XSAB.TO vs. ZCS.TO

Last updated Jun 5, 2026

XSAB.TO (iShares ESG Aware Canadian Aggregate Bond Index ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both Canadian Government Bonds funds - XSAB.TO tracks the Morningstar Can Core Bd GR CAD while ZCS.TO tracks the FTSE Canada Short Term Corporate Bond Index. Both are passively managed. Over the past 5 years, XSAB.TO returned 0.61%/yr vs 2.85%/yr for ZCS.TO. A 0.61 correlation means they provide meaningful diversification when combined. XSAB.TO charges 0.17%/yr vs 0.11%/yr for ZCS.TO.

Performance

XSAB.TO vs. ZCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares ESG Aware Canadian Aggregate Bond Index ETF (XSAB.TO) and BMO Short Corporate Bond Index ETF (ZCS.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSAB.TO achieves a 1.61% return, which is significantly higher than ZCS.TO's 1.33% return.

XSAB.TO

• 1D: 0.06%
• 1M: 1.57%
• YTD: 1.61%
• 6M: 1.04%
• 1Y: 2.74%
• 3Y*: 4.06%
• 5Y*: 0.61%
• 10Y*: —

ZCS.TO

• 1D: 0.00%
• 1M: 0.95%
• YTD: 1.33%
• 6M: 1.37%
• 1Y: 3.85%
• 3Y*: 6.00%
• 5Y*: 2.85%
• 10Y*: 2.80%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XSAB.TO vs. ZCS.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XSAB.TO iShares ESG Aware Canadian Aggregate Bond Index ETF	1.61%	2.22%	4.03%	6.35%	-11.42%	-2.71%	7.79%	2.30%
ZCS.TO BMO Short Corporate Bond Index ETF	1.33%	4.41%	7.42%	6.67%	-4.48%	-0.76%	6.10%	2.24%

Correlation

The correlation between XSAB.TO and ZCS.TO is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (All Time) Calculated using the full available price history since Mar 29, 2019	0.61

The correlation between XSAB.TO and ZCS.TO has been stable across timeframes, ranging from 0.61 to 0.71 - a consistent structural relationship.

Return for Risk

XSAB.TO vs. ZCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XSAB.TO

XSAB.TO Risk / Return Rank: 20
XSAB.TO Sharpe Ratio Rank: 20
XSAB.TO Sortino Ratio Rank: 19
XSAB.TO Omega Ratio Rank: 19
XSAB.TO Calmar Ratio Rank: 23
XSAB.TO Martin Ratio Rank: 21

ZCS.TO

ZCS.TO Risk / Return Rank: 56
ZCS.TO Sharpe Ratio Rank: 57
ZCS.TO Sortino Ratio Rank: 54
ZCS.TO Omega Ratio Rank: 67
ZCS.TO Calmar Ratio Rank: 49
ZCS.TO Martin Ratio Rank: 55

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XSAB.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware Canadian Aggregate Bond Index ETF (XSAB.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.

	XSAB.TO	ZCS.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.66	1.90	-1.24
Sortino ratio: Return per unit of downside risk	0.92	2.56	-1.64
Omega ratio: Gain probability vs. loss probability	1.12	1.40	-0.28
Calmar ratio: Return relative to maximum drawdown	1.01	2.37	-1.36
Martin ratio: Return relative to average drawdown	2.36	9.37	-7.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSAB.TO vs. ZCS.TO - Sharpe Ratio Comparison

The current XSAB.TO Sharpe Ratio is 0.66, which is lower than the ZCS.TO Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of XSAB.TO and ZCS.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XSAB.TO	ZCS.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.66	1.90	-1.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	1.00	-0.90
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	0.80	-0.61

Drawdowns

XSAB.TO vs. ZCS.TO - Drawdown Comparison

The maximum XSAB.TO drawdown since its inception was -17.96%, 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 XSAB.TO and ZCS.TO.

Drawdown Indicators

	XSAB.TO	ZCS.TO	Difference
Max Drawdown Largest peak-to-trough decline	-17.96%	-13.95%	-4.01%
Max Drawdown (1Y) Largest decline over 1 year	-2.72%	-1.63%	-1.09%
Max Drawdown (3Y) Largest decline over 3 years	-5.30%	-1.63%	-3.67%
Max Drawdown (5Y) Largest decline over 5 years	-15.66%	-7.76%	-7.90%
Max Drawdown (10Y) Largest decline over 10 years	—	-13.95%	—
Current Drawdown Current decline from peak	-1.87%	0.00%	-1.87%
Average Drawdown Average peak-to-trough decline	-6.47%	-0.89%	-5.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.17%	0.41%	+0.76%

Volatility

XSAB.TO vs. ZCS.TO - Volatility Comparison

iShares ESG Aware Canadian Aggregate Bond Index ETF (XSAB.TO) has a higher volatility of 1.49% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.69%. This indicates that XSAB.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.

Volatility by Period

	XSAB.TO	ZCS.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.49%	0.69%	+0.80%
Volatility (6M) Calculated over the trailing 6-month period	3.30%	1.79%	+1.51%
Volatility (1Y) Calculated over the trailing 1-year period	4.21%	2.04%	+2.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.32%	2.87%	+3.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.66%	4.38%	+2.28%

XSAB.TO vs. ZCS.TO - Expense Ratio Comparison

XSAB.TO has a 0.17% 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

XSAB.TO vs. ZCS.TO - Dividend Comparison

XSAB.TO's dividend yield for the trailing twelve months is around 3.26%, less than ZCS.TO's 3.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XSAB.TO iShares ESG Aware Canadian Aggregate Bond Index ETF	3.26%	3.20%	3.01%	2.81%	2.75%	2.35%	2.49%	2.05%	0.00%	0.00%	0.00%	0.00%
ZCS.TO BMO Short Corporate Bond Index ETF	3.93%	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

Can I hold both XSAB.TO and ZCS.TO in my portfolio?

XSAB.TO and ZCS.TO have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XSAB.TO or ZCS.TO?

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.

Which ETF is cheaper, XSAB.TO or ZCS.TO?

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.17% for XSAB.TO.

What is the main difference between XSAB.TO and ZCS.TO?

XSAB.TO tracks Morningstar Can 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: 0.17% for XSAB.TO and 0.11% for ZCS.TO.