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VCE.TO vs. XCS.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VCE.TO vs. XCS.TO

Last updated Jun 4, 2026

VCE.TO (Vanguard FTSE Canada Index ETF) and XCS.TO (iShares S&P/TSX SmallCap Index ETF) are both Canada Equities funds - VCE.TO tracks the FTSE Canada Domestic Index while XCS.TO tracks the Morningstar Canada Sml GR CAD. Both are passively managed. Over the past 10 years, VCE.TO returned 12.58%/yr vs 9.94%/yr for XCS.TO. A 0.67 correlation means they provide meaningful diversification when combined. VCE.TO charges 0.06%/yr vs 0.60%/yr for XCS.TO.

Performance

VCE.TO vs. XCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Canada Index ETF (VCE.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VCE.TO achieves a 10.03% return, which is significantly lower than XCS.TO's 23.53% return. Over the past 10 years, VCE.TO has outperformed XCS.TO with an annualized return of 12.58%, while XCS.TO has yielded a comparatively lower 9.94% annualized return.

VCE.TO

1D
-0.96%
1M
3.36%
YTD
10.03%
6M
10.19%
1Y
28.98%
3Y*
22.22%
5Y*
14.43%
10Y*
12.58%

XCS.TO

1D
-1.30%
1M
4.71%
YTD
23.53%
6M
21.57%
1Y
62.19%
3Y*
29.24%
5Y*
12.30%
10Y*
9.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCE.TO vs. XCS.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VCE.TO
Vanguard FTSE Canada Index ETF		10.03%26.39%21.43%12.26%-5.20%28.59%4.09%22.99%-7.86%8.79%
XCS.TO
iShares S&P/TSX SmallCap Index ETF		23.53%43.37%18.11%4.17%-8.95%7.46%13.10%17.62%-19.51%2.27%

Correlation

The correlation between VCE.TO and XCS.TO is 0.65, 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

0.65

Correlation (3Y)
Calculated over the trailing 3-year period

0.68

Correlation (5Y)
Calculated over the trailing 5-year period

0.71

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

0.67

The correlation between VCE.TO and XCS.TO has been stable across timeframes, ranging from 0.65 to 0.71 - a consistent structural relationship.

VCE.TO vs. XCS.TO - Sectors Allocation Comparison

Sectors
VCE.TO
XCS.TO

Financial Services

37.4%
5.0%

Energy

18.4%
24.5%

Basic Materials

15.4%
30.3%

Industrials

10.6%
12.3%

Technology

8.2%
4.3%

Consumer Cyclical

3.4%
3.7%

Consumer Defensive

2.9%
2.7%

Utilities

1.9%
1.7%

Communication Services

1.5%
1.0%

Real Estate

0.2%
9.7%

Healthcare

-

4.8%

Financial Services

VCE.TO
37.4%
XCS.TO
5.0%

Energy

VCE.TO
18.4%
XCS.TO
24.5%

Basic Materials

VCE.TO
15.4%
XCS.TO
30.3%

Industrials

VCE.TO
10.6%
XCS.TO
12.3%

Technology

VCE.TO
8.2%
XCS.TO
4.3%

Consumer Cyclical

VCE.TO
3.4%
XCS.TO
3.7%

Consumer Defensive

VCE.TO
2.9%
XCS.TO
2.7%

Utilities

VCE.TO
1.9%
XCS.TO
1.7%

Communication Services

VCE.TO
1.5%
XCS.TO
1.0%

Real Estate

VCE.TO
0.2%
XCS.TO
9.7%

Healthcare

VCE.TO

-

XCS.TO
4.8%

Compare stocks, funds, or ETFs

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Vanguard FTSE Canada Index ETF

iShares S&P/TSX SmallCap Index ETF

Often compared with VCE.TO:
VCE.TO vs. VDY.TOVCE.TO vs. VCN.TOVCE.TO vs. XIC.TOVCE.TO vs. VFV.TOVCE.TO vs. VEQT.TOVCE.TO vs. ZCN.TOVCE.TO vs. VXC.TO
Often compared with XCS.TO:
XCS.TO vs. XCV.TOXCS.TO vs. XMD.TOXCS.TO vs. XCSR.TOXCS.TO vs. XEI.TOXCS.TO vs. VBRXCS.TO vs. XUS.TOXCS.TO vs. VEQT.TO

Return for Risk

VCE.TO vs. XCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VCE.TO
VCE.TO Risk / Return Rank: 7272
Overall Rank
VCE.TO Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
VCE.TO Sortino Ratio Rank: 6767
Sortino Ratio Rank
VCE.TO Omega Ratio Rank: 6969
Omega Ratio Rank
VCE.TO Calmar Ratio Rank: 7171
Calmar Ratio Rank
VCE.TO Martin Ratio Rank: 8282
Martin Ratio Rank
XCS.TO
XCS.TO Risk / Return Rank: 7979
Overall Rank
XCS.TO Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
XCS.TO Sortino Ratio Rank: 7272
Sortino Ratio Rank
XCS.TO Omega Ratio Rank: 8282
Omega Ratio Rank
XCS.TO Calmar Ratio Rank: 8181
Calmar Ratio Rank
XCS.TO Martin Ratio Rank: 7676
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VCE.TO vs. XCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canada Index ETF (VCE.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.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.

VCE.TOXCS.TODifference
Sharpe ratioReturn per unit of total volatility
2.37
2.89

-0.53

Sortino ratioReturn per unit of downside risk
3.16
3.30

-0.14

Omega ratioGain probability vs. loss probability

1.42

1.50

-0.08

Calmar ratioReturn relative to maximum drawdown

3.60

4.29

-0.69

Martin ratioReturn relative to average drawdown

16.77

14.67

+2.10

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCE.TO vs. XCS.TO - Sharpe Ratio Comparison

The current VCE.TO Sharpe Ratio is 2.37, which is comparable to the XCS.TO Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of VCE.TO and XCS.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.

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Sharpe Ratios by Period

VCE.TOXCS.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.37

2.89

-0.53

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.14

0.61

+0.53

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.84

0.49

+0.35

Sharpe Ratio (All Time)

Calculated using the full available price history

0.77

0.24

+0.53

Drawdowns

VCE.TO vs. XCS.TO - Drawdown Comparison

The maximum VCE.TO drawdown since its inception was -35.92%, smaller than the maximum XCS.TO drawdown of -61.18%. Use the drawdown chart below to compare losses from any high point for VCE.TO and XCS.TO.

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Drawdown Indicators

VCE.TOXCS.TODifference

Max Drawdown

Largest peak-to-trough decline

-35.92%

-61.18%

+25.26%

Max Drawdown (1Y)

Largest decline over 1 year

-8.09%

-14.58%

+6.49%

Max Drawdown (3Y)

Largest decline over 3 years

-12.16%

-15.54%

+3.38%

Max Drawdown (5Y)

Largest decline over 5 years

-15.90%

-34.63%

+18.73%

Max Drawdown (10Y)

Largest decline over 10 years

-35.92%

-50.44%

+14.52%

Current Drawdown

Current decline from peak

-0.96%

-1.30%

+0.34%

Average Drawdown

Average peak-to-trough decline

-3.73%

-16.96%

+13.23%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.73%

4.25%

-2.52%

Volatility

VCE.TO vs. XCS.TO - Volatility Comparison

The current volatility for Vanguard FTSE Canada Index ETF (VCE.TO) is 3.47%, while iShares S&P/TSX SmallCap Index ETF (XCS.TO) has a volatility of 4.56%. This indicates that VCE.TO experiences smaller price fluctuations and is considered to be less risky than XCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VCE.TOXCS.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

3.47%

4.56%

-1.09%

Volatility (6M)

Calculated over the trailing 6-month period

10.00%

17.35%

-7.35%

Volatility (1Y)

Calculated over the trailing 1-year period

12.30%

21.66%

-9.36%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.78%

20.42%

-7.64%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.99%

20.41%

-5.42%

VCE.TO vs. XCS.TO - Expense Ratio Comparison

VCE.TO has a 0.06% expense ratio, which is lower than XCS.TO's 0.60% expense ratio.

Dividends

VCE.TO vs. XCS.TO - Dividend Comparison

VCE.TO's dividend yield for the trailing twelve months is around 2.17%, more than XCS.TO's 1.03% yield.

PositionTTM20252024202320222021202020192018201720162015
VCE.TO
Vanguard FTSE Canada Index ETF		2.17%2.42%2.84%3.16%3.21%2.61%2.93%3.01%3.21%2.57%2.64%2.98%
XCS.TO
iShares S&P/TSX SmallCap Index ETF		1.03%1.36%1.73%2.59%2.07%1.51%1.78%2.27%2.12%1.81%1.46%2.34%

Frequently Asked Questions

VCE.TO and XCS.TO have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, VCE.TO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VCE.TO is cheaper with a 0.06% expense ratio, compared with 0.60% for XCS.TO.

VCE.TO tracks FTSE Canada Domestic Index, while XCS.TO tracks Morningstar Canada Sml GR CAD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VCE.TO and 0.60% for XCS.TO.

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