ZCN.TO vs. ZTIP.TO

Last updated Jun 25, 2026

ZCN.TO (BMO S&P/TSX Capped Composite Index ETF) and ZTIP.TO (BMO Short-Term US TIPS Index ETF) are both exchange-traded funds - ZCN.TO is a Canada Equities fund tracking the S&P/TSX Capped Composite Index, while ZTIP.TO is a Inflation-Protected Bonds fund tracking the Bloomberg Barclays U.S. Government Inflation-Linked 0-5 Year Bond Index. Both are passively managed. Over the past 5 years, ZCN.TO returned 14.61%/yr vs 6.27%/yr for ZTIP.TO. At a correlation of -0.17, they often move in opposite directions. ZCN.TO charges 0.06%/yr vs 0.17%/yr for ZTIP.TO.

Performance

ZCN.TO vs. ZTIP.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 BMO Short-Term US TIPS Index ETF (ZTIP.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZCN.TO achieves a 10.54% return, which is significantly higher than ZTIP.TO's 5.25% return.

ZCN.TO

• 1D: -0.64%
• 1M: -0.13%
• YTD: 10.54%
• 6M: 9.63%
• 1Y: 32.92%
• 3Y*: 24.74%
• 5Y*: 14.61%
• 10Y*: 12.84%

ZTIP.TO

• 1D: 0.27%
• 1M: 2.87%
• YTD: 5.25%
• 6M: 5.58%
• 1Y: 7.50%
• 3Y*: 7.76%
• 5Y*: 6.27%
• 10Y*: —

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

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

	2026 (YTD)	2025	2024	2023	2022	2021
ZCN.TO BMO S&P/TSX Capped Composite Index ETF	10.54%	31.51%	21.64%	11.63%	-5.84%	21.58%
ZTIP.TO BMO Short-Term US TIPS Index ETF	5.25%	1.12%	13.84%	1.93%	3.96%	4.47%

Correlation

The correlation between ZCN.TO and ZTIP.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 (3Y) Calculated over the trailing 3-year period	-0.16
Correlation (5Y) Calculated over the trailing 5-year period	-0.18
Correlation (All Time) Calculated using the full available price history since Jan 26, 2021	-0.17

Return for Risk

ZCN.TO vs. ZTIP.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: 83
ZCN.TO Sharpe Ratio Rank: 86
ZCN.TO Sortino Ratio Rank: 82
ZCN.TO Omega Ratio Rank: 83
ZCN.TO Calmar Ratio Rank: 76
ZCN.TO Martin Ratio Rank: 86

ZTIP.TO

ZTIP.TO Risk / Return Rank: 53
ZTIP.TO Sharpe Ratio Rank: 56
ZTIP.TO Sortino Ratio Rank: 54
ZTIP.TO Omega Ratio Rank: 74
ZTIP.TO Calmar Ratio Rank: 45
ZTIP.TO Martin Ratio Rank: 38

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. ZTIP.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 BMO Short-Term US TIPS Index ETF (ZTIP.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.

	ZCN.TO	ZTIP.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.52	1.65	+0.87
Sortino ratio: Return per unit of downside risk	3.26	2.30	+0.96
Omega ratio: Gain probability vs. loss probability	1.45	1.38	+0.07
Calmar ratio: Return relative to maximum drawdown	3.55	2.00	+1.55
Martin ratio: Return relative to average drawdown	16.26	5.36	+10.89

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

The current ZCN.TO Sharpe Ratio is 2.52, which is higher than the ZTIP.TO Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of ZCN.TO and ZTIP.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

ZCN.TO vs. ZTIP.TO - Drawdown Comparison

The maximum ZCN.TO drawdown since its inception was -37.18%, which is greater than ZTIP.TO's maximum drawdown of -5.60%. Use the drawdown chart below to compare losses from any high point for ZCN.TO and ZTIP.TO.

Drawdown Indicators

	ZCN.TO	ZTIP.TO	Difference
Max Drawdown Largest peak-to-trough decline	-37.18%	-5.60%	-31.58%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-3.78%	-5.52%
Max Drawdown (3Y) Largest decline over 3 years	-12.25%	-5.60%	-6.65%
Max Drawdown (5Y) Largest decline over 5 years	-16.25%	-5.60%	-10.65%
Max Drawdown (10Y) Largest decline over 10 years	-37.18%	—	—
Current Drawdown Current decline from peak	-1.89%	0.00%	-1.89%
Average Drawdown Average peak-to-trough decline	-4.72%	-1.52%	-3.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	1.40%	+0.63%

Volatility

ZCN.TO vs. ZTIP.TO - Volatility Comparison

BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) has a higher volatility of 4.23% compared to BMO Short-Term US TIPS Index ETF (ZTIP.TO) at 1.04%. This indicates that ZCN.TO's price experiences larger fluctuations and is considered to be riskier than ZTIP.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZCN.TO	ZTIP.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	1.04%	+3.19%
Volatility (6M) Calculated over the trailing 6-month period	10.71%	3.08%	+7.63%
Volatility (1Y) Calculated over the trailing 1-year period	13.13%	4.58%	+8.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.19%	6.34%	+6.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.00%	6.26%	+8.74%

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

ZCN.TO has a 0.06% expense ratio, which is lower than ZTIP.TO's 0.17% 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

ZCN.TO vs. ZTIP.TO - Dividend Comparison

ZCN.TO's dividend yield for the trailing twelve months is around 2.03%, less than ZTIP.TO's 3.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZCN.TO BMO S&P/TSX Capped Composite Index ETF	2.03%	2.22%	2.78%	3.29%	3.27%	2.74%	3.24%	3.13%	3.16%	2.75%	2.86%	3.36%
ZTIP.TO BMO Short-Term US TIPS Index ETF	3.37%	3.63%	3.63%	4.91%	4.93%	0.38%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZCN.TO and ZTIP.TO in my portfolio?

ZCN.TO and ZTIP.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.

Which ETF is better, ZCN.TO or ZTIP.TO?

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.

Which ETF is cheaper, ZCN.TO or ZTIP.TO?

ZCN.TO is cheaper with a 0.06% expense ratio, compared with 0.17% for ZTIP.TO.

What is the main difference between ZCN.TO and ZTIP.TO?

ZCN.TO is categorized as Canada Equities, while ZTIP.TO is Inflation-Protected Bonds. ZCN.TO tracks S&P/TSX Capped Composite Index, while ZTIP.TO tracks Bloomberg Barclays U.S. Government Inflation-Linked 0-5 Year Bond Index. Their fees differ too: 0.06% for ZCN.TO and 0.17% for ZTIP.TO.