XCB.TO vs. XGB.TO
XCB.TO (iShares Core Canadian Corporate Bond Index ETF) and XGB.TO (iShares Core Canadian Government Bond Index ETF) are both exchange-traded funds - XCB.TO is a Corporate Bonds fund tracking the Morningstar Can Corp Bd GR CAD, while XGB.TO is a Canadian Government Bonds fund tracking the Morningstar Can Core Bd GR CAD. Both are passively managed. Over the past 10 years, XCB.TO returned 2.82%/yr vs 1.11%/yr for XGB.TO. A 0.69 correlation means they provide meaningful diversification when combined. XCB.TO charges 0.17%/yr vs 0.13%/yr for XGB.TO.
Performance
XCB.TO vs. XGB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XCB.TO achieves a 2.10% return, which is significantly lower than XGB.TO's 2.26% return. Over the past 10 years, XCB.TO has outperformed XGB.TO with an annualized return of 2.82%, while XGB.TO has yielded a comparatively lower 1.11% annualized return.
XCB.TO
- 1D
- 0.40%
- 1M
- 0.84%
- YTD
- 2.10%
- 6M
- 2.04%
- 1Y
- 4.32%
- 3Y*
- 6.44%
- 5Y*
- 2.34%
- 10Y*
- 2.82%
XGB.TO
- 1D
- 0.47%
- 1M
- 1.09%
- YTD
- 2.26%
- 6M
- 2.04%
- 1Y
- 3.20%
- 3Y*
- 3.98%
- 5Y*
- 0.19%
- 10Y*
- 1.11%
XCB.TO vs. XGB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XCB.TO iShares Core Canadian Corporate Bond Index ETF | 2.10% | 4.45% | 6.72% | 8.30% | -9.79% | -1.81% | 8.36% | 7.90% | 0.39% | 2.75% |
XGB.TO iShares Core Canadian Government Bond Index ETF | 2.26% | 1.65% | 3.54% | 5.57% | -12.25% | -3.11% | 8.14% | 6.10% | 1.34% | 1.71% |
Correlation
The correlation between XCB.TO and XGB.TO is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Nov 10, 2006 | 0.69 |
Over the past year, XCB.TO and XGB.TO have become more correlated (0.91) than their long-term average of 0.69, meaning their price movements have been converging.
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Return for Risk
XCB.TO vs. XGB.TO — Risk / Return Rank
XCB.TO
XGB.TO
XCB.TO vs. XGB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Corporate Bond Index ETF (XCB.TO) and iShares Core Canadian Government Bond Index ETF (XGB.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.
| XCB.TO | XGB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.43 | ||
| Sortino ratioReturn per unit of downside risk | +0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.12 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.74 | 1.13 | +0.61 |
| Martin ratioReturn relative to average drawdown | 5.16 | 2.41 | +2.75 |
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Drawdowns
XCB.TO vs. XGB.TO - Drawdown Comparison
The maximum XCB.TO drawdown since its inception was -22.59%, which is greater than XGB.TO's maximum drawdown of -19.53%. Use the drawdown chart below to compare losses from any high point for XCB.TO and XGB.TO.
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Drawdown Indicators
| XCB.TO | XGB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.59% | -19.53% | -3.06% |
Max Drawdown (1Y)Largest decline over 1 year | -2.49% | -2.86% | +0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -3.56% | -5.83% | +2.27% |
Max Drawdown (5Y)Largest decline over 5 years | -14.17% | -16.44% | +2.27% |
Max Drawdown (10Y)Largest decline over 10 years | -22.59% | -19.53% | -3.06% |
Current DrawdownCurrent decline from peak | 0.00% | -4.61% | +4.61% |
Average DrawdownAverage peak-to-trough decline | -2.11% | -3.94% | +1.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.84% | 1.34% | -0.50% |
Volatility
XCB.TO vs. XGB.TO - Volatility Comparison
iShares Core Canadian Corporate Bond Index ETF (XCB.TO) has a higher volatility of 1.22% compared to iShares Core Canadian Government Bond Index ETF (XGB.TO) at 1.16%. This indicates that XCB.TO's price experiences larger fluctuations and is considered to be riskier than XGB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XCB.TO | XGB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.22% | 1.16% | +0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 2.99% | 3.44% | -0.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.84% | 4.58% | -0.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.68% | 6.93% | -1.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.23% | 5.99% | +1.24% |
XCB.TO vs. XGB.TO - Expense Ratio Comparison
XCB.TO has a 0.17% expense ratio, which is higher than XGB.TO's 0.13% 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
XCB.TO vs. XGB.TO - Dividend Comparison
XCB.TO's dividend yield for the trailing twelve months is around 4.12%, more than XGB.TO's 3.09% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XCB.TO iShares Core Canadian Corporate Bond Index ETF | 4.12% | 4.10% | 4.00% | 3.69% | 3.55% | 3.01% | 2.75% | 2.95% | 3.10% | 3.07% | 3.19% | 3.31% |
XGB.TO iShares Core Canadian Government Bond Index ETF | 3.09% | 3.11% | 2.95% | 2.73% | 2.64% | 2.25% | 2.12% | 2.32% | 2.44% | 2.41% | 2.53% | 2.62% |
Frequently Asked Questions
With a correlation of 0.91, XCB.TO and XGB.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, XGB.TO is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XGB.TO is cheaper with a 0.13% expense ratio, compared with 0.17% for XCB.TO.
XCB.TO is categorized as Corporate Bonds, while XGB.TO is Canadian Government Bonds. XCB.TO tracks Morningstar Can Corp Bd GR CAD, while XGB.TO tracks Morningstar Can Core Bd GR CAD. Their fees differ too: 0.17% for XCB.TO and 0.13% for XGB.TO.
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