XBB.TO vs. EEM
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XBB.TO is a Intermediate Core Bond fund tracking the FTSE Canada Universe Bond Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XBB.TO returned 1.63%/yr vs 11.02%/yr for EEM. At a correlation of -0.13, they often move in opposite directions. XBB.TO charges 0.10%/yr vs 0.72%/yr for EEM.
Performance
XBB.TO vs. EEM - Performance Comparison
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Different Trading Currencies
XBB.TO is traded in CAD, while EEM is traded in USD. To make them comparable, the EEM values have been converted to CAD using the latest available exchange rates.
Returns By Period
In the year-to-date period, XBB.TO achieves a 1.72% return, which is significantly lower than EEM's 30.67% return. Over the past 10 years, XBB.TO has underperformed EEM with an annualized return of 1.63%, while EEM has yielded a comparatively higher 11.02% annualized return.
XBB.TO
- 1D
- 0.07%
- 1M
- 2.10%
- YTD
- 1.72%
- 6M
- 1.94%
- 1Y
- 4.05%
- 3Y*
- 4.40%
- 5Y*
- 0.73%
- 10Y*
- 1.63%
EEM
- 1D
- 3.22%
- 1M
- 9.63%
- YTD
- 30.67%
- 6M
- 33.37%
- 1Y
- 56.53%
- 3Y*
- 24.62%
- 5Y*
- 10.60%
- 10Y*
- 11.02%
XBB.TO vs. EEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 1.72% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
EEM iShares MSCI Emerging Markets ETF | 30.67% | 27.86% | 15.51% | 6.36% | -15.53% | -3.68% | 14.24% | 13.35% | -8.19% | 27.97% |
Correlation
The correlation between XBB.TO and EEM is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since Jul 13, 2006 | -0.13 |
The correlation between XBB.TO and EEM shifts across timeframes, from -0.13 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XBB.TO vs. EEM — Risk / Return Rank
XBB.TO
EEM
XBB.TO vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Universe Bond Index ETF (XBB.TO) and iShares MSCI Emerging Markets ETF (EEM). 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.
| XBB.TO | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.65 | ||
| Sortino ratioReturn per unit of downside risk | -2.00 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.47 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 1.49 | 4.63 | -3.14 |
| Martin ratioReturn relative to average drawdown | 3.47 | 16.10 | -12.63 |
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Drawdowns
XBB.TO vs. EEM - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, smaller than the maximum EEM drawdown of -55.52%. Use the drawdown chart below to compare losses from any high point for XBB.TO and EEM.
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Drawdown Indicators
| XBB.TO | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -55.52% | +37.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -12.26% | +9.53% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -15.82% | +10.40% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -30.79% | +14.89% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -35.39% | +17.23% |
Current DrawdownCurrent decline from peak | -1.18% | -0.08% | -1.10% |
Average DrawdownAverage peak-to-trough decline | -3.07% | -12.02% | +8.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 3.52% | -2.35% |
Volatility
XBB.TO vs. EEM - Volatility Comparison
The current volatility for iShares Core Canadian Universe Bond Index ETF (XBB.TO) is 1.44%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 11.28%. This indicates that XBB.TO experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XBB.TO | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.44% | 11.28% | -9.84% |
Volatility (6M)Calculated over the trailing 6-month period | 3.26% | 19.84% | -16.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 22.01% | -17.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 20.22% | -13.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.70% | 21.72% | -15.02% |
XBB.TO vs. EEM - Expense Ratio Comparison
XBB.TO has a 0.10% expense ratio, which is lower than EEM's 0.72% expense ratio.
Dividends
XBB.TO vs. EEM - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.40%, more than EEM's 2.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 2.24% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.40% | 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
XBB.TO and EEM have a correlation of 0.25, 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 0.72% for EEM.
XBB.TO is categorized as Intermediate Core Bond, while EEM is Emerging Markets Diversified. XBB.TO tracks FTSE Canada Universe Bond Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.10% for XBB.TO and 0.72% for EEM.
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