VDY.TO vs. XBB.TO
VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) and XBB.TO (iShares Core Canadian Universe Bond Index ETF) are both exchange-traded funds - VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index, while XBB.TO is a Intermediate Core Bond fund tracking the FTSE Canada Universe Bond Index. Both are passively managed. Over the past 10 years, VDY.TO returned 14.25%/yr vs 1.55%/yr for XBB.TO. At a correlation of -0.10, they often move in opposite directions. VDY.TO charges 0.22%/yr vs 0.10%/yr for XBB.TO.
Performance
VDY.TO vs. XBB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VDY.TO achieves a 21.54% return, which is significantly higher than XBB.TO's 0.89% return. Over the past 10 years, VDY.TO has outperformed XBB.TO with an annualized return of 14.25%, while XBB.TO has yielded a comparatively lower 1.55% annualized return.
VDY.TO
- 1D
- 0.31%
- 1M
- 5.30%
- YTD
- 21.54%
- 6M
- 22.15%
- 1Y
- 47.47%
- 3Y*
- 26.69%
- 5Y*
- 17.54%
- 10Y*
- 14.25%
XBB.TO
- 1D
- -0.39%
- 1M
- 0.01%
- YTD
- 0.89%
- 6M
- 1.29%
- 1Y
- 2.87%
- 3Y*
- 4.23%
- 5Y*
- 0.54%
- 10Y*
- 1.55%
VDY.TO vs. XBB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 21.54% | 29.21% | 21.44% | 8.41% | -0.23% | 36.60% | -1.37% | 21.42% | -10.09% | 8.32% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 0.89% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
Correlation
The correlation between VDY.TO and XBB.TO is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Nov 8, 2012 | -0.10 |
The correlation between VDY.TO and XBB.TO shifts across timeframes, from -0.10 (all time) to 0.18 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VDY.TO vs. XBB.TO — Risk / Return Rank
VDY.TO
XBB.TO
VDY.TO vs. XBB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) and iShares Core Canadian Universe Bond Index ETF (XBB.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.
| VDY.TO | XBB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.10 | ||
| Sortino ratioReturn per unit of downside risk | +7.38 | ||
| Omega ratioGain probability vs. loss probability | 2.16 | 1.11 | +1.05 |
| Calmar ratioReturn relative to maximum drawdown | 15.30 | 1.06 | +14.24 |
| Martin ratioReturn relative to average drawdown | 62.34 | 2.47 | +59.87 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VDY.TO | XBB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 5.76 | 0.66 | +5.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.52 | 0.08 | +1.44 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.90 | 0.23 | +0.67 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.85 | 0.60 | +0.25 |
Drawdowns
VDY.TO vs. XBB.TO - Drawdown Comparison
The maximum VDY.TO drawdown since its inception was -39.21%, which is greater than XBB.TO's maximum drawdown of -18.16%. Use the drawdown chart below to compare losses from any high point for VDY.TO and XBB.TO.
Loading charts...
Drawdown Indicators
| VDY.TO | XBB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.21% | -18.16% | -21.05% |
Max Drawdown (1Y)Largest decline over 1 year | -3.12% | -2.73% | -0.39% |
Max Drawdown (3Y)Largest decline over 3 years | -10.38% | -5.42% | -4.96% |
Max Drawdown (5Y)Largest decline over 5 years | -16.17% | -15.90% | -0.27% |
Max Drawdown (10Y)Largest decline over 10 years | -39.21% | -18.16% | -21.05% |
Current DrawdownCurrent decline from peak | -0.38% | -1.98% | +1.60% |
Average DrawdownAverage peak-to-trough decline | -4.48% | -3.07% | -1.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 1.16% | -0.40% |
Volatility
VDY.TO vs. XBB.TO - Volatility Comparison
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a higher volatility of 3.40% compared to iShares Core Canadian Universe Bond Index ETF (XBB.TO) at 1.54%. This indicates that VDY.TO's price experiences larger fluctuations and is considered to be riskier than XBB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VDY.TO | XBB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.40% | 1.54% | +1.86% |
Volatility (6M)Calculated over the trailing 6-month period | 6.93% | 3.42% | +3.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.30% | 4.37% | +3.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.58% | 6.63% | +4.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.96% | 6.70% | +9.26% |
VDY.TO vs. XBB.TO - Expense Ratio Comparison
VDY.TO has a 0.22% expense ratio, which is higher than XBB.TO's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VDY.TO vs. XBB.TO - Dividend Comparison
VDY.TO's dividend yield for the trailing twelve months is around 2.88%, less than XBB.TO's 3.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.88% | 3.59% | 4.37% | 4.64% | 4.42% | 3.46% | 4.59% | 4.25% | 4.44% | 3.42% | 3.25% | 4.11% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.43% | 3.39% | 3.25% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% |
Frequently Asked Questions
VDY.TO and XBB.TO have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XBB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XBB.TO is cheaper with a 0.10% expense ratio, compared with 0.22% for VDY.TO.
VDY.TO is categorized as Dividend, while XBB.TO is Intermediate Core Bond. VDY.TO tracks FTSE Canada High Dividend Yield Index, while XBB.TO tracks FTSE Canada Universe Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.22% for VDY.TO and 0.10% for XBB.TO.
Find the right allocation for VDY.TO and XBB.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer