ZEF.TO vs. PSA.TO

Last updated Jul 18, 2026

ZEF.TO (BMO Emerging Markets Bond Hedged to CAD Index ETF) and PSA.TO (Purpose High Interest Savings Fund) are both exchange-traded funds - ZEF.TO is a Emerging Markets Bonds fund managed by BMO, while PSA.TO is a Money Market fund actively managed by Purpose Investments. Over the past 10 years, ZEF.TO returned 1.11%/yr vs 2.27%/yr for PSA.TO. At a 0.04 correlation, their price movements are largely independent.

Performance

ZEF.TO vs. PSA.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) and Purpose High Interest Savings Fund (PSA.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZEF.TO achieves a 0.49% return, which is significantly lower than PSA.TO's 1.19% return. Over the past 10 years, ZEF.TO has underperformed PSA.TO with an annualized return of 1.11%, while PSA.TO has yielded a comparatively higher 2.27% annualized return.

ZEF.TO

• 1D: -0.08%
• 1M: -0.31%
• 6M: 0.17%
• YTD: 0.49%
• 1Y: 4.51%
• 3Y*: 5.57%
• 5Y*: 0.01%
• 10Y*: 1.11%

PSA.TO

• 1D: 0.02%
• 1M: 0.22%
• 6M: 1.09%
• YTD: 1.19%
• 1Y: 2.33%
• 3Y*: 3.61%
• 5Y*: 3.22%
• 10Y*: 2.27%

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

ZEF.TO vs. PSA.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZEF.TO BMO Emerging Markets Bond Hedged to CAD Index ETF	0.49%	7.70%	4.06%	8.98%	-17.34%	-1.38%	4.96%	7.57%	-3.87%	4.85%
PSA.TO Purpose High Interest Savings Fund	1.19%	2.64%	4.55%	5.13%	2.32%	0.61%	0.93%	2.22%	1.65%	1.08%

Correlation

The correlation between ZEF.TO and PSA.TO is 0.00, 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	0.00
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.05
Correlation (All Time) Calculated using the full available price history since Oct 15, 2013	0.04

The correlation between ZEF.TO and PSA.TO shifts across timeframes, from 0.00 (1 year) to 0.11 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

ZEF.TO vs. PSA.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZEF.TO

ZEF.TO Risk / Return Rank: 30
ZEF.TO Sharpe Ratio Rank: 28
ZEF.TO Sortino Ratio Rank: 26
ZEF.TO Omega Ratio Rank: 25
ZEF.TO Calmar Ratio Rank: 35
ZEF.TO Martin Ratio Rank: 37

PSA.TO

PSA.TO Risk / Return Rank: 100
PSA.TO Sharpe Ratio Rank: 99
PSA.TO Sortino Ratio Rank: 99
PSA.TO Omega Ratio Rank: 99
PSA.TO Calmar Ratio Rank: 100
PSA.TO Martin Ratio Rank: 100

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.

ZEF.TO vs. PSA.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) and Purpose High Interest Savings Fund (PSA.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.

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.

	ZEF.TO	PSA.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.76	9.49	-8.73
Sortino ratio: Return per unit of downside risk	1.11	23.56	-22.45
Omega ratio: Gain probability vs. loss probability	1.14	5.80	-4.66
Calmar ratio: Return relative to maximum drawdown	1.37	116.89	-115.52
Martin ratio: Return relative to average drawdown	4.27	356.65	-352.38

ZEF.TO vs. PSA.TO - Sharpe Ratio Comparison

The current ZEF.TO Sharpe Ratio is 0.76, which is lower than the PSA.TO Sharpe Ratio of 9.49. The chart below compares the historical Sharpe Ratios of ZEF.TO and PSA.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.

Drawdowns

ZEF.TO vs. PSA.TO - Drawdown Comparison

The maximum ZEF.TO drawdown since its inception was -23.81%, which is greater than PSA.TO's maximum drawdown of -0.04%. Use the drawdown chart below to compare losses from any high point for ZEF.TO and PSA.TO.

Drawdown Indicators

	ZEF.TO	PSA.TO	Difference
Max Drawdown Largest peak-to-trough decline	-23.81%	-0.04%	-23.77%
Max Drawdown (1Y) Largest decline over 1 year	-3.30%	-0.02%	-3.28%
Max Drawdown (3Y) Largest decline over 3 years	-4.04%	-0.02%	-4.02%
Max Drawdown (5Y) Largest decline over 5 years	-23.81%	-0.04%	-23.77%
Max Drawdown (10Y) Largest decline over 10 years	-23.81%	-0.04%	-23.77%
Current Drawdown Current decline from peak	-1.18%	0.00%	-1.18%
Average Drawdown Average peak-to-trough decline	-4.59%	-0.00%	-4.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.06%	0.01%	+1.05%

Volatility

ZEF.TO vs. PSA.TO - Volatility Comparison

BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) has a higher volatility of 1.71% compared to Purpose High Interest Savings Fund (PSA.TO) at 0.05%. This indicates that ZEF.TO's price experiences larger fluctuations and is considered to be riskier than PSA.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEF.TO	PSA.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.71%	0.05%	+1.66%
Volatility (6M) Calculated over the trailing 6-month period	4.14%	0.16%	+3.98%
Volatility (1Y) Calculated over the trailing 1-year period	6.05%	0.25%	+5.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.66%	0.29%	+8.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.82%	0.25%	+9.57%

Dividends

ZEF.TO vs. PSA.TO - Dividend Comparison

ZEF.TO's dividend yield for the trailing twelve months is around 4.22%, more than PSA.TO's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSA.TO Purpose High Interest Savings Fund	2.30%	2.61%	4.46%	5.05%	2.26%	0.59%	0.94%	2.18%	1.66%	1.07%	0.99%	1.07%
ZEF.TO BMO Emerging Markets Bond Hedged to CAD Index ETF	4.22%	4.31%	4.44%	4.43%	4.91%	4.21%	4.45%	4.75%	4.88%	4.56%	4.66%	4.63%

Frequently Asked Questions

Can I hold both ZEF.TO and PSA.TO in my portfolio?

ZEF.TO and PSA.TO have a correlation of 0.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between ZEF.TO and PSA.TO?

ZEF.TO is categorized as Emerging Markets Bonds, while PSA.TO is Money Market. They also come from different issuers: BMO and Purpose Investments.