XCS.TO vs. VSB.TO
XCS.TO (iShares S&P/TSX SmallCap Index ETF) and VSB.TO (Vanguard Canadian Short Term Bond) are both exchange-traded funds - XCS.TO is a Canada Equities fund tracking the Morningstar Canada Sml GR CAD, while VSB.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Government Bond Index. Both are passively managed. Over the past 10 years, XCS.TO returned 8.32%/yr vs 1.92%/yr for VSB.TO. At a 0.02 correlation, their price movements are largely independent. XCS.TO charges 0.60%/yr vs 0.15%/yr for VSB.TO.
Performance
XCS.TO vs. VSB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, XCS.TO achieves a 17.01% return, which is significantly higher than VSB.TO's 1.20% return. Over the past 10 years, XCS.TO has outperformed VSB.TO with an annualized return of 8.32%, while VSB.TO has yielded a comparatively lower 1.92% annualized return.
XCS.TO
- 1D
- -0.59%
- 1M
- -3.05%
- 6M
- 7.45%
- YTD
- 17.01%
- 1Y
- 39.27%
- 3Y*
- 24.26%
- 5Y*
- 11.38%
- 10Y*
- 8.32%
VSB.TO
- 1D
- 0.13%
- 1M
- 0.05%
- 6M
- 0.89%
- YTD
- 1.20%
- 1Y
- 3.30%
- 3Y*
- 4.65%
- 5Y*
- 2.00%
- 10Y*
- 1.92%
XCS.TO vs. VSB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XCS.TO iShares S&P/TSX SmallCap Index ETF | 17.01% | 37.65% | 18.11% | 4.17% | -8.97% | 7.71% | 13.37% | 6.12% | -10.40% | 2.51% |
VSB.TO Vanguard Canadian Short Term Bond | 1.20% | 3.66% | 5.11% | 4.92% | -3.93% | -1.15% | 5.29% | 3.06% | 1.67% | -0.36% |
Correlation
The correlation between XCS.TO and VSB.TO is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.12 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Dec 6, 2011 | 0.02 |
The correlation between XCS.TO and VSB.TO shifts across timeframes, from 0.02 (all time) to 0.12 (5 years), 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
XCS.TO vs. VSB.TO — Risk / Return Rank
XCS.TO
VSB.TO
XCS.TO vs. VSB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX SmallCap Index ETF (XCS.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.
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.
| XCS.TO | VSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.33 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | 2.32 | +0.38 |
| Martin ratioReturn relative to average drawdown | 8.06 | 7.91 | +0.15 |
Loading charts...
Drawdowns
XCS.TO vs. VSB.TO - Drawdown Comparison
The maximum XCS.TO drawdown since its inception was -62.43%, 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 XCS.TO and VSB.TO.
Loading charts...
Drawdown Indicators
| XCS.TO | VSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.43% | -8.38% | -54.05% |
Max Drawdown (1Y)Largest decline over 1 year | -14.58% | -1.43% | -13.15% |
Max Drawdown (3Y)Largest decline over 3 years | -15.55% | -1.43% | -14.12% |
Max Drawdown (5Y)Largest decline over 5 years | -35.08% | -6.88% | -28.20% |
Max Drawdown (10Y)Largest decline over 10 years | -51.50% | -8.38% | -43.12% |
Current DrawdownCurrent decline from peak | -6.51% | -0.17% | -6.34% |
Average DrawdownAverage peak-to-trough decline | -17.44% | -0.95% | -16.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.89% | 0.42% | +4.47% |
Volatility
XCS.TO vs. VSB.TO - Volatility Comparison
iShares S&P/TSX SmallCap Index ETF (XCS.TO) has a higher volatility of 4.63% compared to Vanguard Canadian Short Term Bond (VSB.TO) at 0.66%. This indicates that XCS.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.
Loading charts...
Volatility by Period
| XCS.TO | VSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.63% | 0.66% | +3.97% |
Volatility (6M)Calculated over the trailing 6-month period | 18.26% | 1.62% | +16.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.41% | 1.95% | +21.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.82% | 2.59% | +19.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.34% | 3.49% | +20.85% |
XCS.TO vs. VSB.TO - Expense Ratio Comparison
XCS.TO has a 0.60% expense ratio, which is higher than VSB.TO's 0.15% expense ratio.
Dividends
XCS.TO vs. VSB.TO - Dividend Comparison
XCS.TO's dividend yield for the trailing twelve months is around 1.30%, less 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% | 2.64% | 2.66% | 2.24% | 2.02% | 2.24% | 2.31% | 2.29% | 2.34% | 2.45% | 2.38% |
XCS.TO iShares S&P/TSX SmallCap Index ETF | 1.30% | 1.41% | 1.73% | 2.59% | 2.05% | 1.69% | 1.98% | 2.51% | 2.07% | 2.05% | 1.60% | 2.64% |
Frequently Asked Questions
XCS.TO and VSB.TO have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VSB.TO is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VSB.TO is cheaper with a 0.15% expense ratio, compared with 0.60% for XCS.TO.
XCS.TO is categorized as Canada Equities, while VSB.TO is Canadian Government Bonds. XCS.TO tracks Morningstar Canada Sml 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: 0.60% for XCS.TO and 0.15% for VSB.TO.
Find the right allocation for XCS.TO and VSB.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