ZCS.TO vs. RQO.TO

Last updated Aug 4, 2026

ZCS.TO (BMO Short Corporate Bond Index ETF) and RQO.TO (RBC Target 2026 Canadian Corporate Bond Index ETF) are both exchange-traded funds - ZCS.TO is a Corporate Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index, while RQO.TO is a Short-Term Bond fund tracking the FTSE Canada 2026 Maturity Corporate Bond Index. Both are passively managed. Over the past 5 years, ZCS.TO returned 2.83%/yr vs 1.50%/yr for RQO.TO. Their 0.61 correlation means they have sometimes moved together and sometimes differently. ZCS.TO charges 0.11%/yr vs 0.22%/yr for RQO.TO.

Performance

ZCS.TO vs. RQO.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Short Corporate Bond Index ETF (ZCS.TO) and RBC Target 2026 Canadian Corporate Bond Index ETF (RQO.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZCS.TO achieves a 1.36% return, which is significantly higher than RQO.TO's 1.28% return.

ZCS.TO

• 1D: -0.14%
• 1M: -0.31%
• 6M: 0.73%
• YTD: 1.36%
• 1Y: 3.21%
• 3Y*: 6.04%
• 5Y*: 2.83%
• 10Y*: 2.76%
• ALL TIME*: 2.98%

RQO.TO

• 1D: 0.00%
• 1M: 0.16%
• 6M: 1.07%
• YTD: 1.28%
• 1Y: 2.57%
• 3Y*: 5.11%
• 5Y*: 1.50%
• 10Y*: —
• ALL TIME*: 1.24%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
RQO.TO RBC Target 2026 Canadian Corporate Bond Index ETF	CA$124.30K	CA$161.03K	CA$212.53K
ZCS.TO BMO Short Corporate Bond Index ETF	CA$1.28M	CA$1.51M	CA$1.67M

ZCS.TO vs. RQO.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ZCS.TO BMO Short Corporate Bond Index ETF	1.36%	4.41%	7.42%	6.67%	-4.48%	-0.76%	1.17%
RQO.TO RBC Target 2026 Canadian Corporate Bond Index ETF	1.28%	3.57%	5.40%	6.86%	-7.50%	-2.27%	0.63%

Correlation

The correlation between ZCS.TO and RQO.TO is 0.21, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.21
Correlation (3Y) Balances recent behavior with more history.	0.61
Correlation (5Y) Shows whether the relationship held over a longer period.	0.65
Correlation (All Time) Calculated using the full available price history since Sep 18, 2020	0.61

Over the past year, the correlation between ZCS.TO and RQO.TO has dropped to 0.21 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.

Return for Risk

ZCS.TO vs. RQO.TO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ZCS.TO

ZCS.TO Risk / Return Rank: 64
ZCS.TO Sharpe Ratio Rank: 66
ZCS.TO Sortino Ratio Rank: 61
ZCS.TO Omega Ratio Rank: 74
ZCS.TO Calmar Ratio Rank: 55
ZCS.TO Martin Ratio Rank: 64

RQO.TO

RQO.TO Risk / Return Rank: 98
RQO.TO Sharpe Ratio Rank: 98
RQO.TO Sortino Ratio Rank: 98
RQO.TO Omega Ratio Rank: 98
RQO.TO Calmar Ratio Rank: 99
RQO.TO Martin Ratio Rank: 99

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ZCS.TO vs. RQO.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Short Corporate Bond Index ETF (ZCS.TO) and RBC Target 2026 Canadian Corporate Bond Index ETF (RQO.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.

	ZCS.TO	RQO.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.57	3.90	-2.34
Sortino ratio: Return per unit of downside risk	2.11	6.74	-4.62
Omega ratio: Gain probability vs. loss probability	1.32	1.99	-0.67
Calmar ratio: Return relative to maximum drawdown	2.02	24.91	-22.89
Martin ratio: Return relative to average drawdown	7.94	85.44	-77.51

ZCS.TO vs. RQO.TO - Sharpe Ratio Comparison

The current ZCS.TO Sharpe Ratio is 1.57, which is lower than the RQO.TO Sharpe Ratio of 3.90. The chart below compares the historical Sharpe Ratios of ZCS.TO and RQO.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

ZCS.TO vs. RQO.TO - Drawdown Comparison

The maximum ZCS.TO drawdown since its inception was -13.95%, which is greater than RQO.TO's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and RQO.TO.

Drawdown Indicators

	ZCS.TO	RQO.TO	Difference
Max Drawdown Largest peak-to-trough decline	-13.95%	-12.86%	-1.09%
Max Drawdown (1Y) Largest decline over 1 year	-1.63%	-0.11%	-1.52%
Max Drawdown (3Y) Largest decline over 3 years	-1.63%	-0.93%	-0.70%
Max Drawdown (5Y) Largest decline over 5 years	-7.76%	-11.65%	+3.89%
Max Drawdown (10Y) Largest decline over 10 years	-13.95%	—	—
Current Drawdown Current decline from peak	-0.38%	0.00%	-0.38%
Average Drawdown Average peak-to-trough decline	-0.89%	-3.70%	+2.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.03%	+0.38%

Volatility

ZCS.TO vs. RQO.TO - Volatility Comparison

BMO Short Corporate Bond Index ETF (ZCS.TO) has a higher volatility of 0.59% compared to RBC Target 2026 Canadian Corporate Bond Index ETF (RQO.TO) at 0.12%. This indicates that ZCS.TO's price experiences larger fluctuations and is considered to be riskier than RQO.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZCS.TO	RQO.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	0.12%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	1.81%	0.47%	+1.34%
Volatility (1Y) Calculated over the trailing 1-year period	2.11%	0.68%	+1.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.91%	2.98%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.38%	2.92%	+1.46%

ZCS.TO vs. RQO.TO - Expense Ratio Comparison

ZCS.TO has a 0.11% expense ratio, which is lower than RQO.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

ZCS.TO vs. RQO.TO - Dividend Comparison

ZCS.TO's dividend yield for the trailing twelve months is around 3.99%, more than RQO.TO's 3.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RQO.TO RBC Target 2026 Canadian Corporate Bond Index ETF	3.09%	2.66%	2.56%	1.98%	1.86%	1.97%	0.52%	0.00%	0.00%	0.00%	0.00%	0.00%
ZCS.TO BMO Short Corporate Bond Index ETF	3.99%	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

Can I hold both ZCS.TO and RQO.TO in my portfolio?

ZCS.TO and RQO.TO have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZCS.TO or RQO.TO?

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.

Which ETF is cheaper, ZCS.TO or RQO.TO?

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.22% for RQO.TO.

What is the main difference between ZCS.TO and RQO.TO?

ZCS.TO is categorized as Corporate Bonds, while RQO.TO is Short-Term Bond. ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index, while RQO.TO tracks FTSE Canada 2026 Maturity Corporate Bond Index. They also come from different issuers: BMO and RBC. Their fees differ too: 0.11% for ZCS.TO and 0.22% for RQO.TO.