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XEB.TO vs. XSH.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XEB.TO vs. XSH.TO

Last updated Jun 5, 2026

XEB.TO (iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)) and XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) are both exchange-traded funds - XEB.TO is a Emerging Markets Bonds fund tracking the J.P. Morgan EMBI Global Core Hedged in CAD Index, while XSH.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, XEB.TO returned 1.44%/yr vs 2.82%/yr for XSH.TO. At a 0.24 correlation, their price movements are largely independent. XEB.TO charges 0.53%/yr vs 0.10%/yr for XSH.TO.

Performance

XEB.TO vs. XSH.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (XEB.TO) and iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XEB.TO achieves a 0.81% return, which is significantly lower than XSH.TO's 1.28% return. Over the past 10 years, XEB.TO has underperformed XSH.TO with an annualized return of 1.44%, while XSH.TO has yielded a comparatively higher 2.82% annualized return.

XEB.TO

1D
0.18%
1M
0.79%
YTD
0.81%
6M
0.94%
1Y
8.75%
3Y*
7.28%
5Y*
-0.04%
10Y*
1.44%

XSH.TO

1D
-0.05%
1M
0.91%
YTD
1.28%
6M
1.34%
1Y
3.85%
3Y*
6.03%
5Y*
2.85%
10Y*
2.82%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEB.TO vs. XSH.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XEB.TO
iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)		0.81%11.14%3.46%8.58%-19.80%-3.14%2.97%13.37%-7.43%8.80%
XSH.TO
iShares Core Canadian Short Term Corporate Bond Index ETF		1.28%4.61%7.11%6.80%-4.52%-0.81%6.28%5.02%1.28%0.78%

Correlation

The correlation between XEB.TO and XSH.TO is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.42

Correlation (3Y)
Calculated over the trailing 3-year period

0.50

Correlation (5Y)
Calculated over the trailing 5-year period

0.46

Correlation (10Y)
Calculated over the trailing 10-year period

0.32

Correlation (All Time)
Calculated using the full available price history since Sep 22, 2011

0.24

The correlation between XEB.TO and XSH.TO shifts across timeframes, from 0.24 (all time) to 0.50 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)

iShares Core Canadian Short Term Corporate Bond Index ETF

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Often compared with XSH.TO:
XSH.TO vs. XSB.TOXSH.TO vs. XCB.TOXSH.TO vs. XBB.TOXSH.TO vs. XFR.TOXSH.TO vs. ZMMK.TOXSH.TO vs. ZAG.TOXSH.TO vs. CLF.TO

Return for Risk

XEB.TO vs. XSH.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEB.TO
XEB.TO Risk / Return Rank: 4242
Overall Rank
XEB.TO Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
XEB.TO Sortino Ratio Rank: 4242
Sortino Ratio Rank
XEB.TO Omega Ratio Rank: 4444
Omega Ratio Rank
XEB.TO Calmar Ratio Rank: 3737
Calmar Ratio Rank
XEB.TO Martin Ratio Rank: 4343
Martin Ratio Rank
XSH.TO
XSH.TO Risk / Return Rank: 5555
Overall Rank
XSH.TO Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
XSH.TO Sortino Ratio Rank: 5353
Sortino Ratio Rank
XSH.TO Omega Ratio Rank: 6060
Omega Ratio Rank
XSH.TO Calmar Ratio Rank: 5353
Calmar Ratio Rank
XSH.TO Martin Ratio Rank: 5858
Martin Ratio Rank
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.

XEB.TO vs. XSH.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (XEB.TO) and iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.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.

XEB.TOXSH.TODifference
Sharpe ratioReturn per unit of total volatility
1.42
1.79

-0.37

Sortino ratioReturn per unit of downside risk
2.10
2.51

-0.41

Omega ratioGain probability vs. loss probability

1.28

1.36

-0.08

Calmar ratioReturn relative to maximum drawdown

1.78

2.57

-0.79

Martin ratioReturn relative to average drawdown

6.91

10.05

-3.13

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XEB.TO vs. XSH.TO - Sharpe Ratio Comparison

The current XEB.TO Sharpe Ratio is 1.42, which is comparable to the XSH.TO Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of XEB.TO and XSH.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.

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Sharpe Ratios by Period

XEB.TOXSH.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.42

1.79

-0.37

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.00

1.01

-1.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.14

0.64

-0.50

Sharpe Ratio (All Time)

Calculated using the full available price history

0.30

0.74

-0.44

Drawdowns

XEB.TO vs. XSH.TO - Drawdown Comparison

The maximum XEB.TO drawdown since its inception was -29.53%, which is greater than XSH.TO's maximum drawdown of -14.24%. Use the drawdown chart below to compare losses from any high point for XEB.TO and XSH.TO.

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Drawdown Indicators

XEB.TOXSH.TODifference

Max Drawdown

Largest peak-to-trough decline

-29.53%

-14.24%

-15.29%

Max Drawdown (1Y)

Largest decline over 1 year

-4.94%

-1.51%

-3.43%

Max Drawdown (3Y)

Largest decline over 3 years

-8.26%

-1.51%

-6.75%

Max Drawdown (5Y)

Largest decline over 5 years

-29.47%

-7.80%

-21.67%

Max Drawdown (10Y)

Largest decline over 10 years

-29.53%

-14.24%

-15.29%

Current Drawdown

Current decline from peak

-2.23%

-0.05%

-2.18%

Average Drawdown

Average peak-to-trough decline

-6.46%

-0.93%

-5.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.27%

0.38%

+0.89%

Volatility

XEB.TO vs. XSH.TO - Volatility Comparison

iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (XEB.TO) has a higher volatility of 2.47% compared to iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) at 0.80%. This indicates that XEB.TO's price experiences larger fluctuations and is considered to be riskier than XSH.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEB.TOXSH.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

2.47%

0.80%

+1.67%

Volatility (6M)

Calculated over the trailing 6-month period

4.89%

1.83%

+3.06%

Volatility (1Y)

Calculated over the trailing 1-year period

6.17%

2.16%

+4.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

9.52%

2.83%

+6.69%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

10.21%

4.42%

+5.79%

XEB.TO vs. XSH.TO - Expense Ratio Comparison

XEB.TO has a 0.53% expense ratio, which is higher than XSH.TO's 0.10% expense ratio.

Dividends

XEB.TO vs. XSH.TO - Dividend Comparison

XEB.TO's dividend yield for the trailing twelve months is around 4.97%, more than XSH.TO's 3.90% yield.

PositionTTM20252024202320222021202020192018201720162015
XEB.TO
iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)		4.97%4.98%4.68%4.00%4.26%3.23%3.45%3.65%4.95%3.81%4.31%4.60%
XSH.TO
iShares Core Canadian Short Term Corporate Bond Index ETF		3.90%3.82%3.64%3.24%2.97%2.65%2.61%2.80%2.86%2.93%3.08%3.18%

Frequently Asked Questions

XEB.TO and XSH.TO have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

XSH.TO is cheaper with a 0.10% expense ratio, compared with 0.53% for XEB.TO.

XEB.TO is categorized as Emerging Markets Bonds, while XSH.TO is Canadian Government Bonds. XEB.TO tracks J.P. Morgan EMBI Global Core Hedged in CAD Index, while XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. Their fees differ too: 0.53% for XEB.TO and 0.10% for XSH.TO.

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