XAGG.TO vs. VAB.TO
XAGG.TO (iShares U.S. Aggregate Bond Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both Total Bond Market funds - XAGG.TO tracks the Bloomberg US Aggregate Bond Index while VAB.TO tracks the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Both are passively managed. Over the past 3 years, XAGG.TO returned 5.35%/yr vs 4.09%/yr for VAB.TO. At a 0.30 correlation, their price movements are largely independent. XAGG.TO charges 0.10%/yr vs 0.09%/yr for VAB.TO.
Performance
XAGG.TO vs. VAB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XAGG.TO achieves a 2.48% return, which is significantly higher than VAB.TO's 1.06% return.
XAGG.TO
- 1D
- 0.03%
- 1M
- -0.68%
- 6M
- 0.83%
- YTD
- 2.48%
- 1Y
- 6.31%
- 3Y*
- 5.35%
- 5Y*
- —
- 10Y*
- —
VAB.TO
- 1D
- -0.18%
- 1M
- -0.58%
- 6M
- 0.44%
- YTD
- 1.06%
- 1Y
- 4.01%
- 3Y*
- 4.09%
- 5Y*
- 0.28%
- 10Y*
- 1.38%
XAGG.TO vs. VAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
XAGG.TO iShares U.S. Aggregate Bond Index ETF | 2.48% | 1.66% | 10.15% | 1.14% | -6.66% | 1.36% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.06% | 2.28% | 3.98% | 6.90% | -11.86% | 0.06% |
Correlation
The correlation between XAGG.TO and VAB.TO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (All Time) Calculated using the full available price history since Jul 27, 2021 | 0.30 |
The correlation between XAGG.TO and VAB.TO shifts across timeframes, from 0.30 (all time) to 0.41 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XAGG.TO vs. VAB.TO — Risk / Return Rank
XAGG.TO
VAB.TO
XAGG.TO vs. VAB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aggregate Bond Index ETF (XAGG.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.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.
| XAGG.TO | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.33 | ||
| Sortino ratioReturn per unit of downside risk | +0.55 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.16 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.59 | 1.42 | +0.17 |
| Martin ratioReturn relative to average drawdown | 3.58 | 3.55 | +0.03 |
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Drawdowns
XAGG.TO vs. VAB.TO - Drawdown Comparison
The maximum XAGG.TO drawdown since its inception was -12.65%, smaller than the maximum VAB.TO drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for XAGG.TO and VAB.TO.
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Drawdown Indicators
| XAGG.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.65% | -18.39% | +5.74% |
Max Drawdown (1Y)Largest decline over 1 year | -4.32% | -2.83% | -1.49% |
Max Drawdown (3Y)Largest decline over 3 years | -6.64% | -4.84% | -1.80% |
Max Drawdown (5Y)Largest decline over 5 years | — | -15.82% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.39% | — |
Current DrawdownCurrent decline from peak | -2.01% | -2.46% | +0.45% |
Average DrawdownAverage peak-to-trough decline | -5.22% | -4.06% | -1.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.92% | 1.13% | +0.79% |
Volatility
XAGG.TO vs. VAB.TO - Volatility Comparison
iShares U.S. Aggregate Bond Index ETF (XAGG.TO) has a higher volatility of 1.46% compared to Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) at 1.22%. This indicates that XAGG.TO's price experiences larger fluctuations and is considered to be riskier than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XAGG.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.46% | 1.22% | +0.24% |
Volatility (6M)Calculated over the trailing 6-month period | 4.17% | 3.42% | +0.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.47% | 4.33% | +1.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.03% | 6.58% | +0.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.03% | 6.46% | +0.57% |
XAGG.TO vs. VAB.TO - Expense Ratio Comparison
XAGG.TO has a 0.10% expense ratio, which is higher than VAB.TO's 0.09% 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
XAGG.TO vs. VAB.TO - Dividend Comparison
XAGG.TO's dividend yield for the trailing twelve months is around 4.10%, more than VAB.TO's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.36% | 3.33% | 3.19% | 2.95% | 2.87% | 2.48% | 2.51% | 2.65% | 2.80% | 2.99% | 2.75% | 2.79% |
XAGG.TO iShares U.S. Aggregate Bond Index ETF | 4.10% | 3.87% | 3.07% | 2.59% | 1.67% | 1.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
XAGG.TO and VAB.TO have a correlation of 0.37, 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 XAGG.TO.
XAGG.TO tracks Bloomberg US Aggregate Bond Index, while VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for XAGG.TO and 0.09% for VAB.TO.
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