XSB.TO vs. XEM.TO
XSB.TO (iShares Core Canadian Short Term Bond Index ETF) and XEM.TO (iShares MSCI Emerging Markets 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 XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD. Both are passively managed. Over the past 10 years, XSB.TO returned 1.93%/yr vs 9.89%/yr for XEM.TO. At a correlation of -0.04, they often move in opposite directions. XSB.TO charges 0.10%/yr vs 0.81%/yr for XEM.TO.
Performance
XSB.TO vs. XEM.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 XEM.TO's 22.11% return. Over the past 10 years, XSB.TO has underperformed XEM.TO with an annualized return of 1.93%, while XEM.TO has yielded a comparatively higher 9.89% 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%
XEM.TO
- 1D
- 1.87%
- 1M
- -1.17%
- YTD
- 22.11%
- 6M
- 22.63%
- 1Y
- 45.44%
- 3Y*
- 22.07%
- 5Y*
- 8.55%
- 10Y*
- 9.89%
XSB.TO vs. XEM.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% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 22.11% | 27.25% | 14.98% | 6.49% | -15.74% | -4.09% | 14.12% | 11.47% | -8.06% | 27.79% |
Correlation
The correlation between XSB.TO and XEM.TO is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2009 | -0.04 |
The correlation between XSB.TO and XEM.TO shifts across timeframes, from -0.04 (all time) to 0.24 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XSB.TO vs. XEM.TO — Risk / Return Rank
XSB.TO
XEM.TO
XSB.TO vs. XEM.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 iShares MSCI Emerging Markets Index ETF (XEM.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 | XEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -0.75 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.42 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 3.72 | -1.71 |
| Martin ratioReturn relative to average drawdown | 6.68 | 13.29 | -6.61 |
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 | XEM.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.49 | 2.24 | -0.75 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.73 | 0.51 | +0.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.57 | 0.55 | +0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.97 | 0.41 | +0.56 |
Drawdowns
XSB.TO vs. XEM.TO - Drawdown Comparison
The maximum XSB.TO drawdown since its inception was -8.65%, smaller than the maximum XEM.TO drawdown of -35.27%. Use the drawdown chart below to compare losses from any high point for XSB.TO and XEM.TO.
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Drawdown Indicators
| XSB.TO | XEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.65% | -35.27% | +26.62% |
Max Drawdown (1Y)Largest decline over 1 year | -1.47% | -12.27% | +10.80% |
Max Drawdown (3Y)Largest decline over 3 years | -1.47% | -15.30% | +13.83% |
Max Drawdown (5Y)Largest decline over 5 years | -6.99% | -31.06% | +24.07% |
Max Drawdown (10Y)Largest decline over 10 years | -8.65% | -35.27% | +26.62% |
Current DrawdownCurrent decline from peak | -0.34% | -6.32% | +5.98% |
Average DrawdownAverage peak-to-trough decline | -0.79% | -10.50% | +9.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.44% | 3.43% | -2.99% |
Volatility
XSB.TO vs. XEM.TO - Volatility Comparison
The current volatility for iShares Core Canadian Short Term Bond Index ETF (XSB.TO) is 0.75%, while iShares MSCI Emerging Markets Index ETF (XEM.TO) has a volatility of 10.27%. This indicates that XSB.TO experiences smaller price fluctuations and is considered to be less risky than XEM.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 | XEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.75% | 10.27% | -9.52% |
Volatility (6M)Calculated over the trailing 6-month period | 1.68% | 18.17% | -16.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.99% | 20.45% | -18.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.72% | 16.97% | -14.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.40% | 18.17% | -14.77% |
XSB.TO vs. XEM.TO - Expense Ratio Comparison
XSB.TO has a 0.10% expense ratio, which is lower than XEM.TO's 0.81% expense ratio.
Dividends
XSB.TO vs. XEM.TO - Dividend Comparison
XSB.TO's dividend yield for the trailing twelve months is around 3.11%, more than XEM.TO's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEM.TO iShares MSCI Emerging Markets Index ETF | 1.56% | 1.90% | 2.08% | 2.39% | 2.10% | 1.91% | 1.28% | 2.56% | 1.95% | 1.78% | 1.97% | 2.24% |
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 XEM.TO have a correlation of 0.24, 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 0.81% for XEM.TO.
XSB.TO is categorized as Canadian Government Bonds, while XEM.TO is Emerging Markets Equities. XSB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while XEM.TO tracks Morningstar EM GR CAD. Their fees differ too: 0.10% for XSB.TO and 0.81% for XEM.TO.
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