XRB.TO vs. XCS.TO

Last updated Jul 16, 2026

XRB.TO (iShares Canadian Real Return Bond Index ETF) and XCS.TO (iShares S&P/TSX SmallCap Index ETF) are both exchange-traded funds - XRB.TO is a Inflation-Protected Bonds fund tracking the FTSE Canada Real Return Bond Index, while XCS.TO is a Canada Equities fund tracking the Morningstar Canada Sml GR CAD. Both are passively managed. Over the past 10 years, XRB.TO returned 0.47%/yr vs 8.32%/yr for XCS.TO. At a correlation of -0.02, they often move in opposite directions. XRB.TO charges 0.39%/yr vs 0.60%/yr for XCS.TO.

Performance

XRB.TO vs. XCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares Canadian Real Return Bond Index ETF (XRB.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XRB.TO achieves a 3.73% return, which is significantly lower than XCS.TO's 17.01% return. Over the past 10 years, XRB.TO has underperformed XCS.TO with an annualized return of 0.47%, while XCS.TO has yielded a comparatively higher 8.32% annualized return.

XRB.TO

• 1D: 0.35%
• 1M: -0.13%
• 6M: 2.96%
• YTD: 3.73%
• 1Y: 6.37%
• 3Y*: 3.84%
• 5Y*: -1.45%
• 10Y*: 0.47%

XCS.TO

• 1D: -0.59%
• 1M: -3.05%
• 6M: 7.45%
• YTD: 17.01%
• 1Y: 39.27%
• 3Y*: 24.26%
• 5Y*: 11.38%
• 10Y*: 8.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XRB.TO vs. XCS.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XRB.TO iShares Canadian Real Return Bond Index ETF	3.73%	0.29%	4.98%	-2.00%	-14.91%	-1.18%	12.72%	6.14%	-0.99%	0.12%
XCS.TO iShares S&P/TSX SmallCap Index ETF	17.01%	37.65%	18.11%	4.17%	-8.97%	7.71%	13.37%	6.12%	-10.40%	2.51%

Correlation

The correlation between XRB.TO and XCS.TO is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.12
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since May 18, 2007	-0.02

The correlation between XRB.TO and XCS.TO shifts across timeframes, from -0.02 (all time) to 0.12 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

XRB.TO vs. XCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XRB.TO

XRB.TO Risk / Return Rank: 30
XRB.TO Sharpe Ratio Rank: 31
XRB.TO Sortino Ratio Rank: 29
XRB.TO Omega Ratio Rank: 29
XRB.TO Calmar Ratio Rank: 32
XRB.TO Martin Ratio Rank: 28

XCS.TO

XCS.TO Risk / Return Rank: 60
XCS.TO Sharpe Ratio Rank: 63
XCS.TO Sortino Ratio Rank: 52
XCS.TO Omega Ratio Rank: 61
XCS.TO Calmar Ratio Rank: 67
XCS.TO Martin Ratio Rank: 57

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XRB.TO vs. XCS.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 iShares S&P/TSX SmallCap Index ETF (XCS.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.

	XRB.TO	XCS.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.94	1.69	-0.75
Sortino ratio: Return per unit of downside risk	1.36	2.07	-0.71
Omega ratio: Gain probability vs. loss probability	1.17	1.30	-0.13
Calmar ratio: Return relative to maximum drawdown	1.36	2.71	-1.34
Martin ratio: Return relative to average drawdown	3.07	8.06	-4.99

XRB.TO vs. XCS.TO - Sharpe Ratio Comparison

The current XRB.TO Sharpe Ratio is 0.94, which is lower than the XCS.TO Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of XRB.TO and XCS.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XRB.TO vs. XCS.TO - Drawdown Comparison

The maximum XRB.TO drawdown since its inception was -26.41%, smaller than the maximum XCS.TO drawdown of -62.43%. Use the drawdown chart below to compare losses from any high point for XRB.TO and XCS.TO.

Drawdown Indicators

	XRB.TO	XCS.TO	Difference
Max Drawdown Largest peak-to-trough decline	-26.41%	-62.43%	+36.02%
Max Drawdown (1Y) Largest decline over 1 year	-4.69%	-14.58%	+9.89%
Max Drawdown (3Y) Largest decline over 3 years	-7.97%	-15.55%	+7.58%
Max Drawdown (5Y) Largest decline over 5 years	-26.41%	-35.08%	+8.67%
Max Drawdown (10Y) Largest decline over 10 years	-26.41%	-51.50%	+25.09%
Current Drawdown Current decline from peak	-11.20%	-6.51%	-4.69%
Average Drawdown Average peak-to-trough decline	-6.85%	-17.44%	+10.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.08%	4.89%	-2.81%

Volatility

XRB.TO vs. XCS.TO - Volatility Comparison

The current volatility for iShares Canadian Real Return Bond Index ETF (XRB.TO) is 1.61%, while iShares S&P/TSX SmallCap Index ETF (XCS.TO) has a volatility of 4.63%. This indicates that XRB.TO experiences smaller price fluctuations and is considered to be less risky than XCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XRB.TO	XCS.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	4.63%	-3.02%
Volatility (6M) Calculated over the trailing 6-month period	4.83%	18.26%	-13.43%
Volatility (1Y) Calculated over the trailing 1-year period	6.86%	23.41%	-16.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.05%	21.82%	-9.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.39%	24.34%	-12.95%

XRB.TO vs. XCS.TO - Expense Ratio Comparison

XRB.TO has a 0.39% expense ratio, which is lower than XCS.TO's 0.60% expense ratio.

Dividends

XRB.TO vs. XCS.TO - Dividend Comparison

XRB.TO's dividend yield for the trailing twelve months is around 2.39%, more than XCS.TO's 1.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XCS.TO iShares S&P/TSX SmallCap Index ETF	1.30%	1.41%	1.73%	2.59%	2.05%	1.69%	1.98%	2.51%	2.07%	2.05%	1.60%	2.64%
XRB.TO iShares Canadian Real Return Bond Index ETF	2.39%	2.50%	2.43%	2.48%	1.94%	1.33%	1.49%	1.91%	1.98%	1.92%	1.80%	1.83%

Frequently Asked Questions

Can I hold both XRB.TO and XCS.TO in my portfolio?

XRB.TO and XCS.TO have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XRB.TO or XCS.TO?

On fees, XRB.TO is cheaper at 0.39% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XRB.TO or XCS.TO?

XRB.TO is cheaper with a 0.39% expense ratio, compared with 0.60% for XCS.TO.

What is the main difference between XRB.TO and XCS.TO?

XRB.TO is categorized as Inflation-Protected Bonds, while XCS.TO is Canada Equities. XRB.TO tracks FTSE Canada Real Return Bond Index, while XCS.TO tracks Morningstar Canada Sml GR CAD. Their fees differ too: 0.39% for XRB.TO and 0.60% for XCS.TO.