VNQ vs. XSB.TO
VNQ (Vanguard Real Estate ETF) and XSB.TO (iShares Core Canadian Short Term Bond Index ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while XSB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, VNQ returned 5.65%/yr vs 1.10%/yr for XSB.TO. At a 0.10 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.10%/yr for XSB.TO.
Performance
VNQ vs. XSB.TO - Performance Comparison
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Different Trading Currencies
VNQ is traded in USD, while XSB.TO is traded in CAD. To make them comparable, the XSB.TO values have been converted to USD using the latest available exchange rates.
Returns By Period
In the year-to-date period, VNQ achieves a 12.51% return, which is significantly higher than XSB.TO's -0.83% return. Over the past 10 years, VNQ has outperformed XSB.TO with an annualized return of 5.65%, while XSB.TO has yielded a comparatively lower 1.10% annualized return.
VNQ
- 1D
- 0.92%
- 1M
- 3.35%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
XSB.TO
- 1D
- -0.18%
- 1M
- -1.11%
- YTD
- -0.83%
- 6M
- -0.03%
- 1Y
- 0.52%
- 3Y*
- 3.42%
- 5Y*
- -0.85%
- 10Y*
- 1.10%
VNQ vs. XSB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
XSB.TO iShares Core Canadian Short Term Bond Index ETF | -0.83% | 8.66% | -2.39% | 7.22% | -9.76% | -1.06% | 7.75% | 7.64% | -6.28% | 7.40% |
Correlation
The correlation between VNQ and XSB.TO is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.09 |
Correlation (All Time) Calculated using the full available price history since Jul 12, 2006 | 0.10 |
The correlation between VNQ and XSB.TO shifts across timeframes, from 0.09 (10 years) to 0.21 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. XSB.TO — Risk / Return Rank
VNQ
XSB.TO
VNQ vs. XSB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and iShares Core Canadian Short Term Bond Index ETF (XSB.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.
| VNQ | XSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.76 | ||
| Sortino ratioReturn per unit of downside risk | +1.06 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.04 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 0.28 | +1.27 |
| Martin ratioReturn relative to average drawdown | 4.90 | 0.67 | +4.23 |
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Drawdowns
VNQ vs. XSB.TO - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than XSB.TO's maximum drawdown of -28.27%. Use the drawdown chart below to compare losses from any high point for VNQ and XSB.TO.
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Drawdown Indicators
| VNQ | XSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -28.27% | -44.80% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -3.40% | -4.94% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -7.05% | -10.41% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -17.85% | -16.63% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -18.49% | -23.91% |
Current DrawdownCurrent decline from peak | 0.00% | -8.46% | +8.46% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -11.08% | -2.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 1.43% | +1.22% |
Volatility
VNQ vs. XSB.TO - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to iShares Core Canadian Short Term Bond Index ETF (XSB.TO) at 1.18%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than XSB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | XSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 1.18% | +3.54% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 3.67% | +6.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 4.74% | +8.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 6.84% | +12.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 7.24% | +13.48% |
VNQ vs. XSB.TO - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than XSB.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
VNQ vs. XSB.TO - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, more than XSB.TO's 3.10% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.54% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 3.10% | 3.15% | 3.05% | 2.67% | 2.28% | 2.05% | 2.21% | 2.39% | 2.39% | 2.36% | 2.36% | 2.50% |
Frequently Asked Questions
VNQ and XSB.TO have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSB.TO is cheaper with a 0.10% expense ratio, compared with 0.13% for VNQ.
VNQ is categorized as REIT, while XSB.TO is Canadian Government Bonds. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while XSB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VNQ and 0.10% for XSB.TO.
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