XLB.TO vs. XSE.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and XSE.TO (iShares Conservative Strategic Fixed Income 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 XSE.TO is a Intermediate Core Bond fund actively managed by iShares. XLB.TO is passively managed, while XSE.TO is actively managed. Over the past 10 years, XLB.TO returned 4.56%/yr vs 1.74%/yr for XSE.TO. A 0.71 correlation means they provide meaningful diversification when combined. XLB.TO charges 0.20%/yr vs 0.55%/yr for XSE.TO.
Performance
XLB.TO vs. XSE.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 higher than XSE.TO's 0.29% return. Over the past 10 years, XLB.TO has outperformed XSE.TO with an annualized return of 4.56%, while XSE.TO has yielded a comparatively lower 1.74% 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%
XSE.TO
- 1D
- -0.17%
- 1M
- 0.66%
- YTD
- 0.29%
- 6M
- -0.18%
- 1Y
- 2.32%
- 3Y*
- 3.60%
- 5Y*
- 0.25%
- 10Y*
- 1.74%
XLB.TO vs. XSE.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% |
XSE.TO iShares Conservative Strategic Fixed Income ETF | 0.29% | 3.06% | 2.99% | 6.75% | -11.99% | -2.79% | 7.95% | 8.26% | -0.52% | 4.13% |
Correlation
The correlation between XLB.TO and XSE.TO is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2015 | 0.71 |
The correlation between XLB.TO and XSE.TO has been stable across timeframes, ranging from 0.69 to 0.78 - a consistent structural relationship.
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Return for Risk
XLB.TO vs. XSE.TO — Risk / Return Rank
XLB.TO
XSE.TO
XLB.TO vs. XSE.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 Conservative Strategic Fixed Income ETF (XSE.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 | XSE.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.45 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.12 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.59 | 0.96 | -0.37 |
| Martin ratioReturn relative to average drawdown | 1.11 | 2.39 | -1.28 |
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 | XSE.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 0.70 | -0.34 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 0.05 | +0.32 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 0.20 | +0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.55 | 0.24 | +0.31 |
Drawdowns
XLB.TO vs. XSE.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -24.34%, which is greater than XSE.TO's maximum drawdown of -22.43%. Use the drawdown chart below to compare losses from any high point for XLB.TO and XSE.TO.
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Drawdown Indicators
| XLB.TO | XSE.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.34% | -22.43% | -1.91% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -2.62% | -2.23% |
Max Drawdown (3Y)Largest decline over 3 years | -9.74% | -4.73% | -5.01% |
Max Drawdown (5Y)Largest decline over 5 years | -24.34% | -15.86% | -8.48% |
Max Drawdown (10Y)Largest decline over 10 years | -24.34% | -22.43% | -1.91% |
Current DrawdownCurrent decline from peak | -2.17% | -2.99% | +0.82% |
Average DrawdownAverage peak-to-trough decline | -4.05% | -4.72% | +0.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.57% | 1.02% | +1.55% |
Volatility
XLB.TO vs. XSE.TO - Volatility Comparison
iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a higher volatility of 2.77% compared to iShares Conservative Strategic Fixed Income ETF (XSE.TO) at 1.34%. This indicates that XLB.TO's price experiences larger fluctuations and is considered to be riskier than XSE.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 | XSE.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.77% | 1.34% | +1.43% |
Volatility (6M)Calculated over the trailing 6-month period | 5.77% | 2.59% | +3.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.93% | 3.62% | +4.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.68% | 5.70% | +6.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.86% | 9.13% | +2.73% |
XLB.TO vs. XSE.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is lower than XSE.TO's 0.55% expense ratio.
Dividends
XLB.TO vs. XSE.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.01%, less than XSE.TO's 4.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XSE.TO iShares Conservative Strategic Fixed Income ETF | 4.34% | 4.24% | 3.66% | 3.36% | 2.67% | 2.63% | 2.62% | 2.82% | 2.89% | 3.62% | 3.95% | 1.39% |
Frequently Asked Questions
XLB.TO and XSE.TO have a correlation of 0.69, 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 0.55% for XSE.TO.
XLB.TO is categorized as Canadian Government Bonds, while XSE.TO is Intermediate Core Bond. Their fees differ too: 0.20% for XLB.TO and 0.55% for XSE.TO.
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