XLB.TO vs. XSH.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) are both Canadian Government Bonds funds from iShares - XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD while XSH.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, XLB.TO returned 0.35%/yr vs 2.81%/yr for XSH.TO. A 0.53 correlation means they provide meaningful diversification when combined. XLB.TO charges 0.20%/yr vs 0.10%/yr for XSH.TO.
Performance
XLB.TO vs. XSH.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XLB.TO achieves a 0.64% return, which is significantly lower than XSH.TO's 1.40% return. Over the past 10 years, XLB.TO has underperformed XSH.TO with an annualized return of 0.35%, while XSH.TO has yielded a comparatively higher 2.81% annualized return.
XLB.TO
- 1D
- -0.33%
- 1M
- -1.71%
- 6M
- -0.43%
- YTD
- 0.64%
- 1Y
- 4.44%
- 3Y*
- 2.26%
- 5Y*
- -2.60%
- 10Y*
- 0.35%
XSH.TO
- 1D
- -0.10%
- 1M
- 0.07%
- 6M
- 1.08%
- YTD
- 1.40%
- 1Y
- 3.91%
- 3Y*
- 6.06%
- 5Y*
- 2.89%
- 10Y*
- 2.81%
XLB.TO vs. XSH.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 | 0.64% | -0.76% | 0.71% | 9.15% | -21.64% | -4.59% | 11.18% | 12.85% | -0.25% | 7.11% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.40% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.28% | 0.78% |
Correlation
The correlation between XLB.TO and XSH.TO is 0.71, 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 | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Sep 21, 2011 | 0.53 |
The correlation between XLB.TO and XSH.TO shifts across timeframes, from 0.53 (all time) to 0.74 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLB.TO vs. XSH.TO — Risk / Return Rank
XLB.TO
XSH.TO
XLB.TO vs. XSH.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 Canadian Short Term Corporate Bond Index ETF (XSH.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.
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 | XSH.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.22 | ||
| Sortino ratioReturn per unit of downside risk | -1.69 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.36 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | 0.92 | 2.61 | -1.69 |
| Martin ratioReturn relative to average drawdown | 1.91 | 10.31 | -8.40 |
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Drawdowns
XLB.TO vs. XSH.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -32.97%, which is greater than XSH.TO's maximum drawdown of -14.24%. Use the drawdown chart below to compare losses from any high point for XLB.TO and XSH.TO.
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Drawdown Indicators
| XLB.TO | XSH.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.97% | -14.24% | -18.73% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -1.51% | -3.34% |
Max Drawdown (3Y)Largest decline over 3 years | -10.53% | -1.51% | -9.02% |
Max Drawdown (5Y)Largest decline over 5 years | -27.81% | -7.80% | -20.01% |
Max Drawdown (10Y)Largest decline over 10 years | -32.97% | -14.24% | -18.73% |
Current DrawdownCurrent decline from peak | -20.11% | -0.31% | -19.80% |
Average DrawdownAverage peak-to-trough decline | -7.77% | -0.92% | -6.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.33% | 0.38% | +1.95% |
Volatility
XLB.TO vs. XSH.TO - Volatility Comparison
iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a higher volatility of 2.21% compared to iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) at 0.57%. This indicates that XLB.TO's price experiences larger fluctuations and is considered to be riskier than XSH.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 | XSH.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.21% | 0.57% | +1.64% |
Volatility (6M)Calculated over the trailing 6-month period | 5.88% | 1.83% | +4.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.82% | 2.19% | +5.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 2.84% | +9.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.65% | 4.42% | +7.23% |
XLB.TO vs. XSH.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is higher than XSH.TO's 0.10% 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. XSH.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.10%, more than XSH.TO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.10% | 4.05% | 3.82% | 3.73% | 3.97% | 3.03% | 2.90% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.91% | 3.82% | 3.64% | 3.24% | 2.97% | 2.65% | 2.61% | 2.80% | 2.86% | 2.93% | 3.08% | 3.18% |
Frequently Asked Questions
XLB.TO and XSH.TO have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSH.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSH.TO is cheaper with a 0.10% expense ratio, compared with 0.20% for XLB.TO.
XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. Their fees differ too: 0.20% for XLB.TO and 0.10% for XSH.TO.
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