XSH.TO vs. VDY.TO
XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - XSH.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, XSH.TO returned 2.82%/yr vs 14.02%/yr for VDY.TO. At a 0.00 correlation, their price movements are largely independent. XSH.TO charges 0.10%/yr vs 0.22%/yr for VDY.TO.
Performance
XSH.TO vs. VDY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XSH.TO achieves a 1.33% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, XSH.TO has underperformed VDY.TO with an annualized return of 2.82%, while VDY.TO has yielded a comparatively higher 14.02% annualized return.
XSH.TO
- 1D
- 0.00%
- 1M
- 1.13%
- YTD
- 1.33%
- 6M
- 1.34%
- 1Y
- 3.85%
- 3Y*
- 6.05%
- 5Y*
- 2.86%
- 10Y*
- 2.82%
VDY.TO
- 1D
- -0.07%
- 1M
- 4.52%
- YTD
- 20.59%
- 6M
- 22.32%
- 1Y
- 46.18%
- 3Y*
- 26.00%
- 5Y*
- 17.21%
- 10Y*
- 14.02%
XSH.TO vs. VDY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.33% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.28% | 0.78% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 20.59% | 29.20% | 20.71% | 8.40% | -0.23% | 36.78% | -1.37% | 21.43% | -10.09% | 8.75% |
Correlation
The correlation between XSH.TO and VDY.TO is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012 | 0.00 |
The correlation between XSH.TO and VDY.TO shifts across timeframes, from 0.00 (all time) to 0.17 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XSH.TO vs. VDY.TO — Risk / Return Rank
XSH.TO
VDY.TO
XSH.TO vs. VDY.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.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.
| XSH.TO | VDY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.86 | ||
| Sortino ratioReturn per unit of downside risk | -5.63 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 2.14 | -0.78 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 14.88 | -12.32 |
| Martin ratioReturn relative to average drawdown | 10.05 | 60.75 | -50.70 |
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
| XSH.TO | VDY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.79 | 5.65 | -3.86 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 1.50 | -0.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.88 | -0.24 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.84 | -0.10 |
Drawdowns
XSH.TO vs. VDY.TO - Drawdown Comparison
The maximum XSH.TO drawdown since its inception was -14.24%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for XSH.TO and VDY.TO.
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Drawdown Indicators
| XSH.TO | VDY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.24% | -39.21% | +24.97% |
Max Drawdown (1Y)Largest decline over 1 year | -1.51% | -3.12% | +1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -1.51% | -10.87% | +9.36% |
Max Drawdown (5Y)Largest decline over 5 years | -7.80% | -16.18% | +8.38% |
Max Drawdown (10Y)Largest decline over 10 years | -14.24% | -39.21% | +24.97% |
Current DrawdownCurrent decline from peak | 0.00% | -0.77% | +0.77% |
Average DrawdownAverage peak-to-trough decline | -0.93% | -4.61% | +3.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 0.76% | -0.38% |
Volatility
XSH.TO vs. VDY.TO - Volatility Comparison
The current volatility for iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) is 0.80%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.31%. This indicates that XSH.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
| XSH.TO | VDY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.80% | 3.31% | -2.51% |
Volatility (6M)Calculated over the trailing 6-month period | 1.83% | 6.87% | -5.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.16% | 8.21% | -6.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.83% | 11.56% | -8.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 15.96% | -11.54% |
XSH.TO vs. VDY.TO - Expense Ratio Comparison
XSH.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
XSH.TO vs. VDY.TO - Dividend Comparison
XSH.TO's dividend yield for the trailing twelve months is around 3.89%, more than VDY.TO's 2.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.90% | 3.59% | 4.40% | 4.64% | 4.42% | 3.58% | 4.59% | 4.25% | 4.43% | 3.82% | 3.25% | 4.11% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.89% | 3.82% | 3.64% | 3.24% | 2.97% | 2.65% | 2.61% | 2.80% | 2.86% | 2.93% | 3.08% | 3.18% |
Frequently Asked Questions
XSH.TO and VDY.TO have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSH.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSH.TO is cheaper with a 0.10% expense ratio, compared with 0.22% for VDY.TO.
XSH.TO is categorized as Canadian Government Bonds, while VDY.TO is Dividend. XSH.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 XSH.TO and 0.22% for VDY.TO.
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