XQB.TO vs. ZDB.TO
XQB.TO (iShares High Quality Canadian Bond Index ETF) and ZDB.TO (BMO Discount Bond) are both Canadian Government Bonds funds - XQB.TO tracks the Morningstar Can Core Bd GR CAD while ZDB.TO tracks the FTSE Canada Universe Discount Bond Index. Both are passively managed. Over the past 10 years, XQB.TO returned 1.67%/yr vs 1.61%/yr for ZDB.TO. A 0.72 correlation means they provide meaningful diversification when combined. XQB.TO charges 0.13%/yr vs 0.10%/yr for ZDB.TO.
Performance
XQB.TO vs. ZDB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, XQB.TO achieves a 1.43% return, which is significantly lower than ZDB.TO's 1.53% return. Both investments have delivered pretty close results over the past 10 years, with XQB.TO having a 1.67% annualized return and ZDB.TO not far behind at 1.61%.
XQB.TO
- 1D
- -0.05%
- 1M
- 1.52%
- YTD
- 1.43%
- 6M
- 1.14%
- 1Y
- 2.76%
- 3Y*
- 4.39%
- 5Y*
- 0.95%
- 10Y*
- 1.67%
ZDB.TO
- 1D
- 0.00%
- 1M
- 1.51%
- YTD
- 1.53%
- 6M
- 0.99%
- 1Y
- 2.51%
- 3Y*
- 4.17%
- 5Y*
- 0.56%
- 10Y*
- 1.61%
XQB.TO vs. ZDB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XQB.TO iShares High Quality Canadian Bond Index ETF | 1.43% | 3.16% | 4.17% | 6.51% | -10.61% | -2.84% | 8.32% | 6.05% | 1.38% | 1.61% |
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 XQB.TO and ZDB.TO is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.91 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Feb 19, 2014 | 0.72 |
The correlation between XQB.TO and ZDB.TO shifts across timeframes, from 0.72 (all time) to 0.91 (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
XQB.TO vs. ZDB.TO — Risk / Return Rank
XQB.TO
ZDB.TO
XQB.TO vs. ZDB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares High Quality Canadian Bond Index ETF (XQB.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.
| XQB.TO | ZDB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.10 | ||
| Sortino ratioReturn per unit of downside risk | +0.14 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.10 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.03 | 0.90 | +0.13 |
| Martin ratioReturn relative to average drawdown | 2.55 | 2.07 | +0.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| XQB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.68 | 0.58 | +0.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | 0.09 | +0.08 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.25 | +0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.38 | +0.15 |
Drawdowns
XQB.TO vs. ZDB.TO - Drawdown Comparison
The maximum XQB.TO drawdown since its inception was -16.57%, smaller than the maximum ZDB.TO drawdown of -18.09%. Use the drawdown chart below to compare losses from any high point for XQB.TO and ZDB.TO.
Loading charts...
Drawdown Indicators
| XQB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.57% | -18.09% | +1.52% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -2.79% | +0.09% |
Max Drawdown (3Y)Largest decline over 3 years | -4.25% | -5.07% | +0.82% |
Max Drawdown (5Y)Largest decline over 5 years | -14.59% | -16.25% | +1.66% |
Max Drawdown (10Y)Largest decline over 10 years | -16.57% | -18.09% | +1.52% |
Current DrawdownCurrent decline from peak | -0.55% | -1.45% | +0.90% |
Average DrawdownAverage peak-to-trough decline | -3.07% | -4.21% | +1.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.09% | 1.22% | -0.13% |
Volatility
XQB.TO vs. ZDB.TO - Volatility Comparison
iShares High Quality Canadian Bond Index ETF (XQB.TO) and BMO Discount Bond (ZDB.TO) have volatilities of 1.55% and 1.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| XQB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.55% | 1.55% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 3.31% | 3.31% | 0.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 4.34% | -0.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.89% | 6.52% | -0.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.78% | 6.40% | -0.62% |
XQB.TO vs. ZDB.TO - Expense Ratio Comparison
XQB.TO has a 0.13% 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
XQB.TO vs. ZDB.TO - Dividend Comparison
XQB.TO's dividend yield for the trailing twelve months is around 3.42%, more than ZDB.TO's 2.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XQB.TO iShares High Quality Canadian Bond Index ETF | 3.42% | 3.39% | 3.24% | 2.93% | 2.75% | 2.37% | 2.37% | 2.53% | 2.59% | 2.54% | 2.67% | 2.80% |
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
XQB.TO and ZDB.TO have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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 0.13% for XQB.TO.
XQB.TO tracks Morningstar Can 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: 0.13% for XQB.TO and 0.10% for ZDB.TO.
Find the right allocation for XQB.TO and ZDB.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