Risk Analysis of XBB and VXC ETF
CAN Financial Fast Track - Mini Presentation by Brian Chu 2024 DEC

Cover page

Dec 2024

XBB and VXC ETF

XBB
- iShares Core Canadian Universe Bond Index ETF
- BlackRock Asset Management Canada
VXC
- Vanguard FTSE Global All Cap ex Canada Index ETF
- Vanguard Investments Canada Inc

5 yrs Prices¹: XBB - VXC

Which ETF will you invest after analyizing their risks ?

XBB Bond ETF
VXC All Cap ETF

Holdings: XBB - VXC

XBB.TO

VXC.TO

Risk Analysis of two ETFs : XBB - VXC

	3 Years	5 Years	10 Years
Alpha	0.32	0.1	-0.07
BETA	1.05	1.02	1
Mean Annual Return	0.01	0.05	0.17
R-squared	99.37	98.92	98.93
Standard Deviation	7.39	6.56	5.41
Sharpe Ratio	-0.47	-0.26	0.09
Treynor Ratio	-3.55	-1.9	0.33

	3 Years	5 Years	10 Years
Alpha	-0.55	-0.6	-0.84
BETA	0.99	1.01	1.02
Mean Annual Return	0.79	1.01	0.94
R-squared	99.59	99.2	98.78
Standard Deviation	12.4	13.21	12.01
Sharpe Ratio	0.48	0.75	0.8
Treynor Ratio	5.54	9.5	9.2

5 yrs Prices²: XBB - VXC

Which ETF will you invest based on their risks ?

XBB Bond ETF
VXC All Cap ETF

Conclusion

I cannot decide by comparing their Alpha or Beta.
I really like the Sharpe and Treynor ratios for VXC.
But I still will not invest in VXC.

Citations

Yahoo finance ( ca.finance.yahoo.com )
Investopedia ( www.investopedia.com )
Morningstar ( www.morningstar.ca )