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XSU.TO vs. VTWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XSU.TO vs. VTWO

Last updated Jun 5, 2026

XSU.TO (iShares U.S. Small Cap Index ETF (CAD-Hedged)) and VTWO (Vanguard Russell 2000 ETF) are both Small Cap Blend Equities funds - XSU.TO tracks the Morningstar US SMID TR CAD while VTWO tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, XSU.TO returned 9.05%/yr vs 12.03%/yr for VTWO. Their correlation of 0.88 suggests significant overlap in exposure. XSU.TO charges 0.35%/yr vs 0.06%/yr for VTWO.

Performance

XSU.TO vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU.TO) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

XSU.TO is traded in CAD, while VTWO is traded in USD. To make them comparable, the VTWO values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XSU.TO achieves a 17.66% return, which is significantly lower than VTWO's 20.50% return. Over the past 10 years, XSU.TO has underperformed VTWO with an annualized return of 9.05%, while VTWO has yielded a comparatively higher 12.03% annualized return.

XSU.TO

1D
1.57%
1M
3.33%
YTD
17.66%
6M
15.15%
1Y
38.37%
3Y*
16.72%
5Y*
4.52%
10Y*
9.05%

VTWO

1D
1.63%
1M
5.54%
YTD
20.50%
6M
16.24%
1Y
44.31%
3Y*
20.60%
5Y*
9.67%
10Y*
12.03%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XSU.TO vs. VTWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XSU.TO
iShares U.S. Small Cap Index ETF (CAD-Hedged)		17.66%10.50%9.67%14.70%-21.66%12.77%15.71%23.81%-12.82%13.66%
VTWO
Vanguard Russell 2000 ETF		20.50%7.72%21.13%14.50%-14.83%13.76%18.19%19.63%-3.61%7.38%

Correlation

The correlation between XSU.TO and VTWO is 0.93, 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

0.93

Correlation (3Y)
Calculated over the trailing 3-year period

0.94

Correlation (5Y)
Calculated over the trailing 5-year period

0.93

Correlation (10Y)
Calculated over the trailing 10-year period

0.90

Correlation (All Time)
Calculated using the full available price history since Sep 23, 2010

0.88

The correlation between XSU.TO and VTWO has been stable across timeframes, ranging from 0.88 to 0.94 - a consistent structural relationship.

XSU.TO vs. VTWO - Sectors Allocation Comparison

Sectors
XSU.TO
VTWO

Industrials

17.5%
17.7%

Technology

16.9%
17.0%

Healthcare

16.5%
16.5%

Financial Services

15.9%
15.7%

Consumer Cyclical

8.4%
8.4%

Real Estate

6.2%
6.1%

Energy

6.2%
6.1%

Basic Materials

4.8%
4.8%

Utilities

2.9%
2.9%

Communication Services

2.5%
2.4%

Consumer Defensive

2.4%
2.4%

Industrials

XSU.TO
17.5%
VTWO
17.7%

Technology

XSU.TO
16.9%
VTWO
17.0%

Healthcare

XSU.TO
16.5%
VTWO
16.5%

Financial Services

XSU.TO
15.9%
VTWO
15.7%

Consumer Cyclical

XSU.TO
8.4%
VTWO
8.4%

Real Estate

XSU.TO
6.2%
VTWO
6.1%

Energy

XSU.TO
6.2%
VTWO
6.1%

Basic Materials

XSU.TO
4.8%
VTWO
4.8%

Utilities

XSU.TO
2.9%
VTWO
2.9%

Communication Services

XSU.TO
2.5%
VTWO
2.4%

Consumer Defensive

XSU.TO
2.4%
VTWO
2.4%

Compare stocks, funds, or ETFs

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iShares U.S. Small Cap Index ETF (CAD-Hedged)

Vanguard Russell 2000 ETF

Often compared with XSU.TO:
XSU.TO vs. XUS.TOXSU.TO vs. IWMXSU.TO vs. AVUVXSU.TO vs. XSP.TOXSU.TO vs. XSMH.TOXSU.TO vs. XEQT.TOXSU.TO vs. XSMC.TO
Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO

Return for Risk

XSU.TO vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XSU.TO
XSU.TO Risk / Return Rank: 6161
Overall Rank
XSU.TO Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
XSU.TO Sortino Ratio Rank: 5959
Sortino Ratio Rank
XSU.TO Omega Ratio Rank: 5454
Omega Ratio Rank
XSU.TO Calmar Ratio Rank: 6868
Calmar Ratio Rank
XSU.TO Martin Ratio Rank: 6666
Martin Ratio Rank
VTWO
VTWO Risk / Return Rank: 6969
Overall Rank
VTWO Sharpe Ratio Rank: 6868
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 6767
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6060
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7777
Calmar Ratio Rank
VTWO Martin Ratio Rank: 7474
Martin Ratio Rank
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.

XSU.TO vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU.TO) and Vanguard Russell 2000 ETF (VTWO). 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.

XSU.TOVTWODifference
Sharpe ratioReturn per unit of total volatility
1.96
2.39

-0.43

Sortino ratioReturn per unit of downside risk
2.76
3.26

-0.50

Omega ratioGain probability vs. loss probability

1.33

1.40

-0.07

Calmar ratioReturn relative to maximum drawdown

3.32

4.26

-0.94

Martin ratioReturn relative to average drawdown

11.83

14.02

-2.19

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSU.TO vs. VTWO - Sharpe Ratio Comparison

The current XSU.TO Sharpe Ratio is 1.96, which is comparable to the VTWO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of XSU.TO and VTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

XSU.TOVTWODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.96

2.39

-0.43

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.20

0.48

-0.28

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.39

0.57

-0.19

Sharpe Ratio (All Time)

Calculated using the full available price history

0.27

0.70

-0.43

Drawdowns

XSU.TO vs. VTWO - Drawdown Comparison

The maximum XSU.TO drawdown since its inception was -62.62%, which is greater than VTWO's maximum drawdown of -35.43%. Use the drawdown chart below to compare losses from any high point for XSU.TO and VTWO.

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Drawdown Indicators

XSU.TOVTWODifference

Max Drawdown

Largest peak-to-trough decline

-62.62%

-35.43%

-27.19%

Max Drawdown (1Y)

Largest decline over 1 year

-11.60%

-10.44%

-1.16%

Max Drawdown (3Y)

Largest decline over 3 years

-28.16%

-26.24%

-1.92%

Max Drawdown (5Y)

Largest decline over 5 years

-33.98%

-29.12%

-4.86%

Max Drawdown (10Y)

Largest decline over 10 years

-44.60%

-35.43%

-9.17%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-13.72%

-6.91%

-6.81%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.25%

3.17%

+0.08%

Volatility

XSU.TO vs. VTWO - Volatility Comparison

iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU.TO) has a higher volatility of 5.78% compared to Vanguard Russell 2000 ETF (VTWO) at 5.47%. This indicates that XSU.TO's price experiences larger fluctuations and is considered to be riskier than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XSU.TOVTWODifference

Volatility (1M)

Calculated over the trailing 1-month period

5.78%

5.47%

+0.31%

Volatility (6M)

Calculated over the trailing 6-month period

13.68%

13.36%

+0.32%

Volatility (1Y)

Calculated over the trailing 1-year period

19.68%

18.65%

+1.03%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.75%

20.30%

+2.45%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.49%

21.08%

+2.41%

XSU.TO vs. VTWO - Expense Ratio Comparison

XSU.TO has a 0.35% expense ratio, which is higher than VTWO's 0.06% expense ratio.

Dividends

XSU.TO vs. VTWO - Dividend Comparison

XSU.TO's dividend yield for the trailing twelve months is around 0.72%, less than VTWO's 1.07% yield.

PositionTTM20252024202320222021202020192018201720162015
VTWO
Vanguard Russell 2000 ETF		1.07%1.25%1.21%1.45%1.48%1.13%0.92%1.36%1.41%1.18%1.27%1.23%
XSU.TO
iShares U.S. Small Cap Index ETF (CAD-Hedged)		0.72%0.85%0.93%1.09%1.28%0.73%0.79%1.00%1.12%0.95%1.16%1.28%

Frequently Asked Questions

With a correlation of 0.93, XSU.TO and VTWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

On fees, VTWO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VTWO is cheaper with a 0.06% expense ratio, compared with 0.35% for XSU.TO.

XSU.TO tracks Morningstar US SMID TR CAD, while VTWO tracks Russell 2000 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.35% for XSU.TO and 0.06% for VTWO.

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