XESG.TO vs. XSTB.TO

Last updated Jun 14, 2026

XESG.TO (iShares ESG Aware MSCI Canada Index ETF) and XSTB.TO (iShares ESG Aware Canadian Short Term Bond Index ETF) are both exchange-traded funds - XESG.TO is a Canada Equities fund tracking the Morningstar Canada GR CAD, while XSTB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 5 years, XESG.TO returned 12.49%/yr vs 1.96%/yr for XSTB.TO. At a 0.11 correlation, their price movements are largely independent. XESG.TO charges 0.16%/yr vs 0.17%/yr for XSTB.TO.

Performance

XESG.TO vs. XSTB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares ESG Aware MSCI Canada Index ETF (XESG.TO) and iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XESG.TO achieves a 10.50% return, which is significantly higher than XSTB.TO's 1.09% return.

XESG.TO

• 1D: 0.81%
• 1M: 1.78%
• YTD: 10.50%
• 6M: 7.97%
• 1Y: 29.17%
• 3Y*: 21.05%
• 5Y*: 12.49%
• 10Y*: —

XSTB.TO

• 1D: 0.00%
• 1M: 0.64%
• YTD: 1.09%
• 6M: 1.39%
• 1Y: 3.07%
• 3Y*: 4.74%
• 5Y*: 1.96%
• 10Y*: —

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

XESG.TO vs. XSTB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XESG.TO iShares ESG Aware MSCI Canada Index ETF	10.50%	26.34%	20.23%	10.30%	-7.64%	23.09%	1.14%	12.07%
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF	1.09%	3.60%	5.28%	4.86%	-3.91%	-1.12%	4.95%	1.48%

Correlation

The correlation between XESG.TO and XSTB.TO is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (All Time) Calculated using the full available price history since Mar 22, 2019	0.11

Over the past year, XESG.TO and XSTB.TO have become more correlated (0.38) than their long-term average of 0.11, meaning their price movements have been converging.

Return for Risk

XESG.TO vs. XSTB.TO — Risk / Return Rank

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

XESG.TO

XESG.TO Risk / Return Rank: 75
XESG.TO Sharpe Ratio Rank: 77
XESG.TO Sortino Ratio Rank: 69
XESG.TO Omega Ratio Rank: 76
XESG.TO Calmar Ratio Rank: 71
XESG.TO Martin Ratio Rank: 80

XSTB.TO

XSTB.TO Risk / Return Rank: 54
XSTB.TO Sharpe Ratio Rank: 55
XSTB.TO Sortino Ratio Rank: 53
XSTB.TO Omega Ratio Rank: 62
XSTB.TO Calmar Ratio Rank: 52
XSTB.TO Martin Ratio Rank: 47

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.

XESG.TO vs. XSTB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI Canada Index ETF (XESG.TO) and iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.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.

	XESG.TO	XSTB.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.64	+0.50
Sortino ratio: Return per unit of downside risk	2.73	2.28	+0.45
Omega ratio: Gain probability vs. loss probability	1.39	1.33	+0.06
Calmar ratio: Return relative to maximum drawdown	3.12	2.28	+0.84
Martin ratio: Return relative to average drawdown	13.67	6.93	+6.75

XESG.TO vs. XSTB.TO - Sharpe Ratio Comparison

The current XESG.TO Sharpe Ratio is 2.14, which is higher than the XSTB.TO Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of XESG.TO and XSTB.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

XESG.TO vs. XSTB.TO - Drawdown Comparison

The maximum XESG.TO drawdown since its inception was -39.40%, which is greater than XSTB.TO's maximum drawdown of -6.92%. Use the drawdown chart below to compare losses from any high point for XESG.TO and XSTB.TO.

Drawdown Indicators

	XESG.TO	XSTB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-39.40%	-6.92%	-32.48%
Max Drawdown (1Y) Largest decline over 1 year	-9.28%	-1.35%	-7.93%
Max Drawdown (3Y) Largest decline over 3 years	-14.14%	-1.35%	-12.79%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	-6.76%	-11.06%
Current Drawdown Current decline from peak	-1.00%	-0.04%	-0.96%
Average Drawdown Average peak-to-trough decline	-5.08%	-1.40%	-3.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.12%	0.44%	+1.68%

Volatility

XESG.TO vs. XSTB.TO - Volatility Comparison

iShares ESG Aware MSCI Canada Index ETF (XESG.TO) has a higher volatility of 4.58% compared to iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO) at 0.68%. This indicates that XESG.TO's price experiences larger fluctuations and is considered to be riskier than XSTB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XESG.TO	XSTB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	0.68%	+3.90%
Volatility (6M) Calculated over the trailing 6-month period	11.34%	1.45%	+9.89%
Volatility (1Y) Calculated over the trailing 1-year period	13.55%	1.88%	+11.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.90%	2.54%	+11.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.98%	2.71%	+19.27%

XESG.TO vs. XSTB.TO - Expense Ratio Comparison

XESG.TO has a 0.16% expense ratio, which is lower than XSTB.TO's 0.17% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XESG.TO vs. XSTB.TO - Dividend Comparison

XESG.TO's dividend yield for the trailing twelve months is around 1.99%, less than XSTB.TO's 2.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
XESG.TO iShares ESG Aware MSCI Canada Index ETF	1.99%	2.17%	2.57%	2.89%	2.77%	2.01%	2.30%	1.08%
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF	2.87%	2.88%	2.64%	2.22%	1.93%	1.82%	2.10%	1.83%

Frequently Asked Questions

Can I hold both XESG.TO and XSTB.TO in my portfolio?

XESG.TO and XSTB.TO have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XESG.TO or XSTB.TO?

On fees, XESG.TO is cheaper at 0.16% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XESG.TO or XSTB.TO?

XESG.TO is cheaper with a 0.16% expense ratio, compared with 0.17% for XSTB.TO.

What is the main difference between XESG.TO and XSTB.TO?

XESG.TO is categorized as Canada Equities, while XSTB.TO is Canadian Government Bonds. XESG.TO tracks Morningstar Canada GR CAD, while XSTB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. Their fees differ too: 0.16% for XESG.TO and 0.17% for XSTB.TO.