PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan

BMO Ultra Short-Term Bond ETF (ZST.TO) Sharpe Ratio: 1.56

ETF · Currency in CAD · Last updated Jun 4, 2026

The ETF aims to provide exposure to a diversified mix of short-term fixed income asset classes with maturities under one year, including investment grade corporate bonds, government bonds, and other fixed income securities, while utilizing active management strategies for portfolio rebalancing.

ZST.TO's Sharpe Ratio of 1.56 indicates that for each unit of volatility, it generates 1.56 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 4, 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.

ZST.TO Sharpe Ratio Rank

ZST.TO Sharpe Ratio Rank: 43.544
Average

ZST.TO ranks above 43.5% of all investments in our database based on Sharpe Ratio over the past 12 months, showing balanced 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

  • Returns are proportional to volatility—neither strong nor weak
  • Evaluate whether the volatility profile aligns with your risk tolerance
  • Review higher-ranked alternatives in the same category
  • Monitor rank direction to identify improving or deteriorating trends

ZST.TO Sharpe Ratio Market Positioning

The chart shows ZST.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%): 0.84 or lower
  • Yellow zone (middle 50%): 0.84 to 2.41
  • Green zone (top 25%): 2.41 or higher
  • Top 1%: 7.85+
  • Median: 1.69 — half of all investments score higher

How it compares to other similar ETFs

The table compares BMO Ultra Short-Term Bond ETF's Sharpe Ratio with other ETFs in the Canadian Government Bonds, Ultrashort Bond category across multiple time periods, showing how ZST.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 Jun 4, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
CBIL.TOGlobal X 0-3 Month T-Bill ETF9.47
UBIL-U.TOGlobal X 0-3 Month U.S. T-Bill ETF USD8.69
MNU-U.TOPurpose USD Cash Management ETF7.16
VVSG.TOVanguard Canadian Ultra-Short Government Bond Index ETF6.32
TCSH.TOTD Cash Management ETF5.79
XFR.TOiShares Floating Rate Index ETF4.12
HFR.TOGlobal X Active Ultra-Short Term Investment Grade Bond ETF3.15
ZBI.TOBMO Canadian Bank Income Index ETF2.59
XSHG.TOiShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF1.95
ZCS.TOBMO Short Corporate Bond Index ETF1.95
ZST.TOBMO Ultra Short-Term Bond ETF1.56

S&P 500 Index

How to choose period

Historical Sharpe Ratio

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

Loading charts...

Sharpe Ratio Calculator

How does ZST.TO fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

Analyze Your Portfolio