VGV.TO vs. XLB.TO
VGV.TO (Vanguard Canadian Government Bond Index ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both Canadian Government Bonds funds - VGV.TO tracks the Bloomberg Global Aggregate Canadian Government Float Adjusted Bond Index while XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD. Both are passively managed. Over the past 5 years, VGV.TO returned 0.02%/yr vs -1.88%/yr for XLB.TO. A 0.69 correlation means they provide meaningful diversification when combined. VGV.TO charges 0.17%/yr vs 0.20%/yr for XLB.TO.
Performance
VGV.TO vs. XLB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VGV.TO achieves a 1.92% return, which is significantly lower than XLB.TO's 2.66% return.
VGV.TO
- 1D
- 0.13%
- 1M
- 2.35%
- YTD
- 1.92%
- 6M
- 2.24%
- 1Y
- 3.98%
- 3Y*
- 3.79%
- 5Y*
- 0.02%
- 10Y*
- —
XLB.TO
- 1D
- 0.21%
- 1M
- 3.31%
- YTD
- 2.66%
- 6M
- 2.61%
- 1Y
- 4.66%
- 3Y*
- 2.86%
- 5Y*
- -1.88%
- 10Y*
- 0.72%
VGV.TO vs. XLB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGV.TO Vanguard Canadian Government Bond Index ETF | 1.92% | 1.90% | 3.24% | 5.61% | -12.28% | -3.53% | 7.64% | 6.40% | -0.20% | 2.91% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.66% | -0.76% | 0.71% | 9.15% | -21.64% | -4.59% | 11.18% | 12.85% | -0.25% | 7.06% |
Correlation
The correlation between VGV.TO and XLB.TO is 0.89, 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 | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (All Time) Calculated using the full available price history since Feb 8, 2017 | 0.69 |
The correlation between VGV.TO and XLB.TO shifts across timeframes, from 0.69 (all time) to 0.89 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGV.TO vs. XLB.TO — Risk / Return Rank
VGV.TO
XLB.TO
VGV.TO vs. XLB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Government Bond Index ETF (VGV.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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VGV.TO | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.22 | ||
| Sortino ratioReturn per unit of downside risk | +0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.10 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | 0.96 | +0.40 |
| Martin ratioReturn relative to average drawdown | 2.96 | 1.84 | +1.12 |
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Drawdowns
VGV.TO vs. XLB.TO - Drawdown Comparison
The maximum VGV.TO drawdown since its inception was -20.77%, smaller than the maximum XLB.TO drawdown of -32.97%. Use the drawdown chart below to compare losses from any high point for VGV.TO and XLB.TO.
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Drawdown Indicators
| VGV.TO | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.77% | -32.97% | +12.20% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -4.85% | +1.92% |
Max Drawdown (3Y)Largest decline over 3 years | -6.05% | -11.66% | +5.61% |
Max Drawdown (5Y)Largest decline over 5 years | -16.94% | -27.81% | +10.87% |
Max Drawdown (10Y)Largest decline over 10 years | — | -32.97% | — |
Current DrawdownCurrent decline from peak | -6.20% | -18.51% | +12.31% |
Average DrawdownAverage peak-to-trough decline | -7.27% | -7.72% | +0.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.35% | 2.53% | -1.18% |
Volatility
VGV.TO vs. XLB.TO - Volatility Comparison
The current volatility for Vanguard Canadian Government Bond Index ETF (VGV.TO) is 1.42%, while iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a volatility of 2.53%. This indicates that VGV.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
| VGV.TO | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.42% | 2.53% | -1.11% |
Volatility (6M)Calculated over the trailing 6-month period | 3.77% | 5.75% | -1.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.99% | 7.98% | -2.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.00% | 12.36% | -5.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.02% | 11.68% | -4.66% |
VGV.TO vs. XLB.TO - Expense Ratio Comparison
VGV.TO has a 0.17% 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
VGV.TO vs. XLB.TO - Dividend Comparison
VGV.TO's dividend yield for the trailing twelve months is around 3.10%, less than XLB.TO's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGV.TO Vanguard Canadian Government Bond Index ETF | 3.10% | 3.04% | 2.97% | 2.78% | 2.63% | 2.35% | 2.28% | 2.36% | 2.52% | 2.26% | 0.00% | 0.00% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 3.82% | 3.73% | 3.97% | 3.03% | 2.90% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
Frequently Asked Questions
VGV.TO and XLB.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VGV.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VGV.TO is cheaper with a 0.17% expense ratio, compared with 0.20% for XLB.TO.
VGV.TO tracks Bloomberg Global Aggregate Canadian Government 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: 0.17% for VGV.TO and 0.20% for XLB.TO.
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