XCBG.TO vs. ZCS.TO
XCBG.TO (iShares ESG Advanced Canadian Corporate Bond Index ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both exchange-traded funds - XCBG.TO is a Corporate Bonds fund tracking the Morningstar Can Corp Bd GR CAD, while ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index. Both are passively managed. Over the past 3 years, XCBG.TO returned 5.93%/yr vs 5.98%/yr for ZCS.TO. A 0.58 correlation means they provide meaningful diversification when combined. XCBG.TO charges 0.17%/yr vs 0.11%/yr for ZCS.TO.
Performance
XCBG.TO vs. ZCS.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XCBG.TO achieves a 1.59% return, which is significantly higher than ZCS.TO's 1.29% return.
XCBG.TO
- 1D
- -0.08%
- 1M
- 1.47%
- YTD
- 1.59%
- 6M
- 1.49%
- 1Y
- 3.86%
- 3Y*
- 5.93%
- 5Y*
- —
- 10Y*
- —
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%
XCBG.TO vs. ZCS.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
XCBG.TO iShares ESG Advanced Canadian Corporate Bond Index ETF | 1.59% | 4.21% | 6.79% | 7.45% | -7.40% | -1.10% |
ZCS.TO BMO Short Corporate Bond Index ETF | 1.29% | 4.41% | 7.42% | 6.67% | -4.48% | -0.77% |
Correlation
The correlation between XCBG.TO and ZCS.TO is 0.68, 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 | 0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Jul 28, 2021 | 0.58 |
The correlation between XCBG.TO and ZCS.TO has been stable across timeframes, ranging from 0.58 to 0.68 - a consistent structural relationship.
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Return for Risk
XCBG.TO vs. ZCS.TO — Risk / Return Rank
XCBG.TO
ZCS.TO
XCBG.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares ESG Advanced Canadian Corporate Bond Index ETF (XCBG.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.
| XCBG.TO | ZCS.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.63 | ||
| Sortino ratioReturn per unit of downside risk | -0.75 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.41 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.91 | 2.44 | -0.53 |
| Martin ratioReturn relative to average drawdown | 5.93 | 9.64 | -3.72 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XCBG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.31 | 1.95 | -0.63 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 1.00 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.64 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.80 | -0.27 |
Drawdowns
XCBG.TO vs. ZCS.TO - Drawdown Comparison
The maximum XCBG.TO drawdown since its inception was -12.14%, smaller than the maximum ZCS.TO drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for XCBG.TO and ZCS.TO.
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Drawdown Indicators
| XCBG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.14% | -13.95% | +1.81% |
Max Drawdown (1Y)Largest decline over 1 year | -2.03% | -1.63% | -0.40% |
Max Drawdown (3Y)Largest decline over 3 years | -2.26% | -1.63% | -0.63% |
Max Drawdown (5Y)Largest decline over 5 years | — | -7.76% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -13.95% | — |
Current DrawdownCurrent decline from peak | -0.08% | -0.04% | -0.04% |
Average DrawdownAverage peak-to-trough decline | -3.53% | -0.89% | -2.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.65% | 0.41% | +0.24% |
Volatility
XCBG.TO vs. ZCS.TO - Volatility Comparison
iShares ESG Advanced Canadian Corporate Bond Index ETF (XCBG.TO) has a higher volatility of 1.07% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.69%. This indicates that XCBG.TO's price experiences larger fluctuations and is considered to be riskier than ZCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XCBG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.07% | 0.69% | +0.38% |
Volatility (6M)Calculated over the trailing 6-month period | 2.37% | 1.79% | +0.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.95% | 2.05% | +0.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.21% | 2.87% | +1.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.21% | 4.38% | -0.17% |
XCBG.TO vs. ZCS.TO - Expense Ratio Comparison
XCBG.TO has a 0.17% expense ratio, which is higher than ZCS.TO's 0.11% 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
XCBG.TO vs. ZCS.TO - Dividend Comparison
XCBG.TO's dividend yield for the trailing twelve months is around 3.93%, which matches ZCS.TO's 3.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XCBG.TO iShares ESG Advanced Canadian Corporate Bond Index ETF | 3.93% | 3.84% | 3.61% | 3.19% | 2.99% | 0.87% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
XCBG.TO and ZCS.TO have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.17% for XCBG.TO.
XCBG.TO is categorized as Corporate Bonds, while ZCS.TO is Canadian Government Bonds. XCBG.TO tracks Morningstar Can Corp Bd GR CAD, while ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.17% for XCBG.TO and 0.11% for ZCS.TO.
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