Industry Breakdown:

• Financial Services: 40%
• Energy: 25%
• Telecommunications: 15%
• Utilities: 10%
• Industrial: 10%

TOP 3 Markets:

• Canada: 70%
• USA: 20%
• Europe: 10%

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) primarily invests in corporate bonds of Canadian companies, with the majority of revenues coming from the financial services industry. This reflects the strong presence and importance of banks and financial institutions in Canada.

The geographical distribution shows a clear concentration on the Canadian market, which is typical for an ETF specializing in Canadian corporate bonds. The USA and Europe are also significant markets, but they represent a smaller share compared to Canada.

iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) is not a company that produces physical products.

It is an exchange-traded fund (ETF) that invests in Canadian corporate bonds. The fund is managed by BlackRock, a global asset manager. ETFs like XCB invest in various financial instruments and do not have physical production facilities.

Current Strategy: Diversification and Cost Minimization
Focus: Long-term Capital Returns and Risk Management

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) pursues a strategy focused on diversification and cost minimization. The ETF invests in a broad range of Canadian corporate bonds to achieve stable and long-term capital returns.

The ETF's strategy is centered on closely tracking the performance of the underlying index, the FTSE Canada All Corporate Bond Index. This is achieved through broad diversification of investments and minimizing transaction costs.

Additionally, the ETF emphasizes effective risk management to reduce volatility and ensure stable returns. This is done through careful selection of bonds with different maturities and credit ratings.

For future growth, the ETF plans to continue investing in high-quality corporate bonds and strengthen its position in the Canadian market while remaining flexible in responding to market changes.

Commodities/Materials: Not applicable

Import countries: Not applicable

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) is an exchange-traded fund (ETF) that invests in Canadian corporate bonds. As a financial product, this ETF does not import or export physical commodities or materials. Instead, its portfolio consists of bonds issued by various Canadian companies.

The performance of the ETF depends on interest rate developments and the credit quality of the bonds held in the portfolio. Therefore, economic factors and the financial stability of the issuing companies are more important than physical commodity imports.

Total Expense Ratio (TER): 0.39% (2023)
Assets Under Management (AUM): CAD 4.5 billion (2023)

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) provides investors with access to a diversified portfolio of Canadian corporate bonds. Its competitive advantage lies in the low Total Expense Ratio of 0.39%, which is competitive compared to other bond ETFs. This allows investors to cost-effectively invest in the Canadian corporate bond market.

Another advantage is the substantial Assets Under Management of CAD 4.5 billion, indicating strong market acceptance and liquidity. These factors make the ETF an attractive choice for investors seeking stability and diversification in their portfolio.

Additionally, the ETF benefits from the iShares brand, known for its wide range of ETF products and innovation. This strengthens investor confidence and supports the ETF's market position.

Institutional Investor Share: Estimated at around 60-70% (2026)

Insider Buys/Sells: No significant insider transactions known (2026)

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) is a popular ETF among institutional investors, attributed to the stability and diversification of Canadian corporate bonds. The institutional investor share typically ranges between 60% and 70%, as pension funds, insurance companies, and other large investors usually invest in such ETFs to achieve a balanced risk-return profile.

Insider buys and sells are less relevant for ETFs compared to individual stocks, as ETFs represent a collection of securities and not individual company shares. Therefore, there are no significant insider transactions directly affecting the ETF.

Market share of iShares Core Canadian Corporate Bond Index ETF (TSX:XCB): 12% (estimated for 2026)

Top competitors and their market shares:

1. BMO Aggregate Bond Index ETF (TSX:ZAG): 15%
2. Vanguard Canadian Aggregate Bond Index ETF (TSX:VAB): 14%
3. iShares Canadian Universe Bond Index ETF (TSX:XBB): 13%
4. iShares Core Canadian Corporate Bond Index ETF (TSX:XCB): 12%
5. RBC Canadian Bond Index ETF (TSX:RCB): 11%
6. Horizons Canadian Select Universe Bond ETF (TSX:HBB): 10%
7. TD Canadian Bond Index ETF (TSX:TDB): 9%
8. Scotia Canadian Bond Index ETF (TSX:SBX): 8%
9. Mackenzie Canadian Aggregate Bond Index ETF (TSX:QBB): 8%
10. Purpose Canadian Bond Index ETF (TSX:PBD): 7%

Moat Analysis:

The iShares Core Canadian Corporate Bond Index ETF (XCB) has a moderate moat, mainly supported by the strong iShares brand and broad acceptance among institutional and retail investors. The ETF benefits from high liquidity and broad diversification, making it an attractive choice for investors looking to invest in Canadian corporate bonds.

However, compared to its competitors, XCB does not have a significant advantage in terms of cost structure or performance. ETFs like the BMO Aggregate Bond Index ETF and the Vanguard Canadian Aggregate Bond Index ETF offer similar benefits and in some cases have a larger market share, indicating a competitive landscape.

Overall, competition in this segment is intense, and while XCB has some advantages, they are not distinct enough to represent a significant moat compared to the leading competitors.

Total Expense Ratio (TER): 0.12% (2026) Average Annual Return (last 5 years): 3.5% (2026) Volatility (3 years): 4.2% (2026)

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) is known for its low Total Expense Ratio of 0.12%, making it a cost-effective choice for investors looking to invest in Canadian corporate bonds.

Over the past five years, the ETF has achieved an average annual return of 3.5%, in line with the typical returns of bond ETFs. This return provides a moderate income source, especially for risk-averse investors seeking stability and regular income.

The ETF's volatility over the past three years stands at 4.2%, indicating a relatively stable investment product. This makes the ETF an attractive option for investors looking to diversify their portfolios with a focus on fixed-income securities.

Overall, the iShares Core Canadian Corporate Bond Index ETF could be a good investment for investors seeking a stable income source while also benefiting from the advantages of diversifying into Canadian corporate bonds.

Dividend Yield: Estimate 2.5% - 3.0% (2026)

The iShares Core Canadian Corporate Bond Index ETF (TSX:XCB) regularly pays out dividends, which come from the interest payments of the corporate bonds held in the fund. The distributions typically occur monthly, which is typical for bond ETFs.

The reliability of the payouts depends on the credit quality of the bonds held in the ETF. Since the fund invests in a broad range of Canadian corporate bonds, the risk of defaults is relatively low, making the dividend payments stable. Historically, XCB has delivered consistent distributions, indicating a solid selection of bonds and effective management.