RATE.TO vs. XSH.TO
RATE.TO (Arrow EC Income Advantage Alternative Fund) and XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) are both exchange-traded funds - RATE.TO is a Investment Grade Bonds fund actively managed by Arrow Capital Management Inc., while XSH.TO is a Short-Term Bond fund tracking the FTSE Canada Universe + Maple Short Term Corporate Bond Index. RATE.TO is actively managed, while XSH.TO is passively managed. Over the past 5 years, RATE.TO returned 4.83%/yr vs 2.84%/yr for XSH.TO. Their 0.03 correlation means their historical movements had little consistent relationship. RATE.TO charges 2.01%/yr vs 0.10%/yr for XSH.TO.
Performance
RATE.TO vs. XSH.TO - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with RATE.TO having a 1.38% return and XSH.TO slightly higher at 1.42%.
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%
XSH.TO
- 1D
- -0.11%
- 1M
- -0.19%
- 6M
- 0.83%
- YTD
- 1.42%
- 1Y
- 3.11%
- 3Y*
- 6.10%
- 5Y*
- 2.84%
- 10Y*
- 2.79%
- ALL TIME*
- 2.84%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| CA$63.23K | CA$64.17K | CA$66.35K | |
| CA$1.66M | CA$1.41M | CA$1.29M |
RATE.TO vs. XSH.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% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.42% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.28% | -0.02% |
Correlation
The correlation between RATE.TO and XSH.TO is 0.06, 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. | 0.06 |
Correlation (3Y) Balances recent behavior with more history. | 0.04 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.01 |
Correlation (All Time) Calculated using the full available price history since Dec 4, 2017 | 0.03 |
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Return for Risk
RATE.TO vs. XSH.TO — Risk / Return Rank
RATE.TO
XSH.TO
RATE.TO vs. XSH.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 iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.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 | XSH.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.21 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.29 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.56 | 2.22 | +1.35 |
| Martin ratioReturn relative to average drawdown | 11.80 | 8.67 | +3.14 |
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Drawdowns
RATE.TO vs. XSH.TO - Drawdown Comparison
The maximum RATE.TO drawdown since its inception was -14.01%, roughly equal to the maximum XSH.TO drawdown of -14.24%. Use the drawdown chart below to compare losses from any high point for RATE.TO and XSH.TO.
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Drawdown Indicators
| RATE.TO | XSH.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.01% | -14.24% | +0.23% |
Max Drawdown (1Y)Largest decline over 1 year | -0.80% | -1.51% | +0.71% |
Max Drawdown (3Y)Largest decline over 3 years | -2.78% | -1.51% | -1.27% |
Max Drawdown (5Y)Largest decline over 5 years | -3.38% | -7.80% | +4.42% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.24% | — |
Current DrawdownCurrent decline from peak | -0.23% | -0.30% | +0.07% |
Average DrawdownAverage peak-to-trough decline | -0.84% | -0.92% | +0.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.24% | 0.38% | -0.14% |
Volatility
RATE.TO vs. XSH.TO - Volatility Comparison
Arrow EC Income Advantage Alternative Fund (RATE.TO) has a higher volatility of 0.66% compared to iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) at 0.59%. This indicates that RATE.TO's price experiences larger fluctuations and is considered to be riskier than XSH.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RATE.TO | XSH.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 0.59% | +0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 1.58% | 1.85% | -0.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.25% | 2.21% | +0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.05% | 2.85% | +1.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.73% | 4.42% | +1.31% |
RATE.TO vs. XSH.TO - Expense Ratio Comparison
RATE.TO has a 2.01% expense ratio, which is higher than XSH.TO's 0.10% expense ratio.
Dividends
RATE.TO vs. XSH.TO - Dividend Comparison
RATE.TO's dividend yield for the trailing twelve months is around 4.66%, more than XSH.TO's 3.94% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.94% | 3.82% | 3.64% | 3.24% | 2.97% | 2.65% | 2.61% | 2.80% | 2.86% | 2.93% | 3.08% | 3.18% |
Frequently Asked Questions
RATE.TO and XSH.TO have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSH.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSH.TO is cheaper with a 0.10% expense ratio, compared with 2.01% for RATE.TO.
RATE.TO is categorized as Investment Grade Bonds, while XSH.TO is Short-Term Bond. They also come from different issuers: Arrow Capital Management Inc. and iShares. Their fees differ too: 2.01% for RATE.TO and 0.10% for XSH.TO.
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