BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) Sharpe Ratio: 0.49

ZMU.TO's Sharpe Ratio of 0.49 indicates that for each unit of volatility, it generates 0.49 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 1, 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.

ZMU.TO Sharpe Ratio Rank

Concerning

ZMU.TO ranks above 17.2% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. 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

Weak risk-adjusted returns relative to category peers
Evaluate whether this holding aligns with your risk-return objectives
Consider reducing exposure or re-evaluating position size
Review higher-ranked alternatives in the same category

ZMU.TO Sharpe Ratio Market Positioning

The chart shows ZMU.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%): 0.81 or lower
Yellow zone (middle 50%): 0.81 to 2.06
Green zone (top 25%): 2.06 or higher
Top 1%: 6.91+
Median: 1.51 — half of all investments score higher

How it compares to other similar ETFs

The table compares BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF's Sharpe Ratio with other ETFs in the Corporate Bonds category across multiple time periods, showing how ZMU.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 1, 2026.

Symbol	Name	1Y Sharpe Ratio
ZQB.TO	BMO High Quality Corporate Bond Index ETF	1.72
ZIC.TO	BMO Mid-Term US Investment Grade Corporate Bond Index ETF	1.64
XHB.TO	iShares Canadian HYBrid Corporate Bond Index ETF	1.58
ZBBB.TO	BMO BBB Corporate Bond Index ETF	1.52
FCSB.NEO	Fidelity Canadian Short Term Corporate Bond ETF	1.39
XCBG.TO	iShares ESG Advanced Canadian Corporate Bond Index ETF	1.29
FLCI.TO	Franklin Canadian Corporate Bond Fund ETF	1.27
CBH.TO	iShares 1-10 Year Laddered Corporate Bond Index ETF	1.27
CACB.TO	CIBC Active Investment Grade Corporate Bond ETF	1.21
VCB.TO	Vanguard Canadian Corporate Bond Index ETF	1.16
ZMU.TO	BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF	0.49

Benchmark Against

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S&P 500 Index

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Historical Sharpe Ratio

The chart shows ZMU.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 ZMU.TO consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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