HFR.TO vs. ZCS.TO

Last updated Jun 4, 2026

HFR.TO (Global X Active Ultra-Short Term Investment Grade Bond ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both exchange-traded funds - HFR.TO is a Ultrashort Bond fund actively managed by Global X, while ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index. HFR.TO is actively managed, while ZCS.TO is passively managed. Over the past 10 years, HFR.TO returned 3.28%/yr vs 2.79%/yr for ZCS.TO. At a 0.14 correlation, their price movements are largely independent. HFR.TO charges 0.46%/yr vs 0.11%/yr for ZCS.TO.

Performance

HFR.TO vs. ZCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR.TO) and BMO Short Corporate Bond Index ETF (ZCS.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with HFR.TO having a 1.32% return and ZCS.TO slightly lower at 1.29%. Over the past 10 years, HFR.TO has outperformed ZCS.TO with an annualized return of 3.28%, while ZCS.TO has yielded a comparatively lower 2.79% annualized return.

HFR.TO

• 1D: 0.05%
• 1M: 0.54%
• YTD: 1.32%
• 6M: 1.44%
• 1Y: 3.76%
• 3Y*: 5.69%
• 5Y*: 3.88%
• 10Y*: 3.28%

ZCS.TO

• 1D: -0.04%
• 1M: 1.02%
• YTD: 1.29%
• 6M: 1.26%
• 1Y: 3.96%
• 3Y*: 5.98%
• 5Y*: 2.85%
• 10Y*: 2.79%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HFR.TO vs. ZCS.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HFR.TO Global X Active Ultra-Short Term Investment Grade Bond ETF	1.32%	4.04%	6.89%	7.86%	-0.77%	0.70%	3.51%	4.41%	0.83%	2.34%
ZCS.TO BMO Short Corporate Bond Index ETF	1.29%	4.41%	7.42%	6.67%	-4.48%	-0.76%	6.10%	5.01%	1.23%	1.04%

Correlation

The correlation between HFR.TO and ZCS.TO is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.17
Correlation (All Time) Calculated using the full available price history since Dec 14, 2010	0.14

The correlation between HFR.TO and ZCS.TO shifts across timeframes, from 0.14 (all time) to 0.28 (1 year), reflecting how their relationship changes across market environments.

HFR.TO vs. ZCS.TO - Sectors Allocation Comparison

Sectors	HFR.TO	ZCS.TO
Real Estate	0.7%	0.1%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	-

Return for Risk

HFR.TO vs. ZCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HFR.TO

HFR.TO Risk / Return Rank: 95
HFR.TO Sharpe Ratio Rank: 91
HFR.TO Sortino Ratio Rank: 95
HFR.TO Omega Ratio Rank: 96
HFR.TO Calmar Ratio Rank: 96
HFR.TO Martin Ratio Rank: 96

ZCS.TO

ZCS.TO Risk / Return Rank: 56
ZCS.TO Sharpe Ratio Rank: 56
ZCS.TO Sortino Ratio Rank: 54
ZCS.TO Omega Ratio Rank: 67
ZCS.TO Calmar Ratio Rank: 49
ZCS.TO Martin Ratio Rank: 55

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HFR.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR.TO) and BMO Short Corporate Bond Index ETF (ZCS.TO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HFR.TO	ZCS.TO	Difference
Sharpe ratio: Return per unit of total volatility	3.15	1.95	+1.21
Sortino ratio: Return per unit of downside risk	5.15	2.63	+2.53
Omega ratio: Gain probability vs. loss probability	1.79	1.41	+0.39
Calmar ratio: Return relative to maximum drawdown	9.43	2.44	+6.99
Martin ratio: Return relative to average drawdown	37.37	9.64	+27.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HFR.TO vs. ZCS.TO - Sharpe Ratio Comparison

The current HFR.TO Sharpe Ratio is 3.15, which is higher than the ZCS.TO Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of HFR.TO and ZCS.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HFR.TO	ZCS.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.15	1.95	+1.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.21	1.00	+1.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.64	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.80	-0.20

Drawdowns

HFR.TO vs. ZCS.TO - Drawdown Comparison

The maximum HFR.TO drawdown since its inception was -22.56%, which is greater than ZCS.TO's maximum drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for HFR.TO and ZCS.TO.

Drawdown Indicators

	HFR.TO	ZCS.TO	Difference
Max Drawdown Largest peak-to-trough decline	-22.56%	-13.95%	-8.61%
Max Drawdown (1Y) Largest decline over 1 year	-0.40%	-1.63%	+1.23%
Max Drawdown (3Y) Largest decline over 3 years	-0.52%	-1.63%	+1.11%
Max Drawdown (5Y) Largest decline over 5 years	-3.52%	-7.76%	+4.24%
Max Drawdown (10Y) Largest decline over 10 years	-22.56%	-13.95%	-8.61%
Current Drawdown Current decline from peak	-0.05%	-0.04%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.38%	-0.89%	+0.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.10%	0.41%	-0.31%

Volatility

HFR.TO vs. ZCS.TO - Volatility Comparison

The current volatility for Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR.TO) is 0.28%, while BMO Short Corporate Bond Index ETF (ZCS.TO) has a volatility of 0.69%. This indicates that HFR.TO experiences smaller price fluctuations and is considered to be less risky than ZCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HFR.TO	ZCS.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.28%	0.69%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	0.81%	1.79%	-0.98%
Volatility (1Y) Calculated over the trailing 1-year period	1.20%	2.05%	-0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.76%	2.87%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.77%	4.38%	+1.39%

HFR.TO vs. ZCS.TO - Expense Ratio Comparison

HFR.TO has a 0.46% expense ratio, which is higher than ZCS.TO's 0.11% expense ratio.

Dividends

HFR.TO vs. ZCS.TO - Dividend Comparison

HFR.TO's dividend yield for the trailing twelve months is around 3.65%, less than ZCS.TO's 3.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HFR.TO Global X Active Ultra-Short Term Investment Grade Bond ETF	3.65%	3.76%	4.50%	5.67%	3.39%	1.29%	2.69%	2.61%	2.35%	2.12%	1.97%	2.13%
ZCS.TO BMO Short Corporate Bond Index ETF	3.93%	3.60%	3.27%	3.35%	3.23%	2.99%	2.88%	2.96%	2.88%	3.04%	3.34%	3.53%

Frequently Asked Questions

Can I hold both HFR.TO and ZCS.TO in my portfolio?

HFR.TO and ZCS.TO have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HFR.TO or ZCS.TO?

On fees, ZCS.TO is cheaper at 0.11% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HFR.TO or ZCS.TO?

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.46% for HFR.TO.

What is the main difference between HFR.TO and ZCS.TO?

HFR.TO is categorized as Ultrashort Bond, while ZCS.TO is Canadian Government Bonds. They also come from different issuers: Global X and BMO. Their fees differ too: 0.46% for HFR.TO and 0.11% for ZCS.TO.