XLB.TO vs. VDY.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index 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 VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, XLB.TO returned 4.56%/yr vs 14.02%/yr for VDY.TO. At a correlation of -0.10, they often move in opposite directions. XLB.TO charges 0.20%/yr vs 0.22%/yr for VDY.TO.
Performance
XLB.TO vs. VDY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XLB.TO achieves a 2.77% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, XLB.TO has underperformed VDY.TO with an annualized return of 4.56%, while VDY.TO has yielded a comparatively higher 14.02% annualized return.
XLB.TO
- 1D
- -0.11%
- 1M
- 3.02%
- YTD
- 2.77%
- 6M
- 0.93%
- 1Y
- 2.84%
- 3Y*
- 8.16%
- 5Y*
- 4.63%
- 10Y*
- 4.56%
VDY.TO
- 1D
- -0.07%
- 1M
- 4.52%
- YTD
- 20.59%
- 6M
- 22.32%
- 1Y
- 46.18%
- 3Y*
- 26.00%
- 5Y*
- 17.21%
- 10Y*
- 14.02%
XLB.TO vs. VDY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.77% | -0.76% | 9.49% | 19.21% | -14.38% | 1.26% | 16.52% | 12.85% | -0.25% | 7.11% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 20.59% | 29.20% | 20.71% | 8.40% | -0.23% | 36.78% | -1.37% | 21.43% | -10.09% | 8.75% |
Correlation
The correlation between XLB.TO and VDY.TO is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.06 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012 | -0.10 |
The correlation between XLB.TO and VDY.TO shifts across timeframes, from -0.10 (all time) to 0.18 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLB.TO vs. VDY.TO — Risk / Return Rank
XLB.TO
VDY.TO
XLB.TO vs. VDY.TO - 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 Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.
| XLB.TO | VDY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -5.29 | ||
| Sortino ratioReturn per unit of downside risk | -7.60 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 2.14 | -1.08 |
| Calmar ratioReturn relative to maximum drawdown | 0.59 | 14.88 | -14.29 |
| Martin ratioReturn relative to average drawdown | 1.11 | 60.75 | -59.64 |
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
| XLB.TO | VDY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 5.65 | -5.29 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 1.50 | -1.13 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 0.88 | -0.50 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.55 | 0.84 | -0.29 |
Drawdowns
XLB.TO vs. VDY.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -24.34%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for XLB.TO and VDY.TO.
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Drawdown Indicators
| XLB.TO | VDY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.34% | -39.21% | +14.87% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -3.12% | -1.73% |
Max Drawdown (3Y)Largest decline over 3 years | -9.74% | -10.87% | +1.13% |
Max Drawdown (5Y)Largest decline over 5 years | -24.34% | -16.18% | -8.16% |
Max Drawdown (10Y)Largest decline over 10 years | -24.34% | -39.21% | +14.87% |
Current DrawdownCurrent decline from peak | -2.17% | -0.77% | -1.40% |
Average DrawdownAverage peak-to-trough decline | -4.05% | -4.61% | +0.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.57% | 0.76% | +1.81% |
Volatility
XLB.TO vs. VDY.TO - Volatility Comparison
The current volatility for iShares Core Canadian Long Term Bond Index ETF (XLB.TO) is 2.77%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.31%. This indicates that XLB.TO experiences smaller price fluctuations and is considered to be less risky than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB.TO | VDY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.77% | 3.31% | -0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 5.77% | 6.87% | -1.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.93% | 8.21% | -0.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.68% | 11.56% | +1.12% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.86% | 15.96% | -4.10% |
XLB.TO vs. VDY.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is lower than VDY.TO's 0.22% expense ratio. Despite the difference, 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. VDY.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.01%, more than VDY.TO's 2.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.90% | 3.59% | 4.40% | 4.64% | 4.42% | 3.58% | 4.59% | 4.25% | 4.43% | 3.82% | 3.25% | 4.11% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 12.10% | 12.22% | 13.13% | 8.82% | 7.43% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
Frequently Asked Questions
XLB.TO and VDY.TO have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XLB.TO is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XLB.TO is cheaper with a 0.20% expense ratio, compared with 0.22% for VDY.TO.
XLB.TO is categorized as Canadian Government Bonds, while VDY.TO is Dividend. XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.20% for XLB.TO and 0.22% for VDY.TO.
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