XLB.TO vs. ZCS.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both Canadian Government Bonds funds - XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD while ZCS.TO tracks the FTSE Canada Short Term Corporate Bond Index. Both are passively managed. Over the past 10 years, XLB.TO returned 0.35%/yr vs 2.78%/yr for ZCS.TO. A 0.52 correlation means they provide meaningful diversification when combined. XLB.TO charges 0.20%/yr vs 0.11%/yr for ZCS.TO.
Performance
XLB.TO vs. ZCS.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, XLB.TO achieves a 0.64% return, which is significantly lower than ZCS.TO's 1.45% return. Over the past 10 years, XLB.TO has underperformed ZCS.TO with an annualized return of 0.35%, while ZCS.TO has yielded a comparatively higher 2.78% annualized return.
XLB.TO
- 1D
- -0.33%
- 1M
- -1.71%
- 6M
- -0.43%
- YTD
- 0.64%
- 1Y
- 4.44%
- 3Y*
- 2.26%
- 5Y*
- -2.60%
- 10Y*
- 0.35%
ZCS.TO
- 1D
- -0.07%
- 1M
- -0.02%
- 6M
- 1.09%
- YTD
- 1.45%
- 1Y
- 3.94%
- 3Y*
- 6.04%
- 5Y*
- 2.89%
- 10Y*
- 2.78%
XLB.TO vs. ZCS.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 0.64% | -0.76% | 0.71% | 9.15% | -21.64% | -4.59% | 11.18% | 12.85% | -0.25% | 7.11% |
ZCS.TO BMO Short Corporate Bond Index ETF | 1.45% | 4.41% | 7.42% | 6.67% | -4.48% | -0.76% | 6.10% | 5.01% | 1.23% | 1.04% |
Correlation
The correlation between XLB.TO and ZCS.TO is 0.68, 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 | 0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.69 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Oct 26, 2009 | 0.52 |
The correlation between XLB.TO and ZCS.TO shifts across timeframes, from 0.52 (all time) to 0.69 (5 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
XLB.TO vs. ZCS.TO — Risk / Return Rank
XLB.TO
ZCS.TO
XLB.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Long Term Bond Index ETF (XLB.TO) and BMO Short Corporate Bond Index ETF (ZCS.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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| XLB.TO | ZCS.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.32 | ||
| Sortino ratioReturn per unit of downside risk | -1.74 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.40 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | 0.92 | 2.42 | -1.50 |
| Martin ratioReturn relative to average drawdown | 1.91 | 9.65 | -7.74 |
Loading charts...
Drawdowns
XLB.TO vs. ZCS.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -32.97%, which is greater than ZCS.TO's maximum drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for XLB.TO and ZCS.TO.
Loading charts...
Drawdown Indicators
| XLB.TO | ZCS.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.97% | -13.95% | -19.02% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -1.63% | -3.22% |
Max Drawdown (3Y)Largest decline over 3 years | -10.53% | -1.63% | -8.90% |
Max Drawdown (5Y)Largest decline over 5 years | -27.81% | -7.76% | -20.05% |
Max Drawdown (10Y)Largest decline over 10 years | -32.97% | -13.95% | -19.02% |
Current DrawdownCurrent decline from peak | -20.11% | -0.29% | -19.82% |
Average DrawdownAverage peak-to-trough decline | -7.77% | -0.89% | -6.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.33% | 0.41% | +1.92% |
Volatility
XLB.TO vs. ZCS.TO - Volatility Comparison
iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a higher volatility of 2.21% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.56%. This indicates that XLB.TO's price experiences larger fluctuations and is considered to be riskier than ZCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| XLB.TO | ZCS.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.21% | 0.56% | +1.65% |
Volatility (6M)Calculated over the trailing 6-month period | 5.88% | 1.80% | +4.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.82% | 2.09% | +5.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 2.90% | +9.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.65% | 4.38% | +7.27% |
XLB.TO vs. ZCS.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is higher than ZCS.TO's 0.11% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
XLB.TO vs. ZCS.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.10%, more than ZCS.TO's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.10% | 4.05% | 3.82% | 3.73% | 3.97% | 3.03% | 2.90% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
ZCS.TO BMO Short Corporate Bond Index ETF | 3.95% | 3.60% | 3.27% | 3.35% | 3.23% | 2.99% | 2.88% | 2.96% | 2.88% | 3.04% | 3.34% | 3.53% |
Frequently Asked Questions
XLB.TO and ZCS.TO have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZCS.TO is cheaper at 0.11% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.20% for XLB.TO.
XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.20% for XLB.TO and 0.11% for ZCS.TO.
Find the right allocation for XLB.TO and ZCS.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer