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ZDB.TO vs. ZCN.TO
Performance
Return for Risk
Dividends
Drawdowns
Volatility

ZDB.TO vs. ZCN.TO

Last updated Apr 2, 2026

Compare and contrast key facts about BMO Discount Bond (ZDB.TO) and BMO S&P/TSX Capped Composite Index ETF (ZCN.TO).

ZDB.TO and ZCN.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZDB.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Discount Bond Index. It was launched on Feb 10, 2014. ZCN.TO is a passively managed fund by BMO that tracks the performance of the S&P/TSX Capped Composite Index. It was launched on May 29, 2009. Both ZDB.TO and ZCN.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

ZDB.TO vs. ZCN.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Discount Bond (ZDB.TO) and BMO S&P/TSX Capped Composite Index ETF (ZCN.TO). The values are adjusted to include any dividend payments, if applicable.

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ZDB.TO vs. ZCN.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZDB.TO
BMO Discount Bond		-0.10%2.03%4.26%6.69%-11.99%-2.77%9.50%6.74%1.33%2.00%
ZCN.TO
BMO S&P/TSX Capped Composite Index ETF		4.54%31.51%21.64%11.63%-5.84%25.05%5.69%22.85%-8.84%8.94%

Returns By Period

In the year-to-date period, ZDB.TO achieves a -0.10% return, which is significantly lower than ZCN.TO's 4.54% return. Over the past 10 years, ZDB.TO has underperformed ZCN.TO with an annualized return of 1.56%, while ZCN.TO has yielded a comparatively higher 12.66% annualized return.

ZDB.TO

1D
-0.27%
1M
-1.68%
YTD
-0.10%
6M
-0.46%
1Y
-0.12%
3Y*
3.16%
5Y*
0.44%
10Y*
1.56%

ZCN.TO

1D
0.64%
1M
-4.29%
YTD
4.54%
6M
10.66%
1Y
34.87%
3Y*
21.33%
5Y*
14.92%
10Y*
12.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Compare stocks, funds, or ETFs

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BMO Discount Bond

BMO S&P/TSX Capped Composite Index ETF

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Often compared with ZCN.TO:
ZCN.TO vs. XIC.TOZCN.TO vs. XIU.TOZCN.TO vs. ZSP.TOZCN.TO vs. VCE.TOZCN.TO vs. VDY.TOZCN.TO vs. XEQT.TOZCN.TO vs. VFV.TO

ZDB.TO vs. ZCN.TO - Expense Ratio Comparison

ZDB.TO has a 0.10% expense ratio, which is higher than ZCN.TO's 0.06% 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%.

ZDB.TO
BMO Discount Bond
ZCN.TO
BMO S&P/TSX Capped Composite Index ETF

Return for Risk

ZDB.TO vs. ZCN.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZDB.TO
ZDB.TO Risk / Return Rank: 1111
Overall Rank
ZDB.TO Sharpe Ratio Rank: 1111
Sharpe Ratio Rank
ZDB.TO Sortino Ratio Rank: 99
Sortino Ratio Rank
ZDB.TO Omega Ratio Rank: 99
Omega Ratio Rank
ZDB.TO Calmar Ratio Rank: 1313
Calmar Ratio Rank
ZDB.TO Martin Ratio Rank: 1212
Martin Ratio Rank
ZCN.TO
ZCN.TO Risk / Return Rank: 9393
Overall Rank
ZCN.TO Sharpe Ratio Rank: 9494
Sharpe Ratio Rank
ZCN.TO Sortino Ratio Rank: 9393
Sortino Ratio Rank
ZCN.TO Omega Ratio Rank: 9494
Omega Ratio Rank
ZCN.TO Calmar Ratio Rank: 9191
Calmar Ratio Rank
ZCN.TO Martin Ratio Rank: 9494
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.

ZDB.TO vs. ZCN.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Discount Bond (ZDB.TO) and BMO S&P/TSX Capped Composite Index ETF (ZCN.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.TOZCN.TODifference

Sharpe ratio

Return per unit of total volatility

-0.03

2.29

-2.32

Sortino ratio

Return per unit of downside risk

-0.00

2.89

-2.90

Omega ratio

Gain probability vs. loss probability

1.00

1.46

-0.46

Calmar ratio

Return relative to maximum drawdown

0.05

3.22

-3.17

Martin ratio

Return relative to average drawdown

0.10

14.47

-14.37

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

ZDB.TO vs. ZCN.TO - Sharpe Ratio Comparison

The current ZDB.TO Sharpe Ratio is -0.03, which is lower than the ZCN.TO Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of ZDB.TO and ZCN.TO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Sharpe Ratios by Period

ZDB.TOZCN.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.03

2.29

-2.32

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.07

1.15

-1.08

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.24

0.85

-0.61

Sharpe Ratio (All Time)

Calculated using the full available price history

0.37

0.66

-0.29

Correlation

The correlation between ZDB.TO and ZCN.TO is 0.01, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

ZDB.TO vs. ZCN.TO - Dividend Comparison

ZDB.TO's dividend yield for the trailing twelve months is around 2.14%, which matches ZCN.TO's 2.15% yield.

TTM20252024202320222021202020192018201720162015
ZDB.TO
BMO Discount Bond		2.14%2.28%2.38%2.42%2.52%2.16%2.06%2.20%2.07%2.06%1.95%1.99%
ZCN.TO
BMO S&P/TSX Capped Composite Index ETF		2.15%2.22%2.78%3.29%3.27%2.74%3.24%3.13%3.16%2.71%2.84%3.33%

Drawdowns

ZDB.TO vs. ZCN.TO - Drawdown Comparison

The maximum ZDB.TO drawdown since its inception was -18.09%, smaller than the maximum ZCN.TO drawdown of -37.18%. Use the drawdown chart below to compare losses from any high point for ZDB.TO and ZCN.TO.

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Drawdown Indicators

ZDB.TOZCN.TODifference

Max Drawdown

Largest peak-to-trough decline

-18.09%

-37.18%

+19.09%

Max Drawdown (1Y)

Largest decline over 1 year

-2.87%

-11.02%

+8.15%

Max Drawdown (5Y)

Largest decline over 5 years

-16.25%

-16.25%

0.00%

Max Drawdown (10Y)

Largest decline over 10 years

-18.09%

-37.18%

+19.09%

Current Drawdown

Current decline from peak

-3.02%

-4.29%

+1.27%

Average Drawdown

Average peak-to-trough decline

-4.24%

-4.80%

+0.56%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.44%

2.46%

-1.02%

Volatility

ZDB.TO vs. ZCN.TO - Volatility Comparison

The current volatility for BMO Discount Bond (ZDB.TO) is 1.95%, while BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) has a volatility of 5.62%. This indicates that ZDB.TO experiences smaller price fluctuations and is considered to be less risky than ZCN.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZDB.TOZCN.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.95%

5.62%

-3.67%

Volatility (6M)

Calculated over the trailing 6-month period

3.07%

10.90%

-7.83%

Volatility (1Y)

Calculated over the trailing 1-year period

4.64%

15.29%

-10.65%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.50%

13.01%

-6.51%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.39%

14.96%

-8.57%