ZAAA.NEO vs. ZHY.TO
ZAAA.NEO (BMO AAA CLO ETF) and ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) are both exchange-traded funds - ZAAA.NEO is a CLO fund actively managed by BMO, while ZHY.TO is a High Yield Bonds fund tracking the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged. ZAAA.NEO is actively managed, while ZHY.TO is passively managed. Over the past year, ZAAA.NEO returned 7.68% vs 3.57% for ZHY.TO. At a correlation of -0.17, they often move in opposite directions. ZAAA.NEO charges 0.23%/yr vs 0.61%/yr for ZHY.TO.
Performance
ZAAA.NEO vs. ZHY.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 ZHY.TO's 0.97% return.
ZAAA.NEO
- 1D
- -0.65%
- 1M
- 1.60%
- 6M
- 3.53%
- YTD
- 4.84%
- 1Y
- 7.68%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZHY.TO
- 1D
- 0.18%
- 1M
- -0.10%
- 6M
- 0.52%
- YTD
- 0.97%
- 1Y
- 3.57%
- 3Y*
- 6.66%
- 5Y*
- 2.28%
- 10Y*
- 3.56%
ZAAA.NEO vs. ZHY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
ZAAA.NEO BMO AAA CLO ETF | 4.84% | 3.10% |
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF | 0.97% | 5.87% |
Correlation
The correlation between ZAAA.NEO and ZHY.TO is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.17 |
Correlation (All Time) Calculated using the full available price history since May 5, 2025 | -0.17 |
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Return for Risk
ZAAA.NEO vs. ZHY.TO — Risk / Return Rank
ZAAA.NEO
ZHY.TO
ZAAA.NEO vs. ZHY.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO AAA CLO ETF (ZAAA.NEO) and BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.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 | ZHY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.51 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.12 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 1.21 | +1.37 |
| Martin ratioReturn relative to average drawdown | 6.24 | 4.59 | +1.65 |
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Drawdowns
ZAAA.NEO vs. ZHY.TO - Drawdown Comparison
The maximum ZAAA.NEO drawdown since its inception was -3.01%, smaller than the maximum ZHY.TO drawdown of -28.44%. Use the drawdown chart below to compare losses from any high point for ZAAA.NEO and ZHY.TO.
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Drawdown Indicators
| ZAAA.NEO | ZHY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.01% | -28.44% | +25.43% |
Max Drawdown (1Y)Largest decline over 1 year | -3.01% | -2.96% | -0.05% |
Max Drawdown (3Y)Largest decline over 3 years | — | -5.65% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -17.11% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -28.44% | — |
Current DrawdownCurrent decline from peak | -0.98% | -0.91% | -0.07% |
Average DrawdownAverage peak-to-trough decline | -1.00% | -2.85% | +1.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.24% | 0.78% | +0.46% |
Volatility
ZAAA.NEO vs. ZHY.TO - Volatility Comparison
BMO AAA CLO ETF (ZAAA.NEO) has a higher volatility of 1.52% compared to BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) at 1.43%. This indicates that ZAAA.NEO's price experiences larger fluctuations and is considered to be riskier than ZHY.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 | ZHY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.52% | 1.43% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 3.35% | 4.23% | -0.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.57% | 5.39% | -0.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.63% | 9.56% | -4.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.63% | 10.87% | -6.24% |
ZAAA.NEO vs. ZHY.TO - Expense Ratio Comparison
ZAAA.NEO has a 0.23% expense ratio, which is lower than ZHY.TO's 0.61% expense ratio.
Dividends
ZAAA.NEO vs. ZHY.TO - Dividend Comparison
ZAAA.NEO's dividend yield for the trailing twelve months is around 5.12%, less than ZHY.TO's 6.43% 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% |
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF | 6.43% | 6.10% | 6.13% | 6.43% | 6.71% | 5.49% | 6.09% | 6.50% | 6.25% | 6.10% | 5.84% | 7.12% |
Frequently Asked Questions
ZAAA.NEO and ZHY.TO have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZAAA.NEO is cheaper at 0.23% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZAAA.NEO is cheaper with a 0.23% expense ratio, compared with 0.61% for ZHY.TO.
ZAAA.NEO is categorized as CLO, while ZHY.TO is High Yield Bonds. Their fees differ too: 0.23% for ZAAA.NEO and 0.61% for ZHY.TO.
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