XSH.TO vs. ZCB.TO
XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) and ZCB.TO (BMO Corporate Bond Index ETF) are both exchange-traded funds - XSH.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD, while ZCB.TO is a Corporate Bonds fund tracking the FTSE Canada All Corporate Bond Index. Both are passively managed. Over the past 5 years, XSH.TO returned 2.86%/yr vs 2.19%/yr for ZCB.TO. A 0.55 correlation means they provide meaningful diversification when combined. XSH.TO charges 0.10%/yr vs 0.17%/yr for ZCB.TO.
Performance
XSH.TO vs. ZCB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XSH.TO achieves a 1.33% return, which is significantly lower than ZCB.TO's 1.93% return.
XSH.TO
- 1D
- 0.00%
- 1M
- 1.13%
- YTD
- 1.33%
- 6M
- 1.34%
- 1Y
- 3.85%
- 3Y*
- 6.05%
- 5Y*
- 2.86%
- 10Y*
- 2.82%
ZCB.TO
- 1D
- -0.08%
- 1M
- 1.58%
- YTD
- 1.93%
- 6M
- 1.46%
- 1Y
- 4.16%
- 3Y*
- 6.00%
- 5Y*
- 2.19%
- 10Y*
- —
XSH.TO vs. ZCB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.33% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.45% |
ZCB.TO BMO Corporate Bond Index ETF | 1.93% | 3.81% | 6.60% | 8.73% | -10.20% | -2.22% | 8.33% | 8.03% | 1.27% |
Correlation
The correlation between XSH.TO and ZCB.TO is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.72 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2018 | 0.55 |
The correlation between XSH.TO and ZCB.TO shifts across timeframes, from 0.55 (all time) to 0.72 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XSH.TO vs. ZCB.TO — Risk / Return Rank
XSH.TO
ZCB.TO
XSH.TO vs. ZCB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) and BMO Corporate Bond Index ETF (ZCB.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.
| XSH.TO | ZCB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.67 | ||
| Sortino ratioReturn per unit of downside risk | +0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.21 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 1.64 | +0.93 |
| Martin ratioReturn relative to average drawdown | 10.05 | 4.82 | +5.23 |
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
| XSH.TO | ZCB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.79 | 1.12 | +0.67 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 0.43 | +0.59 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.56 | +0.18 |
Drawdowns
XSH.TO vs. ZCB.TO - Drawdown Comparison
The maximum XSH.TO drawdown since its inception was -14.24%, smaller than the maximum ZCB.TO drawdown of -15.70%. Use the drawdown chart below to compare losses from any high point for XSH.TO and ZCB.TO.
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Drawdown Indicators
| XSH.TO | ZCB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.24% | -15.70% | +1.46% |
Max Drawdown (1Y)Largest decline over 1 year | -1.51% | -2.55% | +1.04% |
Max Drawdown (3Y)Largest decline over 3 years | -1.51% | -3.27% | +1.76% |
Max Drawdown (5Y)Largest decline over 5 years | -7.80% | -14.20% | +6.40% |
Max Drawdown (10Y)Largest decline over 10 years | -14.24% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.10% | +0.10% |
Average DrawdownAverage peak-to-trough decline | -0.93% | -3.70% | +2.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 0.86% | -0.48% |
Volatility
XSH.TO vs. ZCB.TO - Volatility Comparison
The current volatility for iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) is 0.80%, while BMO Corporate Bond Index ETF (ZCB.TO) has a volatility of 1.50%. This indicates that XSH.TO experiences smaller price fluctuations and is considered to be less risky than ZCB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XSH.TO | ZCB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.80% | 1.50% | -0.70% |
Volatility (6M)Calculated over the trailing 6-month period | 1.83% | 3.00% | -1.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.16% | 3.72% | -1.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.83% | 5.17% | -2.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 5.41% | -0.99% |
XSH.TO vs. ZCB.TO - Expense Ratio Comparison
XSH.TO has a 0.10% expense ratio, which is lower than ZCB.TO's 0.17% 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
XSH.TO vs. ZCB.TO - Dividend Comparison
XSH.TO's dividend yield for the trailing twelve months is around 3.89%, less than ZCB.TO's 4.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.89% | 3.82% | 3.64% | 3.24% | 2.97% | 2.65% | 2.61% | 2.80% | 2.86% | 2.93% | 3.08% | 3.18% |
ZCB.TO BMO Corporate Bond Index ETF | 4.03% | 4.00% | 3.84% | 3.89% | 3.62% | 3.13% | 2.97% | 3.12% | 3.27% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
XSH.TO and ZCB.TO have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSH.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSH.TO is cheaper with a 0.10% expense ratio, compared with 0.17% for ZCB.TO.
XSH.TO is categorized as Canadian Government Bonds, while ZCB.TO is Corporate Bonds. XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD, while ZCB.TO tracks FTSE Canada All Corporate Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.10% for XSH.TO and 0.17% for ZCB.TO.
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