iShares Core Canadian Universe Bond Index ETF (XBB)
Important Information
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- Investment focus:Canadian investment-grade government and corporate bonds
- Category:Canadian diversified bonds
- Management style:Index (passive)
- Managed by:iShares
- Market data as of:October 30, 2026
With C$10.94 billion in assets, XBB is the 2nd largest of the 42 bond ETFs WOWA tracks. Its management expense ratio (MER) is 0.10%, and over the past 12 months it paid out 3.52% of its unit price in distributions.
Jump to section: Overview • Index • Performance • Distributions • Risks • Fit • Ranking • Compare
AUM
C$10.94B
as of Oct 30, 2026
MER
0.10%
annual cost
Trailing yield
3.52%
past 12 months
5-year return
0.70%
annualized
About XBB
iShares Core Canadian Universe Bond Index ETF (XBB) is a bond ETF from iShares, launched on November 20, 2000. It tracks the FTSE Canada Universe Bond Index, the standard benchmark for Canadian investment-grade bonds.
What XBB tracks
| Fund detail | Value |
|---|---|
| Index | FTSE Canada Universe Bond Index |
| Rebalancing | Daily, following the index |
XBB follows the same FTSE index as ZAG, so the two funds own much the same bonds. The index takes every fixed-rate, Canadian-dollar bond rated BBB or better with more than a year left to run, from Ottawa and the provinces down to cities and companies. Each bond counts in proportion to how much of it is outstanding. Many Canadian bond funds measure themselves against this index, so owning it gets you roughly the market’s return.
Funds that track the same index
XBB shares its index with one other ETF. They aim for the same return before costs, so fees and currency treatment are the main differences.
ETF data as of October 30, 2026
Updated weekly| Ticker | Fund | Currency treatment | MER | 5-year return | AUM (CAD B) |
|---|---|---|---|---|---|
| XBB | iShares Core Canadian Universe Bond Index ETF | Canadian-dollar bonds | 0.10% | 0.70% | 10.94 |
| ZAG | BMO Aggregate Bond Index ETF | Canadian-dollar bonds | 0.09% | 0.64% | 13.24 |
XBB fund facts
ETF data as of October 30, 2026
Updated weekly| Fund detail | Value |
|---|---|
| Fund basics | |
| Ticker | XBB |
| Provider | iShares |
| Inception date | November 20, 2000 |
| Legal structure | Mutual fund trust |
| Management style | Index (passive) |
| Portfolio | |
| Bond market | Canada |
| Bond sector | Aggregate |
| Maturity segment | Broad |
| Credit mandate | Investment grade |
| Currency treatment | Canadian-dollar bonds |
| Number of holdings | 1,904 (as of August 27, 2026) |
| Costs and distributions | |
| Management fee | 0.09% |
| MER | 0.10% |
| Distribution frequency | Monthly |
| Trailing distribution yield | 3.52% |
| Risk rating (issuer) | Low |
| Size and trading | |
| Assets under management | C$10.94 billion (as of October 30, 2026) |
| Average daily volume | 153,665 units a day (listing exchange) |
XBB performance
ETF data as of October 30, 2026
Updated weekly| Period | XBB | Canadian diversified median |
|---|---|---|
| 1 year | -0.47% | -0.41% |
| 3 years, annualized | 5.00% | 4.86% |
| 5 years, annualized | 0.70% | 0.70% |
| 10 years, annualized | 1.45% | 1.44% |
Total returns with distributions reinvested, in CAD, as of October 30, 2026. Category median: the middle value among the funds in the Canadian diversified group with a return for that period (14 funds for one year, 13 for three and five years, 8 for ten years). N/A: no complete return record for the period. Past performance does not predict future results.
$10,000 invested in XBB ten years ago would be worth about $11,500 as of October 30, 2026, with distributions reinvested and before taxes and trading costs.
Risk and return measures
ETF data as of October 30, 2026
Updated weekly| Measure | 3 years | 5 years | 10 years |
|---|---|---|---|
| Volatility | 5.18% | 6.16% | 5.62% |
| Sharpe ratio | 0.34 | -0.36 | -0.07 |
Volatility shows how much monthly returns have swung, as a yearly percentage. The Sharpe ratio compares the return above 3-month Government of Canada T-bills with that volatility. Higher means more return for each unit of risk, and below 0 means the fund earned less than T-bills.
XBB distributions
XBB pays distributions monthly. Over the 12 months to October 30, 2026, it paid 3.52% of its unit price, its trailing distribution yield. Amounts can change from one payment to the next.
What XBB’s 2025 distributions were made of
| Component | Share of total |
|---|---|
| Total distribution per unit | $0.954 |
| Interest and other income | 98.90% |
| Return of capital | 1.10% |
- Interest and other income is taxed like employment income in a non-registered account.
- Return of capital is not taxed when you receive it, but it lowers your adjusted cost base, which raises the capital gain when you sell.
Inside a TFSA or RRSP, the type of income does not change your tax. Our guide to registered and non-registered accounts explains the trade-offs.
2025 tax-year breakdown reported for the fund. Shares of the total distribution per unit.
Risks to know
iShares rates XBB’s risk as low on the standard Canadian fund scale, which runs from low to high. The rating reflects how much the fund’s returns have varied, not the chance that a borrower defaults.
Bond prices fall when interest rates rise, and longer maturities in the index add to that sensitivity. About three-quarters of the fund is federal and provincial government debt.
- Credit: It holds mostly government and investment-grade company debt, so default risk is low.
Is XBB a good fit?
| Good fit if you | Think twice if you |
|---|---|
| want one core holding that covers the Canadian investment-grade bond market. | may need the money within a year or two: its price can fall noticeably when yields rise. |
| want a low-cost fund: its 0.10% MER is in line with the Canadian diversified median of 0.10%. | need a set amount back on a set date: a bond ETF has no maturity date, unlike a GIC. |
General pointers based on the fund’s category, structure and costs, not personal advice.
How XBB ranks
By assets
2nd
of 42 bond ETFs
By lowest MER
8th (tied)
of 42 bond ETFs
By 5-year return
7th
of 13 Canadian diversified bond ETFs
XBB ranks 2nd by assets among the 42 bond ETFs WOWA monitors, 8th (tied) by lowest MER, and 7th of 13 by five-year return in the Canadian diversified group, as of October 30, 2026. See the full list of Canadian bond ETFs.
Compare XBB with similar bond ETFs
XBB is in the Canadian diversified group on our Best Canadian Bond ETFs page. These are the largest other funds in that group.
ETF data as of October 30, 2026
Updated weekly| Ticker | Exposure and strategy | 5-year return | MER | Trailing yield | AUM (CAD B) |
|---|---|---|---|---|---|
| XBB | Canadian investment-grade government and corporate bonds | 0.70% | 0.10% | 3.52% | 10.94 |
| ZAG | Canadian investment-grade government and corporate bonds | 0.64% | 0.09% | 3.45% | 13.24 |
| VAB | Canadian investment-grade government and corporate bonds | 0.66% | 0.08% | 3.42% | 7.76 |
| FCCB | Canadian investment-grade bonds with a corporate tilt | 1.01% | 0.28% | 3.73% | 4.93 |
| XSB | Short-term Canadian investment-grade bonds | 2.32% | 0.10% | 3.11% | 4.54 |
See all 14 funds in this group.
Other bond ETFs from iShares
| Fund | Investment focus | AUM | Fund page |
|---|---|---|---|
| iShares Core Canadian Short Term Bond Index ETF (XSB) | Short-term Canadian investment-grade bonds | C$4.54B | Learn more |
| iShares Core Canadian Corporate Bond Index ETF (XCB) | Canadian investment-grade corporate bonds | C$3.88B | Learn more |
| iShares Core Canadian Short Term Corporate Bond Index ETF (XSH) | Short-term corporate bonds issued in Canadian dollars | C$3.17B | Learn more |
| iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) (XSTH) | Short-term US inflation-protected Treasury bonds, hedged to CAD | C$2.60B | Learn more |
| iShares Canadian Government Bond Index ETF (XGB) | Canadian federal, provincial and municipal government bonds | C$1.61B |
We cover 1 more bond ETFs from iShares. See them all on our Best Canadian Bond ETFs page.
How to buy XBB
You can buy XBB through any Canadian brokerage account, including a TFSA, RRSP or FHSA, by searching for its ticker. When comparing Canadian trading platforms, look at commissions, account fees and currency-conversion costs.
Before you place the order, check the bid-ask spread and consider a limit order, which caps the price you pay but may not fill. If this is your first account, our brokerage account guide walks you through opening one. Buying inside a TFSA? Our guide to the best TFSA investment options covers the other choices for that account.
If you’re from iShares and would like to add or update information on this page, please contact us.
Returns, volatility, Sharpe ratios, trailing yield and trading volume: WOWA calculations from Yahoo Finance prices adjusted for distributions, as of October 30, 2026. Assets under management: as of October 30, 2026. Fees, risk rating and inception date: iShares fund documents. Distribution breakdown: 2025 tax year. Fund page: iShares Core Canadian Universe Bond Index ETF.
Disclaimer: This page is for general information only and is not investment advice. WOWA does not recommend any specific fund. Figures come from issuer and third-party sources, may contain errors and can change after publication, so check the fund’s own documents before you invest.