RATE.TO vs. CAGS.TO

Last updated Aug 4, 2026

RATE.TO (Arrow EC Income Advantage Alternative Fund) and CAGS.TO (CI Canadian Short-Term Aggregate Bond Index ETF) are both exchange-traded funds - RATE.TO is a Investment Grade Bonds fund actively managed by Arrow Capital Management Inc., while CAGS.TO is a Short-Term Bond fund tracking the FTSE Canada Short Term Overall Bond Index. RATE.TO is actively managed, while CAGS.TO is passively managed. Over the past 5 years, RATE.TO returned 4.83%/yr vs 2.04%/yr for CAGS.TO. Their 0.04 correlation means their historical movements had little consistent relationship. RATE.TO charges 2.01%/yr vs 0.08%/yr for CAGS.TO.

Performance

RATE.TO vs. CAGS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Arrow EC Income Advantage Alternative Fund (RATE.TO) and CI Canadian Short-Term Aggregate Bond Index ETF (CAGS.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RATE.TO achieves a 1.38% return, which is significantly higher than CAGS.TO's 0.99% return.

RATE.TO

• 1D: -0.19%
• 1M: 0.00%
• 6M: 1.13%
• YTD: 1.38%
• 1Y: 2.80%
• 3Y*: 5.22%
• 5Y*: 4.83%
• 10Y*: —
• ALL TIME*: 4.08%

CAGS.TO

• 1D: -0.17%
• 1M: -0.27%
• 6M: 0.59%
• YTD: 0.99%
• 1Y: 2.68%
• 3Y*: 5.00%
• 5Y*: 2.04%
• 10Y*: —
• ALL TIME*: 2.30%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CAGS.TO CI Canadian Short-Term Aggregate Bond Index ETF	CA$22.75K	CA$30.67K	CA$34.82K
RATE.TO Arrow EC Income Advantage Alternative Fund	CA$63.23K	CA$64.17K	CA$66.35K

RATE.TO vs. CAGS.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RATE.TO Arrow EC Income Advantage Alternative Fund	1.38%	4.60%	5.59%	10.12%	2.34%	2.46%	3.49%	6.56%	-0.84%	-0.05%
CAGS.TO CI Canadian Short-Term Aggregate Bond Index ETF	0.99%	3.95%	6.07%	5.02%	-4.30%	-1.22%	4.47%	4.33%	1.41%	-0.25%

Correlation

The correlation between RATE.TO and CAGS.TO is 0.04, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.04
Correlation (3Y) Balances recent behavior with more history.	0.05
Correlation (5Y) Shows whether the relationship held over a longer period.	0.04
Correlation (All Time) Calculated using the full available price history since Dec 4, 2017	0.04

Return for Risk

RATE.TO vs. CAGS.TO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

RATE.TO

RATE.TO Risk / Return Rank: 63
RATE.TO Sharpe Ratio Rank: 47
RATE.TO Sortino Ratio Rank: 51
RATE.TO Omega Ratio Rank: 49
RATE.TO Calmar Ratio Rank: 86
RATE.TO Martin Ratio Rank: 82

CAGS.TO

CAGS.TO Risk / Return Rank: 49
CAGS.TO Sharpe Ratio Rank: 48
CAGS.TO Sortino Ratio Rank: 46
CAGS.TO Omega Ratio Rank: 53
CAGS.TO Calmar Ratio Rank: 53
CAGS.TO Martin Ratio Rank: 49

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

RATE.TO vs. CAGS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arrow EC Income Advantage Alternative Fund (RATE.TO) and CI Canadian Short-Term Aggregate Bond Index ETF (CAGS.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.

	RATE.TO	CAGS.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.31	-0.05
Sortino ratio: Return per unit of downside risk	1.92	1.85	+0.07
Omega ratio: Gain probability vs. loss probability	1.24	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	3.56	2.08	+1.48
Martin ratio: Return relative to average drawdown	11.80	6.20	+5.61

RATE.TO vs. CAGS.TO - Sharpe Ratio Comparison

The current RATE.TO Sharpe Ratio is 1.27, which is comparable to the CAGS.TO Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of RATE.TO and CAGS.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

RATE.TO vs. CAGS.TO - Drawdown Comparison

The maximum RATE.TO drawdown since its inception was -14.01%, which is greater than CAGS.TO's maximum drawdown of -11.60%. Use the drawdown chart below to compare losses from any high point for RATE.TO and CAGS.TO.

Drawdown Indicators

	RATE.TO	CAGS.TO	Difference
Max Drawdown Largest peak-to-trough decline	-14.01%	-11.60%	-2.41%
Max Drawdown (1Y) Largest decline over 1 year	-0.80%	-1.33%	+0.53%
Max Drawdown (3Y) Largest decline over 3 years	-2.78%	-1.33%	-1.45%
Max Drawdown (5Y) Largest decline over 5 years	-3.38%	-7.58%	+4.20%
Current Drawdown Current decline from peak	-0.23%	-0.46%	+0.23%
Average Drawdown Average peak-to-trough decline	-0.84%	-1.44%	+0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	0.45%	-0.21%

Volatility

RATE.TO vs. CAGS.TO - Volatility Comparison

The current volatility for Arrow EC Income Advantage Alternative Fund (RATE.TO) is 0.66%, while CI Canadian Short-Term Aggregate Bond Index ETF (CAGS.TO) has a volatility of 0.82%. This indicates that RATE.TO experiences smaller price fluctuations and is considered to be less risky than CAGS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RATE.TO	CAGS.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	0.82%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	1.71%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	2.25%	2.11%	+0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.05%	2.77%	+1.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.73%	4.62%	+1.11%

RATE.TO vs. CAGS.TO - Expense Ratio Comparison

RATE.TO has a 2.01% expense ratio, which is higher than CAGS.TO's 0.08% expense ratio.

Dividends

RATE.TO vs. CAGS.TO - Dividend Comparison

RATE.TO's dividend yield for the trailing twelve months is around 4.66%, more than CAGS.TO's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
CAGS.TO CI Canadian Short-Term Aggregate Bond Index ETF	3.30%	3.16%	3.37%	2.62%	2.61%	1.96%	2.59%	2.83%	2.72%	1.06%
RATE.TO Arrow EC Income Advantage Alternative Fund	4.66%	4.60%	4.69%	4.74%	4.11%	3.52%	2.98%	2.99%	2.32%	0.00%

Frequently Asked Questions

Can I hold both RATE.TO and CAGS.TO in my portfolio?

RATE.TO and CAGS.TO have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, RATE.TO or CAGS.TO?

On fees, CAGS.TO is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, RATE.TO or CAGS.TO?

CAGS.TO is cheaper with a 0.08% expense ratio, compared with 2.01% for RATE.TO.

What is the main difference between RATE.TO and CAGS.TO?

RATE.TO is categorized as Investment Grade Bonds, while CAGS.TO is Short-Term Bond. They also come from different issuers: Arrow Capital Management Inc. and CI. Their fees differ too: 2.01% for RATE.TO and 0.08% for CAGS.TO.