XFR.TO vs. XHB.TO

Last updated Jun 4, 2026

XFR.TO (iShares Floating Rate Index ETF) and XHB.TO (iShares Canadian HYBrid Corporate Bond Index ETF) are both exchange-traded funds - XFR.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD, while XHB.TO is a Corporate Bonds fund tracking the Morningstar Can Corp Bd GR CAD. Both are passively managed. Over the past 10 years, XFR.TO returned 2.24%/yr vs 5.63%/yr for XHB.TO. At a 0.05 correlation, their price movements are largely independent. XFR.TO charges 0.14%/yr vs 0.50%/yr for XHB.TO.

Performance

XFR.TO vs. XHB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares Floating Rate Index ETF (XFR.TO) and iShares Canadian HYBrid Corporate Bond Index ETF (XHB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XFR.TO achieves a 1.00% return, which is significantly lower than XHB.TO's 2.17% return. Over the past 10 years, XFR.TO has underperformed XHB.TO with an annualized return of 2.24%, while XHB.TO has yielded a comparatively higher 5.63% annualized return.

XFR.TO

• 1D: -0.05%
• 1M: 0.21%
• YTD: 1.00%
• 6M: 1.33%
• 1Y: 2.96%
• 3Y*: 3.98%
• 5Y*: 3.20%
• 10Y*: 2.24%

XHB.TO

• 1D: 0.00%
• 1M: 1.76%
• YTD: 2.17%
• 6M: 2.20%
• 1Y: 5.90%
• 3Y*: 9.70%
• 5Y*: 5.68%
• 10Y*: 5.63%

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

XFR.TO vs. XHB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XFR.TO iShares Floating Rate Index ETF	1.00%	3.33%	4.57%	5.29%	1.82%	0.15%	0.98%	2.23%	1.16%	1.46%
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF	2.17%	5.34%	11.53%	14.52%	-6.53%	2.10%	11.03%	10.73%	0.59%	4.49%

Correlation

The correlation between XFR.TO and XHB.TO is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (10Y) Calculated over the trailing 10-year period	0.05
Correlation (All Time) Calculated using the full available price history since Dec 14, 2011	0.05

Return for Risk

XFR.TO vs. XHB.TO — Risk / Return Rank

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

XFR.TO

XFR.TO Risk / Return Rank: 98
XFR.TO Sharpe Ratio Rank: 96
XFR.TO Sortino Ratio Rank: 98
XFR.TO Omega Ratio Rank: 97
XFR.TO Calmar Ratio Rank: 99
XFR.TO Martin Ratio Rank: 98

XHB.TO

XHB.TO Risk / Return Rank: 51
XHB.TO Sharpe Ratio Rank: 52
XHB.TO Sortino Ratio Rank: 54
XHB.TO Omega Ratio Rank: 52
XHB.TO Calmar Ratio Rank: 50
XHB.TO Martin Ratio Rank: 49

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.

XFR.TO vs. XHB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Index ETF (XFR.TO) and iShares Canadian HYBrid Corporate Bond Index ETF (XHB.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.

	XFR.TO	XHB.TO	Difference
Sharpe ratio: Return per unit of total volatility	4.12	1.80	+2.32
Sortino ratio: Return per unit of downside risk	6.98	2.62	+4.36
Omega ratio: Gain probability vs. loss probability	1.96	1.33	+0.64
Calmar ratio: Return relative to maximum drawdown	29.79	2.45	+27.34
Martin ratio: Return relative to average drawdown	88.61	8.07	+80.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XFR.TO vs. XHB.TO - Sharpe Ratio Comparison

The current XFR.TO Sharpe Ratio is 4.12, which is higher than the XHB.TO Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of XFR.TO and XHB.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.

Sharpe Ratios by Period

	XFR.TO	XHB.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.12	1.80	+2.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	3.92	1.02	+2.90
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.22	0.51	+0.70
Sharpe Ratio (All Time) Calculated using the full available price history	1.19	0.58	+0.60

Drawdowns

XFR.TO vs. XHB.TO - Drawdown Comparison

The maximum XFR.TO drawdown since its inception was -4.12%, smaller than the maximum XHB.TO drawdown of -26.03%. Use the drawdown chart below to compare losses from any high point for XFR.TO and XHB.TO.

Drawdown Indicators

	XFR.TO	XHB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-4.12%	-26.03%	+21.91%
Max Drawdown (1Y) Largest decline over 1 year	-0.10%	-2.42%	+2.32%
Max Drawdown (3Y) Largest decline over 3 years	-0.30%	-2.42%	+2.12%
Max Drawdown (5Y) Largest decline over 5 years	-0.30%	-11.83%	+11.53%
Max Drawdown (10Y) Largest decline over 10 years	-4.12%	-26.03%	+21.91%
Current Drawdown Current decline from peak	-0.05%	0.00%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.06%	-1.59%	+1.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.73%	-0.70%

Volatility

XFR.TO vs. XHB.TO - Volatility Comparison

The current volatility for iShares Floating Rate Index ETF (XFR.TO) is 0.18%, while iShares Canadian HYBrid Corporate Bond Index ETF (XHB.TO) has a volatility of 1.17%. This indicates that XFR.TO experiences smaller price fluctuations and is considered to be less risky than XHB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XFR.TO	XHB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.18%	1.17%	-0.99%
Volatility (6M) Calculated over the trailing 6-month period	0.48%	2.62%	-2.14%
Volatility (1Y) Calculated over the trailing 1-year period	0.72%	3.32%	-2.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.82%	5.61%	-4.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.85%	11.05%	-9.20%

XFR.TO vs. XHB.TO - Expense Ratio Comparison

XFR.TO has a 0.14% expense ratio, which is lower than XHB.TO's 0.50% expense ratio.

Dividends

XFR.TO vs. XHB.TO - Dividend Comparison

XFR.TO's dividend yield for the trailing twelve months is around 2.77%, less than XHB.TO's 4.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XFR.TO iShares Floating Rate Index ETF	2.77%	3.23%	4.93%	4.91%	1.85%	0.30%	1.07%	1.96%	1.60%	0.95%	0.77%	0.94%
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF	4.52%	4.48%	7.49%	8.06%	7.74%	5.57%	5.47%	5.75%	4.07%	4.08%	4.35%	4.78%

Frequently Asked Questions

Can I hold both XFR.TO and XHB.TO in my portfolio?

XFR.TO and XHB.TO have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XFR.TO or XHB.TO?

On fees, XFR.TO is cheaper at 0.14% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XFR.TO or XHB.TO?

XFR.TO is cheaper with a 0.14% expense ratio, compared with 0.50% for XHB.TO.

What is the main difference between XFR.TO and XHB.TO?

XFR.TO is categorized as Canadian Government Bonds, while XHB.TO is Corporate Bonds. XFR.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while XHB.TO tracks Morningstar Can Corp Bd GR CAD. Their fees differ too: 0.14% for XFR.TO and 0.50% for XHB.TO.