XLB.TO vs. XAW.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and XAW.TO (iShares Core MSCI All Country World ex Canada 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 XAW.TO is a Global Equities fund tracking the Morningstar Gbl GR CAD. Both are passively managed. Over the past 10 years, XLB.TO returned 4.56%/yr vs 13.22%/yr for XAW.TO. At a 0.01 correlation, their price movements are largely independent. XLB.TO charges 0.20%/yr vs 0.22%/yr for XAW.TO.
Performance
XLB.TO vs. XAW.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 XAW.TO's 13.70% return. Over the past 10 years, XLB.TO has underperformed XAW.TO with an annualized return of 4.56%, while XAW.TO has yielded a comparatively higher 13.22% 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%
XAW.TO
- 1D
- -0.37%
- 1M
- 7.13%
- YTD
- 13.70%
- 6M
- 12.70%
- 1Y
- 30.51%
- 3Y*
- 21.73%
- 5Y*
- 13.96%
- 10Y*
- 13.22%
XLB.TO vs. XAW.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% |
XAW.TO iShares Core MSCI All Country World ex Canada Index ETF | 13.70% | 15.87% | 26.31% | 18.45% | -11.84% | 18.38% | 12.37% | 19.82% | -2.28% | 16.10% |
Correlation
The correlation between XLB.TO and XAW.TO is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Feb 18, 2015 | 0.01 |
Over the past year, XLB.TO and XAW.TO have become more correlated (0.35) than their long-term average of 0.01, meaning their price movements have been converging.
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Return for Risk
XLB.TO vs. XAW.TO — Risk / Return Rank
XLB.TO
XAW.TO
XLB.TO vs. XAW.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 iShares Core MSCI All Country World ex Canada Index ETF (XAW.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 | XAW.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.14 | ||
| Sortino ratioReturn per unit of downside risk | -2.95 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.48 | -0.41 |
| Calmar ratioReturn relative to maximum drawdown | 0.59 | 3.76 | -3.17 |
| Martin ratioReturn relative to average drawdown | 1.11 | 15.15 | -14.05 |
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 | XAW.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 2.50 | -2.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 1.04 | -0.67 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 0.88 | -0.49 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.55 | 0.78 | -0.23 |
Drawdowns
XLB.TO vs. XAW.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -24.34%, smaller than the maximum XAW.TO drawdown of -27.32%. Use the drawdown chart below to compare losses from any high point for XLB.TO and XAW.TO.
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Drawdown Indicators
| XLB.TO | XAW.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.34% | -27.32% | +2.98% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -8.16% | +3.31% |
Max Drawdown (3Y)Largest decline over 3 years | -9.74% | -16.66% | +6.92% |
Max Drawdown (5Y)Largest decline over 5 years | -24.34% | -21.02% | -3.32% |
Max Drawdown (10Y)Largest decline over 10 years | -24.34% | -27.32% | +2.98% |
Current DrawdownCurrent decline from peak | -2.17% | -0.37% | -1.80% |
Average DrawdownAverage peak-to-trough decline | -4.05% | -3.91% | -0.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.57% | 2.02% | +0.55% |
Volatility
XLB.TO vs. XAW.TO - Volatility Comparison
The current volatility for iShares Core Canadian Long Term Bond Index ETF (XLB.TO) is 2.77%, while iShares Core MSCI All Country World ex Canada Index ETF (XAW.TO) has a volatility of 4.21%. This indicates that XLB.TO experiences smaller price fluctuations and is considered to be less risky than XAW.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 | XAW.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.77% | 4.21% | -1.44% |
Volatility (6M)Calculated over the trailing 6-month period | 5.77% | 9.85% | -4.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.93% | 12.25% | -4.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.68% | 13.56% | -0.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.86% | 15.12% | -3.26% |
XLB.TO vs. XAW.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is lower than XAW.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. XAW.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.01%, more than XAW.TO's 1.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XAW.TO iShares Core MSCI All Country World ex Canada Index ETF | 1.17% | 1.33% | 1.61% | 1.71% | 1.79% | 1.77% | 1.49% | 2.02% | 2.29% | 1.92% | 1.80% | 1.83% |
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 XAW.TO have a correlation of 0.35, 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 XAW.TO.
XLB.TO is categorized as Canadian Government Bonds, while XAW.TO is Global Equities. XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while XAW.TO tracks Morningstar Gbl GR CAD. Their fees differ too: 0.20% for XLB.TO and 0.22% for XAW.TO.
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