XSH.TO vs. XEF.TO
XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) and XEF.TO (iShares Core MSCI EAFE IMI 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 XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD). Both are passively managed. Over the past 10 years, XSH.TO returned 2.82%/yr vs 9.77%/yr for XEF.TO. At a 0.11 correlation, their price movements are largely independent. XSH.TO charges 0.10%/yr vs 0.23%/yr for XEF.TO.
Performance
XSH.TO vs. XEF.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 XEF.TO's 9.95% return. Over the past 10 years, XSH.TO has underperformed XEF.TO with an annualized return of 2.82%, while XEF.TO has yielded a comparatively higher 9.77% 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%
XEF.TO
- 1D
- -0.41%
- 1M
- 5.38%
- YTD
- 9.95%
- 6M
- 10.72%
- 1Y
- 23.12%
- 3Y*
- 17.83%
- 5Y*
- 10.89%
- 10Y*
- 9.77%
XSH.TO vs. XEF.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% |
XEF.TO iShares Core MSCI EAFE IMI Index ETF | 9.95% | 25.69% | 12.04% | 15.21% | -9.53% | 10.36% | 6.13% | 15.86% | -6.65% | 18.19% |
Correlation
The correlation between XSH.TO and XEF.TO is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Apr 16, 2013 | 0.11 |
Over the past year, XSH.TO and XEF.TO have become more correlated (0.44) than their long-term average of 0.11, meaning their price movements have been converging.
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Return for Risk
XSH.TO vs. XEF.TO — Risk / Return Rank
XSH.TO
XEF.TO
XSH.TO vs. XEF.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 iShares Core MSCI EAFE IMI Index ETF (XEF.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 | XEF.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | +0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.31 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 2.06 | +0.50 |
| Martin ratioReturn relative to average drawdown | 10.05 | 8.22 | +1.82 |
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 | XEF.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.79 | 1.68 | +0.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 0.81 | +0.21 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.66 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.71 | +0.03 |
Drawdowns
XSH.TO vs. XEF.TO - Drawdown Comparison
The maximum XSH.TO drawdown since its inception was -14.24%, smaller than the maximum XEF.TO drawdown of -28.51%. Use the drawdown chart below to compare losses from any high point for XSH.TO and XEF.TO.
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Drawdown Indicators
| XSH.TO | XEF.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.24% | -28.51% | +14.27% |
Max Drawdown (1Y)Largest decline over 1 year | -1.51% | -11.27% | +9.76% |
Max Drawdown (3Y)Largest decline over 3 years | -1.51% | -14.32% | +12.81% |
Max Drawdown (5Y)Largest decline over 5 years | -7.80% | -24.58% | +16.78% |
Max Drawdown (10Y)Largest decline over 10 years | -14.24% | -28.51% | +14.27% |
Current DrawdownCurrent decline from peak | 0.00% | -1.09% | +1.09% |
Average DrawdownAverage peak-to-trough decline | -0.93% | -4.62% | +3.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 2.82% | -2.44% |
Volatility
XSH.TO vs. XEF.TO - Volatility Comparison
The current volatility for iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) is 0.80%, while iShares Core MSCI EAFE IMI Index ETF (XEF.TO) has a volatility of 4.77%. This indicates that XSH.TO experiences smaller price fluctuations and is considered to be less risky than XEF.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 | XEF.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.80% | 4.77% | -3.97% |
Volatility (6M)Calculated over the trailing 6-month period | 1.83% | 11.56% | -9.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.16% | 13.85% | -11.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.83% | 13.58% | -10.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 14.85% | -10.43% |
XSH.TO vs. XEF.TO - Expense Ratio Comparison
XSH.TO has a 0.10% expense ratio, which is lower than XEF.TO's 0.23% 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. XEF.TO - Dividend Comparison
XSH.TO's dividend yield for the trailing twelve months is around 3.89%, more than XEF.TO's 2.21% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEF.TO iShares Core MSCI EAFE IMI Index ETF | 2.21% | 2.43% | 2.76% | 2.75% | 2.93% | 2.42% | 1.93% | 2.72% | 2.76% | 2.10% | 2.42% | 2.42% |
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 XEF.TO have a correlation of 0.44, 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 0.23% for XEF.TO.
XSH.TO is categorized as Canadian Government Bonds, while XEF.TO is Foreign Large Cap Equities. XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while XEF.TO tracks MSCI EAFE Investable Market Index (CAD). Their fees differ too: 0.10% for XSH.TO and 0.23% for XEF.TO.
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