XLB.TO vs. ZDB.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and ZDB.TO (BMO Discount Bond) are both Canadian Government Bonds funds - XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD while ZDB.TO tracks the FTSE Canada Universe Discount Bond Index. Both are passively managed. Over the past 10 years, XLB.TO returned 4.56%/yr vs 1.57%/yr for ZDB.TO. A 0.74 correlation means they provide meaningful diversification when combined. XLB.TO charges 0.20%/yr vs 0.10%/yr for ZDB.TO.
Performance
XLB.TO vs. ZDB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XLB.TO achieves a 2.77% return, which is significantly higher than ZDB.TO's 1.53% return. Over the past 10 years, XLB.TO has outperformed ZDB.TO with an annualized return of 4.56%, while ZDB.TO has yielded a comparatively lower 1.57% annualized return.
XLB.TO
- 1D
- -0.11%
- 1M
- 3.02%
- YTD
- 2.77%
- 6M
- 0.93%
- 1Y
- 2.84%
- 3Y*
- 8.16%
- 5Y*
- 4.63%
- 10Y*
- 4.56%
ZDB.TO
- 1D
- -0.13%
- 1M
- 1.48%
- YTD
- 1.53%
- 6M
- 0.70%
- 1Y
- 2.71%
- 3Y*
- 4.07%
- 5Y*
- 0.56%
- 10Y*
- 1.57%
XLB.TO vs. ZDB.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 | 2.77% | -0.76% | 9.49% | 19.21% | -14.38% | 1.26% | 16.52% | 12.85% | -0.25% | 7.11% |
ZDB.TO BMO Discount Bond | 1.53% | 2.03% | 4.26% | 6.69% | -11.99% | -2.77% | 9.50% | 6.74% | 1.33% | 2.00% |
Correlation
The correlation between XLB.TO and ZDB.TO is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.85 |
Correlation (All Time) Calculated using the full available price history since Feb 19, 2014 | 0.74 |
The correlation between XLB.TO and ZDB.TO shifts across timeframes, from 0.74 (all time) to 0.93 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XLB.TO vs. ZDB.TO — Risk / Return Rank
XLB.TO
ZDB.TO
XLB.TO vs. ZDB.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 Discount Bond (ZDB.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.
| XLB.TO | ZDB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.34 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.11 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.59 | 0.97 | -0.39 |
| Martin ratioReturn relative to average drawdown | 1.11 | 2.23 | -1.12 |
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
| XLB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 0.63 | -0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 0.09 | +0.28 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 0.25 | +0.14 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.55 | 0.38 | +0.17 |
Drawdowns
XLB.TO vs. ZDB.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -24.34%, which is greater than ZDB.TO's maximum drawdown of -18.09%. Use the drawdown chart below to compare losses from any high point for XLB.TO and ZDB.TO.
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Drawdown Indicators
| XLB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.34% | -18.09% | -6.25% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -2.79% | -2.06% |
Max Drawdown (3Y)Largest decline over 3 years | -9.74% | -5.07% | -4.67% |
Max Drawdown (5Y)Largest decline over 5 years | -24.34% | -16.25% | -8.09% |
Max Drawdown (10Y)Largest decline over 10 years | -24.34% | -18.09% | -6.25% |
Current DrawdownCurrent decline from peak | -2.17% | -1.45% | -0.72% |
Average DrawdownAverage peak-to-trough decline | -4.05% | -4.21% | +0.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.57% | 1.22% | +1.35% |
Volatility
XLB.TO vs. ZDB.TO - Volatility Comparison
iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a higher volatility of 2.77% compared to BMO Discount Bond (ZDB.TO) at 1.55%. This indicates that XLB.TO's price experiences larger fluctuations and is considered to be riskier than ZDB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.77% | 1.55% | +1.22% |
Volatility (6M)Calculated over the trailing 6-month period | 5.77% | 3.32% | +2.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.93% | 4.34% | +3.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.68% | 6.52% | +6.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.86% | 6.40% | +5.46% |
XLB.TO vs. ZDB.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is higher than ZDB.TO's 0.10% 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. ZDB.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.01%, more than ZDB.TO's 2.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 12.10% | 12.22% | 13.13% | 8.82% | 7.43% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
ZDB.TO BMO Discount Bond | 2.00% | 2.28% | 2.38% | 2.42% | 2.52% | 2.16% | 2.06% | 2.20% | 2.07% | 2.06% | 1.95% | 1.99% |
Frequently Asked Questions
With a correlation of 0.93, XLB.TO and ZDB.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, ZDB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZDB.TO is cheaper with a 0.10% expense ratio, compared with 0.20% for XLB.TO.
XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD, while ZDB.TO tracks FTSE Canada Universe Discount Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.20% for XLB.TO and 0.10% for ZDB.TO.
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