XBB.TO vs. VSB.TO
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and VSB.TO (Vanguard Canadian Short Term Bond) are both Canadian Government Bonds funds - XBB.TO tracks the Morningstar Can Core Bd GR CAD while VSB.TO tracks the FTSE Canada Short Term Government Bond Index. Both are passively managed. Over the past 10 years, XBB.TO returned 1.63%/yr vs 1.94%/yr for VSB.TO. A 0.66 correlation means they provide meaningful diversification when combined. XBB.TO charges 0.10%/yr vs 0.15%/yr for VSB.TO.
Performance
XBB.TO vs. VSB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XBB.TO achieves a 1.51% return, which is significantly higher than VSB.TO's 0.97% return. Over the past 10 years, XBB.TO has underperformed VSB.TO with an annualized return of 1.63%, while VSB.TO has yielded a comparatively higher 1.94% annualized return.
XBB.TO
- 1D
- -0.18%
- 1M
- 1.59%
- YTD
- 1.51%
- 6M
- 0.69%
- 1Y
- 3.09%
- 3Y*
- 4.17%
- 5Y*
- 0.71%
- 10Y*
- 1.63%
VSB.TO
- 1D
- -0.04%
- 1M
- 0.92%
- YTD
- 0.97%
- 6M
- 0.78%
- 1Y
- 2.90%
- 3Y*
- 4.65%
- 5Y*
- 2.02%
- 10Y*
- 1.94%
XBB.TO vs. VSB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 1.51% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
VSB.TO Vanguard Canadian Short Term Bond | 0.97% | 3.66% | 5.54% | 4.92% | -3.93% | -1.15% | 5.29% | 3.06% | 1.67% | -0.36% |
Correlation
The correlation between XBB.TO and VSB.TO is 0.84, 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 | 0.84 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.85 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.66 |
The correlation between XBB.TO and VSB.TO shifts across timeframes, from 0.66 (all time) to 0.85 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XBB.TO vs. VSB.TO — Risk / Return Rank
XBB.TO
VSB.TO
XBB.TO vs. VSB.TO - 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 Vanguard Canadian Short Term Bond (VSB.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.
| XBB.TO | VSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.82 | ||
| Sortino ratioReturn per unit of downside risk | -1.13 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.30 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.14 | 2.04 | -0.90 |
| Martin ratioReturn relative to average drawdown | 2.65 | 6.78 | -4.12 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XBB.TO | VSB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.71 | 1.53 | -0.82 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 0.79 | -0.68 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 0.56 | -0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 0.64 | +0.07 |
Drawdowns
XBB.TO vs. VSB.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, which is greater than VSB.TO's maximum drawdown of -8.38%. Use the drawdown chart below to compare losses from any high point for XBB.TO and VSB.TO.
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Drawdown Indicators
| XBB.TO | VSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -8.38% | -9.78% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -1.43% | -1.30% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -1.43% | -3.99% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -6.88% | -9.02% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -8.38% | -9.78% |
Current DrawdownCurrent decline from peak | -1.39% | -0.13% | -1.26% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -0.95% | -1.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 0.43% | +0.74% |
Volatility
XBB.TO vs. VSB.TO - Volatility Comparison
iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a higher volatility of 1.54% compared to Vanguard Canadian Short Term Bond (VSB.TO) at 0.71%. This indicates that XBB.TO's price experiences larger fluctuations and is considered to be riskier than VSB.TO 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 | VSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 0.71% | +0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 3.40% | 1.57% | +1.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 1.90% | +2.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 2.57% | +4.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.69% | 3.48% | +3.21% |
XBB.TO vs. VSB.TO - Expense Ratio Comparison
XBB.TO has a 0.10% expense ratio, which is lower than VSB.TO's 0.15% 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
XBB.TO vs. VSB.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.41%, more than VSB.TO's 3.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSB.TO Vanguard Canadian Short Term Bond | 3.00% | 3.04% | 3.04% | 2.66% | 2.24% | 2.02% | 2.24% | 2.31% | 2.29% | 2.34% | 2.45% | 2.38% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.41% | 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 VSB.TO have a correlation of 0.84, 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 0.15% for VSB.TO.
XBB.TO tracks Morningstar Can Core Bd GR CAD, while VSB.TO tracks FTSE Canada Short Term Government Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for XBB.TO and 0.15% for VSB.TO.
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