ZDB.TO vs. HBB.TO
ZDB.TO (BMO Discount Bond) and HBB.TO (Global X Canadian Select Universe Bond Index Corporate Class ETF) are both exchange-traded funds - ZDB.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Discount Bond Index, while HBB.TO is a Total Bond Market fund tracking the Solactive Canadian Select Universe Bond. Both are passively managed. Over the past 10 years, ZDB.TO returned 1.57%/yr vs 1.30%/yr for HBB.TO. Their correlation of 0.82 suggests significant overlap in exposure. ZDB.TO charges 0.10%/yr vs 0.09%/yr for HBB.TO.
Performance
ZDB.TO vs. HBB.TO - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with ZDB.TO having a 1.53% return and HBB.TO slightly lower at 1.48%. Over the past 10 years, ZDB.TO has outperformed HBB.TO with an annualized return of 1.57%, while HBB.TO has yielded a comparatively lower 1.30% annualized return.
ZDB.TO
- 1D
- -0.13%
- 1M
- 1.48%
- YTD
- 1.53%
- 6M
- 0.70%
- 1Y
- 2.71%
- 3Y*
- 4.07%
- 5Y*
- 0.56%
- 10Y*
- 1.57%
HBB.TO
- 1D
- -0.04%
- 1M
- 1.71%
- YTD
- 1.48%
- 6M
- 0.58%
- 1Y
- 2.70%
- 3Y*
- 3.63%
- 5Y*
- 0.33%
- 10Y*
- 1.30%
ZDB.TO vs. HBB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZDB.TO BMO Discount Bond | 1.53% | 2.03% | 4.26% | 6.69% | -11.99% | -2.77% | 9.50% | 6.74% | 1.33% | 2.00% |
HBB.TO Global X Canadian Select Universe Bond Index Corporate Class ETF | 1.48% | 1.84% | 3.96% | 5.76% | -11.94% | -2.35% | 8.33% | 5.81% | 1.19% | 1.98% |
Correlation
The correlation between ZDB.TO and HBB.TO is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since May 9, 2014 | 0.82 |
The correlation between ZDB.TO and HBB.TO shifts across timeframes, from 0.82 (all time) to 0.94 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZDB.TO vs. HBB.TO — Risk / Return Rank
ZDB.TO
HBB.TO
ZDB.TO vs. HBB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Discount Bond (ZDB.TO) and Global X Canadian Select Universe Bond Index Corporate Class ETF (HBB.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.
| ZDB.TO | HBB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.11 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 0.97 | 0.97 | 0.00 |
| Martin ratioReturn relative to average drawdown | 2.23 | 2.20 | +0.03 |
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
| ZDB.TO | HBB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.63 | 0.61 | +0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.09 | 0.05 | +0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | 0.18 | +0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.38 | 0.30 | +0.09 |
Drawdowns
ZDB.TO vs. HBB.TO - Drawdown Comparison
The maximum ZDB.TO drawdown since its inception was -18.09%, roughly equal to the maximum HBB.TO drawdown of -18.23%. Use the drawdown chart below to compare losses from any high point for ZDB.TO and HBB.TO.
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Drawdown Indicators
| ZDB.TO | HBB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.09% | -18.23% | +0.14% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.78% | -0.01% |
Max Drawdown (3Y)Largest decline over 3 years | -5.07% | -5.56% | +0.49% |
Max Drawdown (5Y)Largest decline over 5 years | -16.25% | -16.19% | -0.06% |
Max Drawdown (10Y)Largest decline over 10 years | -18.09% | -18.23% | +0.14% |
Current DrawdownCurrent decline from peak | -1.45% | -2.97% | +1.52% |
Average DrawdownAverage peak-to-trough decline | -4.21% | -4.58% | +0.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.22% | 1.23% | -0.01% |
Volatility
ZDB.TO vs. HBB.TO - Volatility Comparison
BMO Discount Bond (ZDB.TO) and Global X Canadian Select Universe Bond Index Corporate Class ETF (HBB.TO) have volatilities of 1.55% and 1.58%, 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.
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Volatility by Period
| ZDB.TO | HBB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.55% | 1.58% | -0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 3.32% | 3.43% | -0.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.34% | 4.44% | -0.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.52% | 6.54% | -0.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.40% | 7.09% | -0.69% |
ZDB.TO vs. HBB.TO - Expense Ratio Comparison
ZDB.TO has a 0.10% expense ratio, which is higher than HBB.TO's 0.09% 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
ZDB.TO vs. HBB.TO - Dividend Comparison
ZDB.TO's dividend yield for the trailing twelve months is around 2.00%, while HBB.TO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HBB.TO Global X Canadian Select Universe Bond Index Corporate Class ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ZDB.TO BMO Discount Bond | 2.00% | 2.28% | 2.38% | 2.42% | 2.52% | 2.16% | 2.06% | 2.20% | 2.07% | 2.06% | 1.95% | 1.99% |
Frequently Asked Questions
With a correlation of 0.91, ZDB.TO and HBB.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, HBB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
HBB.TO is cheaper with a 0.09% expense ratio, compared with 0.10% for ZDB.TO.
ZDB.TO is categorized as Canadian Government Bonds, while HBB.TO is Total Bond Market. ZDB.TO tracks FTSE Canada Universe Discount Bond Index, while HBB.TO tracks Solactive Canadian Select Universe Bond. They also come from different issuers: BMO and Global X. Their fees differ too: 0.10% for ZDB.TO and 0.09% for HBB.TO.
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