ZAAA.NEO vs. ZCS.TO
ZAAA.NEO (BMO AAA CLO ETF) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both exchange-traded funds - ZAAA.NEO is a CLO fund actively managed by BMO, while ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index. ZAAA.NEO is actively managed, while ZCS.TO is passively managed. Over the past year, ZAAA.NEO returned 7.68% vs 3.71% for ZCS.TO. At a correlation of -0.03, they often move in opposite directions. ZAAA.NEO charges 0.23%/yr vs 0.11%/yr for ZCS.TO.
Performance
ZAAA.NEO vs. ZCS.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZAAA.NEO achieves a 4.84% return, which is significantly higher than ZCS.TO's 1.31% return.
ZAAA.NEO
- 1D
- -0.65%
- 1M
- 1.60%
- 6M
- 3.53%
- YTD
- 4.84%
- 1Y
- 7.68%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZCS.TO
- 1D
- 0.00%
- 1M
- -0.16%
- 6M
- 1.02%
- YTD
- 1.31%
- 1Y
- 3.71%
- 3Y*
- 5.99%
- 5Y*
- 2.87%
- 10Y*
- 2.79%
ZAAA.NEO vs. ZCS.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
ZAAA.NEO BMO AAA CLO ETF | 4.84% | 3.10% |
ZCS.TO BMO Short Corporate Bond Index ETF | 1.31% | 3.13% |
Correlation
The correlation between ZAAA.NEO and ZCS.TO is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.03 |
Correlation (All Time) Calculated using the full available price history since May 5, 2025 | -0.03 |
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Return for Risk
ZAAA.NEO vs. ZCS.TO — Risk / Return Rank
ZAAA.NEO
ZCS.TO
ZAAA.NEO vs. ZCS.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO AAA CLO ETF (ZAAA.NEO) 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.
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 | ZCS.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.37 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 2.29 | +0.29 |
| Martin ratioReturn relative to average drawdown | 6.24 | 9.12 | -2.88 |
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Drawdowns
ZAAA.NEO vs. ZCS.TO - Drawdown Comparison
The maximum ZAAA.NEO drawdown since its inception was -3.01%, smaller than the maximum ZCS.TO drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for ZAAA.NEO and ZCS.TO.
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Drawdown Indicators
| ZAAA.NEO | ZCS.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.01% | -13.95% | +10.94% |
Max Drawdown (1Y)Largest decline over 1 year | -3.01% | -1.63% | -1.38% |
Max Drawdown (3Y)Largest decline over 3 years | — | -1.63% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -7.76% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -13.95% | — |
Current DrawdownCurrent decline from peak | -0.98% | -0.43% | -0.55% |
Average DrawdownAverage peak-to-trough decline | -1.00% | -0.89% | -0.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.24% | 0.41% | +0.83% |
Volatility
ZAAA.NEO vs. ZCS.TO - Volatility Comparison
BMO AAA CLO ETF (ZAAA.NEO) has a higher volatility of 1.52% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.51%. This indicates that ZAAA.NEO'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.
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Volatility by Period
| ZAAA.NEO | ZCS.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.52% | 0.51% | +1.01% |
Volatility (6M)Calculated over the trailing 6-month period | 3.35% | 1.79% | +1.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.57% | 2.09% | +2.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.63% | 2.90% | +1.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.63% | 4.38% | +0.25% |
ZAAA.NEO vs. ZCS.TO - Expense Ratio Comparison
ZAAA.NEO has a 0.23% 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
ZAAA.NEO vs. ZCS.TO - Dividend Comparison
ZAAA.NEO's dividend yield for the trailing twelve months is around 5.12%, more than ZCS.TO's 3.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZAAA.NEO BMO AAA CLO ETF | 5.12% | 3.16% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ZCS.TO BMO Short Corporate Bond Index ETF | 3.96% | 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
ZAAA.NEO and ZCS.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.
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.
ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.23% for ZAAA.NEO.
ZAAA.NEO is categorized as CLO, while ZCS.TO is Canadian Government Bonds. Their fees differ too: 0.23% for ZAAA.NEO and 0.11% for ZCS.TO.
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