ZFH.TO vs. XHY.TO

Last updated Jun 5, 2026

ZFH.TO (BMO Floating Rate High Yield ETF) and XHY.TO (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) are both High Yield Bonds funds. ZFH.TO is actively managed, while XHY.TO is passively managed. Over the past 10 years, ZFH.TO returned 5.56%/yr vs 3.98%/yr for XHY.TO. At a 0.25 correlation, their price movements are largely independent. ZFH.TO charges 0.40%/yr vs 0.56%/yr for XHY.TO.

Performance

ZFH.TO vs. XHY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Floating Rate High Yield ETF (ZFH.TO) and iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZFH.TO achieves a 2.14% return, which is significantly higher than XHY.TO's 1.07% return. Over the past 10 years, ZFH.TO has outperformed XHY.TO with an annualized return of 5.56%, while XHY.TO has yielded a comparatively lower 3.98% annualized return.

ZFH.TO

• 1D: -0.03%
• 1M: 0.72%
• YTD: 2.14%
• 6M: 1.17%
• 1Y: 5.81%
• 3Y*: 9.31%
• 5Y*: 6.71%
• 10Y*: 5.56%

XHY.TO

• 1D: 0.12%
• 1M: 0.33%
• YTD: 1.07%
• 6M: 1.09%
• 1Y: 4.66%
• 3Y*: 7.14%
• 5Y*: 2.86%
• 10Y*: 3.98%

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

ZFH.TO vs. XHY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZFH.TO BMO Floating Rate High Yield ETF	2.14%	5.53%	11.55%	13.55%	-0.94%	4.73%	-3.93%	11.12%	0.72%	5.39%
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged)	1.07%	6.33%	7.05%	11.06%	-11.10%	3.51%	2.65%	13.83%	-3.89%	5.35%

Correlation

The correlation between ZFH.TO and XHY.TO is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.25

ZFH.TO vs. XHY.TO - Sectors Allocation Comparison

Sectors	ZFH.TO	XHY.TO
Real Estate	6.8%	0.5%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	99.5%

Return for Risk

ZFH.TO vs. XHY.TO — Risk / Return Rank

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

ZFH.TO

ZFH.TO Risk / Return Rank: 42
ZFH.TO Sharpe Ratio Rank: 43
ZFH.TO Sortino Ratio Rank: 43
ZFH.TO Omega Ratio Rank: 45
ZFH.TO Calmar Ratio Rank: 37
ZFH.TO Martin Ratio Rank: 40

XHY.TO

XHY.TO Risk / Return Rank: 32
XHY.TO Sharpe Ratio Rank: 28
XHY.TO Sortino Ratio Rank: 28
XHY.TO Omega Ratio Rank: 28
XHY.TO Calmar Ratio Rank: 33
XHY.TO Martin Ratio Rank: 44

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.

ZFH.TO vs. XHY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Floating Rate High Yield ETF (ZFH.TO) and iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.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.

	ZFH.TO	XHY.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.00	+0.49
Sortino ratio: Return per unit of downside risk	2.16	1.51	+0.66
Omega ratio: Gain probability vs. loss probability	1.29	1.18	+0.10
Calmar ratio: Return relative to maximum drawdown	1.78	1.63	+0.15
Martin ratio: Return relative to average drawdown	6.14	7.05	-0.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZFH.TO vs. XHY.TO - Sharpe Ratio Comparison

The current ZFH.TO Sharpe Ratio is 1.49, which is higher than the XHY.TO Sharpe Ratio of 1.00. The chart below compares the historical Sharpe Ratios of ZFH.TO and XHY.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.

Sharpe Ratios by Period

	ZFH.TO	XHY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	1.00	+0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.05	0.33	+0.72
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.67	0.38	+0.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.50	+0.14

Drawdowns

ZFH.TO vs. XHY.TO - Drawdown Comparison

The maximum ZFH.TO drawdown since its inception was -20.98%, smaller than the maximum XHY.TO drawdown of -28.48%. Use the drawdown chart below to compare losses from any high point for ZFH.TO and XHY.TO.

Drawdown Indicators

	ZFH.TO	XHY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-20.98%	-28.48%	+7.50%
Max Drawdown (1Y) Largest decline over 1 year	-3.27%	-2.87%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-6.40%	-4.94%	-1.46%
Max Drawdown (5Y) Largest decline over 5 years	-9.53%	-16.67%	+7.14%
Max Drawdown (10Y) Largest decline over 10 years	-20.98%	-28.48%	+7.50%
Current Drawdown Current decline from peak	-0.23%	-0.32%	+0.09%
Average Drawdown Average peak-to-trough decline	-1.80%	-2.55%	+0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.66%	+0.29%

Volatility

ZFH.TO vs. XHY.TO - Volatility Comparison

The current volatility for BMO Floating Rate High Yield ETF (ZFH.TO) is 0.95%, while iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) has a volatility of 1.28%. This indicates that ZFH.TO experiences smaller price fluctuations and is considered to be less risky than XHY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZFH.TO	XHY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	1.28%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	3.01%	3.55%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	3.91%	4.68%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.42%	8.65%	-2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.33%	10.62%	-2.29%

ZFH.TO vs. XHY.TO - Expense Ratio Comparison

ZFH.TO has a 0.40% expense ratio, which is lower than XHY.TO's 0.56% expense ratio.

Dividends

ZFH.TO vs. XHY.TO - Dividend Comparison

ZFH.TO's dividend yield for the trailing twelve months is around 5.21%, less than XHY.TO's 6.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged)	6.11%	6.04%	5.87%	5.56%	5.70%	4.72%	5.18%	5.38%	5.87%	5.46%	5.64%	6.83%
ZFH.TO BMO Floating Rate High Yield ETF	5.21%	5.52%	7.72%	6.98%	4.75%	4.48%	4.51%	4.27%	4.45%	4.58%	4.64%	4.94%

Frequently Asked Questions

Can I hold both ZFH.TO and XHY.TO in my portfolio?

ZFH.TO and XHY.TO have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZFH.TO or XHY.TO?

On fees, ZFH.TO is cheaper at 0.40% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZFH.TO or XHY.TO?

ZFH.TO is cheaper with a 0.40% expense ratio, compared with 0.56% for XHY.TO.

What is the main difference between ZFH.TO and XHY.TO?

They also come from different issuers: BMO and iShares. Their fees differ too: 0.40% for ZFH.TO and 0.56% for XHY.TO.