XHY.TO vs. ZLC.TO
XHY.TO (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) and ZLC.TO (BMO Long Corporate Bond Index ETF) are both exchange-traded funds - XHY.TO is a High Yield Bonds fund tracking the Morningstar Gbl HY Bd GR CAD, while ZLC.TO is a Long-Term Bond fund tracking the FTSE Canada Long Term Corporate Bond Index. Both are passively managed. Over the past 10 years, XHY.TO returned 3.98%/yr vs 2.62%/yr for ZLC.TO. At a 0.03 correlation, their price movements are largely independent. XHY.TO charges 0.56%/yr vs 0.33%/yr for ZLC.TO.
Performance
XHY.TO vs. ZLC.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XHY.TO achieves a 1.07% return, which is significantly lower than ZLC.TO's 2.51% return. Over the past 10 years, XHY.TO has outperformed ZLC.TO with an annualized return of 3.98%, while ZLC.TO has yielded a comparatively lower 2.62% 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%
ZLC.TO
- 1D
- 0.00%
- 1M
- 2.65%
- YTD
- 2.51%
- 6M
- 2.11%
- 1Y
- 4.00%
- 3Y*
- 5.53%
- 5Y*
- 0.95%
- 10Y*
- 2.62%
XHY.TO vs. ZLC.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% |
ZLC.TO BMO Long Corporate Bond Index ETF | 2.51% | 2.38% | 4.69% | 11.50% | -18.31% | -3.20% | 9.51% | 14.51% | -1.66% | 8.69% |
Correlation
The correlation between XHY.TO and ZLC.TO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.38 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2010 | 0.03 |
Over the past year, XHY.TO and ZLC.TO have become more correlated (0.37) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
XHY.TO vs. ZLC.TO — Risk / Return Rank
XHY.TO
ZLC.TO
XHY.TO vs. ZLC.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 Long Corporate Bond Index ETF (ZLC.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 | ZLC.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.44 | ||
| Sortino ratioReturn per unit of downside risk | +0.69 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.10 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.63 | 0.87 | +0.77 |
| Martin ratioReturn relative to average drawdown | 7.05 | 2.02 | +5.03 |
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
| XHY.TO | ZLC.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.00 | 0.56 | +0.44 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.33 | 0.09 | +0.25 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.38 | 0.24 | +0.13 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.47 | +0.02 |
Drawdowns
XHY.TO vs. ZLC.TO - Drawdown Comparison
The maximum XHY.TO drawdown since its inception was -28.48%, roughly equal to the maximum ZLC.TO drawdown of -28.61%. Use the drawdown chart below to compare losses from any high point for XHY.TO and ZLC.TO.
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Drawdown Indicators
| XHY.TO | ZLC.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.48% | -28.61% | +0.13% |
Max Drawdown (1Y)Largest decline over 1 year | -2.87% | -4.64% | +1.77% |
Max Drawdown (3Y)Largest decline over 3 years | -4.94% | -9.67% | +4.73% |
Max Drawdown (5Y)Largest decline over 5 years | -16.67% | -24.86% | +8.19% |
Max Drawdown (10Y)Largest decline over 10 years | -28.48% | -28.61% | +0.13% |
Current DrawdownCurrent decline from peak | -0.32% | -4.27% | +3.95% |
Average DrawdownAverage peak-to-trough decline | -2.55% | -5.99% | +3.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 1.99% | -1.33% |
Volatility
XHY.TO vs. ZLC.TO - Volatility Comparison
The current volatility for iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) is 1.28%, while BMO Long Corporate Bond Index ETF (ZLC.TO) has a volatility of 2.35%. This indicates that XHY.TO experiences smaller price fluctuations and is considered to be less risky than ZLC.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XHY.TO | ZLC.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 2.35% | -1.07% |
Volatility (6M)Calculated over the trailing 6-month period | 3.55% | 5.55% | -2.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.68% | 7.22% | -2.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 11.04% | -2.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.62% | 10.87% | -0.25% |
XHY.TO vs. ZLC.TO - Expense Ratio Comparison
XHY.TO has a 0.56% expense ratio, which is higher than ZLC.TO's 0.33% expense ratio.
Dividends
XHY.TO vs. ZLC.TO - Dividend Comparison
XHY.TO's dividend yield for the trailing twelve months is around 6.11%, more than ZLC.TO's 4.56% 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% |
ZLC.TO BMO Long Corporate Bond Index ETF | 4.56% | 4.75% | 4.70% | 5.01% | 5.30% | 4.12% | 3.82% | 4.02% | 4.26% | 4.01% | 4.33% | 4.53% |
Frequently Asked Questions
XHY.TO and ZLC.TO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZLC.TO is cheaper at 0.33% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZLC.TO is cheaper with a 0.33% expense ratio, compared with 0.56% for XHY.TO.
XHY.TO is categorized as High Yield Bonds, while ZLC.TO is Long-Term Bond. XHY.TO tracks Morningstar Gbl HY Bd GR CAD, while ZLC.TO tracks FTSE Canada Long Term Corporate Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.56% for XHY.TO and 0.33% for ZLC.TO.
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