026. 1M, 1Y, 3Y and 5Y bars are cumulative.
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