ZCS.TO vs. XBB.TO
ZCS.TO (BMO Short Corporate Bond Index ETF) and XBB.TO (iShares Core Canadian Universe Bond Index ETF) are both Canadian Government Bonds funds - ZCS.TO tracks the FTSE Canada Short Term Corporate Bond Index while XBB.TO tracks the Morningstar Can Core Bd GR CAD. Both are passively managed. Over the past 10 years, ZCS.TO returned 2.79%/yr vs 1.63%/yr for XBB.TO. A 0.58 correlation means they provide meaningful diversification when combined. ZCS.TO charges 0.11%/yr vs 0.10%/yr for XBB.TO.
Performance
ZCS.TO vs. XBB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZCS.TO achieves a 1.29% return, which is significantly lower than XBB.TO's 1.51% return. Over the past 10 years, ZCS.TO has outperformed XBB.TO with an annualized return of 2.79%, while XBB.TO has yielded a comparatively lower 1.63% annualized return.
ZCS.TO
- 1D
- -0.04%
- 1M
- 1.02%
- YTD
- 1.29%
- 6M
- 1.26%
- 1Y
- 3.96%
- 3Y*
- 5.98%
- 5Y*
- 2.85%
- 10Y*
- 2.79%
XBB.TO
- 1D
- -0.18%
- 1M
- 1.59%
- YTD
- 1.51%
- 6M
- 0.69%
- 1Y
- 3.09%
- 3Y*
- 4.17%
- 5Y*
- 0.71%
- 10Y*
- 1.63%
ZCS.TO vs. XBB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZCS.TO BMO Short Corporate Bond Index ETF | 1.29% | 4.41% | 7.42% | 6.67% | -4.48% | -0.76% | 6.10% | 5.01% | 1.23% | 1.04% |
XBB.TO iShares Core Canadian Universe Bond Index ETF | 1.51% | 2.59% | 4.00% | 6.64% | -11.66% | -2.81% | 8.58% | 7.28% | 1.00% | 2.42% |
Correlation
The correlation between ZCS.TO and XBB.TO is 0.72, 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 | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Oct 27, 2009 | 0.58 |
The correlation between ZCS.TO and XBB.TO shifts across timeframes, from 0.58 (all time) to 0.76 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZCS.TO vs. XBB.TO — Risk / Return Rank
ZCS.TO
XBB.TO
ZCS.TO vs. XBB.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 iShares Core Canadian Universe Bond Index ETF (XBB.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.
| ZCS.TO | XBB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.24 | ||
| Sortino ratioReturn per unit of downside risk | +1.64 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.12 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 1.14 | +1.30 |
| Martin ratioReturn relative to average drawdown | 9.64 | 2.65 | +6.99 |
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
| ZCS.TO | XBB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.95 | 0.71 | +1.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.00 | 0.11 | +0.89 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.24 | +0.40 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.80 | 0.71 | +0.09 |
Drawdowns
ZCS.TO vs. XBB.TO - Drawdown Comparison
The maximum ZCS.TO drawdown since its inception was -13.95%, smaller than the maximum XBB.TO drawdown of -18.16%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and XBB.TO.
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Drawdown Indicators
| ZCS.TO | XBB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.95% | -18.16% | +4.21% |
Max Drawdown (1Y)Largest decline over 1 year | -1.63% | -2.73% | +1.10% |
Max Drawdown (3Y)Largest decline over 3 years | -1.63% | -5.42% | +3.79% |
Max Drawdown (5Y)Largest decline over 5 years | -7.76% | -15.90% | +8.14% |
Max Drawdown (10Y)Largest decline over 10 years | -13.95% | -18.16% | +4.21% |
Current DrawdownCurrent decline from peak | -0.04% | -1.39% | +1.35% |
Average DrawdownAverage peak-to-trough decline | -0.89% | -2.76% | +1.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 1.17% | -0.76% |
Volatility
ZCS.TO vs. XBB.TO - Volatility Comparison
The current volatility for BMO Short Corporate Bond Index ETF (ZCS.TO) is 0.69%, while iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a volatility of 1.54%. This indicates that ZCS.TO experiences smaller price fluctuations and is considered to be less risky than XBB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZCS.TO | XBB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.69% | 1.54% | -0.85% |
Volatility (6M)Calculated over the trailing 6-month period | 1.79% | 3.40% | -1.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.05% | 4.38% | -2.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.87% | 6.63% | -3.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.38% | 6.69% | -2.31% |
ZCS.TO vs. XBB.TO - Expense Ratio Comparison
ZCS.TO has a 0.11% expense ratio, which is higher than XBB.TO's 0.10% expense ratio. However, 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. XBB.TO - Dividend Comparison
ZCS.TO's dividend yield for the trailing twelve months is around 3.93%, more than XBB.TO's 3.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.41% | 3.39% | 3.25% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% |
ZCS.TO BMO Short Corporate Bond Index ETF | 3.93% | 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
ZCS.TO and XBB.TO have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XBB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XBB.TO is cheaper with a 0.10% expense ratio, compared with 0.11% for ZCS.TO.
ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index, while XBB.TO tracks Morningstar Can Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.11% for ZCS.TO and 0.10% for XBB.TO.
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