XLB.TO vs. ZST.TO
XLB.TO (iShares Core Canadian Long Term Bond Index ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both Canadian Government Bonds funds. XLB.TO is passively managed, while ZST.TO is actively managed. Over the past 10 years, XLB.TO returned 4.56%/yr vs 2.34%/yr for ZST.TO. At a 0.16 correlation, their price movements are largely independent. XLB.TO charges 0.20%/yr vs 0.17%/yr for ZST.TO.
Performance
XLB.TO vs. ZST.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 ZST.TO's 1.08% return. Over the past 10 years, XLB.TO has outperformed ZST.TO with an annualized return of 4.56%, while ZST.TO has yielded a comparatively lower 2.34% 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%
ZST.TO
- 1D
- 0.02%
- 1M
- 0.25%
- YTD
- 1.08%
- 6M
- 0.26%
- 1Y
- 1.68%
- 3Y*
- 3.84%
- 5Y*
- 2.95%
- 10Y*
- 2.34%
XLB.TO vs. ZST.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% |
ZST.TO BMO Ultra Short-Term Bond ETF | 1.08% | 2.03% | 5.16% | 5.33% | 1.19% | 0.22% | 1.74% | 2.36% | 1.95% | 1.43% |
Correlation
The correlation between XLB.TO and ZST.TO is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.27 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.16 |
The correlation between XLB.TO and ZST.TO shifts across timeframes, from 0.16 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XLB.TO vs. ZST.TO — Risk / Return Rank
XLB.TO
ZST.TO
XLB.TO vs. ZST.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 Ultra Short-Term Bond ETF (ZST.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 | ZST.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.20 | ||
| Sortino ratioReturn per unit of downside risk | -1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.83 | -0.76 |
| Calmar ratioReturn relative to maximum drawdown | 0.59 | 1.68 | -1.09 |
| Martin ratioReturn relative to average drawdown | 1.11 | 4.51 | -3.40 |
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 | ZST.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 1.56 | -1.20 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 4.12 | -3.75 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 3.30 | -2.91 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.55 | 1.81 | -1.26 |
Drawdowns
XLB.TO vs. ZST.TO - Drawdown Comparison
The maximum XLB.TO drawdown since its inception was -24.34%, which is greater than ZST.TO's maximum drawdown of -1.06%. Use the drawdown chart below to compare losses from any high point for XLB.TO and ZST.TO.
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Drawdown Indicators
| XLB.TO | ZST.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.34% | -1.06% | -23.28% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -1.01% | -3.84% |
Max Drawdown (3Y)Largest decline over 3 years | -9.74% | -1.01% | -8.73% |
Max Drawdown (5Y)Largest decline over 5 years | -24.34% | -1.01% | -23.33% |
Max Drawdown (10Y)Largest decline over 10 years | -24.34% | -1.06% | -23.28% |
Current DrawdownCurrent decline from peak | -2.17% | -0.00% | -2.17% |
Average DrawdownAverage peak-to-trough decline | -4.05% | -0.13% | -3.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.57% | 0.37% | +2.20% |
Volatility
XLB.TO vs. ZST.TO - Volatility Comparison
iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a higher volatility of 2.77% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that XLB.TO's price experiences larger fluctuations and is considered to be riskier than ZST.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 | ZST.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.77% | 0.08% | +2.69% |
Volatility (6M)Calculated over the trailing 6-month period | 5.77% | 1.05% | +4.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.93% | 1.08% | +6.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.68% | 0.72% | +11.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.86% | 0.71% | +11.15% |
XLB.TO vs. ZST.TO - Expense Ratio Comparison
XLB.TO has a 0.20% expense ratio, which is higher than ZST.TO's 0.17% 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. ZST.TO - Dividend Comparison
XLB.TO's dividend yield for the trailing twelve months is around 4.01%, more than ZST.TO's 2.55% 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% |
ZST.TO BMO Ultra Short-Term Bond ETF | 2.55% | 2.82% | 4.65% | 4.79% | 2.75% | 2.29% | 2.65% | 2.82% | 3.43% | 4.05% | 3.92% | 3.90% |
Frequently Asked Questions
XLB.TO and ZST.TO have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZST.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.20% for XLB.TO.
They also come from different issuers: iShares and BMO. Their fees differ too: 0.20% for XLB.TO and 0.17% for ZST.TO.
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