XBB.TO vs. ZST.TO
XBB.TO (iShares Core Canadian Universe Bond Index ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both Canadian Government Bonds funds. XBB.TO is passively managed, while ZST.TO is actively managed. Over the past 10 years, XBB.TO returned 1.63%/yr vs 2.34%/yr for ZST.TO. At a 0.18 correlation, their price movements are largely independent. XBB.TO charges 0.10%/yr vs 0.17%/yr for ZST.TO.
Performance
XBB.TO vs. ZST.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XBB.TO achieves a 1.51% return, which is significantly higher than ZST.TO's 1.08% return. Over the past 10 years, XBB.TO has underperformed ZST.TO with an annualized return of 1.63%, while ZST.TO has yielded a comparatively higher 2.34% annualized 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%
ZST.TO
- 1D
- 0.02%
- 1M
- 0.25%
- YTD
- 1.08%
- 6M
- 0.26%
- 1Y
- 1.68%
- 3Y*
- 3.84%
- 5Y*
- 2.95%
- 10Y*
- 2.34%
XBB.TO vs. ZST.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 1.51% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
ZST.TO BMO Ultra Short-Term Bond ETF | 1.08% | 2.03% | 5.16% | 5.33% | 1.19% | 0.22% | 1.74% | 2.36% | 1.95% | 1.43% |
Correlation
The correlation between XBB.TO and ZST.TO is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.18 |
The correlation between XBB.TO and ZST.TO shifts across timeframes, from 0.18 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XBB.TO vs. ZST.TO — Risk / Return Rank
XBB.TO
ZST.TO
XBB.TO vs. ZST.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 Ultra Short-Term Bond ETF (ZST.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 | ZST.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.85 | ||
| Sortino ratioReturn per unit of downside risk | -0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.83 | -0.70 |
| Calmar ratioReturn relative to maximum drawdown | 1.14 | 1.68 | -0.54 |
| Martin ratioReturn relative to average drawdown | 2.65 | 4.51 | -1.85 |
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 | ZST.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.71 | 1.56 | -0.85 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 4.12 | -4.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 3.30 | -3.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 1.81 | -1.09 |
Drawdowns
XBB.TO vs. ZST.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, which is greater than ZST.TO's maximum drawdown of -1.06%. Use the drawdown chart below to compare losses from any high point for XBB.TO and ZST.TO.
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Drawdown Indicators
| XBB.TO | ZST.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.16% | -1.06% | -17.10% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -1.01% | -1.72% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -1.01% | -4.41% |
Max Drawdown (5Y)Largest decline over 5 years | -15.90% | -1.01% | -14.89% |
Max Drawdown (10Y)Largest decline over 10 years | -18.16% | -1.06% | -17.10% |
Current DrawdownCurrent decline from peak | -1.39% | -0.00% | -1.39% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -0.13% | -2.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 0.37% | +0.80% |
Volatility
XBB.TO vs. ZST.TO - Volatility Comparison
iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a higher volatility of 1.54% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that XBB.TO's price experiences larger fluctuations and is considered to be riskier than ZST.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XBB.TO | ZST.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 0.08% | +1.46% |
Volatility (6M)Calculated over the trailing 6-month period | 3.40% | 1.05% | +2.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.38% | 1.08% | +3.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 0.72% | +5.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.69% | 0.71% | +5.98% |
XBB.TO vs. ZST.TO - Expense Ratio Comparison
XBB.TO has a 0.10% expense ratio, which is lower than ZST.TO's 0.17% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
XBB.TO vs. ZST.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.41%, more than ZST.TO's 2.55% 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% |
ZST.TO BMO Ultra Short-Term Bond ETF | 2.55% | 2.82% | 4.65% | 4.79% | 2.75% | 2.29% | 2.65% | 2.82% | 3.43% | 4.05% | 3.92% | 3.90% |
Frequently Asked Questions
XBB.TO and ZST.TO have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
XBB.TO is cheaper with a 0.10% expense ratio, compared with 0.17% for ZST.TO.
They also come from different issuers: iShares and BMO. Their fees differ too: 0.10% for XBB.TO and 0.17% for ZST.TO.
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