XSTB.TO vs. XESG.TO

Last updated Jun 14, 2026

XSTB.TO (iShares ESG Aware Canadian Short Term Bond Index ETF) and XESG.TO (iShares ESG Aware MSCI Canada Index ETF) are both exchange-traded funds - XSTB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD, while XESG.TO is a Canada Equities fund tracking the Morningstar Canada GR CAD. Both are passively managed. Over the past 5 years, XSTB.TO returned 1.96%/yr vs 12.49%/yr for XESG.TO. At a 0.11 correlation, their price movements are largely independent. XSTB.TO charges 0.17%/yr vs 0.16%/yr for XESG.TO.

Performance

XSTB.TO vs. XESG.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO) and iShares ESG Aware MSCI Canada Index ETF (XESG.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSTB.TO achieves a 1.09% return, which is significantly lower than XESG.TO's 10.50% return.

XSTB.TO

• 1D: 0.00%
• 1M: 0.64%
• YTD: 1.09%
• 6M: 1.39%
• 1Y: 3.07%
• 3Y*: 4.74%
• 5Y*: 1.96%
• 10Y*: —

XESG.TO

• 1D: 0.81%
• 1M: 1.78%
• YTD: 10.50%
• 6M: 7.97%
• 1Y: 29.17%
• 3Y*: 21.05%
• 5Y*: 12.49%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

XSTB.TO vs. XESG.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF	1.09%	3.60%	5.28%	4.86%	-3.91%	-1.12%	4.95%	1.48%
XESG.TO iShares ESG Aware MSCI Canada Index ETF	10.50%	26.34%	20.23%	10.30%	-7.64%	23.09%	1.14%	12.07%

Correlation

The correlation between XSTB.TO and XESG.TO is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (All Time) Calculated using the full available price history since Mar 22, 2019	0.11

Over the past year, XSTB.TO and XESG.TO have become more correlated (0.38) than their long-term average of 0.11, meaning their price movements have been converging.

Return for Risk

XSTB.TO vs. XESG.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XSTB.TO

XSTB.TO Risk / Return Rank: 54
XSTB.TO Sharpe Ratio Rank: 55
XSTB.TO Sortino Ratio Rank: 53
XSTB.TO Omega Ratio Rank: 62
XSTB.TO Calmar Ratio Rank: 52
XSTB.TO Martin Ratio Rank: 47

XESG.TO

XESG.TO Risk / Return Rank: 75
XESG.TO Sharpe Ratio Rank: 77
XESG.TO Sortino Ratio Rank: 69
XESG.TO Omega Ratio Rank: 76
XESG.TO Calmar Ratio Rank: 71
XESG.TO Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XSTB.TO vs. XESG.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO) and iShares ESG Aware MSCI Canada Index ETF (XESG.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	XSTB.TO	XESG.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.14	-0.50
Sortino ratio: Return per unit of downside risk	2.28	2.73	-0.45
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.28	3.12	-0.84
Martin ratio: Return relative to average drawdown	6.93	13.67	-6.75

XSTB.TO vs. XESG.TO - Sharpe Ratio Comparison

The current XSTB.TO Sharpe Ratio is 1.64, which is comparable to the XESG.TO Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of XSTB.TO and XESG.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XSTB.TO vs. XESG.TO - Drawdown Comparison

The maximum XSTB.TO drawdown since its inception was -6.92%, smaller than the maximum XESG.TO drawdown of -39.40%. Use the drawdown chart below to compare losses from any high point for XSTB.TO and XESG.TO.

Drawdown Indicators

	XSTB.TO	XESG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-6.92%	-39.40%	+32.48%
Max Drawdown (1Y) Largest decline over 1 year	-1.35%	-9.28%	+7.93%
Max Drawdown (3Y) Largest decline over 3 years	-1.35%	-14.14%	+12.79%
Max Drawdown (5Y) Largest decline over 5 years	-6.76%	-17.82%	+11.06%
Current Drawdown Current decline from peak	-0.04%	-1.00%	+0.96%
Average Drawdown Average peak-to-trough decline	-1.40%	-5.08%	+3.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.44%	2.12%	-1.68%

Volatility

XSTB.TO vs. XESG.TO - Volatility Comparison

The current volatility for iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO) is 0.68%, while iShares ESG Aware MSCI Canada Index ETF (XESG.TO) has a volatility of 4.58%. This indicates that XSTB.TO experiences smaller price fluctuations and is considered to be less risky than XESG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSTB.TO	XESG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.68%	4.58%	-3.90%
Volatility (6M) Calculated over the trailing 6-month period	1.45%	11.34%	-9.89%
Volatility (1Y) Calculated over the trailing 1-year period	1.88%	13.55%	-11.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	13.90%	-11.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.71%	21.98%	-19.27%

XSTB.TO vs. XESG.TO - Expense Ratio Comparison

XSTB.TO has a 0.17% expense ratio, which is higher than XESG.TO's 0.16% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XSTB.TO vs. XESG.TO - Dividend Comparison

XSTB.TO's dividend yield for the trailing twelve months is around 2.87%, more than XESG.TO's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
XESG.TO iShares ESG Aware MSCI Canada Index ETF	1.99%	2.17%	2.57%	2.89%	2.77%	2.01%	2.30%	1.08%
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF	2.87%	2.88%	2.64%	2.22%	1.93%	1.82%	2.10%	1.83%

Frequently Asked Questions

Can I hold both XSTB.TO and XESG.TO in my portfolio?

XSTB.TO and XESG.TO have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XSTB.TO or XESG.TO?

On fees, XESG.TO is cheaper at 0.16% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XSTB.TO or XESG.TO?

XESG.TO is cheaper with a 0.16% expense ratio, compared with 0.17% for XSTB.TO.

What is the main difference between XSTB.TO and XESG.TO?

XSTB.TO is categorized as Canadian Government Bonds, while XESG.TO is Canada Equities. XSTB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while XESG.TO tracks Morningstar Canada GR CAD. Their fees differ too: 0.17% for XSTB.TO and 0.16% for XESG.TO.