BMO Ultra Short-Term Bond ETF (ZST.TO) Sharpe Ratio: 1.57

ZST.TO's Sharpe Ratio of 1.57 indicates that for each unit of volatility, it generates 1.57 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Apr 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.

ZST.TO Sharpe Ratio Rank

Exceptional

ZST.TO ranks above 83.3% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. 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

Suitable as a core holding given strong risk-adjusted returns
Monitor rank changes to detect deteriorating return-to-volatility profile
Exceptional Sharpe ratio supports larger position sizes
Compare with category peers to assess whether strength is investment-specific or category-wide

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%): 0.46 or lower
Yellow zone (middle 50%): 0.46 to 1.39
Green zone (top 25%): 1.39 or higher
Top 1%: 5.74+
Median: 0.94 — 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 Apr 1, 2026.

Symbol	Name	1Y Sharpe Ratio
CBIL.TO	Global X 0-3 Month T-Bill ETF	8.16
UBIL-U.TO	Global X 0-3 Month U.S. T-Bill ETF USD	7.09
TCSH.TO	TD Cash Management ETF	5.78
XFR.TO	iShares Floating Rate Index ETF	3.72
HFR.TO	Global X Active Ultra-Short Term Investment Grade Bond ETF	2.89
ZBI.TO	BMO Canadian Bank Income Index ETF	2.09
XSH.TO	iShares Core Canadian Short Term Corporate Bond Index ETF	1.62
XSHG.TO	iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF	1.59
ZST.TO	BMO Ultra Short-Term Bond ETF	1.57
ZCS.TO	BMO Short Corporate Bond Index ETF	1.57

Benchmark Against

Benchmark

S&P 500 Index

Lookback Period

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.

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Explore ZST.TO risk-adjusted metrics in detail

Dive deeper into individual metrics with historical trends, benchmark comparisons, and performance across different time periods.

ZST.TO Sortino Ratio