ZCS.TO vs. XSHG.TO

Last updated Jun 4, 2026

ZCS.TO (BMO Short Corporate Bond Index ETF) and XSHG.TO (iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF) are both Canadian Government Bonds funds - ZCS.TO tracks the FTSE Canada Short Term Corporate Bond Index while XSHG.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 3 years, ZCS.TO returned 5.98%/yr vs 5.72%/yr for XSHG.TO. A 0.51 correlation means they provide meaningful diversification when combined. ZCS.TO charges 0.11%/yr vs 0.17%/yr for XSHG.TO.

Performance

ZCS.TO vs. XSHG.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 ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG.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 1.29% return, which is significantly higher than XSHG.TO's 1.14% 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%

XSHG.TO

• 1D: -0.03%
• 1M: 0.96%
• YTD: 1.14%
• 6M: 1.23%
• 1Y: 3.54%
• 3Y*: 5.72%
• 5Y*: —
• 10Y*: —

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

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

	2026 (YTD)	2025	2024	2023	2022	2021
ZCS.TO BMO Short Corporate Bond Index ETF	1.29%	4.41%	7.42%	6.67%	-4.48%	-0.77%
XSHG.TO iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF	1.14%	4.53%	6.86%	6.41%	-4.26%	-0.58%

Correlation

The correlation between ZCS.TO and XSHG.TO is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (All Time) Calculated using the full available price history since Jul 28, 2021	0.51

The correlation between ZCS.TO and XSHG.TO shifts across timeframes, from 0.51 (all time) to 0.68 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ZCS.TO vs. XSHG.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: 56
ZCS.TO Sharpe Ratio Rank: 56
ZCS.TO Sortino Ratio Rank: 54
ZCS.TO Omega Ratio Rank: 67
ZCS.TO Calmar Ratio Rank: 49
ZCS.TO Martin Ratio Rank: 55

XSHG.TO

XSHG.TO Risk / Return Rank: 59
XSHG.TO Sharpe Ratio Rank: 58
XSHG.TO Sortino Ratio Rank: 61
XSHG.TO Omega Ratio Rank: 70
XSHG.TO Calmar Ratio Rank: 50
XSHG.TO Martin Ratio Rank: 56

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. XSHG.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 ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG.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	XSHG.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.95	1.95	-0.01
Sortino ratio: Return per unit of downside risk	2.63	2.84	-0.21
Omega ratio: Gain probability vs. loss probability	1.41	1.42	-0.01
Calmar ratio: Return relative to maximum drawdown	2.44	2.47	-0.04
Martin ratio: Return relative to average drawdown	9.64	9.54	+0.10
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. XSHG.TO - Sharpe Ratio Comparison

The current ZCS.TO Sharpe Ratio is 1.95, which is comparable to the XSHG.TO Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of ZCS.TO and XSHG.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.

Sharpe Ratios by Period

	ZCS.TO	XSHG.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.95	1.95	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.00	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.80	1.01	-0.21

Drawdowns

ZCS.TO vs. XSHG.TO - Drawdown Comparison

The maximum ZCS.TO drawdown since its inception was -13.95%, which is greater than XSHG.TO's maximum drawdown of -7.40%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and XSHG.TO.

Drawdown Indicators

	ZCS.TO	XSHG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-13.95%	-7.40%	-6.55%
Max Drawdown (1Y) Largest decline over 1 year	-1.63%	-1.44%	-0.19%
Max Drawdown (3Y) Largest decline over 3 years	-1.63%	-1.44%	-0.19%
Max Drawdown (5Y) Largest decline over 5 years	-7.76%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-13.95%	—	—
Current Drawdown Current decline from peak	-0.04%	-0.03%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.89%	-1.84%	+0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.37%	+0.04%

Volatility

ZCS.TO vs. XSHG.TO - Volatility Comparison

BMO Short Corporate Bond Index ETF (ZCS.TO) and iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG.TO) have volatilities of 0.69% and 0.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZCS.TO	XSHG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.69%	0.68%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	1.79%	1.52%	+0.27%
Volatility (1Y) Calculated over the trailing 1-year period	2.05%	1.82%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.87%	2.79%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.38%	2.79%	+1.59%

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

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

ZCS.TO vs. XSHG.TO - Dividend Comparison

ZCS.TO's dividend yield for the trailing twelve months is around 3.93%, more than XSHG.TO's 3.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XSHG.TO iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF	3.72%	3.64%	3.39%	2.87%	2.69%	0.81%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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

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

ZCS.TO and XSHG.TO have a correlation of 0.68, 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 XSHG.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 XSHG.TO?

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.17% for XSHG.TO.

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

ZCS.TO tracks FTSE Canada Short Term Corporate Bond Index, while XSHG.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.11% for ZCS.TO and 0.17% for XSHG.TO.