XSH.TO vs. VSB.TO
XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) and VSB.TO (Vanguard Canadian Short Term Bond) are both Canadian Government Bonds funds - XSH.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD while VSB.TO tracks the FTSE Canada Short Term Government Bond Index. Both are passively managed. Over the past 10 years, XSH.TO returned 2.82%/yr vs 1.94%/yr for VSB.TO. A 0.56 correlation means they provide meaningful diversification when combined. XSH.TO charges 0.10%/yr vs 0.15%/yr for VSB.TO.
Performance
XSH.TO vs. VSB.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 higher than VSB.TO's 0.97% return. Over the past 10 years, XSH.TO has outperformed VSB.TO with an annualized return of 2.82%, while VSB.TO has yielded a comparatively lower 1.94% 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%
VSB.TO
- 1D
- -0.04%
- 1M
- 0.92%
- YTD
- 0.97%
- 6M
- 0.78%
- 1Y
- 2.90%
- 3Y*
- 4.65%
- 5Y*
- 2.02%
- 10Y*
- 1.94%
XSH.TO vs. VSB.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% |
VSB.TO Vanguard Canadian Short Term Bond | 0.97% | 3.66% | 5.54% | 4.92% | -3.93% | -1.15% | 5.29% | 3.06% | 1.67% | -0.36% |
Correlation
The correlation between XSH.TO and VSB.TO is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.83 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011 | 0.56 |
Over the past year, XSH.TO and VSB.TO have become more correlated (0.80) than their long-term average of 0.56, meaning their price movements have been converging.
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Return for Risk
XSH.TO vs. VSB.TO — Risk / Return Rank
XSH.TO
VSB.TO
XSH.TO vs. VSB.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 Canadian Short Term Bond (VSB.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 | VSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.26 | ||
| Sortino ratioReturn per unit of downside risk | +0.39 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.30 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 2.04 | +0.52 |
| Martin ratioReturn relative to average drawdown | 10.05 | 6.78 | +3.27 |
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 | VSB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.79 | 1.53 | +0.26 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 0.79 | +0.23 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.56 | +0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.64 | +0.10 |
Drawdowns
XSH.TO vs. VSB.TO - Drawdown Comparison
The maximum XSH.TO drawdown since its inception was -14.24%, which is greater than VSB.TO's maximum drawdown of -8.38%. Use the drawdown chart below to compare losses from any high point for XSH.TO and VSB.TO.
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Drawdown Indicators
| XSH.TO | VSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.24% | -8.38% | -5.86% |
Max Drawdown (1Y)Largest decline over 1 year | -1.51% | -1.43% | -0.08% |
Max Drawdown (3Y)Largest decline over 3 years | -1.51% | -1.43% | -0.08% |
Max Drawdown (5Y)Largest decline over 5 years | -7.80% | -6.88% | -0.92% |
Max Drawdown (10Y)Largest decline over 10 years | -14.24% | -8.38% | -5.86% |
Current DrawdownCurrent decline from peak | 0.00% | -0.13% | +0.13% |
Average DrawdownAverage peak-to-trough decline | -0.93% | -0.95% | +0.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 0.43% | -0.05% |
Volatility
XSH.TO vs. VSB.TO - Volatility Comparison
iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) has a higher volatility of 0.80% compared to Vanguard Canadian Short Term Bond (VSB.TO) at 0.71%. This indicates that XSH.TO's price experiences larger fluctuations and is considered to be riskier than VSB.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 | VSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.80% | 0.71% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 1.83% | 1.57% | +0.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.16% | 1.90% | +0.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.83% | 2.57% | +0.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 3.48% | +0.94% |
XSH.TO vs. VSB.TO - Expense Ratio Comparison
XSH.TO has a 0.10% expense ratio, which is lower than VSB.TO's 0.15% 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. VSB.TO - Dividend Comparison
XSH.TO's dividend yield for the trailing twelve months is around 3.89%, more than VSB.TO's 3.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSB.TO Vanguard Canadian Short Term Bond | 3.00% | 3.04% | 3.04% | 2.66% | 2.24% | 2.02% | 2.24% | 2.31% | 2.29% | 2.34% | 2.45% | 2.38% |
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 VSB.TO have a correlation of 0.80, 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 0.15% for VSB.TO.
XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while VSB.TO tracks FTSE Canada Short Term Government Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for XSH.TO and 0.15% for VSB.TO.
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