XBB.TO vs. XEF.TO
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and XEF.TO (iShares Core MSCI EAFE IMI Index ETF) are both exchange-traded funds - XBB.TO is a Canadian Government Bonds fund tracking the Morningstar Can Core Bd GR CAD, while XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD). Both are passively managed. Over the past 10 years, XBB.TO returned 1.63%/yr vs 9.77%/yr for XEF.TO. At a 0.05 correlation, their price movements are largely independent. XBB.TO charges 0.10%/yr vs 0.23%/yr for XEF.TO.
Performance
XBB.TO vs. XEF.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 lower than XEF.TO's 9.95% return. Over the past 10 years, XBB.TO has underperformed XEF.TO with an annualized return of 1.63%, while XEF.TO has yielded a comparatively higher 9.77% 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%
XEF.TO
- 1D
- -0.41%
- 1M
- 5.38%
- YTD
- 9.95%
- 6M
- 10.72%
- 1Y
- 23.12%
- 3Y*
- 17.83%
- 5Y*
- 10.89%
- 10Y*
- 9.77%
XBB.TO vs. XEF.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% |
XEF.TO iShares Core MSCI EAFE IMI Index ETF | 9.95% | 25.69% | 12.04% | 15.21% | -9.53% | 10.36% | 6.13% | 15.86% | -6.65% | 18.19% |
Correlation
The correlation between XBB.TO and XEF.TO is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.23 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Apr 16, 2013 | 0.05 |
Over the past year, XBB.TO and XEF.TO have become more correlated (0.44) than their long-term average of 0.05, meaning their price movements have been converging.
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Return for Risk
XBB.TO vs. XEF.TO — Risk / Return Rank
XBB.TO
XEF.TO
XBB.TO vs. XEF.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 iShares Core MSCI EAFE IMI Index ETF (XEF.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 | XEF.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.97 | ||
| Sortino ratioReturn per unit of downside risk | -1.43 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.31 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.14 | 2.06 | -0.92 |
| Martin ratioReturn relative to average drawdown | 2.65 | 8.22 | -5.57 |
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 | XEF.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.71 | 1.68 | -0.97 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 0.81 | -0.70 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 0.66 | -0.42 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 0.71 | +0.01 |
Drawdowns
XBB.TO vs. XEF.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, smaller than the maximum XEF.TO drawdown of -28.51%. Use the drawdown chart below to compare losses from any high point for XBB.TO and XEF.TO.
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Drawdown Indicators
| XBB.TO | XEF.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -28.51% | +10.35% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -11.27% | +8.54% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -14.32% | +8.90% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -24.58% | +8.68% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -28.51% | +10.35% |
Current DrawdownCurrent decline from peak | -1.39% | -1.09% | -0.30% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -4.62% | +1.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 2.82% | -1.65% |
Volatility
XBB.TO vs. XEF.TO - Volatility Comparison
The current volatility for iShares Core Canadian Universe Bond Index ETF (XBB.TO) is 1.54%, while iShares Core MSCI EAFE IMI Index ETF (XEF.TO) has a volatility of 4.77%. This indicates that XBB.TO experiences smaller price fluctuations and is considered to be less risky than XEF.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 | XEF.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 4.77% | -3.23% |
Volatility (6M)Calculated over the trailing 6-month period | 3.40% | 11.56% | -8.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 13.85% | -9.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 13.58% | -6.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.69% | 14.85% | -8.16% |
XBB.TO vs. XEF.TO - Expense Ratio Comparison
XBB.TO has a 0.10% expense ratio, which is lower than XEF.TO's 0.23% 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. XEF.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.41%, more than XEF.TO's 2.21% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XEF.TO iShares Core MSCI EAFE IMI Index ETF | 2.21% | 2.43% | 2.76% | 2.75% | 2.93% | 2.42% | 1.93% | 2.72% | 2.76% | 2.10% | 2.42% | 2.42% |
Frequently Asked Questions
XBB.TO and XEF.TO have a correlation of 0.44, 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 0.23% for XEF.TO.
XBB.TO is categorized as Canadian Government Bonds, while XEF.TO is Foreign Large Cap Equities. XBB.TO tracks Morningstar Can Core Bd GR CAD, while XEF.TO tracks MSCI EAFE Investable Market Index (CAD). Their fees differ too: 0.10% for XBB.TO and 0.23% for XEF.TO.
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