ZCS.TO vs. ZAAA.NEO
ZCS.TO (BMO Short Corporate Bond Index ETF) and ZAAA.NEO (BMO AAA CLO ETF) are both exchange-traded funds - ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index, while ZAAA.NEO is a CLO fund actively managed by BMO. ZCS.TO is passively managed, while ZAAA.NEO is actively managed. Over the past year, ZCS.TO returned 4.08% vs 7.43% for ZAAA.NEO. At a correlation of -0.04, they often move in opposite directions. ZCS.TO charges 0.11%/yr vs 0.23%/yr for ZAAA.NEO.
Performance
ZCS.TO vs. ZAAA.NEO - Performance Comparison
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Returns By Period
In the year-to-date period, ZCS.TO achieves a 1.53% return, which is significantly lower than ZAAA.NEO's 4.70% return.
ZCS.TO
- 1D
- 0.00%
- 1M
- 0.05%
- 6M
- 1.09%
- YTD
- 1.53%
- 1Y
- 4.08%
- 3Y*
- 6.12%
- 5Y*
- 2.90%
- 10Y*
- 2.80%
ZAAA.NEO
- 1D
- 0.03%
- 1M
- 0.70%
- 6M
- 3.32%
- YTD
- 4.70%
- 1Y
- 7.43%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZCS.TO vs. ZAAA.NEO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
ZCS.TO BMO Short Corporate Bond Index ETF | 1.53% | 3.13% |
ZAAA.NEO BMO AAA CLO ETF | 4.70% | 3.10% |
Correlation
The correlation between ZCS.TO and ZAAA.NEO is -0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since May 5, 2025 | -0.04 |
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Return for Risk
ZCS.TO vs. ZAAA.NEO — Risk / Return Rank
ZCS.TO
ZAAA.NEO
ZCS.TO vs. ZAAA.NEO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Short Corporate Bond Index ETF (ZCS.TO) and BMO AAA CLO ETF (ZAAA.NEO). 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 | ZAAA.NEO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.33 | ||
| Sortino ratioReturn per unit of downside risk | +0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.33 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 2.49 | +0.02 |
| Martin ratioReturn relative to average drawdown | 10.02 | 6.02 | +4.00 |
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Drawdowns
ZCS.TO vs. ZAAA.NEO - Drawdown Comparison
The maximum ZCS.TO drawdown since its inception was -13.95%, which is greater than ZAAA.NEO's maximum drawdown of -3.01%. Use the drawdown chart below to compare losses from any high point for ZCS.TO and ZAAA.NEO.
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Drawdown Indicators
| ZCS.TO | ZAAA.NEO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.95% | -3.01% | -10.94% |
Max Drawdown (1Y)Largest decline over 1 year | -1.63% | -3.01% | +1.38% |
Max Drawdown (3Y)Largest decline over 3 years | -1.63% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -7.76% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -13.95% | — | — |
Current DrawdownCurrent decline from peak | -0.21% | -1.11% | +0.90% |
Average DrawdownAverage peak-to-trough decline | -0.89% | -1.00% | +0.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 1.24% | -0.83% |
Volatility
ZCS.TO vs. ZAAA.NEO - Volatility Comparison
The current volatility for BMO Short Corporate Bond Index ETF (ZCS.TO) is 0.56%, while BMO AAA CLO ETF (ZAAA.NEO) has a volatility of 1.50%. This indicates that ZCS.TO experiences smaller price fluctuations and is considered to be less risky than ZAAA.NEO 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 | ZAAA.NEO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.56% | 1.50% | -0.94% |
Volatility (6M)Calculated over the trailing 6-month period | 1.80% | 3.39% | -1.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.09% | 4.59% | -2.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.90% | 4.64% | -1.74% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.38% | 4.64% | -0.26% |
ZCS.TO vs. ZAAA.NEO - Expense Ratio Comparison
ZCS.TO has a 0.11% expense ratio, which is lower than ZAAA.NEO's 0.23% 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. ZAAA.NEO - Dividend Comparison
ZCS.TO's dividend yield for the trailing twelve months is around 3.95%, less than ZAAA.NEO's 5.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZAAA.NEO BMO AAA CLO ETF | 5.12% | 3.16% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ZCS.TO BMO Short Corporate Bond Index ETF | 3.95% | 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 ZAAA.NEO have a correlation of -0.04, 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 0.23% for ZAAA.NEO.
ZCS.TO is categorized as Canadian Government Bonds, while ZAAA.NEO is CLO. Their fees differ too: 0.11% for ZCS.TO and 0.23% for ZAAA.NEO.
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