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ZCN.TO vs. XCS.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZCN.TO vs. XCS.TO

Last updated Jun 5, 2026

ZCN.TO (BMO S&P/TSX Capped Composite Index ETF) and XCS.TO (iShares S&P/TSX SmallCap Index ETF) are both Canada Equities funds - ZCN.TO tracks the S&P/TSX Capped Composite Index while XCS.TO tracks the Morningstar Canada Sml GR CAD. Both are passively managed. Over the past 10 years, ZCN.TO returned 12.72%/yr vs 9.98%/yr for XCS.TO. A 0.75 correlation means they provide meaningful diversification when combined. ZCN.TO charges 0.06%/yr vs 0.60%/yr for XCS.TO.

Performance

ZCN.TO vs. XCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZCN.TO achieves a 12.08% return, which is significantly lower than XCS.TO's 24.60% return. Over the past 10 years, ZCN.TO has outperformed XCS.TO with an annualized return of 12.72%, while XCS.TO has yielded a comparatively lower 9.98% annualized return.

ZCN.TO

1D
1.24%
1M
5.09%
YTD
12.08%
6M
13.16%
1Y
36.95%
3Y*
24.35%
5Y*
15.19%
10Y*
12.72%

XCS.TO

1D
0.87%
1M
5.01%
YTD
24.60%
6M
21.86%
1Y
63.46%
3Y*
29.60%
5Y*
12.50%
10Y*
9.98%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZCN.TO vs. XCS.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZCN.TO
BMO S&P/TSX Capped Composite Index ETF		12.08%31.51%21.64%11.63%-5.84%25.05%5.69%22.85%-8.84%8.94%
XCS.TO
iShares S&P/TSX SmallCap Index ETF		24.60%43.37%18.11%4.17%-8.95%7.46%13.10%17.62%-19.51%2.27%

Correlation

The correlation between ZCN.TO and XCS.TO is 0.74, 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

0.74

Correlation (3Y)
Calculated over the trailing 3-year period

0.76

Correlation (5Y)
Calculated over the trailing 5-year period

0.78

Correlation (10Y)
Calculated over the trailing 10-year period

0.74

Correlation (All Time)
Calculated using the full available price history since Jun 5, 2009

0.75

The correlation between ZCN.TO and XCS.TO has been stable across timeframes, ranging from 0.74 to 0.78 - a consistent structural relationship.

ZCN.TO vs. XCS.TO - Sectors Allocation Comparison

Sectors
ZCN.TO
XCS.TO

Financial Services

32.8%
5.0%

Basic Materials

18.4%
30.3%

Energy

17.5%
24.5%

Industrials

10.3%
12.3%

Technology

7.6%
4.3%

Consumer Cyclical

3.8%
3.7%

Utilities

3.2%
1.7%

Consumer Defensive

2.9%
2.7%

Communication Services

1.8%
1.0%

Real Estate

1.6%
9.7%

Healthcare

0.1%
4.8%

Financial Services

ZCN.TO
32.8%
XCS.TO
5.0%

Basic Materials

ZCN.TO
18.4%
XCS.TO
30.3%

Energy

ZCN.TO
17.5%
XCS.TO
24.5%

Industrials

ZCN.TO
10.3%
XCS.TO
12.3%

Technology

ZCN.TO
7.6%
XCS.TO
4.3%

Consumer Cyclical

ZCN.TO
3.8%
XCS.TO
3.7%

Utilities

ZCN.TO
3.2%
XCS.TO
1.7%

Consumer Defensive

ZCN.TO
2.9%
XCS.TO
2.7%

Communication Services

ZCN.TO
1.8%
XCS.TO
1.0%

Real Estate

ZCN.TO
1.6%
XCS.TO
9.7%

Healthcare

ZCN.TO
0.1%
XCS.TO
4.8%

Compare stocks, funds, or ETFs

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BMO S&P/TSX Capped Composite Index ETF

iShares S&P/TSX SmallCap Index ETF

Often compared with ZCN.TO:
ZCN.TO vs. XIC.TOZCN.TO vs. XIU.TOZCN.TO vs. ZSP.TOZCN.TO vs. VDY.TOZCN.TO vs. VCE.TOZCN.TO vs. XEQT.TOZCN.TO vs. VFV.TO
Often compared with XCS.TO:
XCS.TO vs. XCV.TOXCS.TO vs. XMD.TOXCS.TO vs. XCSR.TOXCS.TO vs. XEI.TOXCS.TO vs. VBRXCS.TO vs. XUS.TOXCS.TO vs. VEQT.TO

Return for Risk

ZCN.TO vs. XCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZCN.TO
ZCN.TO Risk / Return Rank: 8585
Overall Rank
ZCN.TO Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
ZCN.TO Sortino Ratio Rank: 8585
Sortino Ratio Rank
ZCN.TO Omega Ratio Rank: 8787
Omega Ratio Rank
ZCN.TO Calmar Ratio Rank: 7979
Calmar Ratio Rank
ZCN.TO Martin Ratio Rank: 8787
Martin Ratio Rank
XCS.TO
XCS.TO Risk / Return Rank: 8282
Overall Rank
XCS.TO Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
XCS.TO Sortino Ratio Rank: 7575
Sortino Ratio Rank
XCS.TO Omega Ratio Rank: 8585
Omega Ratio Rank
XCS.TO Calmar Ratio Rank: 8383
Calmar Ratio Rank
XCS.TO Martin Ratio Rank: 7979
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ZCN.TO vs. XCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.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.

ZCN.TOXCS.TODifference
Sharpe ratioReturn per unit of total volatility
2.92
2.95

-0.03

Sortino ratioReturn per unit of downside risk
3.75
3.35

+0.41

Omega ratioGain probability vs. loss probability

1.53

1.51

+0.02

Calmar ratioReturn relative to maximum drawdown

3.99

4.37

-0.38

Martin ratioReturn relative to average drawdown

18.58

14.97

+3.61

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZCN.TO vs. XCS.TO - Sharpe Ratio Comparison

The current ZCN.TO Sharpe Ratio is 2.92, which is comparable to the XCS.TO Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of ZCN.TO and XCS.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.

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Sharpe Ratios by Period

ZCN.TOXCS.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.92

2.95

-0.03

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.17

0.62

+0.55

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.85

0.49

+0.36

Sharpe Ratio (All Time)

Calculated using the full available price history

0.68

0.24

+0.44

Drawdowns

ZCN.TO vs. XCS.TO - Drawdown Comparison

The maximum ZCN.TO drawdown since its inception was -37.18%, smaller than the maximum XCS.TO drawdown of -61.18%. Use the drawdown chart below to compare losses from any high point for ZCN.TO and XCS.TO.

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Drawdown Indicators

ZCN.TOXCS.TODifference

Max Drawdown

Largest peak-to-trough decline

-37.18%

-61.18%

+24.00%

Max Drawdown (1Y)

Largest decline over 1 year

-9.30%

-14.58%

+5.28%

Max Drawdown (3Y)

Largest decline over 3 years

-12.25%

-15.54%

+3.29%

Max Drawdown (5Y)

Largest decline over 5 years

-16.25%

-34.63%

+18.38%

Max Drawdown (10Y)

Largest decline over 10 years

-37.18%

-50.44%

+13.26%

Current Drawdown

Current decline from peak

0.00%

-0.44%

+0.44%

Average Drawdown

Average peak-to-trough decline

-4.76%

-16.95%

+12.19%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.99%

4.25%

-2.26%

Volatility

ZCN.TO vs. XCS.TO - Volatility Comparison

The current volatility for BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) is 3.63%, while iShares S&P/TSX SmallCap Index ETF (XCS.TO) has a volatility of 4.59%. This indicates that ZCN.TO experiences smaller price fluctuations and is considered to be less risky than XCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZCN.TOXCS.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

3.63%

4.59%

-0.96%

Volatility (6M)

Calculated over the trailing 6-month period

10.37%

17.36%

-6.99%

Volatility (1Y)

Calculated over the trailing 1-year period

12.71%

21.62%

-8.91%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.10%

20.42%

-7.32%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.99%

20.41%

-5.42%

ZCN.TO vs. XCS.TO - Expense Ratio Comparison

ZCN.TO has a 0.06% expense ratio, which is lower than XCS.TO's 0.60% expense ratio.

Dividends

ZCN.TO vs. XCS.TO - Dividend Comparison

ZCN.TO's dividend yield for the trailing twelve months is around 2.00%, more than XCS.TO's 1.02% yield.

PositionTTM20252024202320222021202020192018201720162015
XCS.TO
iShares S&P/TSX SmallCap Index ETF		1.02%1.36%1.73%2.59%2.07%1.51%1.78%2.27%2.12%1.81%1.46%2.34%
ZCN.TO
BMO S&P/TSX Capped Composite Index ETF		2.00%2.22%2.78%3.29%3.27%2.74%3.24%3.13%3.16%2.71%2.84%3.33%

Frequently Asked Questions

ZCN.TO and XCS.TO have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, ZCN.TO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

ZCN.TO is cheaper with a 0.06% expense ratio, compared with 0.60% for XCS.TO.

ZCN.TO tracks S&P/TSX Capped Composite Index, while XCS.TO tracks Morningstar Canada Sml GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.06% for ZCN.TO and 0.60% for XCS.TO.

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