XHB.TO vs. ZST.TO
XHB.TO (iShares Canadian HYBrid Corporate Bond Index ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both exchange-traded funds - XHB.TO is a Corporate Bonds fund tracking the Morningstar Can Corp Bd GR CAD, while ZST.TO is a Canadian Government Bonds fund actively managed by BMO. XHB.TO is passively managed, while ZST.TO is actively managed. Over the past 10 years, XHB.TO returned 5.63%/yr vs 2.34%/yr for ZST.TO. At a 0.12 correlation, their price movements are largely independent. XHB.TO charges 0.50%/yr vs 0.17%/yr for ZST.TO.
Performance
XHB.TO vs. ZST.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XHB.TO achieves a 2.17% return, which is significantly higher than ZST.TO's 1.08% return. Over the past 10 years, XHB.TO has outperformed ZST.TO with an annualized return of 5.63%, while ZST.TO has yielded a comparatively lower 2.34% annualized return.
XHB.TO
- 1D
- 0.00%
- 1M
- 1.76%
- YTD
- 2.17%
- 6M
- 2.20%
- 1Y
- 5.90%
- 3Y*
- 9.70%
- 5Y*
- 5.68%
- 10Y*
- 5.63%
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%
XHB.TO vs. ZST.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF | 2.17% | 5.34% | 11.53% | 14.52% | -6.53% | 2.10% | 11.03% | 10.73% | 0.59% | 4.49% |
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 XHB.TO and ZST.TO is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.12 |
Over the past year, XHB.TO and ZST.TO have become more correlated (0.34) than their long-term average of 0.12, meaning their price movements have been converging.
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Return for Risk
XHB.TO vs. ZST.TO — Risk / Return Rank
XHB.TO
ZST.TO
XHB.TO vs. ZST.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Canadian HYBrid Corporate Bond Index ETF (XHB.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.
| XHB.TO | ZST.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.24 | ||
| Sortino ratioReturn per unit of downside risk | +0.98 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.83 | -0.50 |
| Calmar ratioReturn relative to maximum drawdown | 2.45 | 1.68 | +0.77 |
| Martin ratioReturn relative to average drawdown | 8.07 | 4.51 | +3.56 |
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
| XHB.TO | ZST.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.80 | 1.56 | +0.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 4.12 | -3.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.51 | 3.30 | -2.79 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 1.81 | -1.22 |
Drawdowns
XHB.TO vs. ZST.TO - Drawdown Comparison
The maximum XHB.TO drawdown since its inception was -26.03%, 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 XHB.TO and ZST.TO.
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Drawdown Indicators
| XHB.TO | ZST.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.03% | -1.06% | -24.97% |
Max Drawdown (1Y)Largest decline over 1 year | -2.42% | -1.01% | -1.41% |
Max Drawdown (3Y)Largest decline over 3 years | -2.42% | -1.01% | -1.41% |
Max Drawdown (5Y)Largest decline over 5 years | -11.83% | -1.01% | -10.82% |
Max Drawdown (10Y)Largest decline over 10 years | -26.03% | -1.06% | -24.97% |
Current DrawdownCurrent decline from peak | 0.00% | -0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -1.59% | -0.13% | -1.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | 0.37% | +0.36% |
Volatility
XHB.TO vs. ZST.TO - Volatility Comparison
iShares Canadian HYBrid Corporate Bond Index ETF (XHB.TO) has a higher volatility of 1.17% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that XHB.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
| XHB.TO | ZST.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.17% | 0.08% | +1.09% |
Volatility (6M)Calculated over the trailing 6-month period | 2.62% | 1.05% | +1.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.32% | 1.08% | +2.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.61% | 0.72% | +4.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.05% | 0.71% | +10.34% |
XHB.TO vs. ZST.TO - Expense Ratio Comparison
XHB.TO has a 0.50% expense ratio, which is higher than ZST.TO's 0.17% expense ratio.
Dividends
XHB.TO vs. ZST.TO - Dividend Comparison
XHB.TO's dividend yield for the trailing twelve months is around 4.52%, more than ZST.TO's 2.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF | 4.52% | 4.48% | 7.49% | 8.06% | 7.74% | 5.57% | 5.47% | 5.75% | 4.07% | 4.08% | 4.35% | 4.78% |
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
XHB.TO and ZST.TO have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZST.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.50% for XHB.TO.
XHB.TO is categorized as Corporate Bonds, while ZST.TO is Canadian Government Bonds. They also come from different issuers: iShares and BMO. Their fees differ too: 0.50% for XHB.TO and 0.17% for ZST.TO.
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