VAB.TO vs. XSH.TO
VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) are both Canadian Government Bonds funds - VAB.TO tracks the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index while XSH.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, VAB.TO returned 1.54%/yr vs 2.82%/yr for XSH.TO. A 0.55 correlation means they provide meaningful diversification when combined. VAB.TO charges 0.09%/yr vs 0.10%/yr for XSH.TO.
Performance
VAB.TO vs. XSH.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VAB.TO achieves a 1.60% return, which is significantly higher than XSH.TO's 1.28% return. Over the past 10 years, VAB.TO has underperformed XSH.TO with an annualized return of 1.54%, while XSH.TO has yielded a comparatively higher 2.82% annualized return.
VAB.TO
- 1D
- -0.04%
- 1M
- 1.55%
- YTD
- 1.60%
- 6M
- 1.06%
- 1Y
- 2.83%
- 3Y*
- 4.18%
- 5Y*
- 0.65%
- 10Y*
- 1.54%
XSH.TO
- 1D
- -0.05%
- 1M
- 0.91%
- YTD
- 1.28%
- 6M
- 1.34%
- 1Y
- 3.85%
- 3Y*
- 6.03%
- 5Y*
- 2.85%
- 10Y*
- 2.82%
VAB.TO vs. XSH.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.60% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.26% | 6.77% | 1.13% | 2.30% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.28% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.28% | 0.78% |
Correlation
The correlation between VAB.TO and XSH.TO is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.55 |
Over the past year, VAB.TO and XSH.TO have become more correlated (0.75) than their long-term average of 0.55, meaning their price movements have been converging.
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Return for Risk
VAB.TO vs. XSH.TO — Risk / Return Rank
VAB.TO
XSH.TO
VAB.TO vs. XSH.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 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.
| VAB.TO | XSH.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.14 | ||
| Sortino ratioReturn per unit of downside risk | -1.61 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.36 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.00 | 2.57 | -1.56 |
| Martin ratioReturn relative to average drawdown | 2.37 | 10.05 | -7.67 |
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 | XSH.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.65 | 1.79 | -1.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.10 | 1.01 | -0.91 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 0.64 | -0.40 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.74 | -0.35 |
Drawdowns
VAB.TO vs. XSH.TO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, which is greater than XSH.TO's maximum drawdown of -14.24%. Use the drawdown chart below to compare losses from any high point for VAB.TO and XSH.TO.
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Drawdown Indicators
| VAB.TO | XSH.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.39% | -14.24% | -4.15% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -1.51% | -1.32% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -1.51% | -3.80% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -7.80% | -8.02% |
Max Drawdown (10Y)Largest decline over 10 years | -18.39% | -14.24% | -4.15% |
Current DrawdownCurrent decline from peak | -1.94% | -0.05% | -1.89% |
Average DrawdownAverage peak-to-trough decline | -4.11% | -0.93% | -3.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 0.38% | +0.82% |
Volatility
VAB.TO vs. XSH.TO - Volatility Comparison
Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) has a higher volatility of 1.59% compared to iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) at 0.80%. This indicates that VAB.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
| VAB.TO | XSH.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 0.80% | +0.79% |
Volatility (6M)Calculated over the trailing 6-month period | 3.45% | 1.83% | +1.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 2.16% | +2.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 2.83% | +3.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.48% | 4.42% | +2.06% |
VAB.TO vs. XSH.TO - Expense Ratio Comparison
VAB.TO has a 0.09% expense ratio, which is lower than XSH.TO's 0.10% 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. XSH.TO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.32%, less than XSH.TO's 3.90% 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% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.90% | 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
VAB.TO and XSH.TO have a correlation of 0.75, 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 0.10% for XSH.TO.
VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VAB.TO and 0.10% for XSH.TO.
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