XBB.TO vs. ZBI.TO

Last updated Jun 4, 2026

XBB.TO (iShares Core Canadian Universe Bond Index ETF) and ZBI.TO (BMO Canadian Bank Income Index ETF) are both Canadian Government Bonds funds - XBB.TO tracks the Morningstar Can Core Bd GR CAD while ZBI.TO tracks the Solactive Canadian Bank Income Index. Both are passively managed. Over the past 3 years, XBB.TO returned 4.17%/yr vs 8.27%/yr for ZBI.TO. At a 0.33 correlation, their price movements are largely independent. XBB.TO charges 0.10%/yr vs 0.28%/yr for ZBI.TO.

Performance

XBB.TO vs. ZBI.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares Core Canadian Universe Bond Index ETF (XBB.TO) and BMO Canadian Bank Income Index ETF (ZBI.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XBB.TO achieves a 1.51% return, which is significantly lower than ZBI.TO's 1.64% return.

XBB.TO

• 1D: -0.18%
• 1M: 1.59%
• YTD: 1.51%
• 6M: 0.69%
• 1Y: 3.09%
• 3Y*: 4.17%
• 5Y*: 0.71%
• 10Y*: 1.63%

ZBI.TO

• 1D: 0.10%
• 1M: 0.78%
• YTD: 1.64%
• 6M: 1.59%
• 1Y: 5.19%
• 3Y*: 8.27%
• 5Y*: —
• 10Y*: —

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

XBB.TO vs. ZBI.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
XBB.TO iShares Core Canadian Universe Bond Index ETF	1.51%	2.59%	4.00%	6.64%	-7.15%
ZBI.TO BMO Canadian Bank Income Index ETF	1.64%	5.10%	12.50%	6.85%	-3.89%

Correlation

The correlation between XBB.TO and ZBI.TO 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 (3Y) Calculated over the trailing 3-year period	0.34
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.33

Over the past year, XBB.TO and ZBI.TO have become more correlated (0.53) than their long-term average of 0.33, meaning their price movements have been converging.

Return for Risk

XBB.TO vs. ZBI.TO — Risk / Return Rank

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

XBB.TO

XBB.TO Risk / Return Rank: 21
XBB.TO Sharpe Ratio Rank: 21
XBB.TO Sortino Ratio Rank: 18
XBB.TO Omega Ratio Rank: 19
XBB.TO Calmar Ratio Rank: 24
XBB.TO Martin Ratio Rank: 21

ZBI.TO

ZBI.TO Risk / Return Rank: 85
ZBI.TO Sharpe Ratio Rank: 80
ZBI.TO Sortino Ratio Rank: 85
ZBI.TO Omega Ratio Rank: 89
ZBI.TO Calmar Ratio Rank: 82
ZBI.TO Martin Ratio Rank: 90

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.

XBB.TO vs. ZBI.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Universe Bond Index ETF (XBB.TO) and BMO Canadian Bank Income Index ETF (ZBI.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.

	XBB.TO	ZBI.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.71	2.59	-1.89
Sortino ratio: Return per unit of downside risk	0.98	3.84	-2.86
Omega ratio: Gain probability vs. loss probability	1.12	1.57	-0.45
Calmar ratio: Return relative to maximum drawdown	1.14	4.32	-3.18
Martin ratio: Return relative to average drawdown	2.65	21.01	-18.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XBB.TO vs. ZBI.TO - Sharpe Ratio Comparison

The current XBB.TO Sharpe Ratio is 0.71, which is lower than the ZBI.TO Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of XBB.TO and ZBI.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

	XBB.TO	ZBI.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.71	2.59	-1.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	1.25	-0.54

Drawdowns

XBB.TO vs. ZBI.TO - Drawdown Comparison

The maximum XBB.TO drawdown since its inception was -18.16%, which is greater than ZBI.TO's maximum drawdown of -8.22%. Use the drawdown chart below to compare losses from any high point for XBB.TO and ZBI.TO.

Drawdown Indicators

	XBB.TO	ZBI.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.16%	-8.22%	-9.94%
Max Drawdown (1Y) Largest decline over 1 year	-2.73%	-1.21%	-1.52%
Max Drawdown (3Y) Largest decline over 3 years	-5.42%	-1.47%	-3.95%
Max Drawdown (5Y) Largest decline over 5 years	-15.90%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-18.16%	—	—
Current Drawdown Current decline from peak	-1.39%	-0.00%	-1.39%
Average Drawdown Average peak-to-trough decline	-2.76%	-2.25%	-0.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.17%	0.25%	+0.92%

Volatility

XBB.TO vs. ZBI.TO - Volatility Comparison

iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a higher volatility of 1.54% compared to BMO Canadian Bank Income Index ETF (ZBI.TO) at 0.56%. This indicates that XBB.TO's price experiences larger fluctuations and is considered to be riskier than ZBI.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XBB.TO	ZBI.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.54%	0.56%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	3.40%	1.57%	+1.83%
Volatility (1Y) Calculated over the trailing 1-year period	4.38%	2.02%	+2.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.63%	4.01%	+2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.69%	4.01%	+2.68%

XBB.TO vs. ZBI.TO - Expense Ratio Comparison

XBB.TO has a 0.10% expense ratio, which is lower than ZBI.TO's 0.28% expense ratio.

Dividends

XBB.TO vs. ZBI.TO - Dividend Comparison

XBB.TO's dividend yield for the trailing twelve months is around 3.41%, less than ZBI.TO's 4.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XBB.TO iShares Core Canadian Universe Bond Index ETF	3.41%	3.39%	3.25%	3.01%	2.91%	2.54%	2.55%	2.80%	2.92%	2.83%	2.81%	2.87%
ZBI.TO BMO Canadian Bank Income Index ETF	4.24%	4.01%	3.36%	3.58%	2.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XBB.TO and ZBI.TO in my portfolio?

XBB.TO and ZBI.TO 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.

Which ETF is better, XBB.TO or ZBI.TO?

On fees, XBB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XBB.TO or ZBI.TO?

XBB.TO is cheaper with a 0.10% expense ratio, compared with 0.28% for ZBI.TO.

What is the main difference between XBB.TO and ZBI.TO?

XBB.TO tracks Morningstar Can Core Bd GR CAD, while ZBI.TO tracks Solactive Canadian Bank Income Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.10% for XBB.TO and 0.28% for ZBI.TO.