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ZCS.TO vs. XEG.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZCS.TO vs. XEG.TO

Last updated Jun 5, 2026

ZCS.TO (BMO Short Corporate Bond Index ETF) and XEG.TO (iShares S&P/TSX Capped Energy Index ETF) are both exchange-traded funds - ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index, while XEG.TO is a Energy Equities fund tracking the S&P/TSX Capped Energy Index. Both are passively managed. Over the past 10 years, ZCS.TO returned 2.80%/yr vs 11.72%/yr for XEG.TO. At a correlation of -0.10, they often move in opposite directions. ZCS.TO charges 0.11%/yr vs 0.61%/yr for XEG.TO.

Performance

ZCS.TO vs. XEG.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 iShares S&P/TSX Capped Energy Index ETF (XEG.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, ZCS.TO achieves a 1.33% return, which is significantly lower than XEG.TO's 45.28% return. Over the past 10 years, ZCS.TO has underperformed XEG.TO with an annualized return of 2.80%, while XEG.TO has yielded a comparatively higher 11.72% annualized return.

ZCS.TO

1D
0.00%
1M
0.95%
YTD
1.33%
6M
1.37%
1Y
3.85%
3Y*
6.00%
5Y*
2.85%
10Y*
2.80%

XEG.TO

1D
0.65%
1M
-0.64%
YTD
45.28%
6M
40.30%
1Y
73.90%
3Y*
28.57%
5Y*
29.65%
10Y*
11.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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

2026 (YTD)202520242023202220212020201920182017
ZCS.TO
BMO Short Corporate Bond Index ETF		1.33%4.41%7.42%6.67%-4.48%-0.76%6.10%5.01%1.23%1.04%
XEG.TO
iShares S&P/TSX Capped Energy Index ETF		45.28%16.72%14.08%3.52%53.25%83.71%-34.41%8.98%-27.05%-11.18%

Correlation

The correlation between ZCS.TO and XEG.TO is -0.24, 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

-0.24

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

-0.13

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

-0.09

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

-0.09

Correlation (All Time)
Calculated using the full available price history since Oct 27, 2009

-0.10

The correlation between ZCS.TO and XEG.TO shifts across timeframes, from -0.24 (1 year) to -0.09 (5 years), reflecting how their relationship changes across market environments.

ZCS.TO vs. XEG.TO - Sectors Allocation Comparison

Sectors
ZCS.TO
XEG.TO

Real Estate

0.1%

-

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

100.0%

Financial Services

-

-

Healthcare

-

-

Industrials

-

-

Technology

-

-

Utilities

-

-

Real Estate

ZCS.TO
0.1%
XEG.TO

-

Basic Materials

ZCS.TO

-

XEG.TO

-

Communication Services

ZCS.TO

-

XEG.TO

-

Consumer Cyclical

ZCS.TO

-

XEG.TO

-

Consumer Defensive

ZCS.TO

-

XEG.TO

-

Energy

ZCS.TO

-

XEG.TO
100.0%

Financial Services

ZCS.TO

-

XEG.TO

-

Healthcare

ZCS.TO

-

XEG.TO

-

Industrials

ZCS.TO

-

XEG.TO

-

Technology

ZCS.TO

-

XEG.TO

-

Utilities

ZCS.TO

-

XEG.TO

-

Compare stocks, funds, or ETFs

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BMO Short Corporate Bond Index ETF

iShares S&P/TSX Capped Energy Index ETF

Often compared with ZCS.TO:
ZCS.TO vs. ZAG.TOZCS.TO vs. XSB.TOZCS.TO vs. XCB.TOZCS.TO vs. VSB.TOZCS.TO vs. PSA.TOZCS.TO vs. ZCM.TOZCS.TO vs. XSH.TO
Often compared with XEG.TO:
XEG.TO vs. XLEXEG.TO vs. XEQT.TOXEG.TO vs. CNQ.TOXEG.TO vs. HXE.TOXEG.TO vs. ZEO.TOXEG.TO vs. XDIV.TOXEG.TO vs. XCG.TO

Return for Risk

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

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZCS.TO
ZCS.TO Risk / Return Rank: 5656
Overall Rank
ZCS.TO Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
ZCS.TO Sortino Ratio Rank: 5454
Sortino Ratio Rank
ZCS.TO Omega Ratio Rank: 6767
Omega Ratio Rank
ZCS.TO Calmar Ratio Rank: 4949
Calmar Ratio Rank
ZCS.TO Martin Ratio Rank: 5555
Martin Ratio Rank
XEG.TO
XEG.TO Risk / Return Rank: 8989
Overall Rank
XEG.TO Sharpe Ratio Rank: 9292
Sharpe Ratio Rank
XEG.TO Sortino Ratio Rank: 8686
Sortino Ratio Rank
XEG.TO Omega Ratio Rank: 8585
Omega Ratio Rank
XEG.TO Calmar Ratio Rank: 9393
Calmar Ratio Rank
XEG.TO Martin Ratio Rank: 8989
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.

ZCS.TO vs. XEG.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 S&P/TSX Capped Energy Index ETF (XEG.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.TOXEG.TODifference
Sharpe ratioReturn per unit of total volatility
1.90
3.27

-1.38

Sortino ratioReturn per unit of downside risk
2.56
3.81

-1.26

Omega ratioGain probability vs. loss probability

1.40

1.51

-0.11

Calmar ratioReturn relative to maximum drawdown

2.37

6.68

-4.31

Martin ratioReturn relative to average drawdown

9.37

19.94

-10.56

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

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

The current ZCS.TO Sharpe Ratio is 1.90, which is lower than the XEG.TO Sharpe Ratio of 3.27. The chart below compares the historical Sharpe Ratios of ZCS.TO and XEG.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

ZCS.TOXEG.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.90

3.27

-1.38

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.00

1.04

-0.04

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.64

0.35

+0.29

Sharpe Ratio (All Time)

Calculated using the full available price history

0.80

0.28

+0.52

Drawdowns

ZCS.TO vs. XEG.TO - Drawdown Comparison

The maximum ZCS.TO drawdown since its inception was -13.95%, smaller than the maximum XEG.TO drawdown of -87.74%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and XEG.TO.

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Drawdown Indicators

ZCS.TOXEG.TODifference

Max Drawdown

Largest peak-to-trough decline

-13.95%

-87.74%

+73.79%

Max Drawdown (1Y)

Largest decline over 1 year

-1.63%

-11.12%

+9.49%

Max Drawdown (3Y)

Largest decline over 3 years

-1.63%

-25.67%

+24.04%

Max Drawdown (5Y)

Largest decline over 5 years

-7.76%

-28.42%

+20.66%

Max Drawdown (10Y)

Largest decline over 10 years

-13.95%

-79.66%

+65.71%

Current Drawdown

Current decline from peak

0.00%

-3.38%

+3.38%

Average Drawdown

Average peak-to-trough decline

-0.89%

-29.18%

+28.29%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.41%

3.72%

-3.31%

Volatility

ZCS.TO vs. XEG.TO - Volatility Comparison

The current volatility for BMO Short Corporate Bond Index ETF (ZCS.TO) is 0.69%, while iShares S&P/TSX Capped Energy Index ETF (XEG.TO) has a volatility of 9.24%. This indicates that ZCS.TO experiences smaller price fluctuations and is considered to be less risky than XEG.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.TOXEG.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

0.69%

9.24%

-8.55%

Volatility (6M)

Calculated over the trailing 6-month period

1.79%

18.90%

-17.11%

Volatility (1Y)

Calculated over the trailing 1-year period

2.04%

22.74%

-20.70%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

2.87%

28.62%

-25.75%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

4.38%

33.40%

-29.02%

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

ZCS.TO has a 0.11% expense ratio, which is lower than XEG.TO's 0.61% expense ratio.

Dividends

ZCS.TO vs. XEG.TO - Dividend Comparison

ZCS.TO's dividend yield for the trailing twelve months is around 3.93%, more than XEG.TO's 2.64% yield.

PositionTTM20252024202320222021202020192018201720162015
XEG.TO
iShares S&P/TSX Capped Energy Index ETF		2.64%3.63%3.46%4.26%3.31%1.64%2.96%2.70%2.25%1.41%1.40%3.58%
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 XEG.TO have a correlation of -0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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.

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.61% for XEG.TO.

ZCS.TO is categorized as Canadian Government Bonds, while XEG.TO is Energy Equities. ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index, while XEG.TO tracks S&P/TSX Capped Energy Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.11% for ZCS.TO and 0.61% for XEG.TO.

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