ZCS.TO vs. XLB.TO
ZCS.TO (BMO Short Corporate Bond Index ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both Canadian Government Bonds funds - ZCS.TO tracks the FTSE Canada Short Term Corporate Bond Index while XLB.TO tracks the Morningstar Can 10+Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, ZCS.TO returned 2.79%/yr vs 4.56%/yr for XLB.TO. A 0.51 correlation means they provide meaningful diversification when combined. ZCS.TO charges 0.11%/yr vs 0.20%/yr for XLB.TO.
Performance
ZCS.TO vs. XLB.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 XLB.TO's 2.77% return. Over the past 10 years, ZCS.TO has underperformed XLB.TO with an annualized return of 2.79%, while XLB.TO has yielded a comparatively higher 4.56% 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%
XLB.TO
- 1D
- -0.11%
- 1M
- 3.02%
- YTD
- 2.77%
- 6M
- 0.93%
- 1Y
- 2.84%
- 3Y*
- 8.16%
- 5Y*
- 4.63%
- 10Y*
- 4.56%
ZCS.TO vs. XLB.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% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.77% | -0.76% | 9.49% | 19.21% | -14.38% | 1.26% | 16.52% | 12.85% | -0.25% | 7.11% |
Correlation
The correlation between ZCS.TO and XLB.TO is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.69 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Oct 27, 2009 | 0.51 |
The correlation between ZCS.TO and XLB.TO shifts across timeframes, from 0.51 (all time) to 0.69 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZCS.TO vs. XLB.TO — Risk / Return Rank
ZCS.TO
XLB.TO
ZCS.TO vs. XLB.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 Long Term Bond Index ETF (XLB.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 | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.59 | ||
| Sortino ratioReturn per unit of downside risk | +2.09 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.07 | +0.34 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 0.59 | +1.85 |
| Martin ratioReturn relative to average drawdown | 9.64 | 1.11 | +8.54 |
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 | XLB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.95 | 0.36 | +1.59 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.00 | 0.37 | +0.63 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.39 | +0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.80 | 0.55 | +0.25 |
Drawdowns
ZCS.TO vs. XLB.TO - Drawdown Comparison
The maximum ZCS.TO drawdown since its inception was -13.95%, smaller than the maximum XLB.TO drawdown of -24.34%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and XLB.TO.
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Drawdown Indicators
| ZCS.TO | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.95% | -24.34% | +10.39% |
Max Drawdown (1Y)Largest decline over 1 year | -1.63% | -4.85% | +3.22% |
Max Drawdown (3Y)Largest decline over 3 years | -1.63% | -9.74% | +8.11% |
Max Drawdown (5Y)Largest decline over 5 years | -7.76% | -24.34% | +16.58% |
Max Drawdown (10Y)Largest decline over 10 years | -13.95% | -24.34% | +10.39% |
Current DrawdownCurrent decline from peak | -0.04% | -2.17% | +2.13% |
Average DrawdownAverage peak-to-trough decline | -0.89% | -4.05% | +3.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 2.57% | -2.16% |
Volatility
ZCS.TO vs. XLB.TO - Volatility Comparison
The current volatility for BMO Short Corporate Bond Index ETF (ZCS.TO) is 0.69%, while iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a volatility of 2.77%. This indicates that ZCS.TO experiences smaller price fluctuations and is considered to be less risky than XLB.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 | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.69% | 2.77% | -2.08% |
Volatility (6M)Calculated over the trailing 6-month period | 1.79% | 5.77% | -3.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.05% | 7.93% | -5.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.87% | 12.68% | -9.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.38% | 11.86% | -7.48% |
ZCS.TO vs. XLB.TO - Expense Ratio Comparison
ZCS.TO has a 0.11% expense ratio, which is lower than XLB.TO's 0.20% 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. XLB.TO - Dividend Comparison
ZCS.TO's dividend yield for the trailing twelve months is around 3.93%, less than XLB.TO's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 12.10% | 12.22% | 13.13% | 8.82% | 7.43% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
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 XLB.TO have a correlation of 0.67, 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 0.20% for XLB.TO.
ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index, while XLB.TO tracks Morningstar Can 10+Y Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.11% for ZCS.TO and 0.20% for XLB.TO.
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