XHLF vs. ZTWO

Last updated Jun 5, 2026

XHLF (BondBloxx Bloomberg Six Month Target Duration US Treasury ETF) and ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) are both exchange-traded funds - XHLF is a Government Bonds fund tracking the Bloomberg US Treasury 6 Month Duration Index, while ZTWO is a Short-Term Bond fund tracking the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. Both are passively managed. Over the past year, XHLF returned 3.92% vs 3.94% for ZTWO. At a 0.19 correlation, their price movements are largely independent. XHLF charges 0.03%/yr vs 0.15%/yr for ZTWO.

Performance

XHLF vs. ZTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XHLF achieves a 1.39% return, which is significantly higher than ZTWO's 0.93% return.

XHLF

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.39%
• 6M: 1.69%
• 1Y: 3.92%
• 3Y*: 4.61%
• 5Y*: —
• 10Y*: —

ZTWO

• 1D: 0.04%
• 1M: 0.28%
• YTD: 0.93%
• 6M: 1.30%
• 1Y: 3.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

XHLF vs. ZTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	1.39%	4.21%	0.20%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.93%	5.49%	0.36%

Correlation

The correlation between XHLF and ZTWO is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (All Time) Calculated using the full available price history since Dec 20, 2024	0.19

Return for Risk

XHLF vs. ZTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XHLF

XHLF Risk / Return Rank: 100
XHLF Sharpe Ratio Rank: 100
XHLF Sortino Ratio Rank: 100
XHLF Omega Ratio Rank: 100
XHLF Calmar Ratio Rank: 100
XHLF Martin Ratio Rank: 100

ZTWO

ZTWO Risk / Return Rank: 90
ZTWO Sharpe Ratio Rank: 90
ZTWO Sortino Ratio Rank: 94
ZTWO Omega Ratio Rank: 93
ZTWO Calmar Ratio Rank: 82
ZTWO Martin Ratio Rank: 89

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XHLF vs. ZTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.

	XHLF	ZTWO	Difference
Sharpe ratio: Return per unit of total volatility	12.43	3.03	+9.40
Sortino ratio: Return per unit of downside risk	45.85	4.86	+40.98
Omega ratio: Gain probability vs. loss probability	11.75	1.63	+10.12
Calmar ratio: Return relative to maximum drawdown	98.81	4.24	+94.57
Martin ratio: Return relative to average drawdown	670.31	20.10	+650.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XHLF vs. ZTWO - Sharpe Ratio Comparison

The current XHLF Sharpe Ratio is 12.43, which is higher than the ZTWO Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of XHLF and ZTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XHLF	ZTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	12.43	3.03	+9.40
Sharpe Ratio (All Time) Calculated using the full available price history	10.74	3.17	+7.57

Drawdowns

XHLF vs. ZTWO - Drawdown Comparison

The maximum XHLF drawdown since its inception was -0.11%, smaller than the maximum ZTWO drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for XHLF and ZTWO.

Drawdown Indicators

	XHLF	ZTWO	Difference
Max Drawdown Largest peak-to-trough decline	-0.11%	-0.93%	+0.82%
Max Drawdown (1Y) Largest decline over 1 year	-0.04%	-0.93%	+0.89%
Max Drawdown (3Y) Largest decline over 3 years	-0.06%	—	—
Current Drawdown Current decline from peak	0.00%	-0.07%	+0.07%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.10%	+0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	0.20%	-0.19%

Volatility

XHLF vs. ZTWO - Volatility Comparison

The current volatility for BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) is 0.08%, while F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) has a volatility of 0.42%. This indicates that XHLF experiences smaller price fluctuations and is considered to be less risky than ZTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHLF	ZTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.08%	0.42%	-0.34%
Volatility (6M) Calculated over the trailing 6-month period	0.22%	0.97%	-0.75%
Volatility (1Y) Calculated over the trailing 1-year period	0.32%	1.31%	-0.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.42%	1.49%	-1.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.42%	1.49%	-1.07%

XHLF vs. ZTWO - Expense Ratio Comparison

XHLF has a 0.03% expense ratio, which is lower than ZTWO's 0.15% 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

XHLF vs. ZTWO - Dividend Comparison

XHLF's dividend yield for the trailing twelve months is around 3.85%, less than ZTWO's 4.12% yield.

Position	TTM	2025	2024	2023	2022
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	3.85%	3.98%	4.96%	4.50%	0.86%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.12%	4.31%	0.39%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XHLF and ZTWO in my portfolio?

XHLF and ZTWO have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XHLF or ZTWO?

ZTWO has higher volatility (0.42%) compared to XHLF (0.08%). In terms of maximum drawdown, XHLF dropped -0.11% vs ZTWO's -0.93%.

Which ETF is better, XHLF or ZTWO?

On 1-year performance, ZTWO leads with 3.94% vs 3.92% for XHLF. On fees, XHLF is cheaper at 0.03% per year. On volatility, XHLF has been the lower-risk option at 0.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHLF or ZTWO?

Over the 1-year period, ZTWO has performed better with a 3.94% return vs 3.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHLF or ZTWO?

XHLF is cheaper with a 0.03% expense ratio, compared with 0.15% for ZTWO.

Which ETF pays a higher dividend yield, XHLF or ZTWO?

ZTWO has the higher dividend yield at 4.12%, compared with 3.85% for XHLF.

What is the main difference between XHLF and ZTWO?

XHLF is categorized as Government Bonds, while ZTWO is Short-Term Bond. XHLF tracks Bloomberg US Treasury 6 Month Duration Index, while ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. They also come from different issuers: BondBloxx and F/m. Their fees differ too: 0.03% for XHLF and 0.15% for ZTWO.

Which has better risk-adjusted returns?

XHLF currently has the higher Sharpe Ratio (12.43 vs 3.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.