XRB.TO vs. VSB.TO
XRB.TO (iShares Canadian Real Return Bond Index ETF) and VSB.TO (Vanguard Canadian Short Term Bond) are both exchange-traded funds - XRB.TO is a Inflation-Protected Bonds fund tracking the FTSE Canada Real Return Bond Index, while VSB.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Government Bond Index. Both are passively managed. Over the past 10 years, XRB.TO returned 0.06%/yr vs 1.94%/yr for VSB.TO. At a 0.49 correlation, their price movements are largely independent. XRB.TO charges 0.39%/yr vs 0.15%/yr for VSB.TO.
Performance
XRB.TO vs. VSB.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 VSB.TO's 0.97% return. Over the past 10 years, XRB.TO has underperformed VSB.TO with an annualized return of 0.06%, while VSB.TO has yielded a comparatively higher 1.94% 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%
VSB.TO
- 1D
- -0.04%
- 1M
- 0.92%
- YTD
- 0.97%
- 6M
- 0.78%
- 1Y
- 2.90%
- 3Y*
- 4.65%
- 5Y*
- 2.02%
- 10Y*
- 1.94%
XRB.TO vs. VSB.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% |
VSB.TO Vanguard Canadian Short Term Bond | 0.97% | 3.66% | 5.54% | 4.92% | -3.93% | -1.15% | 5.29% | 3.06% | 1.67% | -0.36% |
Correlation
The correlation between XRB.TO and VSB.TO is 0.73, 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 | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.49 |
Over the past year, XRB.TO and VSB.TO have become more correlated (0.73) than their long-term average of 0.49, meaning their price movements have been converging.
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Return for Risk
XRB.TO vs. VSB.TO — Risk / Return Rank
XRB.TO
VSB.TO
XRB.TO vs. VSB.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 Short Term Bond (VSB.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 | VSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.08 | ||
| Sortino ratioReturn per unit of downside risk | -1.44 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.30 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 0.87 | 2.04 | -1.18 |
| Martin ratioReturn relative to average drawdown | 1.73 | 6.78 | -5.05 |
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
| XRB.TO | VSB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.45 | 1.53 | -1.08 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.14 | 0.79 | -0.93 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.01 | 0.56 | -0.55 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.27 | 0.64 | -0.37 |
Drawdowns
XRB.TO vs. VSB.TO - Drawdown Comparison
The maximum XRB.TO drawdown since its inception was -26.58%, which is greater than VSB.TO's maximum drawdown of -8.38%. Use the drawdown chart below to compare losses from any high point for XRB.TO and VSB.TO.
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Drawdown Indicators
| XRB.TO | VSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.58% | -8.38% | -18.20% |
Max Drawdown (1Y)Largest decline over 1 year | -3.55% | -1.43% | -2.12% |
Max Drawdown (3Y)Largest decline over 3 years | -10.65% | -1.43% | -9.22% |
Max Drawdown (5Y)Largest decline over 5 years | -26.58% | -6.88% | -19.70% |
Max Drawdown (10Y)Largest decline over 10 years | -26.58% | -8.38% | -18.20% |
Current DrawdownCurrent decline from peak | -13.56% | -0.13% | -13.43% |
Average DrawdownAverage peak-to-trough decline | -7.09% | -0.95% | -6.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.78% | 0.43% | +1.35% |
Volatility
XRB.TO vs. VSB.TO - Volatility Comparison
iShares Canadian Real Return Bond Index ETF (XRB.TO) has a higher volatility of 2.72% compared to Vanguard Canadian Short Term Bond (VSB.TO) at 0.71%. This indicates that XRB.TO's price experiences larger fluctuations and is considered to be riskier than VSB.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 | VSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.72% | 0.71% | +2.01% |
Volatility (6M)Calculated over the trailing 6-month period | 5.11% | 1.57% | +3.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.85% | 1.90% | +4.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.91% | 2.57% | +9.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.35% | 3.48% | +7.87% |
XRB.TO vs. VSB.TO - Expense Ratio Comparison
XRB.TO has a 0.39% expense ratio, which is higher than VSB.TO's 0.15% expense ratio.
Dividends
XRB.TO vs. VSB.TO - Dividend Comparison
XRB.TO's dividend yield for the trailing twelve months is around 3.63%, more than VSB.TO's 3.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSB.TO Vanguard Canadian Short Term Bond | 3.00% | 3.04% | 3.04% | 2.66% | 2.24% | 2.02% | 2.24% | 2.31% | 2.29% | 2.34% | 2.45% | 2.38% |
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 VSB.TO have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VSB.TO is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VSB.TO is cheaper with a 0.15% expense ratio, compared with 0.39% for XRB.TO.
XRB.TO is categorized as Inflation-Protected Bonds, while VSB.TO is Canadian Government Bonds. XRB.TO tracks FTSE Canada Real Return Bond Index, while VSB.TO tracks FTSE Canada Short Term Government Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.39% for XRB.TO and 0.15% for VSB.TO.
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