TBUX vs. ZTWO
TBUX (T. Rowe Price Ultra Short-Term Bond ETF) and ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) are both exchange-traded funds - TBUX is a Ultrashort Bond fund actively managed by T. Rowe Price, while ZTWO is a Short-Term Bond fund tracking the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. TBUX is actively managed, while ZTWO is passively managed. Over the past year, TBUX returned 4.79% vs 3.94% for ZTWO. At a 0.46 correlation, their price movements are largely independent. TBUX charges 0.17%/yr vs 0.15%/yr for ZTWO.
Performance
TBUX vs. ZTWO - Performance Comparison
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Returns By Period
In the year-to-date period, TBUX achieves a 1.73% return, which is significantly higher than ZTWO's 0.93% return.
TBUX
- 1D
- 0.08%
- 1M
- 0.41%
- YTD
- 1.73%
- 6M
- 2.18%
- 1Y
- 4.79%
- 3Y*
- 5.88%
- 5Y*
- —
- 10Y*
- —
ZTWO
- 1D
- 0.04%
- 1M
- 0.28%
- YTD
- 0.93%
- 6M
- 1.30%
- 1Y
- 3.94%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TBUX vs. ZTWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
TBUX T. Rowe Price Ultra Short-Term Bond ETF | 1.73% | 5.37% | 0.14% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 0.93% | 5.49% | 0.36% |
Correlation
The correlation between TBUX and ZTWO is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Dec 20, 2024 | 0.46 |
The correlation between TBUX and ZTWO has been stable across timeframes, ranging from 0.46 to 0.53 - a consistent structural relationship.
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Return for Risk
TBUX vs. ZTWO — Risk / Return Rank
TBUX
ZTWO
TBUX vs. ZTWO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Ultra Short-Term Bond ETF (TBUX) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.
| TBUX | ZTWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +4.11 | ||
| Sortino ratioReturn per unit of downside risk | +9.56 | ||
| Omega ratioGain probability vs. loss probability | 3.09 | 1.63 | +1.46 |
| Calmar ratioReturn relative to maximum drawdown | 48.00 | 4.24 | +43.76 |
| Martin ratioReturn relative to average drawdown | 188.18 | 20.10 | +168.08 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TBUX | ZTWO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 7.14 | 3.03 | +4.11 |
Sharpe Ratio (All Time)Calculated using the full available price history | 3.90 | 3.17 | +0.73 |
Drawdowns
TBUX vs. ZTWO - Drawdown Comparison
The maximum TBUX drawdown since its inception was -1.79%, which is greater than ZTWO's maximum drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for TBUX and ZTWO.
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Drawdown Indicators
| TBUX | ZTWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.79% | -0.93% | -0.86% |
Max Drawdown (1Y)Largest decline over 1 year | -0.10% | -0.93% | +0.83% |
Max Drawdown (3Y)Largest decline over 3 years | -0.33% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.07% | +0.07% |
Average DrawdownAverage peak-to-trough decline | -0.28% | -0.10% | -0.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.03% | 0.20% | -0.17% |
Volatility
TBUX vs. ZTWO - Volatility Comparison
The current volatility for T. Rowe Price Ultra Short-Term Bond ETF (TBUX) is 0.19%, while F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) has a volatility of 0.42%. This indicates that TBUX experiences smaller price fluctuations and is considered to be less risky than ZTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TBUX | ZTWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.19% | 0.42% | -0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 0.44% | 0.97% | -0.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.67% | 1.31% | -0.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.07% | 1.49% | -0.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.07% | 1.49% | -0.42% |
TBUX vs. ZTWO - Expense Ratio Comparison
TBUX has a 0.17% expense ratio, which is higher than ZTWO's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TBUX vs. ZTWO - Dividend Comparison
TBUX's dividend yield for the trailing twelve months is around 4.48%, more than ZTWO's 4.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
TBUX T. Rowe Price Ultra Short-Term Bond ETF | 4.48% | 4.67% | 5.39% | 4.66% | 2.58% | 0.27% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 4.12% | 4.31% | 0.39% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TBUX and ZTWO have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZTWO has higher volatility (0.42%) compared to TBUX (0.19%). In terms of maximum drawdown, TBUX dropped -1.79% vs ZTWO's -0.93%.
On 1-year performance, TBUX leads with 4.79% vs 3.94% for ZTWO. On fees, ZTWO is cheaper at 0.15% per year. On volatility, TBUX has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, TBUX has performed better with a 4.79% return vs 3.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ZTWO is cheaper with a 0.15% expense ratio, compared with 0.17% for TBUX.
TBUX has the higher dividend yield at 4.48%, compared with 4.12% for ZTWO.
TBUX is categorized as Ultrashort Bond, while ZTWO is Short-Term Bond. They also come from different issuers: T. Rowe Price and F/m. Their fees differ too: 0.17% for TBUX and 0.15% for ZTWO.
TBUX currently has the higher Sharpe Ratio (7.14 vs 3.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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