XBB.TO vs. XEM.TO
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and XEM.TO (iShares MSCI Emerging Markets Index ETF) are both exchange-traded funds - XBB.TO is a Intermediate Core Bond fund tracking the FTSE Canada Universe Bond Index, while XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD. Both are passively managed. Over the past 10 years, XBB.TO returned 1.55%/yr vs 9.89%/yr for XEM.TO. At a correlation of -0.09, they often move in opposite directions. XBB.TO charges 0.10%/yr vs 0.81%/yr for XEM.TO.
Performance
XBB.TO vs. XEM.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, XBB.TO achieves a 0.89% return, which is significantly lower than XEM.TO's 22.11% return. Over the past 10 years, XBB.TO has underperformed XEM.TO with an annualized return of 1.55%, while XEM.TO has yielded a comparatively higher 9.89% annualized return.
XBB.TO
- 1D
- -0.39%
- 1M
- 0.01%
- YTD
- 0.89%
- 6M
- 1.29%
- 1Y
- 2.87%
- 3Y*
- 4.23%
- 5Y*
- 0.54%
- 10Y*
- 1.55%
XEM.TO
- 1D
- 1.87%
- 1M
- -1.17%
- YTD
- 22.11%
- 6M
- 22.63%
- 1Y
- 45.44%
- 3Y*
- 22.07%
- 5Y*
- 8.55%
- 10Y*
- 9.89%
XBB.TO vs. XEM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 0.89% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 22.11% | 27.25% | 14.98% | 6.49% | -15.74% | -4.09% | 14.12% | 11.47% | -8.06% | 27.79% |
Correlation
The correlation between XBB.TO and XEM.TO is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.16 |
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 Jun 25, 2009 | -0.09 |
The correlation between XBB.TO and XEM.TO shifts across timeframes, from -0.09 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
XBB.TO vs. XEM.TO — Risk / Return Rank
XBB.TO
XEM.TO
XBB.TO vs. XEM.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 MSCI Emerging Markets Index ETF (XEM.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 | XEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.58 | ||
| Sortino ratioReturn per unit of downside risk | -1.96 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.42 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 1.06 | 3.72 | -2.66 |
| Martin ratioReturn relative to average drawdown | 2.47 | 13.29 | -10.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| XBB.TO | XEM.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.66 | 2.24 | -1.58 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | 0.51 | -0.43 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.55 | -0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.60 | 0.41 | +0.19 |
Drawdowns
XBB.TO vs. XEM.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, smaller than the maximum XEM.TO drawdown of -35.27%. Use the drawdown chart below to compare losses from any high point for XBB.TO and XEM.TO.
Loading charts...
Drawdown Indicators
| XBB.TO | XEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -35.27% | +17.11% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -12.27% | +9.54% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -15.30% | +9.88% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -31.06% | +15.16% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -35.27% | +17.11% |
Current DrawdownCurrent decline from peak | -1.98% | -6.32% | +4.34% |
Average DrawdownAverage peak-to-trough decline | -3.07% | -10.50% | +7.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.16% | 3.43% | -2.27% |
Volatility
XBB.TO vs. XEM.TO - Volatility Comparison
The current volatility for iShares Core Canadian Universe Bond Index ETF (XBB.TO) is 1.54%, while iShares MSCI Emerging Markets Index ETF (XEM.TO) has a volatility of 10.27%. This indicates that XBB.TO experiences smaller price fluctuations and is considered to be less risky than XEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| XBB.TO | XEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 10.27% | -8.73% |
Volatility (6M)Calculated over the trailing 6-month period | 3.42% | 18.17% | -14.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 20.45% | -16.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 16.97% | -10.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.70% | 18.17% | -11.47% |
XBB.TO vs. XEM.TO - Expense Ratio Comparison
XBB.TO has a 0.10% expense ratio, which is lower than XEM.TO's 0.81% expense ratio.
Dividends
XBB.TO vs. XEM.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.43%, more than XEM.TO's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.43% | 3.39% | 3.25% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 1.56% | 1.90% | 2.08% | 2.39% | 2.10% | 1.91% | 1.28% | 2.56% | 1.95% | 1.78% | 1.97% | 2.24% |
Frequently Asked Questions
XBB.TO and XEM.TO have a correlation of 0.27, 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 0.81% for XEM.TO.
XBB.TO is categorized as Intermediate Core Bond, while XEM.TO is Emerging Markets Equities. XBB.TO tracks FTSE Canada Universe Bond Index, while XEM.TO tracks Morningstar EM GR CAD. Their fees differ too: 0.10% for XBB.TO and 0.81% for XEM.TO.
Find the right allocation for XBB.TO and XEM.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer