XQB.TO vs. ZFL.TO
XQB.TO (iShares High Quality Canadian Bond Index ETF) and ZFL.TO (BMO Long Federal Bond) are both Canadian Government Bonds funds - XQB.TO tracks the Morningstar Can Core Bd GR CAD while ZFL.TO tracks the FTSE TMX Canada Long Term Federal Bond Index. Both are passively managed. Over the past 10 years, XQB.TO returned 1.67%/yr vs -1.32%/yr for ZFL.TO. A 0.76 correlation means they provide meaningful diversification when combined. XQB.TO charges 0.13%/yr vs 0.22%/yr for ZFL.TO.
Performance
XQB.TO vs. ZFL.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XQB.TO achieves a 1.43% return, which is significantly lower than ZFL.TO's 2.39% return. Over the past 10 years, XQB.TO has outperformed ZFL.TO with an annualized return of 1.67%, while ZFL.TO has yielded a comparatively lower -1.32% annualized return.
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%
ZFL.TO
- 1D
- 0.00%
- 1M
- 2.76%
- YTD
- 2.39%
- 6M
- 0.37%
- 1Y
- -1.53%
- 3Y*
- -0.15%
- 5Y*
- -3.89%
- 10Y*
- -1.32%
XQB.TO vs. ZFL.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% |
ZFL.TO BMO Long Federal Bond | 2.39% | -5.14% | -2.20% | 7.30% | -23.89% | -7.47% | 12.68% | 8.73% | 2.69% | 2.84% |
Correlation
The correlation between XQB.TO and ZFL.TO is 0.87, 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 | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
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 May 27, 2010 | 0.76 |
The correlation between XQB.TO and ZFL.TO shifts across timeframes, from 0.76 (all time) to 0.90 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XQB.TO vs. ZFL.TO — Risk / Return Rank
XQB.TO
ZFL.TO
XQB.TO vs. ZFL.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 Long Federal Bond (ZFL.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 | ZFL.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.84 | ||
| Sortino ratioReturn per unit of downside risk | +1.11 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 0.98 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.03 | -0.23 | +1.26 |
| Martin ratioReturn relative to average drawdown | 2.55 | -0.41 | +2.95 |
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
| XQB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.68 | -0.16 | +0.84 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | -0.27 | +0.43 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | -0.11 | +0.40 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.16 | +0.37 |
Drawdowns
XQB.TO vs. ZFL.TO - Drawdown Comparison
The maximum XQB.TO drawdown since its inception was -16.57%, smaller than the maximum ZFL.TO drawdown of -40.32%. Use the drawdown chart below to compare losses from any high point for XQB.TO and ZFL.TO.
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Drawdown Indicators
| XQB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.57% | -40.32% | +23.75% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -6.68% | +3.98% |
Max Drawdown (3Y)Largest decline over 3 years | -4.25% | -14.51% | +10.26% |
Max Drawdown (5Y)Largest decline over 5 years | -14.59% | -32.25% | +17.66% |
Max Drawdown (10Y)Largest decline over 10 years | -16.57% | -40.32% | +23.75% |
Current DrawdownCurrent decline from peak | -0.55% | -31.87% | +31.32% |
Average DrawdownAverage peak-to-trough decline | -3.07% | -12.46% | +9.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.09% | 3.82% | -2.73% |
Volatility
XQB.TO vs. ZFL.TO - Volatility Comparison
The current volatility for iShares High Quality Canadian Bond Index ETF (XQB.TO) is 1.55%, while BMO Long Federal Bond (ZFL.TO) has a volatility of 3.14%. This indicates that XQB.TO experiences smaller price fluctuations and is considered to be less risky than ZFL.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XQB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.55% | 3.14% | -1.59% |
Volatility (6M)Calculated over the trailing 6-month period | 3.31% | 7.05% | -3.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 9.70% | -5.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.89% | 14.70% | -8.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.78% | 12.54% | -6.76% |
XQB.TO vs. ZFL.TO - Expense Ratio Comparison
XQB.TO has a 0.13% expense ratio, which is lower than ZFL.TO's 0.22% expense ratio. Despite the difference, 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. ZFL.TO - Dividend Comparison
XQB.TO's dividend yield for the trailing twelve months is around 3.42%, more than ZFL.TO's 2.84% 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% |
ZFL.TO BMO Long Federal Bond | 2.84% | 3.13% | 3.20% | 3.49% | 3.77% | 2.85% | 2.57% | 2.95% | 3.00% | 2.99% | 3.05% | 3.10% |
Frequently Asked Questions
XQB.TO and ZFL.TO have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XQB.TO is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XQB.TO is cheaper with a 0.13% expense ratio, compared with 0.22% for ZFL.TO.
XQB.TO tracks Morningstar Can Core Bd GR CAD, while ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.13% for XQB.TO and 0.22% for ZFL.TO.
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