XGB.TO vs. VCIT
Compare and contrast key facts about iShares Core Canadian Government Bond Index ETF (XGB.TO) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT).
XGB.TO and VCIT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XGB.TO is a passively managed fund by iShares that tracks the performance of the Morningstar Can Core Bd GR CAD. It was launched on Nov 6, 2006. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. Both XGB.TO and VCIT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XGB.TO or VCIT.
Key characteristics
| XGB.TO | VCIT | |
|---|---|---|
| YTD Return | 3.91% | 6.38% |
| 1Y Return | 10.58% | 13.48% |
| 3Y Return (Ann) | -1.10% | -0.53% |
| 5Y Return (Ann) | 0.02% | 1.80% |
| 10Y Return (Ann) | 1.75% | 3.20% |
| Sharpe Ratio | 1.54 | 2.12 |
| Daily Std Dev | 6.81% | 6.39% |
| Max Drawdown | -19.53% | -20.56% |
| Current Drawdown | -7.90% | -2.26% |
Correlation
The correlation between XGB.TO and VCIT is 0.45, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XGB.TO vs. VCIT - Performance Comparison
In the year-to-date period, XGB.TO achieves a 3.91% return, which is significantly lower than VCIT's 6.38% return. Over the past 10 years, XGB.TO has underperformed VCIT with an annualized return of 1.75%, while VCIT has yielded a comparatively higher 3.20% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XGB.TO vs. VCIT - Expense Ratio Comparison
XGB.TO has a 0.13% expense ratio, which is higher than VCIT's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
XGB.TO vs. VCIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Government Bond Index ETF (XGB.TO) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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.
Dividends
XGB.TO vs. VCIT - Dividend Comparison
XGB.TO's dividend yield for the trailing twelve months is around 2.84%, less than VCIT's 4.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XGB.TO iShares Core Canadian Government Bond Index ETF | 2.84% | 2.73% | 2.64% | 2.25% | 2.12% | 2.32% | 2.44% | 2.41% | 2.53% | 2.62% | 2.74% | 3.03% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.06% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
Drawdowns
XGB.TO vs. VCIT - Drawdown Comparison
The maximum XGB.TO drawdown since its inception was -19.53%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for XGB.TO and VCIT. For additional features, visit the drawdowns tool.
Volatility
XGB.TO vs. VCIT - Volatility Comparison
iShares Core Canadian Government Bond Index ETF (XGB.TO) has a higher volatility of 1.94% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 0.98%. This indicates that XGB.TO's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.