XRB.TO vs. VAB.TO
XRB.TO (iShares Canadian Real Return Bond Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - XRB.TO is a Inflation-Protected Bonds fund tracking the FTSE Canada Real Return Bond Index, while VAB.TO is a Canadian Government Bonds fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, XRB.TO returned 0.06%/yr vs 1.51%/yr for VAB.TO. A 0.68 correlation means they provide meaningful diversification when combined. XRB.TO charges 0.39%/yr vs 0.09%/yr for VAB.TO.
Performance
XRB.TO vs. VAB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XRB.TO achieves a 2.56% return, which is significantly higher than VAB.TO's 1.62% return. Over the past 10 years, XRB.TO has underperformed VAB.TO with an annualized return of 0.06%, while VAB.TO has yielded a comparatively higher 1.51% annualized return.
XRB.TO
- 1D
- -0.13%
- 1M
- 1.21%
- YTD
- 2.56%
- 6M
- 0.86%
- 1Y
- 3.06%
- 3Y*
- 1.50%
- 5Y*
- -1.66%
- 10Y*
- 0.06%
VAB.TO
- 1D
- -0.07%
- 1M
- 1.70%
- YTD
- 1.62%
- 6M
- 0.78%
- 1Y
- 3.12%
- 3Y*
- 4.12%
- 5Y*
- 0.66%
- 10Y*
- 1.51%
XRB.TO vs. VAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XRB.TO iShares Canadian Real Return Bond Index ETF | 2.56% | 0.05% | 3.95% | -2.15% | -15.01% | -1.30% | 12.11% | 5.93% | -1.23% | -0.11% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.62% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.26% | 6.77% | 1.13% | 2.30% |
Correlation
The correlation between XRB.TO and VAB.TO is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.68 |
The correlation between XRB.TO and VAB.TO shifts across timeframes, from 0.68 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XRB.TO vs. VAB.TO — Risk / Return Rank
XRB.TO
VAB.TO
XRB.TO vs. VAB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Canadian Real Return Bond Index ETF (XRB.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.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.
| XRB.TO | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.12 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.87 | 1.10 | -0.24 |
| Martin ratioReturn relative to average drawdown | 1.73 | 2.61 | -0.89 |
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
| XRB.TO | VAB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.45 | 0.72 | -0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.14 | 0.10 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.01 | 0.23 | -0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.27 | 0.39 | -0.12 |
Drawdowns
XRB.TO vs. VAB.TO - Drawdown Comparison
The maximum XRB.TO drawdown since its inception was -26.58%, which is greater than VAB.TO's maximum drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for XRB.TO and VAB.TO.
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Drawdown Indicators
| XRB.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.58% | -18.39% | -8.19% |
Max Drawdown (1Y)Largest decline over 1 year | -3.55% | -2.83% | -0.72% |
Max Drawdown (3Y)Largest decline over 3 years | -10.65% | -5.31% | -5.34% |
Max Drawdown (5Y)Largest decline over 5 years | -26.58% | -15.82% | -10.76% |
Max Drawdown (10Y)Largest decline over 10 years | -26.58% | -18.39% | -8.19% |
Current DrawdownCurrent decline from peak | -13.56% | -1.92% | -11.64% |
Average DrawdownAverage peak-to-trough decline | -7.09% | -4.11% | -2.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.78% | 1.20% | +0.58% |
Volatility
XRB.TO vs. VAB.TO - Volatility Comparison
iShares Canadian Real Return Bond Index ETF (XRB.TO) has a higher volatility of 2.72% compared to Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) at 1.59%. This indicates that XRB.TO's price experiences larger fluctuations and is considered to be riskier than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XRB.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.72% | 1.59% | +1.13% |
Volatility (6M)Calculated over the trailing 6-month period | 5.11% | 3.45% | +1.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.85% | 4.38% | +2.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.91% | 6.58% | +5.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.35% | 6.48% | +4.87% |
XRB.TO vs. VAB.TO - Expense Ratio Comparison
XRB.TO has a 0.39% expense ratio, which is higher than VAB.TO's 0.09% expense ratio.
Dividends
XRB.TO vs. VAB.TO - Dividend Comparison
XRB.TO's dividend yield for the trailing twelve months is around 3.63%, more than VAB.TO's 3.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.32% | 3.33% | 3.19% | 2.95% | 2.87% | 2.48% | 2.50% | 2.65% | 2.79% | 2.77% | 2.75% | 2.78% |
XRB.TO iShares Canadian Real Return Bond Index ETF | 3.63% | 3.73% | 2.36% | 2.36% | 1.83% | 1.23% | 1.36% | 1.72% | 1.74% | 1.69% | 1.58% | 1.61% |
Frequently Asked Questions
XRB.TO and VAB.TO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VAB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.39% for XRB.TO.
XRB.TO is categorized as Inflation-Protected Bonds, while VAB.TO is Canadian Government Bonds. XRB.TO tracks FTSE Canada Real Return Bond Index, while VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.39% for XRB.TO and 0.09% for VAB.TO.
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