XSB.TO vs. VDY.TO
XSB.TO (iShares Core Canadian Short Term Bond Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - XSB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, XSB.TO returned 1.93%/yr vs 14.25%/yr for VDY.TO. At a correlation of -0.04, they often move in opposite directions. XSB.TO charges 0.10%/yr vs 0.22%/yr for VDY.TO.
Performance
XSB.TO vs. VDY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XSB.TO achieves a 0.80% return, which is significantly lower than VDY.TO's 21.54% return. Over the past 10 years, XSB.TO has underperformed VDY.TO with an annualized return of 1.93%, while VDY.TO has yielded a comparatively higher 14.25% annualized return.
XSB.TO
- 1D
- 0.00%
- 1M
- 0.22%
- YTD
- 0.80%
- 6M
- 1.10%
- 1Y
- 2.95%
- 3Y*
- 4.78%
- 5Y*
- 1.98%
- 10Y*
- 1.93%
VDY.TO
- 1D
- 0.31%
- 1M
- 5.30%
- YTD
- 21.54%
- 6M
- 22.15%
- 1Y
- 47.47%
- 3Y*
- 26.69%
- 5Y*
- 17.54%
- 10Y*
- 14.25%
XSB.TO vs. VDY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 0.80% | 3.70% | 5.87% | 4.67% | -4.04% | -1.11% | 5.20% | 3.20% | 1.60% | 0.13% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 21.54% | 29.21% | 21.44% | 8.41% | -0.23% | 36.60% | -1.37% | 21.42% | -10.09% | 8.32% |
Correlation
The correlation between XSB.TO and VDY.TO is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.00 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012 | -0.04 |
The correlation between XSB.TO and VDY.TO shifts across timeframes, from -0.04 (all time) to 0.15 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XSB.TO vs. VDY.TO — Risk / Return Rank
XSB.TO
VDY.TO
XSB.TO vs. VDY.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Short Term Bond Index ETF (XSB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.
| XSB.TO | VDY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.27 | ||
| Sortino ratioReturn per unit of downside risk | -6.17 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 2.16 | -0.87 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 15.30 | -13.28 |
| Martin ratioReturn relative to average drawdown | 6.68 | 62.34 | -55.66 |
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
| XSB.TO | VDY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.49 | 5.76 | -4.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.73 | 1.52 | -0.79 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.57 | 0.90 | -0.33 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.97 | 0.85 | +0.11 |
Drawdowns
XSB.TO vs. VDY.TO - Drawdown Comparison
The maximum XSB.TO drawdown since its inception was -8.65%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for XSB.TO and VDY.TO.
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Drawdown Indicators
| XSB.TO | VDY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.65% | -39.21% | +30.56% |
Max Drawdown (1Y)Largest decline over 1 year | -1.47% | -3.12% | +1.65% |
Max Drawdown (3Y)Largest decline over 3 years | -1.47% | -10.38% | +8.91% |
Max Drawdown (5Y)Largest decline over 5 years | -6.99% | -16.17% | +9.18% |
Max Drawdown (10Y)Largest decline over 10 years | -8.65% | -39.21% | +30.56% |
Current DrawdownCurrent decline from peak | -0.34% | -0.38% | +0.04% |
Average DrawdownAverage peak-to-trough decline | -0.79% | -4.48% | +3.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.44% | 0.76% | -0.32% |
Volatility
XSB.TO vs. VDY.TO - Volatility Comparison
The current volatility for iShares Core Canadian Short Term Bond Index ETF (XSB.TO) is 0.75%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.40%. This indicates that XSB.TO experiences smaller price fluctuations and is considered to be less risky than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XSB.TO | VDY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.75% | 3.40% | -2.65% |
Volatility (6M)Calculated over the trailing 6-month period | 1.68% | 6.93% | -5.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.99% | 8.30% | -6.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.72% | 11.58% | -8.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.40% | 15.96% | -12.56% |
XSB.TO vs. VDY.TO - Expense Ratio Comparison
XSB.TO has a 0.10% expense ratio, which is lower than VDY.TO's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
XSB.TO vs. VDY.TO - Dividend Comparison
XSB.TO's dividend yield for the trailing twelve months is around 3.11%, more than VDY.TO's 2.88% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.88% | 3.59% | 4.37% | 4.64% | 4.42% | 3.46% | 4.59% | 4.25% | 4.44% | 3.42% | 3.25% | 4.11% |
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 3.11% | 3.15% | 3.05% | 2.67% | 2.28% | 2.05% | 2.21% | 2.39% | 2.39% | 2.36% | 2.36% | 2.50% |
Frequently Asked Questions
XSB.TO and VDY.TO have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSB.TO is cheaper with a 0.10% expense ratio, compared with 0.22% for VDY.TO.
XSB.TO is categorized as Canadian Government Bonds, while VDY.TO is Dividend. XSB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for XSB.TO and 0.22% for VDY.TO.
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