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Compare Vanguard U.S. Aggregate Bond Index ETF (VBU) vs iShares U.S. Aggregate Bond Index ETF (XAGG.U) to find the best fit for your portfolio. VBU and XAGG.U provide the same top sector exposures: Sovereign, Finance, and Industrials. When evaluating costs, VBU features a management fee (MER) of 0.2%, compared to 0.18% for XAGG.U. Performance-wise, VBU has returned 4.07% year-to-date with +$381 M in net flows, whereas XAGG.U is at 3.18% with -$1 M. Use the comparison tool below to benchmark these funds across top 10 holdings, yield, sector weights and historical returns.
NAV Performance and Flows
Key Data
Compare
VBU
XAGG.U
| AuM | $1,866.23 M | $26.92 M |
| Management Fees | 0.20% | 0.18% |
| Exp. ratio | 0.23% | 0.20% |
| Tracking Difference | -0.53% | - |
Historical performance and flows
As of October 2, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | VBU | -2.51% | -3.82% | -4.07% | -4.04% | +9.74% |
XAGG.U | -2.34% | -3.46% | -3.18% | -2.67% | +12.49% | |
| Flows | VBU | +$29 M | +$88 M | +$381 M | +$542 M | +$1,085 M |
XAGG.U | -$0 M | +$1 M | -$1 M | -$6 M | +$24 M |
VBU vs XAGG.U exposure
Countries
VBU
USA
75.17%
Other
18.96%
XAGG.U
USA
76.60%
Other
18.02%
Sectors
VBU
Sovereign
47.53%
Other
18.96%
Finance
10.71%
Industrials
7.30%
Other
15.51%
XAGG.U
Sovereign
47.15%
Other
18.02%
Finance
9.92%
Industrials
7.04%
Other
17.87%
As of October 2, 2026
Top 10 Holdings
VBU
USA, Notes 3.5% 31jan2028, USD (U-2028)
0.47%
USA, Notes 4.25% 15nov2034, USD (F-2034)
0.41%
USA, Notes 4.375% 15may2034, USD (C-2034)
0.41%
USA, Notes 3.375% 30nov2027, USD (BL-2027)
0.40%
USA, Notes 4.625% 15feb2035, USD (B-2035)
0.40%
USA, Notes 3.875% 15aug2034, USD (E-2034)
0.40%
USA, Notes 4% 15feb2034, USD (B-2034)
0.39%
USA, Notes 4.125% 15feb2036, USD (B-2036)
0.39%
USA, Notes 4.25% 15aug2035, USD (E-2035)
0.38%
USA, Notes 4.5% 15nov2033, USD (F-2033)
0.38%
XAGG.U
BlackRock Cash Funds - Institutional
3.01%
USA, Notes 4.625% 15feb2035, USD (B-2035)
0.41%
USA, Notes 4.25% 15nov2034, USD (F-2034)
0.40%
USA, Notes 4.375% 15may2034, USD (C-2034)
0.40%
USA, Notes 4% 28feb2030, USD (H-2030)
0.40%
USA, Notes 3.875% 15aug2034, USD (E-2034)
0.39%
USA, Notes 4.125% 15feb2036, USD (B-2036)
0.39%
USA, Notes 4.25% 15may2035, USD (C-2035)
0.39%
USA, Notes 4.5% 15nov2033, USD (F-2033)
0.39%
USA, Notes 4.25% 15aug2035, USD (E-2035)
0.38%
Diversification
VBU
Total weight of top 10 holdings out of 15,072 total
4.04%
XAGG.U
Total weight of top 10 holdings out of 13,256 total
6.55%
Characteristics
Compare
VBU
XAGG.U
| Provider | Vanguard | iShares |
| Management | Passively managed | Passively managed |
| Benchmark | Bloomberg U.S. Aggregate Float Adjusted Bond (CAD Hedged) Total Return Index - CAD | Bloomberg US Aggregate Bond Index - CAD |
| Replication Method | Other | Other |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 3.84% | 4.09% |
| Meets ESG criteria | No | No |
| Inception Date | June 30, 2014 | August 6, 2021 |
Frequently asked questions about VBU and XAGG.U
Which ETF has performed better year to date: VBU or XAGG.U?
As of October 2, 2026, VBU has returned -4.07% year to date, while XAGG.U has returned -3.18%. XAGG.U is ahead on YTD performance.
Which ETF is larger by assets under management: VBU or XAGG.U?
As of October 2, 2026, VBU manages $1.87 B in assets, while XAGG.U manages $26.92 M. VBU is the larger fund by AUM.
How are VBU and XAGG.U managed?
VBU is passively managed by Vanguard. It tracks the Bloomberg U.S. Aggregate Float Adjusted Bond (CAD Hedged) Total Return Index - CAD benchmark. XAGG.U is passively managed by iShares. It tracks the Bloomberg US Aggregate Bond Index - CAD benchmark.
What sectors do VBU and XAGG.U emphasize?
VBU is most exposed to Sovereign, Finance, and Industrials. XAGG.U is most exposed to Sovereign, Finance, and Industrials.
Which ETF is attracting more investor flows: VBU or XAGG.U?
Year to date, VBU has seen +$381.12 M in net flows, compared with -$1.00 M for XAGG.U. VBU has attracted more net investor money so far.
How do the fees of VBU and XAGG.U compare?
VBU has an expense ratio of 0.23%, while XAGG.U has an expense ratio of 0.20%.
What are the top holdings of VBU and XAGG.U?
VBU's largest holdings include USA, Notes 3.5% 31jan2028, USD (U-2028) and USA, Notes 4.25% 15nov2034, USD (F-2034). XAGG.U's top holdings include BlackRock Cash Funds - Institutional and USA, Notes 4.625% 15feb2035, USD (B-2035).
Which ETF is more diversified: VBU or XAGG.U?
VBU holds 9484 securities, while XAGG.U holds 10222. On holdings count, XAGG.U is the more diversified portfolio.
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All content on the ETF Market Canada is for your general information use only, Cboe is not responsible for any use of content by you outside this scope. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by Cboe and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions.