XLB.TO vs. IEFA

Last updated Jun 13, 2026

XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - XLB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 10+Y Core Bd GR CAD, while IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, XLB.TO returned 0.73%/yr vs 10.86%/yr for IEFA. At a correlation of -0.02, they often move in opposite directions. XLB.TO charges 0.20%/yr vs 0.07%/yr for IEFA.

Performance

XLB.TO vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares Core Canadian Long Term Bond Index ETF (XLB.TO) and iShares Core MSCI EAFE ETF (IEFA). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XLB.TO is traded in CAD, while IEFA is traded in USD. To make them comparable, the IEFA values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XLB.TO achieves a 2.39% return, which is significantly lower than IEFA's 11.85% return. Over the past 10 years, XLB.TO has underperformed IEFA with an annualized return of 0.73%, while IEFA has yielded a comparatively higher 10.86% annualized return.

XLB.TO

• 1D: -0.11%
• 1M: 1.92%
• YTD: 2.39%
• 6M: 2.94%
• 1Y: 3.38%
• 3Y*: 3.43%
• 5Y*: -1.77%
• 10Y*: 0.73%

IEFA

• 1D: 0.47%
• 1M: 2.99%
• YTD: 11.85%
• 6M: 12.78%
• 1Y: 23.73%
• 3Y*: 18.09%
• 5Y*: 11.29%
• 10Y*: 10.86%

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

XLB.TO vs. IEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLB.TO iShares Core Canadian Long Term Bond Index ETF	2.39%	-0.76%	0.71%	9.15%	-21.64%	-4.59%	11.18%	12.85%	-0.25%	7.11%
IEFA iShares Core MSCI EAFE ETF	11.85%	26.05%	12.01%	15.15%	-9.87%	11.58%	5.61%	17.59%	-6.93%	18.00%

Correlation

The correlation between XLB.TO and IEFA is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (10Y) Calculated over the trailing 10-year period	0.04
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012	-0.02

The correlation between XLB.TO and IEFA shifts across timeframes, from -0.02 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

XLB.TO vs. IEFA — Risk / Return Rank

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

XLB.TO

XLB.TO Risk / Return Rank: 16
XLB.TO Sharpe Ratio Rank: 17
XLB.TO Sortino Ratio Rank: 15
XLB.TO Omega Ratio Rank: 15
XLB.TO Calmar Ratio Rank: 19
XLB.TO Martin Ratio Rank: 16

IEFA

IEFA Risk / Return Rank: 44
IEFA Sharpe Ratio Rank: 44
IEFA Sortino Ratio Rank: 44
IEFA Omega Ratio Rank: 43
IEFA Calmar Ratio Rank: 42
IEFA Martin Ratio Rank: 48

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.

XLB.TO vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Long Term Bond Index ETF (XLB.TO) and iShares Core MSCI EAFE ETF (IEFA). 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.

	XLB.TO	IEFA	Difference
Sharpe ratio: Return per unit of total volatility	0.42	1.49	-1.07
Sortino ratio: Return per unit of downside risk	0.63	2.15	-1.52
Omega ratio: Gain probability vs. loss probability	1.08	1.27	-0.19
Calmar ratio: Return relative to maximum drawdown	0.70	2.12	-1.42
Martin ratio: Return relative to average drawdown	1.34	8.13	-6.79

XLB.TO vs. IEFA - Sharpe Ratio Comparison

The current XLB.TO Sharpe Ratio is 0.42, which is lower than the IEFA Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of XLB.TO and IEFA, 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

XLB.TO vs. IEFA - Drawdown Comparison

The maximum XLB.TO drawdown since its inception was -32.97%, which is greater than IEFA's maximum drawdown of -29.92%. Use the drawdown chart below to compare losses from any high point for XLB.TO and IEFA.

Drawdown Indicators

	XLB.TO	IEFA	Difference
Max Drawdown Largest peak-to-trough decline	-32.97%	-29.92%	-3.05%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-11.27%	+6.42%
Max Drawdown (3Y) Largest decline over 3 years	-11.66%	-14.32%	+2.66%
Max Drawdown (5Y) Largest decline over 5 years	-27.81%	-24.68%	-3.13%
Max Drawdown (10Y) Largest decline over 10 years	-32.97%	-29.92%	-3.05%
Current Drawdown Current decline from peak	-18.72%	0.00%	-18.72%
Average Drawdown Average peak-to-trough decline	-7.72%	-4.52%	-3.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.94%	-0.41%

Volatility

XLB.TO vs. IEFA - Volatility Comparison

The current volatility for iShares Core Canadian Long Term Bond Index ETF (XLB.TO) is 2.89%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.66%. This indicates that XLB.TO experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB.TO	IEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.89%	5.66%	-2.77%
Volatility (6M) Calculated over the trailing 6-month period	5.76%	13.45%	-7.69%
Volatility (1Y) Calculated over the trailing 1-year period	8.00%	15.97%	-7.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.36%	17.64%	-5.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.67%	18.40%	-6.73%

XLB.TO vs. IEFA - Expense Ratio Comparison

XLB.TO has a 0.20% expense ratio, which is higher than IEFA's 0.07% 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

XLB.TO vs. IEFA - Dividend Comparison

XLB.TO's dividend yield for the trailing twelve months is around 4.02%, more than IEFA's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEFA iShares Core MSCI EAFE ETF	3.24%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%
XLB.TO iShares Core Canadian Long Term Bond Index ETF	4.02%	4.05%	3.82%	3.73%	3.97%	3.03%	2.90%	3.18%	3.56%	3.45%	3.62%	3.64%

Frequently Asked Questions

Can I hold both XLB.TO and IEFA in my portfolio?

XLB.TO and IEFA have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLB.TO or IEFA?

On fees, IEFA is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XLB.TO or IEFA?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.20% for XLB.TO.

What is the main difference between XLB.TO and IEFA?

XLB.TO is categorized as Canadian Government Bonds, while IEFA is Foreign Large Cap Equities. XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.20% for XLB.TO and 0.07% for IEFA.