XHY.TO vs. ZHY.TO

Last updated Jun 5, 2026

XHY.TO (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) and ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) are both High Yield Bonds funds - XHY.TO tracks the Morningstar Gbl HY Bd GR CAD while ZHY.TO tracks the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged. Both are passively managed. Over the past 10 years, XHY.TO returned 3.98%/yr vs 3.77%/yr for ZHY.TO. A 0.56 correlation means they provide meaningful diversification when combined. XHY.TO charges 0.56%/yr vs 0.61%/yr for ZHY.TO.

Performance

XHY.TO vs. ZHY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) and BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XHY.TO achieves a 1.07% return, which is significantly higher than ZHY.TO's 0.71% return. Over the past 10 years, XHY.TO has outperformed ZHY.TO with an annualized return of 3.98%, while ZHY.TO has yielded a comparatively lower 3.77% annualized return.

XHY.TO

• 1D: 0.12%
• 1M: 0.33%
• YTD: 1.07%
• 6M: 1.09%
• 1Y: 4.66%
• 3Y*: 7.14%
• 5Y*: 2.86%
• 10Y*: 3.98%

ZHY.TO

• 1D: -0.09%
• 1M: -0.01%
• YTD: 0.71%
• 6M: 0.74%
• 1Y: 4.74%
• 3Y*: 7.06%
• 5Y*: 2.53%
• 10Y*: 3.77%

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

XHY.TO vs. ZHY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged)	1.07%	6.33%	7.05%	11.06%	-11.10%	3.51%	2.65%	13.83%	-3.89%	5.35%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	0.71%	6.27%	6.04%	11.48%	-12.80%	4.03%	3.31%	13.45%	-3.88%	5.06%

Correlation

The correlation between XHY.TO and ZHY.TO is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Jan 28, 2010	0.56

The correlation between XHY.TO and ZHY.TO shifts across timeframes, from 0.51 (10 years) to 0.62 (1 year), reflecting how their relationship changes across market environments.

XHY.TO vs. ZHY.TO - Sectors Allocation Comparison

Sectors	XHY.TO	ZHY.TO
Utilities	99.5%	-
Real Estate	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	37.1%
Consumer Defensive	-	-
Energy	-	2.4%
Financial Services	-	-
Healthcare	-	-
Industrials	-	60.5%
Technology	-	-

Return for Risk

XHY.TO vs. ZHY.TO — Risk / Return Rank

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

XHY.TO

XHY.TO Risk / Return Rank: 32
XHY.TO Sharpe Ratio Rank: 28
XHY.TO Sortino Ratio Rank: 28
XHY.TO Omega Ratio Rank: 28
XHY.TO Calmar Ratio Rank: 33
XHY.TO Martin Ratio Rank: 44

ZHY.TO

ZHY.TO Risk / Return Rank: 29
ZHY.TO Sharpe Ratio Rank: 25
ZHY.TO Sortino Ratio Rank: 24
ZHY.TO Omega Ratio Rank: 24
ZHY.TO Calmar Ratio Rank: 33
ZHY.TO Martin Ratio Rank: 39

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.

XHY.TO vs. ZHY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) and BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.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.

	XHY.TO	ZHY.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.00	0.87	+0.13
Sortino ratio: Return per unit of downside risk	1.51	1.28	+0.23
Omega ratio: Gain probability vs. loss probability	1.18	1.16	+0.02
Calmar ratio: Return relative to maximum drawdown	1.63	1.61	+0.02
Martin ratio: Return relative to average drawdown	7.05	6.01	+1.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XHY.TO vs. ZHY.TO - Sharpe Ratio Comparison

The current XHY.TO Sharpe Ratio is 1.00, which is comparable to the ZHY.TO Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of XHY.TO and ZHY.TO, 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

	XHY.TO	ZHY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.00	0.87	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.27	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.35	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.45	+0.04

Drawdowns

XHY.TO vs. ZHY.TO - Drawdown Comparison

The maximum XHY.TO drawdown since its inception was -28.48%, roughly equal to the maximum ZHY.TO drawdown of -28.44%. Use the drawdown chart below to compare losses from any high point for XHY.TO and ZHY.TO.

Drawdown Indicators

	XHY.TO	ZHY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-28.48%	-28.44%	-0.04%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-2.96%	+0.09%
Max Drawdown (3Y) Largest decline over 3 years	-4.94%	-5.70%	+0.76%
Max Drawdown (5Y) Largest decline over 5 years	-16.67%	-17.11%	+0.44%
Max Drawdown (10Y) Largest decline over 10 years	-28.48%	-28.44%	-0.04%
Current Drawdown Current decline from peak	-0.32%	-0.91%	+0.59%
Average Drawdown Average peak-to-trough decline	-2.55%	-2.86%	+0.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.66%	0.79%	-0.13%

Volatility

XHY.TO vs. ZHY.TO - Volatility Comparison

The current volatility for iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) is 1.28%, while BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) has a volatility of 1.96%. This indicates that XHY.TO experiences smaller price fluctuations and is considered to be less risky than ZHY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHY.TO	ZHY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	1.96%	-0.68%
Volatility (6M) Calculated over the trailing 6-month period	3.55%	4.11%	-0.56%
Volatility (1Y) Calculated over the trailing 1-year period	4.68%	5.50%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.65%	9.51%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.62%	10.92%	-0.30%

XHY.TO vs. ZHY.TO - Expense Ratio Comparison

XHY.TO has a 0.56% expense ratio, which is lower than ZHY.TO's 0.61% expense ratio.

Dividends

XHY.TO vs. ZHY.TO - Dividend Comparison

XHY.TO's dividend yield for the trailing twelve months is around 6.11%, less than ZHY.TO's 6.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged)	6.11%	6.04%	5.87%	5.56%	5.70%	4.72%	5.18%	5.38%	5.87%	5.46%	5.64%	6.83%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	6.38%	6.10%	6.13%	6.43%	6.71%	5.49%	6.09%	6.50%	6.25%	6.10%	5.84%	7.12%

Frequently Asked Questions

Can I hold both XHY.TO and ZHY.TO in my portfolio?

XHY.TO and ZHY.TO have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XHY.TO or ZHY.TO?

On fees, XHY.TO is cheaper at 0.56% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XHY.TO or ZHY.TO?

XHY.TO is cheaper with a 0.56% expense ratio, compared with 0.61% for ZHY.TO.

What is the main difference between XHY.TO and ZHY.TO?

XHY.TO tracks Morningstar Gbl HY Bd GR CAD, while ZHY.TO tracks Bloomberg U.S. High Yield Very Liquid Index CAD Hedged. They also come from different issuers: iShares and BMO. Their fees differ too: 0.56% for XHY.TO and 0.61% for ZHY.TO.