ZCB.TO vs. ZFL.TO
ZCB.TO (BMO Corporate Bond Index ETF) and ZFL.TO (BMO Long Federal Bond) are both exchange-traded funds - ZCB.TO is a Corporate Bonds fund tracking the FTSE Canada All Corporate Bond Index, while ZFL.TO is a Canadian Government Bonds fund tracking the FTSE TMX Canada Long Term Federal Bond Index. Both are passively managed. Over the past 5 years, ZCB.TO returned 2.19%/yr vs -3.89%/yr for ZFL.TO. A 0.68 correlation means they provide meaningful diversification when combined. ZCB.TO charges 0.17%/yr vs 0.22%/yr for ZFL.TO.
Performance
ZCB.TO vs. ZFL.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZCB.TO achieves a 1.93% return, which is significantly lower than ZFL.TO's 2.39% return.
ZCB.TO
- 1D
- -0.08%
- 1M
- 1.58%
- YTD
- 1.93%
- 6M
- 1.46%
- 1Y
- 4.16%
- 3Y*
- 6.00%
- 5Y*
- 2.19%
- 10Y*
- —
ZFL.TO
- 1D
- -0.33%
- 1M
- 2.93%
- YTD
- 2.39%
- 6M
- -0.37%
- 1Y
- -0.83%
- 3Y*
- -0.42%
- 5Y*
- -3.89%
- 10Y*
- -1.37%
ZCB.TO vs. ZFL.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
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% |
ZFL.TO BMO Long Federal Bond | 2.39% | -5.14% | -2.20% | 7.30% | -23.89% | -7.47% | 12.68% | 8.73% | 4.03% |
Correlation
The correlation between ZCB.TO and ZFL.TO is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2018 | 0.68 |
The correlation between ZCB.TO and ZFL.TO shifts across timeframes, from 0.68 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.
ZCB.TO vs. ZFL.TO - Sectors Allocation Comparison
Sectors
ZCB.TO
ZFL.TO
Real Estate
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Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Energy
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Financial Services
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Healthcare
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Industrials
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Technology
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Utilities
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Real Estate
ZCB.TO
ZFL.TO
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Basic Materials
ZCB.TO
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ZFL.TO
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Communication Services
ZCB.TO
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ZFL.TO
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Consumer Cyclical
ZCB.TO
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ZFL.TO
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Consumer Defensive
ZCB.TO
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ZFL.TO
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Energy
ZCB.TO
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ZFL.TO
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Financial Services
ZCB.TO
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ZFL.TO
Healthcare
ZCB.TO
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ZFL.TO
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Industrials
ZCB.TO
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ZFL.TO
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Technology
ZCB.TO
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ZFL.TO
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Utilities
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ZFL.TO
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Return for Risk
ZCB.TO vs. ZFL.TO — Risk / Return Rank
ZCB.TO
ZFL.TO
ZCB.TO vs. ZFL.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Corporate Bond Index ETF (ZCB.TO) and BMO Long Federal Bond (ZFL.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.
| ZCB.TO | ZFL.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.21 | ||
| Sortino ratioReturn per unit of downside risk | +1.60 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 0.99 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | -0.12 | +1.76 |
| Martin ratioReturn relative to average drawdown | 4.82 | -0.22 | +5.04 |
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
| ZCB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.12 | -0.09 | +1.21 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.43 | -0.27 | +0.69 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.16 | +0.40 |
Drawdowns
ZCB.TO vs. ZFL.TO - Drawdown Comparison
The maximum ZCB.TO drawdown since its inception was -15.70%, smaller than the maximum ZFL.TO drawdown of -40.32%. Use the drawdown chart below to compare losses from any high point for ZCB.TO and ZFL.TO.
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Drawdown Indicators
| ZCB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.70% | -40.32% | +24.62% |
Max Drawdown (1Y)Largest decline over 1 year | -2.55% | -6.68% | +4.13% |
Max Drawdown (3Y)Largest decline over 3 years | -3.27% | -14.51% | +11.24% |
Max Drawdown (5Y)Largest decline over 5 years | -14.20% | -32.25% | +18.05% |
Max Drawdown (10Y)Largest decline over 10 years | — | -40.32% | — |
Current DrawdownCurrent decline from peak | -0.10% | -31.87% | +31.77% |
Average DrawdownAverage peak-to-trough decline | -3.70% | -12.45% | +8.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 3.82% | -2.96% |
Volatility
ZCB.TO vs. ZFL.TO - Volatility Comparison
The current volatility for BMO Corporate Bond Index ETF (ZCB.TO) is 1.50%, while BMO Long Federal Bond (ZFL.TO) has a volatility of 3.14%. This indicates that ZCB.TO experiences smaller price fluctuations and is considered to be less risky than ZFL.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZCB.TO | ZFL.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.50% | 3.14% | -1.64% |
Volatility (6M)Calculated over the trailing 6-month period | 3.00% | 7.05% | -4.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.72% | 9.72% | -6.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.17% | 14.71% | -9.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 12.54% | -7.13% |
ZCB.TO vs. ZFL.TO - Expense Ratio Comparison
ZCB.TO has a 0.17% expense ratio, which is lower than ZFL.TO's 0.22% 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
ZCB.TO vs. ZFL.TO - Dividend Comparison
ZCB.TO's dividend yield for the trailing twelve months is around 4.03%, more than ZFL.TO's 2.84% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
ZFL.TO BMO Long Federal Bond | 2.84% | 3.13% | 3.20% | 3.49% | 3.77% | 2.85% | 2.57% | 2.95% | 3.00% | 2.99% | 3.05% | 3.10% |
Frequently Asked Questions
ZCB.TO and ZFL.TO have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZCB.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZCB.TO is cheaper with a 0.17% expense ratio, compared with 0.22% for ZFL.TO.
ZCB.TO is categorized as Corporate Bonds, while ZFL.TO is Canadian Government Bonds. ZCB.TO tracks FTSE Canada All Corporate Bond Index, while ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index. Their fees differ too: 0.17% for ZCB.TO and 0.22% for ZFL.TO.
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