VAB.TO vs. XRB.TO
VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and XRB.TO (iShares Canadian Real Return Bond Index ETF) are both exchange-traded funds - VAB.TO is a Canadian Government Bonds fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while XRB.TO is a Inflation-Protected Bonds fund tracking the FTSE Canada Real Return Bond Index. Both are passively managed. Over the past 10 years, VAB.TO returned 1.51%/yr vs 0.06%/yr for XRB.TO. A 0.68 correlation means they provide meaningful diversification when combined. VAB.TO charges 0.09%/yr vs 0.39%/yr for XRB.TO.
Performance
VAB.TO vs. XRB.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 XRB.TO's 2.56% return. Over the past 10 years, VAB.TO has outperformed XRB.TO with an annualized return of 1.51%, while XRB.TO has yielded a comparatively lower 0.06% 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%
XRB.TO
- 1D
- -0.13%
- 1M
- 1.21%
- YTD
- 2.56%
- 6M
- 0.86%
- 1Y
- 3.06%
- 3Y*
- 1.50%
- 5Y*
- -1.66%
- 10Y*
- 0.06%
VAB.TO vs. XRB.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% |
XRB.TO iShares Canadian Real Return Bond Index ETF | 2.56% | 0.05% | 3.95% | -2.15% | -15.01% | -1.30% | 12.11% | 5.93% | -1.23% | -0.11% |
Correlation
The correlation between VAB.TO and XRB.TO is 0.85, 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 | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.68 |
The correlation between VAB.TO and XRB.TO shifts across timeframes, from 0.68 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VAB.TO vs. XRB.TO — Risk / Return Rank
VAB.TO
XRB.TO
VAB.TO vs. XRB.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 Canadian Real Return Bond Index ETF (XRB.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 | XRB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.27 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.08 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.10 | 0.87 | +0.24 |
| Martin ratioReturn relative to average drawdown | 2.61 | 1.73 | +0.89 |
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 | XRB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.72 | 0.45 | +0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | -0.14 | +0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.01 | +0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.27 | +0.12 |
Drawdowns
VAB.TO vs. XRB.TO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum XRB.TO drawdown of -26.58%. Use the drawdown chart below to compare losses from any high point for VAB.TO and XRB.TO.
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Drawdown Indicators
| VAB.TO | XRB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.39% | -26.58% | +8.19% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -3.55% | +0.72% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -10.65% | +5.34% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -26.58% | +10.76% |
Max Drawdown (10Y)Largest decline over 10 years | -18.39% | -26.58% | +8.19% |
Current DrawdownCurrent decline from peak | -1.92% | -13.56% | +11.64% |
Average DrawdownAverage peak-to-trough decline | -4.11% | -7.09% | +2.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 1.78% | -0.58% |
Volatility
VAB.TO vs. XRB.TO - Volatility Comparison
The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while iShares Canadian Real Return Bond Index ETF (XRB.TO) has a volatility of 2.72%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than XRB.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 | XRB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 2.72% | -1.13% |
Volatility (6M)Calculated over the trailing 6-month period | 3.45% | 5.11% | -1.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 6.85% | -2.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 11.91% | -5.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.48% | 11.35% | -4.87% |
VAB.TO vs. XRB.TO - Expense Ratio Comparison
VAB.TO has a 0.09% expense ratio, which is lower than XRB.TO's 0.39% expense ratio.
Dividends
VAB.TO vs. XRB.TO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.32%, less than XRB.TO's 3.63% 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% |
XRB.TO iShares Canadian Real Return Bond Index ETF | 3.63% | 3.73% | 2.36% | 2.36% | 1.83% | 1.23% | 1.36% | 1.72% | 1.74% | 1.69% | 1.58% | 1.61% |
Frequently Asked Questions
VAB.TO and XRB.TO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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 0.39% for XRB.TO.
VAB.TO is categorized as Canadian Government Bonds, while XRB.TO is Inflation-Protected Bonds. VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while XRB.TO tracks FTSE Canada Real Return Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VAB.TO and 0.39% for XRB.TO.
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