XRE.TO vs. XLB.TO
XRE.TO (iShares S&P/TSX Capped REIT Index ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both exchange-traded funds - XRE.TO is a REIT fund tracking the Morningstar DM REIT NR CAD, while XLB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 10+Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, XRE.TO returned 5.10%/yr vs 0.73%/yr for XLB.TO. At a 0.06 correlation, their price movements are largely independent. XRE.TO charges 0.61%/yr vs 0.20%/yr for XLB.TO.
Performance
XRE.TO vs. XLB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XRE.TO achieves a 13.45% return, which is significantly higher than XLB.TO's 2.39% return. Over the past 10 years, XRE.TO has outperformed XLB.TO with an annualized return of 5.10%, while XLB.TO has yielded a comparatively lower 0.73% annualized return.
XRE.TO
- 1D
- 1.00%
- 1M
- 5.82%
- YTD
- 13.45%
- 6M
- 16.21%
- 1Y
- 14.73%
- 3Y*
- 6.64%
- 5Y*
- 2.18%
- 10Y*
- 5.10%
XLB.TO
- 1D
- -0.11%
- 1M
- 3.04%
- YTD
- 2.39%
- 6M
- 2.94%
- 1Y
- 3.93%
- 3Y*
- 3.43%
- 5Y*
- -1.77%
- 10Y*
- 0.73%
XRE.TO vs. XLB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XRE.TO iShares S&P/TSX Capped REIT Index ETF | 13.45% | 8.89% | -2.52% | 1.88% | -17.34% | 32.54% | -13.58% | 21.98% | 5.72% | 9.33% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.39% | -0.76% | 0.71% | 9.15% | -21.64% | -4.59% | 11.18% | 12.85% | -0.25% | 7.11% |
Correlation
The correlation between XRE.TO and XLB.TO is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.35 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Nov 10, 2006 | 0.06 |
Over the past year, XRE.TO and XLB.TO have become more correlated (0.35) than their long-term average of 0.06, meaning their price movements have been converging.
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Return for Risk
XRE.TO vs. XLB.TO — Risk / Return Rank
XRE.TO
XLB.TO
XRE.TO vs. XLB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX Capped REIT Index ETF (XRE.TO) and iShares Core Canadian Long Term Bond Index ETF (XLB.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.
| XRE.TO | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.74 | ||
| Sortino ratioReturn per unit of downside risk | +1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.08 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.82 | 0.70 | +1.12 |
| Martin ratioReturn relative to average drawdown | 4.56 | 1.34 | +3.23 |
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Drawdowns
XRE.TO vs. XLB.TO - Drawdown Comparison
The maximum XRE.TO drawdown since its inception was -57.01%, which is greater than XLB.TO's maximum drawdown of -32.97%. Use the drawdown chart below to compare losses from any high point for XRE.TO and XLB.TO.
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Drawdown Indicators
| XRE.TO | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -57.01% | -32.97% | -24.04% |
Max Drawdown (1Y)Largest decline over 1 year | -7.51% | -4.85% | -2.66% |
Max Drawdown (3Y)Largest decline over 3 years | -20.91% | -11.66% | -9.25% |
Max Drawdown (5Y)Largest decline over 5 years | -30.53% | -27.81% | -2.72% |
Max Drawdown (10Y)Largest decline over 10 years | -46.58% | -32.97% | -13.61% |
Current DrawdownCurrent decline from peak | -0.55% | -18.72% | +18.17% |
Average DrawdownAverage peak-to-trough decline | -10.78% | -7.72% | -3.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.00% | 2.53% | +0.47% |
Volatility
XRE.TO vs. XLB.TO - Volatility Comparison
iShares S&P/TSX Capped REIT Index ETF (XRE.TO) has a higher volatility of 3.08% compared to iShares Core Canadian Long Term Bond Index ETF (XLB.TO) at 2.89%. This indicates that XRE.TO's price experiences larger fluctuations and is considered to be riskier than XLB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XRE.TO | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.08% | 2.89% | +0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 8.74% | 5.76% | +2.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.75% | 8.00% | +3.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.18% | 12.36% | +3.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.58% | 11.67% | +5.91% |
XRE.TO vs. XLB.TO - Expense Ratio Comparison
XRE.TO has a 0.61% expense ratio, which is higher than XLB.TO's 0.20% expense ratio.
Dividends
XRE.TO vs. XLB.TO - Dividend Comparison
XRE.TO's dividend yield for the trailing twelve months is around 4.34%, more than XLB.TO's 4.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.02% | 4.05% | 3.82% | 3.73% | 3.97% | 3.03% | 2.90% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
XRE.TO iShares S&P/TSX Capped REIT Index ETF | 4.34% | 5.00% | 5.55% | 4.52% | 4.85% | 2.62% | 4.50% | 4.88% | 4.86% | 4.77% | 5.27% | 5.66% |
Frequently Asked Questions
XRE.TO and XLB.TO have a correlation of 0.35, 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 0.61% for XRE.TO.
XRE.TO is categorized as REIT, while XLB.TO is Canadian Government Bonds. XRE.TO tracks Morningstar DM REIT NR CAD, while XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD. Their fees differ too: 0.61% for XRE.TO and 0.20% for XLB.TO.
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