ZEF.TO vs. ZMU.TO
ZEF.TO (BMO Emerging Markets Bond Hedged to CAD Index ETF) and ZMU.TO (BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF) are both exchange-traded funds - ZEF.TO is a Emerging Markets Bonds fund managed by BMO, while ZMU.TO is a Corporate Bonds fund managed by BMO. Over the past 10 years, ZEF.TO returned 1.11%/yr vs 1.66%/yr for ZMU.TO. At a 0.32 correlation, their price movements are largely independent.
Performance
ZEF.TO vs. ZMU.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ZEF.TO achieves a 0.49% return, which is significantly higher than ZMU.TO's -0.96% return. Over the past 10 years, ZEF.TO has underperformed ZMU.TO with an annualized return of 1.11%, while ZMU.TO has yielded a comparatively higher 1.66% 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%
ZMU.TO
- 1D
- 0.08%
- 1M
- -0.18%
- 6M
- -0.89%
- YTD
- -0.96%
- 1Y
- 2.51%
- 3Y*
- 3.99%
- 5Y*
- -0.42%
- 10Y*
- 1.66%
ZEF.TO vs. ZMU.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% |
ZMU.TO BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF | -0.96% | 7.47% | 1.42% | 7.89% | -14.71% | -1.75% | 8.27% | 12.98% | -2.77% | 4.58% |
Correlation
The correlation between ZEF.TO and ZMU.TO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.50 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2013 | 0.32 |
The correlation between ZEF.TO and ZMU.TO shifts across timeframes, from 0.32 (all time) to 0.50 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ZEF.TO vs. ZMU.TO — Risk / Return Rank
ZEF.TO
ZMU.TO
ZEF.TO vs. ZMU.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 BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.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 | ZMU.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.23 | ||
| Sortino ratioReturn per unit of downside risk | +0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.10 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | 0.81 | +0.56 |
| Martin ratioReturn relative to average drawdown | 4.27 | 1.83 | +2.44 |
Loading charts...
Drawdowns
ZEF.TO vs. ZMU.TO - Drawdown Comparison
The maximum ZEF.TO drawdown since its inception was -23.81%, which is greater than ZMU.TO's maximum drawdown of -21.30%. Use the drawdown chart below to compare losses from any high point for ZEF.TO and ZMU.TO.
Loading charts...
Drawdown Indicators
| ZEF.TO | ZMU.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.81% | -21.30% | -2.51% |
Max Drawdown (1Y)Largest decline over 1 year | -3.30% | -3.11% | -0.19% |
Max Drawdown (3Y)Largest decline over 3 years | -4.04% | -5.90% | +1.86% |
Max Drawdown (5Y)Largest decline over 5 years | -23.81% | -21.30% | -2.51% |
Max Drawdown (10Y)Largest decline over 10 years | -23.81% | -21.30% | -2.51% |
Current DrawdownCurrent decline from peak | -1.18% | -2.79% | +1.61% |
Average DrawdownAverage peak-to-trough decline | -4.59% | -4.53% | -0.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 1.37% | -0.31% |
Volatility
ZEF.TO vs. ZMU.TO - Volatility Comparison
BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) has a higher volatility of 1.71% compared to BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) at 1.45%. This indicates that ZEF.TO's price experiences larger fluctuations and is considered to be riskier than ZMU.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| ZEF.TO | ZMU.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.71% | 1.45% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 4.14% | 3.51% | +0.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.05% | 4.73% | +1.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.66% | 6.90% | +1.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.82% | 7.88% | +1.94% |
Dividends
ZEF.TO vs. ZMU.TO - Dividend Comparison
ZEF.TO's dividend yield for the trailing twelve months is around 4.22%, less than ZMU.TO's 4.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
ZMU.TO BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF | 4.51% | 4.10% | 4.15% | 4.22% | 4.35% | 3.56% | 3.51% | 3.66% | 3.70% | 3.28% | 3.37% | 3.53% |
Frequently Asked Questions
ZEF.TO and ZMU.TO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZEF.TO is categorized as Emerging Markets Bonds, while ZMU.TO is Corporate Bonds.
Find the right allocation for ZEF.TO and ZMU.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer