XHY.TO vs. XBB.TO
XHY.TO (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) and XBB.TO (iShares Core Canadian Universe Bond Index ETF) are both exchange-traded funds - XHY.TO is a High Yield Bonds fund tracking the Morningstar Gbl HY Bd GR CAD, while XBB.TO is a Intermediate Core Bond fund tracking the FTSE Canada Universe Bond Index. Both are passively managed. Over the past 10 years, XHY.TO returned 3.94%/yr vs 1.55%/yr for XBB.TO. At a 0.01 correlation, their price movements are largely independent. XHY.TO charges 0.56%/yr vs 0.10%/yr for XBB.TO.
Performance
XHY.TO vs. XBB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XHY.TO achieves a 0.58% return, which is significantly lower than XBB.TO's 0.89% return. Over the past 10 years, XHY.TO has outperformed XBB.TO with an annualized return of 3.94%, while XBB.TO has yielded a comparatively lower 1.55% annualized return.
XHY.TO
- 1D
- 0.12%
- 1M
- -0.34%
- YTD
- 0.58%
- 6M
- 0.90%
- 1Y
- 4.28%
- 3Y*
- 7.19%
- 5Y*
- 2.71%
- 10Y*
- 3.94%
XBB.TO
- 1D
- -0.39%
- 1M
- 0.01%
- YTD
- 0.89%
- 6M
- 1.29%
- 1Y
- 2.87%
- 3Y*
- 4.23%
- 5Y*
- 0.54%
- 10Y*
- 1.55%
XHY.TO vs. XBB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged) | 0.58% | 6.33% | 7.05% | 11.06% | -11.10% | 3.51% | 2.65% | 13.83% | -3.89% | 5.35% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 0.89% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
Correlation
The correlation between XHY.TO and XBB.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 | 0.38 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.34 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2010 | 0.01 |
Over the past year, XHY.TO and XBB.TO have become more correlated (0.42) than their long-term average of 0.01, meaning their price movements have been converging.
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Return for Risk
XHY.TO vs. XBB.TO — Risk / Return Rank
XHY.TO
XBB.TO
XHY.TO vs. XBB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) and iShares Core Canadian Universe Bond Index ETF (XBB.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.
| XHY.TO | XBB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.26 | ||
| Sortino ratioReturn per unit of downside risk | +0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.11 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.50 | 1.06 | +0.44 |
| Martin ratioReturn relative to average drawdown | 6.42 | 2.47 | +3.95 |
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
| XHY.TO | XBB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.92 | 0.66 | +0.26 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.31 | 0.08 | +0.23 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.37 | 0.23 | +0.14 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.60 | -0.12 |
Drawdowns
XHY.TO vs. XBB.TO - Drawdown Comparison
The maximum XHY.TO drawdown since its inception was -28.48%, which is greater than XBB.TO's maximum drawdown of -18.16%. Use the drawdown chart below to compare losses from any high point for XHY.TO and XBB.TO.
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Drawdown Indicators
| XHY.TO | XBB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.48% | -18.16% | -10.32% |
Max Drawdown (1Y)Largest decline over 1 year | -2.87% | -2.73% | -0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -4.94% | -5.42% | +0.48% |
Max Drawdown (5Y)Largest decline over 5 years | -16.67% | -15.90% | -0.77% |
Max Drawdown (10Y)Largest decline over 10 years | -28.48% | -18.16% | -10.32% |
Current DrawdownCurrent decline from peak | -0.80% | -1.98% | +1.18% |
Average DrawdownAverage peak-to-trough decline | -2.55% | -3.07% | +0.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.67% | 1.16% | -0.49% |
Volatility
XHY.TO vs. XBB.TO - Volatility Comparison
The current volatility for iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) is 1.33%, while iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a volatility of 1.54%. This indicates that XHY.TO experiences smaller price fluctuations and is considered to be less risky than XBB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XHY.TO | XBB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.33% | 1.54% | -0.21% |
Volatility (6M)Calculated over the trailing 6-month period | 3.58% | 3.42% | +0.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.70% | 4.37% | +0.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 6.63% | +2.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.63% | 6.70% | +3.93% |
XHY.TO vs. XBB.TO - Expense Ratio Comparison
XHY.TO has a 0.56% expense ratio, which is higher than XBB.TO's 0.10% expense ratio.
Dividends
XHY.TO vs. XBB.TO - Dividend Comparison
XHY.TO's dividend yield for the trailing twelve months is around 6.14%, more than XBB.TO's 3.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.43% | 3.39% | 3.25% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% |
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged) | 6.14% | 6.04% | 5.87% | 5.56% | 5.70% | 4.72% | 5.18% | 5.38% | 5.87% | 5.46% | 5.64% | 6.83% |
Frequently Asked Questions
XHY.TO and XBB.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, XBB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XBB.TO is cheaper with a 0.10% expense ratio, compared with 0.56% for XHY.TO.
XHY.TO is categorized as High Yield Bonds, while XBB.TO is Intermediate Core Bond. XHY.TO tracks Morningstar Gbl HY Bd GR CAD, while XBB.TO tracks FTSE Canada Universe Bond Index. Their fees differ too: 0.56% for XHY.TO and 0.10% for XBB.TO.
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