VAB.TO vs. XLB.TO
VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both Canadian Government Bonds funds - VAB.TO tracks the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index while XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, VAB.TO returned 1.51%/yr vs 4.56%/yr for XLB.TO. Their correlation of 0.85 suggests significant overlap in exposure. VAB.TO charges 0.09%/yr vs 0.20%/yr for XLB.TO.
Performance
VAB.TO vs. XLB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VAB.TO achieves a 1.62% return, which is significantly lower than XLB.TO's 2.77% return. Over the past 10 years, VAB.TO has underperformed XLB.TO with an annualized return of 1.51%, while XLB.TO has yielded a comparatively higher 4.56% annualized return.
VAB.TO
- 1D
- -0.07%
- 1M
- 1.70%
- YTD
- 1.62%
- 6M
- 0.78%
- 1Y
- 3.12%
- 3Y*
- 4.12%
- 5Y*
- 0.66%
- 10Y*
- 1.51%
XLB.TO
- 1D
- -0.11%
- 1M
- 3.02%
- YTD
- 2.77%
- 6M
- 0.93%
- 1Y
- 2.84%
- 3Y*
- 8.16%
- 5Y*
- 4.63%
- 10Y*
- 4.56%
VAB.TO vs. XLB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.62% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.26% | 6.77% | 1.13% | 2.30% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.77% | -0.76% | 9.49% | 19.21% | -14.38% | 1.26% | 16.52% | 12.85% | -0.25% | 7.11% |
Correlation
The correlation between VAB.TO and XLB.TO is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.85 |
The correlation between VAB.TO and XLB.TO has been stable across timeframes, ranging from 0.85 to 0.95 - a consistent structural relationship.
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Return for Risk
VAB.TO vs. XLB.TO — Risk / Return Rank
VAB.TO
XLB.TO
VAB.TO vs. XLB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) 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.
| VAB.TO | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.35 | ||
| Sortino ratioReturn per unit of downside risk | +0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.07 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.10 | 0.59 | +0.52 |
| Martin ratioReturn relative to average drawdown | 2.61 | 1.11 | +1.51 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VAB.TO | XLB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.72 | 0.36 | +0.35 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | 0.37 | -0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.39 | -0.15 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.55 | -0.16 |
Drawdowns
VAB.TO vs. XLB.TO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum XLB.TO drawdown of -24.34%. Use the drawdown chart below to compare losses from any high point for VAB.TO and XLB.TO.
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Drawdown Indicators
| VAB.TO | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.39% | -24.34% | +5.95% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -4.85% | +2.02% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -9.74% | +4.43% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -24.34% | +8.52% |
Max Drawdown (10Y)Largest decline over 10 years | -18.39% | -24.34% | +5.95% |
Current DrawdownCurrent decline from peak | -1.92% | -2.17% | +0.25% |
Average DrawdownAverage peak-to-trough decline | -4.11% | -4.05% | -0.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 2.57% | -1.37% |
Volatility
VAB.TO vs. XLB.TO - Volatility Comparison
The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a volatility of 2.77%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky 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
| VAB.TO | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 2.77% | -1.18% |
Volatility (6M)Calculated over the trailing 6-month period | 3.45% | 5.77% | -2.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 7.93% | -3.55% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 12.68% | -6.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.48% | 11.86% | -5.38% |
VAB.TO vs. XLB.TO - Expense Ratio Comparison
VAB.TO has a 0.09% 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
VAB.TO vs. XLB.TO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.32%, less than XLB.TO's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.32% | 3.33% | 3.19% | 2.95% | 2.87% | 2.48% | 2.50% | 2.65% | 2.79% | 2.77% | 2.75% | 2.78% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 12.10% | 12.22% | 13.13% | 8.82% | 7.43% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
Frequently Asked Questions
With a correlation of 0.95, VAB.TO and XLB.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, VAB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.20% for XLB.TO.
VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VAB.TO and 0.20% for XLB.TO.
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