XEG.TO vs. ZCS.TO
XEG.TO (iShares S&P/TSX Capped Energy Index ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both exchange-traded funds - XEG.TO is a Energy Equities fund tracking the S&P/TSX Capped Energy Index, 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 10 years, XEG.TO returned 11.85%/yr vs 2.79%/yr for ZCS.TO. At a correlation of -0.10, they often move in opposite directions. XEG.TO charges 0.61%/yr vs 0.11%/yr for ZCS.TO.
Performance
XEG.TO vs. ZCS.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XEG.TO achieves a 44.34% return, which is significantly higher than ZCS.TO's 1.29% return. Over the past 10 years, XEG.TO has outperformed ZCS.TO with an annualized return of 11.85%, while ZCS.TO has yielded a comparatively lower 2.79% annualized return.
XEG.TO
- 1D
- 1.17%
- 1M
- -0.04%
- YTD
- 44.34%
- 6M
- 39.73%
- 1Y
- 70.40%
- 3Y*
- 28.08%
- 5Y*
- 29.48%
- 10Y*
- 11.85%
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%
XEG.TO vs. ZCS.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XEG.TO iShares S&P/TSX Capped Energy Index ETF | 44.34% | 16.72% | 14.08% | 3.52% | 53.25% | 83.71% | -34.41% | 8.98% | -27.05% | -11.18% |
ZCS.TO BMO Short Corporate Bond Index ETF | 1.29% | 4.41% | 7.42% | 6.67% | -4.48% | -0.76% | 6.10% | 5.01% | 1.23% | 1.04% |
Correlation
The correlation between XEG.TO and ZCS.TO is -0.25, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.09 |
Correlation (All Time) Calculated using the full available price history since Oct 27, 2009 | -0.10 |
The correlation between XEG.TO and ZCS.TO shifts across timeframes, from -0.25 (1 year) to -0.09 (5 years), reflecting how their relationship changes across market environments.
XEG.TO vs. ZCS.TO - Sectors Allocation Comparison
Sectors
XEG.TO
ZCS.TO
Energy
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Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Financial Services
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Healthcare
-
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Industrials
-
-
Real Estate
-
Technology
-
-
Utilities
-
-
Energy
XEG.TO
ZCS.TO
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Basic Materials
XEG.TO
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ZCS.TO
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Communication Services
XEG.TO
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ZCS.TO
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Consumer Cyclical
XEG.TO
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ZCS.TO
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Consumer Defensive
XEG.TO
-
ZCS.TO
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Financial Services
XEG.TO
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ZCS.TO
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Healthcare
XEG.TO
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ZCS.TO
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Industrials
XEG.TO
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ZCS.TO
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Real Estate
XEG.TO
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ZCS.TO
Technology
XEG.TO
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ZCS.TO
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Utilities
XEG.TO
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ZCS.TO
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Return for Risk
XEG.TO vs. ZCS.TO — Risk / Return Rank
XEG.TO
ZCS.TO
XEG.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX Capped Energy Index ETF (XEG.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.
| XEG.TO | ZCS.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.04 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.41 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 6.36 | 2.44 | +3.92 |
| Martin ratioReturn relative to average drawdown | 19.02 | 9.64 | +9.38 |
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
| XEG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.11 | 1.95 | +1.17 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.04 | 1.00 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.36 | 0.64 | -0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.28 | 0.80 | -0.52 |
Drawdowns
XEG.TO vs. ZCS.TO - Drawdown Comparison
The maximum XEG.TO drawdown since its inception was -87.74%, which is greater than ZCS.TO's maximum drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for XEG.TO and ZCS.TO.
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Drawdown Indicators
| XEG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -87.74% | -13.95% | -73.79% |
Max Drawdown (1Y)Largest decline over 1 year | -11.12% | -1.63% | -9.49% |
Max Drawdown (3Y)Largest decline over 3 years | -25.67% | -1.63% | -24.04% |
Max Drawdown (5Y)Largest decline over 5 years | -28.42% | -7.76% | -20.66% |
Max Drawdown (10Y)Largest decline over 10 years | -79.66% | -13.95% | -65.71% |
Current DrawdownCurrent decline from peak | -4.00% | -0.04% | -3.96% |
Average DrawdownAverage peak-to-trough decline | -29.19% | -0.89% | -28.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.71% | 0.41% | +3.30% |
Volatility
XEG.TO vs. ZCS.TO - Volatility Comparison
iShares S&P/TSX Capped Energy Index ETF (XEG.TO) has a higher volatility of 9.31% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.69%. This indicates that XEG.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
| XEG.TO | ZCS.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.31% | 0.69% | +8.62% |
Volatility (6M)Calculated over the trailing 6-month period | 18.99% | 1.79% | +17.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.76% | 2.05% | +20.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 28.62% | 2.87% | +25.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 33.41% | 4.38% | +29.03% |
XEG.TO vs. ZCS.TO - Expense Ratio Comparison
XEG.TO has a 0.61% expense ratio, which is higher than ZCS.TO's 0.11% expense ratio.
Dividends
XEG.TO vs. ZCS.TO - Dividend Comparison
XEG.TO's dividend yield for the trailing twelve months is around 2.65%, less than ZCS.TO's 3.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEG.TO iShares S&P/TSX Capped Energy Index ETF | 2.65% | 3.63% | 3.46% | 4.26% | 3.31% | 1.64% | 2.96% | 2.70% | 2.25% | 1.41% | 1.40% | 3.58% |
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
XEG.TO and ZCS.TO have a correlation of -0.25, 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 0.61% for XEG.TO.
XEG.TO is categorized as Energy Equities, while ZCS.TO is Canadian Government Bonds. XEG.TO tracks S&P/TSX Capped Energy Index, while ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.61% for XEG.TO and 0.11% for ZCS.TO.
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