XBB.TO vs. ZDB.TO
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and ZDB.TO (BMO Discount Bond) are both Canadian Government Bonds funds - XBB.TO tracks the Morningstar Can Core Bd GR CAD while ZDB.TO tracks the FTSE Canada Universe Discount Bond Index. Both are passively managed. Over the past 10 years, XBB.TO returned 1.67%/yr vs 1.61%/yr for ZDB.TO. A 0.77 correlation means they provide meaningful diversification when combined. Both charge a 0.10% expense ratio.
Performance
XBB.TO vs. ZDB.TO - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with XBB.TO having a 1.58% return and ZDB.TO slightly lower at 1.53%. Both investments have delivered pretty close results over the past 10 years, with XBB.TO having a 1.67% annualized return and ZDB.TO not far behind at 1.61%.
XBB.TO
- 1D
- 0.07%
- 1M
- 1.55%
- YTD
- 1.58%
- 6M
- 1.08%
- 1Y
- 2.98%
- 3Y*
- 4.28%
- 5Y*
- 0.72%
- 10Y*
- 1.67%
ZDB.TO
- 1D
- 0.00%
- 1M
- 1.51%
- YTD
- 1.53%
- 6M
- 0.99%
- 1Y
- 2.51%
- 3Y*
- 4.17%
- 5Y*
- 0.56%
- 10Y*
- 1.61%
XBB.TO vs. ZDB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 1.58% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
ZDB.TO BMO Discount Bond | 1.53% | 2.03% | 4.26% | 6.69% | -11.99% | -2.77% | 9.50% | 6.74% | 1.33% | 2.00% |
Correlation
The correlation between XBB.TO and ZDB.TO is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Feb 19, 2014 | 0.77 |
The correlation between XBB.TO and ZDB.TO shifts across timeframes, from 0.77 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XBB.TO vs. ZDB.TO — Risk / Return Rank
XBB.TO
ZDB.TO
XBB.TO vs. ZDB.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 Discount Bond (ZDB.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 | ZDB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.10 | ||
| Sortino ratioReturn per unit of downside risk | +0.13 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.10 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.10 | 0.90 | +0.20 |
| Martin ratioReturn relative to average drawdown | 2.56 | 2.07 | +0.49 |
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
| XBB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.68 | 0.58 | +0.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 0.09 | +0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | 0.25 | 0.00 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 0.38 | +0.33 |
Drawdowns
XBB.TO vs. ZDB.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, roughly equal to the maximum ZDB.TO drawdown of -18.09%. Use the drawdown chart below to compare losses from any high point for XBB.TO and ZDB.TO.
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Drawdown Indicators
| XBB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -18.09% | -0.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -2.79% | +0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -5.07% | -0.35% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -16.25% | +0.35% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -18.09% | -0.07% |
Current DrawdownCurrent decline from peak | -1.32% | -1.45% | +0.13% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -4.21% | +1.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 1.22% | -0.05% |
Volatility
XBB.TO vs. ZDB.TO - Volatility Comparison
iShares Core Canadian Universe Bond Index ETF (XBB.TO) and BMO Discount Bond (ZDB.TO) have volatilities of 1.54% and 1.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XBB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 1.55% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 3.40% | 3.31% | +0.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 4.34% | +0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.62% | 6.52% | +0.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.69% | 6.40% | +0.29% |
XBB.TO vs. ZDB.TO - Expense Ratio Comparison
Both XBB.TO and ZDB.TO have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
XBB.TO vs. ZDB.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.40%, more than ZDB.TO's 2.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.40% | 3.39% | 3.25% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% |
ZDB.TO BMO Discount Bond | 2.00% | 2.28% | 2.38% | 2.42% | 2.52% | 2.16% | 2.06% | 2.20% | 2.07% | 2.06% | 1.95% | 1.99% |
Frequently Asked Questions
With a correlation of 0.93, XBB.TO and ZDB.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
Both ETFs have the same 0.10% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.
XBB.TO and ZDB.TO have the same expense ratio: 0.10% per year.
XBB.TO tracks Morningstar Can Core Bd GR CAD, while ZDB.TO tracks FTSE Canada Universe Discount Bond Index. They also come from different issuers: iShares and BMO.
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