XGB.TO vs. VCIT
XGB.TO (iShares Core Canadian Government Bond Index ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - XGB.TO is a Canadian Government Bonds fund tracking the Morningstar Can Core Bd GR CAD, while VCIT is a Corporate Bonds fund tracking the Barclays U.S. 5-10 Year Corp Index. Both are passively managed. Over the past 10 years, XGB.TO returned 1.03%/yr vs 3.68%/yr for VCIT. A 0.54 correlation means they provide meaningful diversification when combined. XGB.TO charges 0.13%/yr vs 0.04%/yr for VCIT.
Performance
XGB.TO vs. VCIT - Performance Comparison
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Different Trading Currencies
XGB.TO is traded in CAD, while VCIT is traded in USD. To make them comparable, the VCIT values have been converted to CAD using the latest available exchange rates.
Returns By Period
In the year-to-date period, XGB.TO achieves a 1.57% return, which is significantly higher than VCIT's 1.46% return. Over the past 10 years, XGB.TO has underperformed VCIT with an annualized return of 1.03%, while VCIT has yielded a comparatively higher 3.68% annualized return.
XGB.TO
- 1D
- -0.16%
- 1M
- 1.63%
- YTD
- 1.57%
- 6M
- 0.52%
- 1Y
- 2.67%
- 3Y*
- 3.45%
- 5Y*
- 0.13%
- 10Y*
- 1.03%
VCIT
- 1D
- 0.19%
- 1M
- 2.28%
- YTD
- 1.46%
- 6M
- -0.32%
- 1Y
- 7.50%
- 3Y*
- 7.23%
- 5Y*
- 4.11%
- 10Y*
- 3.68%
XGB.TO vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XGB.TO iShares Core Canadian Government Bond Index ETF | 1.57% | 1.65% | 3.54% | 5.57% | -12.25% | -3.11% | 8.14% | 6.10% | 1.34% | 1.71% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 1.46% | 4.32% | 12.06% | 6.58% | -7.85% | -2.65% | 7.61% | 8.49% | 6.60% | -1.40% |
Correlation
The correlation between XGB.TO and VCIT is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.54 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.54 |
The correlation between XGB.TO and VCIT shifts across timeframes, from 0.49 (1 year) to 0.62 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XGB.TO vs. VCIT — Risk / Return Rank
XGB.TO
VCIT
XGB.TO vs. VCIT - Risk-Adjusted Trends 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.
| XGB.TO | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.77 | ||
| Sortino ratioReturn per unit of downside risk | -1.13 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.24 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 0.94 | 1.82 | -0.88 |
| Martin ratioReturn relative to average drawdown | 2.02 | 4.11 | -2.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XGB.TO | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.59 | 1.36 | -0.77 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 0.53 | -0.52 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.17 | 0.46 | -0.29 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.68 | -0.16 |
Drawdowns
XGB.TO vs. VCIT - Drawdown Comparison
The maximum XGB.TO drawdown since its inception was -19.53%, which is greater than VCIT's maximum drawdown of -18.31%. Use the drawdown chart below to compare losses from any high point for XGB.TO and VCIT.
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Drawdown Indicators
| XGB.TO | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.53% | -18.31% | -1.22% |
Max Drawdown (1Y)Largest decline over 1 year | -2.86% | -4.14% | +1.28% |
Max Drawdown (3Y)Largest decline over 3 years | -5.83% | -6.67% | +0.84% |
Max Drawdown (5Y)Largest decline over 5 years | -16.44% | -15.40% | -1.04% |
Max Drawdown (10Y)Largest decline over 10 years | -19.53% | -18.31% | -1.22% |
Current DrawdownCurrent decline from peak | -5.25% | -1.32% | -3.93% |
Average DrawdownAverage peak-to-trough decline | -3.94% | -4.26% | +0.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.33% | 1.83% | -0.50% |
Volatility
XGB.TO vs. VCIT - Volatility Comparison
iShares Core Canadian Government Bond Index ETF (XGB.TO) has a higher volatility of 1.70% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.41%. 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.
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Volatility by Period
| XGB.TO | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.70% | 1.41% | +0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 3.49% | 4.35% | -0.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.53% | 5.53% | -1.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.92% | 7.73% | -0.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.99% | 8.03% | -2.04% |
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%.
Dividends
XGB.TO vs. VCIT - Dividend Comparison
XGB.TO's dividend yield for the trailing twelve months is around 3.11%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.80% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
XGB.TO iShares Core Canadian Government Bond Index ETF | 3.11% | 3.11% | 2.95% | 2.73% | 2.64% | 2.25% | 2.12% | 2.32% | 2.44% | 2.41% | 2.53% | 2.62% |
Frequently Asked Questions
XGB.TO and VCIT have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VCIT is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VCIT is cheaper with a 0.04% expense ratio, compared with 0.13% for XGB.TO.
XGB.TO is categorized as Canadian Government Bonds, while VCIT is Corporate Bonds. XGB.TO tracks Morningstar Can Core Bd GR CAD, while VCIT tracks Barclays U.S. 5-10 Year Corp Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.13% for XGB.TO and 0.04% for VCIT.
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