ZAAA.NEO vs. XFR.TO

Last updated Aug 4, 2026

ZAAA.NEO (BMO AAA CLO ETF) and XFR.TO (iShares Floating Rate Index ETF) are both exchange-traded funds - ZAAA.NEO is a CLO fund actively managed by BMO, while XFR.TO is a Canadian Government Bonds fund tracking the FTSE Canada Floating Rate Note Index. ZAAA.NEO is actively managed, while XFR.TO is passively managed. Over the past year, ZAAA.NEO returned 6.65% vs 2.74% for XFR.TO. Their 0.02 correlation means their historical movements had little consistent relationship. ZAAA.NEO charges 0.23%/yr vs 0.13%/yr for XFR.TO.

Performance

ZAAA.NEO vs. XFR.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO AAA CLO ETF (ZAAA.NEO) and iShares Floating Rate Index ETF (XFR.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZAAA.NEO achieves a 4.69% return, which is significantly higher than XFR.TO's 1.49% return.

ZAAA.NEO

• 1D: -0.59%
• 1M: -0.79%
• 6M: 4.67%
• YTD: 4.69%
• 1Y: 6.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.37%

XFR.TO

• 1D: 0.00%
• 1M: 0.17%
• 6M: 1.22%
• YTD: 1.49%
• 1Y: 2.74%
• 3Y*: 3.85%
• 5Y*: 3.30%
• 10Y*: 2.27%
• ALL TIME*: 1.92%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
XFR.TO iShares Floating Rate Index ETF	CA$782.48K	CA$603.81K	CA$966.23K
ZAAA.NEO BMO AAA CLO ETF	CA$107.31K	CA$118.09K	CA$109.30K

ZAAA.NEO vs. XFR.TO - Yearly Performance Comparison

	2026 (YTD)	2025
ZAAA.NEO BMO AAA CLO ETF	4.69%	3.10%
XFR.TO iShares Floating Rate Index ETF	1.49%	2.21%

Correlation

The correlation between ZAAA.NEO and XFR.TO is -0.03, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.03
Correlation (All Time) Calculated using the full available price history since May 5, 2025	0.02

Return for Risk

ZAAA.NEO vs. XFR.TO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ZAAA.NEO

ZAAA.NEO Risk / Return Rank: 50
ZAAA.NEO Sharpe Ratio Rank: 51
ZAAA.NEO Sortino Ratio Rank: 51
ZAAA.NEO Omega Ratio Rank: 56
ZAAA.NEO Calmar Ratio Rank: 53
ZAAA.NEO Martin Ratio Rank: 42

XFR.TO

XFR.TO Risk / Return Rank: 98
XFR.TO Sharpe Ratio Rank: 98
XFR.TO Sortino Ratio Rank: 98
XFR.TO Omega Ratio Rank: 98
XFR.TO Calmar Ratio Rank: 99
XFR.TO Martin Ratio Rank: 99

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ZAAA.NEO vs. XFR.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO AAA CLO ETF (ZAAA.NEO) and iShares Floating Rate Index ETF (XFR.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ZAAA.NEO	XFR.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.39	3.96	-2.58
Sortino ratio: Return per unit of downside risk	1.99	6.57	-4.59
Omega ratio: Gain probability vs. loss probability	1.27	1.94	-0.67
Calmar ratio: Return relative to maximum drawdown	2.09	28.60	-26.51
Martin ratio: Return relative to average drawdown	5.02	82.37	-77.35

ZAAA.NEO vs. XFR.TO - Sharpe Ratio Comparison

The current ZAAA.NEO Sharpe Ratio is 1.39, which is lower than the XFR.TO Sharpe Ratio of 3.96. The chart below compares the historical Sharpe Ratios of ZAAA.NEO and XFR.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.

Drawdowns

ZAAA.NEO vs. XFR.TO - Drawdown Comparison

The maximum ZAAA.NEO drawdown since its inception was -3.01%, smaller than the maximum XFR.TO drawdown of -4.12%. Use the drawdown chart below to compare losses from any high point for ZAAA.NEO and XFR.TO.

Drawdown Indicators

	ZAAA.NEO	XFR.TO	Difference
Max Drawdown Largest peak-to-trough decline	-3.01%	-4.12%	+1.11%
Max Drawdown (1Y) Largest decline over 1 year	-3.01%	-0.10%	-2.91%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.30%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-0.30%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-4.12%	—
Current Drawdown Current decline from peak	-1.13%	-0.10%	-1.03%
Average Drawdown Average peak-to-trough decline	-0.99%	-0.06%	-0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.25%	0.03%	+1.22%

Volatility

ZAAA.NEO vs. XFR.TO - Volatility Comparison

BMO AAA CLO ETF (ZAAA.NEO) has a higher volatility of 1.49% compared to iShares Floating Rate Index ETF (XFR.TO) at 0.19%. This indicates that ZAAA.NEO's price experiences larger fluctuations and is considered to be riskier than XFR.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZAAA.NEO	XFR.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.49%	0.19%	+1.30%
Volatility (6M) Calculated over the trailing 6-month period	3.24%	0.45%	+2.79%
Volatility (1Y) Calculated over the trailing 1-year period	4.52%	0.72%	+3.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.68%	0.84%	+3.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.68%	1.86%	+2.82%

ZAAA.NEO vs. XFR.TO - Expense Ratio Comparison

ZAAA.NEO has a 0.23% expense ratio, which is higher than XFR.TO's 0.13% 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

ZAAA.NEO vs. XFR.TO - Dividend Comparison

ZAAA.NEO's dividend yield for the trailing twelve months is around 5.11%, more than XFR.TO's 2.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XFR.TO iShares Floating Rate Index ETF	2.71%	3.23%	4.93%	4.91%	1.84%	0.30%	1.07%	1.99%	1.64%	0.92%	0.65%	0.95%
ZAAA.NEO BMO AAA CLO ETF	5.11%	3.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZAAA.NEO and XFR.TO in my portfolio?

ZAAA.NEO and XFR.TO have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZAAA.NEO or XFR.TO?

On fees, XFR.TO is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZAAA.NEO or XFR.TO?

XFR.TO is cheaper with a 0.13% expense ratio, compared with 0.23% for ZAAA.NEO.

What is the main difference between ZAAA.NEO and XFR.TO?

ZAAA.NEO is categorized as CLO, while XFR.TO is Canadian Government Bonds. They also come from different issuers: BMO and iShares. Their fees differ too: 0.23% for ZAAA.NEO and 0.13% for XFR.TO.