XFN.TO vs. ZWB.TO
XFN.TO (iShares S&P/TSX Capped Financials Index ETF) and ZWB.TO (BMO Covered Call Canadian Banks ETF) are both Financials Equities funds. XFN.TO is passively managed, while ZWB.TO is actively managed. Over the past 10 years, XFN.TO returned 14.38%/yr vs 12.24%/yr for ZWB.TO. Their correlation of 0.93 suggests significant overlap in exposure. XFN.TO charges 0.61%/yr vs 0.71%/yr for ZWB.TO.
Performance
XFN.TO vs. ZWB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XFN.TO achieves a 12.51% return, which is significantly lower than ZWB.TO's 16.23% return. Over the past 10 years, XFN.TO has outperformed ZWB.TO with an annualized return of 14.38%, while ZWB.TO has yielded a comparatively lower 12.24% annualized return.
XFN.TO
- 1D
- -0.55%
- 1M
- 5.10%
- YTD
- 12.51%
- 6M
- 17.66%
- 1Y
- 41.54%
- 3Y*
- 29.67%
- 5Y*
- 16.93%
- 10Y*
- 14.38%
ZWB.TO
- 1D
- -0.31%
- 1M
- 5.06%
- YTD
- 16.23%
- 6M
- 21.03%
- 1Y
- 49.97%
- 3Y*
- 25.69%
- 5Y*
- 13.82%
- 10Y*
- 12.24%
XFN.TO vs. ZWB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XFN.TO iShares S&P/TSX Capped Financials Index ETF | 12.51% | 34.40% | 29.32% | 13.09% | -9.92% | 35.57% | 0.99% | 20.66% | -9.76% | 12.54% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 16.23% | 34.91% | 19.41% | 6.67% | -11.00% | 30.81% | 1.68% | 14.32% | -8.08% | 11.52% |
Correlation
The correlation between XFN.TO and ZWB.TO is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.93 |
The correlation between XFN.TO and ZWB.TO has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.
XFN.TO vs. ZWB.TO - Sectors Allocation Comparison
Sectors
XFN.TO
ZWB.TO
Financial Services
Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Energy
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Healthcare
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Industrials
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Real Estate
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Technology
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Utilities
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Financial Services
XFN.TO
ZWB.TO
Basic Materials
XFN.TO
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ZWB.TO
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Communication Services
XFN.TO
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ZWB.TO
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Consumer Cyclical
XFN.TO
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ZWB.TO
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Consumer Defensive
XFN.TO
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ZWB.TO
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Energy
XFN.TO
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ZWB.TO
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Healthcare
XFN.TO
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ZWB.TO
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Industrials
XFN.TO
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ZWB.TO
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Real Estate
XFN.TO
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ZWB.TO
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Technology
XFN.TO
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ZWB.TO
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Utilities
XFN.TO
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ZWB.TO
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Return for Risk
XFN.TO vs. ZWB.TO — Risk / Return Rank
XFN.TO
ZWB.TO
XFN.TO vs. ZWB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX Capped Financials Index ETF (XFN.TO) and BMO Covered Call Canadian Banks ETF (ZWB.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.
| XFN.TO | ZWB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.98 | ||
| Sortino ratioReturn per unit of downside risk | -1.31 | ||
| Omega ratioGain probability vs. loss probability | 1.61 | 1.86 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 5.35 | 6.42 | -1.07 |
| Martin ratioReturn relative to average drawdown | 21.60 | 28.83 | -7.22 |
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
| XFN.TO | ZWB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.46 | 4.44 | -0.98 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.26 | 1.10 | +0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.87 | 0.78 | +0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.64 | 0.74 | -0.10 |
Drawdowns
XFN.TO vs. ZWB.TO - Drawdown Comparison
The maximum XFN.TO drawdown since its inception was -56.55%, which is greater than ZWB.TO's maximum drawdown of -39.36%. Use the drawdown chart below to compare losses from any high point for XFN.TO and ZWB.TO.
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Drawdown Indicators
| XFN.TO | ZWB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.55% | -39.36% | -17.19% |
Max Drawdown (1Y)Largest decline over 1 year | -7.80% | -7.82% | +0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -12.37% | -14.05% | +1.68% |
Max Drawdown (5Y)Largest decline over 5 years | -21.90% | -25.26% | +3.36% |
Max Drawdown (10Y)Largest decline over 10 years | -39.93% | -39.36% | -0.57% |
Current DrawdownCurrent decline from peak | -1.39% | -1.85% | +0.46% |
Average DrawdownAverage peak-to-trough decline | -6.60% | -5.56% | -1.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 1.74% | +0.19% |
Volatility
XFN.TO vs. ZWB.TO - Volatility Comparison
iShares S&P/TSX Capped Financials Index ETF (XFN.TO) and BMO Covered Call Canadian Banks ETF (ZWB.TO) have volatilities of 4.19% and 4.26%, 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
| XFN.TO | ZWB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.19% | 4.26% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 10.10% | 10.03% | +0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.07% | 11.31% | +0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.47% | 12.63% | +0.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.53% | 15.68% | +0.85% |
XFN.TO vs. ZWB.TO - Expense Ratio Comparison
XFN.TO has a 0.61% expense ratio, which is lower than ZWB.TO's 0.71% expense ratio.
Dividends
XFN.TO vs. ZWB.TO - Dividend Comparison
XFN.TO's dividend yield for the trailing twelve months is around 2.17%, less than ZWB.TO's 5.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XFN.TO iShares S&P/TSX Capped Financials Index ETF | 2.17% | 2.39% | 3.16% | 3.60% | 3.48% | 2.67% | 3.35% | 3.00% | 3.43% | 2.73% | 2.83% | 3.17% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 5.02% | 5.38% | 6.66% | 7.62% | 7.30% | 5.46% | 5.80% | 5.53% | 5.59% | 4.80% | 5.04% | 5.64% |
Frequently Asked Questions
With a correlation of 0.90, XFN.TO and ZWB.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.
On fees, XFN.TO is cheaper at 0.61% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XFN.TO is cheaper with a 0.61% expense ratio, compared with 0.71% for ZWB.TO.
They also come from different issuers: iShares and BMO. Their fees differ too: 0.61% for XFN.TO and 0.71% for ZWB.TO.
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