XCH.TO vs. XSB.TO

Last updated Jul 18, 2026

XCH.TO (iShares China Index ETF) and XSB.TO (iShares Core Canadian Short Term Bond Index ETF) are both exchange-traded funds - XCH.TO is a China Equities fund tracking the Morningstar China GR CAD, while XSB.TO is a Short-Term Bond fund tracking the FTSE Canada Short Term Overall Bond Index. Both are passively managed. Over the past 10 years, XCH.TO returned 2.54%/yr vs 1.96%/yr for XSB.TO. At a correlation of -0.07, they often move in opposite directions. XCH.TO charges 0.87%/yr vs 0.10%/yr for XSB.TO.

Performance

XCH.TO vs. XSB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares China Index ETF (XCH.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XCH.TO achieves a -8.51% return, which is significantly lower than XSB.TO's 1.06% return. Over the past 10 years, XCH.TO has outperformed XSB.TO with an annualized return of 2.54%, while XSB.TO has yielded a comparatively lower 1.96% annualized return.

XCH.TO

• 1D: -1.48%
• 1M: 0.56%
• 6M: -12.10%
• YTD: -8.51%
• 1Y: -6.01%
• 3Y*: 11.94%
• 5Y*: -1.20%
• 10Y*: 2.54%

XSB.TO

• 1D: -0.11%
• 1M: -0.08%
• 6M: 0.76%
• YTD: 1.06%
• 1Y: 3.22%
• 3Y*: 4.79%
• 5Y*: 2.05%
• 10Y*: 1.96%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XCH.TO vs. XSB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XCH.TO iShares China Index ETF	-8.51%	22.48%	39.50%	-14.76%	-15.40%	-20.56%	7.17%	8.11%	-6.28%	27.28%
XSB.TO iShares Core Canadian Short Term Bond Index ETF	1.06%	3.70%	5.87%	4.67%	-4.04%	-1.11%	5.20%	3.20%	1.60%	0.13%

Correlation

The correlation between XCH.TO and XSB.TO is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.04
Correlation (10Y) Calculated over the trailing 10-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Jan 27, 2010	-0.07

The correlation between XCH.TO and XSB.TO shifts across timeframes, from -0.07 (all time) to 0.20 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

XCH.TO vs. XSB.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XCH.TO

XCH.TO Risk / Return Rank: 7
XCH.TO Sharpe Ratio Rank: 7
XCH.TO Sortino Ratio Rank: 7
XCH.TO Omega Ratio Rank: 6
XCH.TO Calmar Ratio Rank: 7
XCH.TO Martin Ratio Rank: 7

XSB.TO

XSB.TO Risk / Return Rank: 59
XSB.TO Sharpe Ratio Rank: 60
XSB.TO Sortino Ratio Rank: 61
XSB.TO Omega Ratio Rank: 66
XSB.TO Calmar Ratio Rank: 55
XSB.TO Martin Ratio Rank: 54

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XCH.TO vs. XSB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares China Index ETF (XCH.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.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.

	XCH.TO	XSB.TO	Difference
Sharpe ratio: Return per unit of total volatility	-0.32	1.60	-1.91
Sortino ratio: Return per unit of downside risk	-0.33	2.29	-2.61
Omega ratio: Gain probability vs. loss probability	0.96	1.31	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.28	2.19	-2.47
Martin ratio: Return relative to average drawdown	-0.59	7.40	-7.99

XCH.TO vs. XSB.TO - Sharpe Ratio Comparison

The current XCH.TO Sharpe Ratio is -0.32, which is lower than the XSB.TO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of XCH.TO and XSB.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XCH.TO vs. XSB.TO - Drawdown Comparison

The maximum XCH.TO drawdown since its inception was -58.02%, which is greater than XSB.TO's maximum drawdown of -8.65%. Use the drawdown chart below to compare losses from any high point for XCH.TO and XSB.TO.

Drawdown Indicators

	XCH.TO	XSB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-58.02%	-8.65%	-49.37%
Max Drawdown (1Y) Largest decline over 1 year	-21.92%	-1.47%	-20.45%
Max Drawdown (3Y) Largest decline over 3 years	-27.28%	-1.47%	-25.81%
Max Drawdown (5Y) Largest decline over 5 years	-47.97%	-6.99%	-40.98%
Max Drawdown (10Y) Largest decline over 10 years	-58.02%	-8.65%	-49.37%
Current Drawdown Current decline from peak	-23.61%	-0.45%	-23.16%
Average Drawdown Average peak-to-trough decline	-20.43%	-0.79%	-19.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.28%	0.44%	+9.84%

Volatility

XCH.TO vs. XSB.TO - Volatility Comparison

iShares China Index ETF (XCH.TO) has a higher volatility of 5.55% compared to iShares Core Canadian Short Term Bond Index ETF (XSB.TO) at 0.61%. This indicates that XCH.TO's price experiences larger fluctuations and is considered to be riskier than XSB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XCH.TO	XSB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.55%	0.61%	+4.94%
Volatility (6M) Calculated over the trailing 6-month period	13.34%	1.70%	+11.64%
Volatility (1Y) Calculated over the trailing 1-year period	19.09%	2.02%	+17.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.78%	2.73%	+27.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.69%	3.40%	+22.29%

XCH.TO vs. XSB.TO - Expense Ratio Comparison

XCH.TO has a 0.87% expense ratio, which is higher than XSB.TO's 0.10% expense ratio.

Dividends

XCH.TO vs. XSB.TO - Dividend Comparison

XCH.TO's dividend yield for the trailing twelve months is around 1.81%, less than XSB.TO's 3.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XCH.TO iShares China Index ETF	1.81%	2.11%	1.54%	2.86%	2.35%	1.51%	2.17%	2.50%	2.45%	2.41%	2.21%	2.58%
XSB.TO iShares Core Canadian Short Term Bond Index ETF	3.11%	3.15%	3.05%	2.67%	2.28%	2.05%	2.21%	2.39%	2.39%	2.36%	2.36%	2.50%

Frequently Asked Questions

Can I hold both XCH.TO and XSB.TO in my portfolio?

XCH.TO and XSB.TO have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XCH.TO or XSB.TO?

On fees, XSB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XCH.TO or XSB.TO?

XSB.TO is cheaper with a 0.10% expense ratio, compared with 0.87% for XCH.TO.

What is the main difference between XCH.TO and XSB.TO?

XCH.TO is categorized as China Equities, while XSB.TO is Short-Term Bond. XCH.TO tracks Morningstar China GR CAD, while XSB.TO tracks FTSE Canada Short Term Overall Bond Index. Their fees differ too: 0.87% for XCH.TO and 0.10% for XSB.TO.