BMO ESG Corporate Bond Index ETF (ESGB.TO) Sharpe Ratio: 0.94

ESGB.TO's Sharpe Ratio of 0.94 indicates that for each unit of volatility, it generates 0.94 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jul 25, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

ESGB.TO Sharpe Ratio Rank

Below Average

ESGB.TO ranks above 37.5% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

Strong returns with low total volatility → Higher rank
High volatility (both upside and downside) → Lower rank
Consistent returns → Higher rank than volatile returns of same magnitude
Sharp drawdowns increase volatility → Lower rank

What you can do with this information

Returns may not adequately compensate for volatility taken
Consider smaller allocation given below-average risk-adjusted profile
Explore higher-ranked investments with better consistency
Assess whether the volatility profile aligns with your portfolio goals

ESGB.TO Sharpe Ratio Market Positioning

The chart shows ESGB.TO's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

Red zone (bottom 25%): 0.59 or lower
Yellow zone (middle 50%): 0.59 to 1.73
Green zone (top 25%): 1.73 or higher
Top 1%: 6.32+
Median: 1.22 — half of all investments score higher

How it compares to other similar ETFs

The table compares BMO ESG Corporate Bond Index ETF's Sharpe Ratio with other ETFs in the Corporate Bonds, Investment Grade Bonds, ESG category across multiple time periods, showing how ESGB.TO's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jul 25, 2026.

Symbol	Name	1Y Sharpe Ratio
RQO.TO	RBC Target 2026 Corporate Bond Index ETF	4.05
SYLD.TO	Purpose Strategic Yield Fund	2.87
RQP.TO	RBC Target 2027 Canadian Corporate Bond Index ETF	2.83
HFR.TO	Global X Active Ultra-Short Term Investment Grade Bond ETF	2.75
ESGC.TO	Invesco S&P/TSX Composite ESG Index ETF	2.51
CFRN.TO	CIBC Active Investment Grade Floating Rate Bond ETF	2.26
DXV.TO	Dynamic Active Ultra Short Term Bond ETF	2.03
ESGA.TO	BMO MSCI Canada Selection Equity Index ETF	1.78
ZCS.TO	BMO Short Corporate Bond Index ETF	1.74
ESGG.TO	BMO MSCI Global Selection Equity Index ETF	1.73
ESGB.TO	BMO ESG Corporate Bond Index ETF	0.94

Benchmark

S&P 500 Index

Lookback Period

How to choose period

Historical Sharpe Ratio

The chart shows ESGB.TO's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ESGB.TO consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does ESGB.TO fit in your portfolio?

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