IEFA vs. XLB.TO
IEFA (iShares Core MSCI EAFE ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while XLB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 10+Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, IEFA returned 9.90%/yr vs -0.14%/yr for XLB.TO. At a correlation of -0.01, they often move in opposite directions. IEFA charges 0.07%/yr vs 0.20%/yr for XLB.TO.
Performance
IEFA vs. XLB.TO - Performance Comparison
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Different Trading Currencies
IEFA is traded in USD, while XLB.TO is traded in CAD. To make them comparable, the XLB.TO values have been converted to USD using the latest available exchange rates.
Returns By Period
In the year-to-date period, IEFA achieves a 9.51% return, which is significantly higher than XLB.TO's 0.25% return. Over the past 10 years, IEFA has outperformed XLB.TO with an annualized return of 9.90%, while XLB.TO has yielded a comparatively lower -0.14% annualized return.
IEFA
- 1D
- 0.18%
- 1M
- 0.85%
- YTD
- 9.51%
- 6M
- 11.08%
- 1Y
- 20.89%
- 3Y*
- 16.31%
- 5Y*
- 8.10%
- 10Y*
- 9.90%
XLB.TO
- 1D
- -0.39%
- 1M
- -0.19%
- YTD
- 0.25%
- 6M
- 1.39%
- 1Y
- 1.01%
- 3Y*
- 1.86%
- 5Y*
- -4.59%
- 10Y*
- -0.14%
IEFA vs. XLB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 9.51% | 32.08% | 3.26% | 17.95% | -15.24% | 11.63% | 8.18% | 22.64% | -14.14% | 26.57% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 0.25% | 3.99% | -7.15% | 11.81% | -26.31% | -4.54% | 13.88% | 17.71% | -7.99% | 14.89% |
Correlation
The correlation between IEFA and XLB.TO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | -0.01 |
The correlation between IEFA and XLB.TO shifts across timeframes, from -0.01 (all time) to 0.37 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEFA vs. XLB.TO — Risk / Return Rank
IEFA
XLB.TO
IEFA vs. XLB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and iShares Core Canadian Long Term Bond Index ETF (XLB.TO). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IEFA | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.24 | ||
| Sortino ratioReturn per unit of downside risk | +1.75 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.03 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 0.18 | +1.65 |
| Martin ratioReturn relative to average drawdown | 6.93 | 0.38 | +6.55 |
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Drawdowns
IEFA vs. XLB.TO - Drawdown Comparison
The maximum IEFA drawdown since its inception was -34.78%, roughly equal to the maximum XLB.TO drawdown of -36.38%. Use the drawdown chart below to compare losses from any high point for IEFA and XLB.TO.
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Drawdown Indicators
| IEFA | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.78% | -36.38% | +1.60% |
Max Drawdown (1Y)Largest decline over 1 year | -11.50% | -5.76% | -5.74% |
Max Drawdown (3Y)Largest decline over 3 years | -13.76% | -14.63% | +0.87% |
Max Drawdown (5Y)Largest decline over 5 years | -30.41% | -34.20% | +3.79% |
Max Drawdown (10Y)Largest decline over 10 years | -34.78% | -36.38% | +1.60% |
Current DrawdownCurrent decline from peak | -0.60% | -24.01% | +23.41% |
Average DrawdownAverage peak-to-trough decline | -6.68% | -11.09% | +4.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 2.63% | +0.40% |
Volatility
IEFA vs. XLB.TO - Volatility Comparison
iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 5.50% compared to iShares Core Canadian Long Term Bond Index ETF (XLB.TO) at 3.13%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than XLB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEFA | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.50% | 3.13% | +2.37% |
Volatility (6M)Calculated over the trailing 6-month period | 13.11% | 6.88% | +6.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.54% | 8.96% | +6.58% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.61% | 13.88% | +2.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.31% | 13.36% | +3.95% |
IEFA vs. XLB.TO - Expense Ratio Comparison
IEFA has a 0.07% expense ratio, which is lower than XLB.TO's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
IEFA vs. XLB.TO - Dividend Comparison
IEFA's dividend yield for the trailing twelve months is around 3.24%, less than XLB.TO's 4.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 3.24% | 3.55% | 3.47% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.02% | 4.05% | 3.82% | 3.73% | 3.97% | 3.03% | 2.90% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
Frequently Asked Questions
IEFA and XLB.TO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IEFA is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IEFA is cheaper with a 0.07% expense ratio, compared with 0.20% for XLB.TO.
IEFA is categorized as Foreign Large Cap Equities, while XLB.TO is Canadian Government Bonds. IEFA tracks MSCI EAFE IMI Index (Net), while XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD. Their fees differ too: 0.07% for IEFA and 0.20% for XLB.TO.
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