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ZFL.TO vs. XEQT.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZFL.TO vs. XEQT.TO

Last updated Jun 4, 2026

ZFL.TO (BMO Long Federal Bond) and XEQT.TO (iShares Core Equity ETF Portfolio) are both exchange-traded funds - ZFL.TO is a Canadian Government Bonds fund tracking the FTSE TMX Canada Long Term Federal Bond Index, while XEQT.TO is a Global Equities fund actively managed by iShares. ZFL.TO is passively managed, while XEQT.TO is actively managed. Over the past 5 years, ZFL.TO returned -3.89%/yr vs 13.72%/yr for XEQT.TO. At a 0.05 correlation, their price movements are largely independent. ZFL.TO charges 0.22%/yr vs 0.20%/yr for XEQT.TO.

Performance

ZFL.TO vs. XEQT.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Long Federal Bond (ZFL.TO) and iShares Core Equity ETF Portfolio (XEQT.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZFL.TO achieves a 2.39% return, which is significantly lower than XEQT.TO's 12.29% return.

ZFL.TO

1D
-0.33%
1M
2.93%
YTD
2.39%
6M
-0.37%
1Y
-0.83%
3Y*
-0.42%
5Y*
-3.89%
10Y*
-1.37%

XEQT.TO

1D
-0.56%
1M
5.98%
YTD
12.29%
6M
11.20%
1Y
29.24%
3Y*
21.78%
5Y*
13.72%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZFL.TO vs. XEQT.TO - Yearly Performance Comparison

2026 (YTD)2025202420232022202120202019
ZFL.TO
BMO Long Federal Bond		2.39%-5.14%-2.20%7.30%-23.89%-7.47%12.68%-5.89%
XEQT.TO
iShares Core Equity ETF Portfolio		12.29%19.47%24.36%17.25%-11.01%18.94%11.82%9.89%

Correlation

The correlation between ZFL.TO and XEQT.TO is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.33

Correlation (3Y)
Calculated over the trailing 3-year period

0.22

Correlation (5Y)
Calculated over the trailing 5-year period

0.13

Correlation (All Time)
Calculated using the full available price history since Aug 15, 2019

0.05

Over the past year, ZFL.TO and XEQT.TO have become more correlated (0.33) than their long-term average of 0.05, meaning their price movements have been converging.

ZFL.TO vs. XEQT.TO - Sectors Allocation Comparison

Sectors
ZFL.TO
XEQT.TO

Financial Services

100.0%
20.3%

Basic Materials

-

7.3%

Communication Services

-

6.4%

Consumer Cyclical

-

7.8%

Consumer Defensive

-

4.4%

Energy

-

7.2%

Healthcare

-

6.6%

Industrials

-

12.1%

Real Estate

-

2.2%

Technology

-

22.9%

Utilities

-

2.8%

Financial Services

ZFL.TO
100.0%
XEQT.TO
20.3%

Basic Materials

ZFL.TO

-

XEQT.TO
7.3%

Communication Services

ZFL.TO

-

XEQT.TO
6.4%

Consumer Cyclical

ZFL.TO

-

XEQT.TO
7.8%

Consumer Defensive

ZFL.TO

-

XEQT.TO
4.4%

Energy

ZFL.TO

-

XEQT.TO
7.2%

Healthcare

ZFL.TO

-

XEQT.TO
6.6%

Industrials

ZFL.TO

-

XEQT.TO
12.1%

Real Estate

ZFL.TO

-

XEQT.TO
2.2%

Technology

ZFL.TO

-

XEQT.TO
22.9%

Utilities

ZFL.TO

-

XEQT.TO
2.8%

Compare stocks, funds, or ETFs

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BMO Long Federal Bond

iShares Core Equity ETF Portfolio

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Often compared with XEQT.TO:
XEQT.TO vs. VFV.TOXEQT.TO vs. VEQT.TOXEQT.TO vs. XGRO.TOXEQT.TO vs. ZEQT.TOXEQT.TO vs. VGRO.TOXEQT.TO vs. XEI.TOXEQT.TO vs. VOO

Return for Risk

ZFL.TO vs. XEQT.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZFL.TO
ZFL.TO Risk / Return Rank: 77
Overall Rank
ZFL.TO Sharpe Ratio Rank: 88
Sharpe Ratio Rank
ZFL.TO Sortino Ratio Rank: 77
Sortino Ratio Rank
ZFL.TO Omega Ratio Rank: 77
Omega Ratio Rank
ZFL.TO Calmar Ratio Rank: 77
Calmar Ratio Rank
ZFL.TO Martin Ratio Rank: 88
Martin Ratio Rank
XEQT.TO
XEQT.TO Risk / Return Rank: 7575
Overall Rank
XEQT.TO Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
XEQT.TO Sortino Ratio Rank: 7676
Sortino Ratio Rank
XEQT.TO Omega Ratio Rank: 7676
Omega Ratio Rank
XEQT.TO Calmar Ratio Rank: 7070
Calmar Ratio Rank
XEQT.TO Martin Ratio Rank: 7878
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.

ZFL.TO vs. XEQT.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Long Federal Bond (ZFL.TO) and iShares Core Equity ETF Portfolio (XEQT.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.

ZFL.TOXEQT.TODifference
Sharpe ratioReturn per unit of total volatility
-0.09
2.53

-2.61

Sortino ratioReturn per unit of downside risk
-0.05
3.49

-3.54

Omega ratioGain probability vs. loss probability

0.99

1.47

-0.47

Calmar ratioReturn relative to maximum drawdown

-0.12

3.56

-3.68

Martin ratioReturn relative to average drawdown

-0.22

15.50

-15.72

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

ZFL.TO vs. XEQT.TO - Sharpe Ratio Comparison

The current ZFL.TO Sharpe Ratio is -0.09, which is lower than the XEQT.TO Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of ZFL.TO and XEQT.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.

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Sharpe Ratios by Period

ZFL.TOXEQT.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.09

2.53

-2.61

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.27

1.05

-1.32

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.11

—

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.16

0.95

-0.79

Drawdowns

ZFL.TO vs. XEQT.TO - Drawdown Comparison

The maximum ZFL.TO drawdown since its inception was -40.32%, which is greater than XEQT.TO's maximum drawdown of -29.74%. Use the drawdown chart below to compare losses from any high point for ZFL.TO and XEQT.TO.

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Drawdown Indicators

ZFL.TOXEQT.TODifference

Max Drawdown

Largest peak-to-trough decline

-40.32%

-29.74%

-10.58%

Max Drawdown (1Y)

Largest decline over 1 year

-6.68%

-8.25%

+1.57%

Max Drawdown (3Y)

Largest decline over 3 years

-14.51%

-15.08%

+0.57%

Max Drawdown (5Y)

Largest decline over 5 years

-32.25%

-19.56%

-12.69%

Max Drawdown (10Y)

Largest decline over 10 years

-40.32%

—

—

Current Drawdown

Current decline from peak

-31.87%

-0.56%

-31.31%

Average Drawdown

Average peak-to-trough decline

-12.45%

-4.11%

-8.34%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.82%

1.89%

+1.93%

Volatility

ZFL.TO vs. XEQT.TO - Volatility Comparison

The current volatility for BMO Long Federal Bond (ZFL.TO) is 3.14%, while iShares Core Equity ETF Portfolio (XEQT.TO) has a volatility of 3.70%. This indicates that ZFL.TO experiences smaller price fluctuations and is considered to be less risky than XEQT.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZFL.TOXEQT.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

3.14%

3.70%

-0.56%

Volatility (6M)

Calculated over the trailing 6-month period

7.05%

9.38%

-2.33%

Volatility (1Y)

Calculated over the trailing 1-year period

9.72%

11.63%

-1.91%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.71%

13.12%

+1.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.54%

15.56%

-3.02%

ZFL.TO vs. XEQT.TO - Expense Ratio Comparison

ZFL.TO has a 0.22% expense ratio, which is higher than XEQT.TO's 0.20% 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

ZFL.TO vs. XEQT.TO - Dividend Comparison

ZFL.TO's dividend yield for the trailing twelve months is around 2.84%, more than XEQT.TO's 1.48% yield.

PositionTTM20252024202320222021202020192018201720162015
XEQT.TO
iShares Core Equity ETF Portfolio		1.48%1.66%2.01%2.07%2.12%1.64%1.66%1.19%0.00%0.00%0.00%0.00%
ZFL.TO
BMO Long Federal Bond		2.84%3.13%3.20%3.49%3.77%2.85%2.57%2.95%3.00%2.99%3.05%3.10%

Frequently Asked Questions

ZFL.TO and XEQT.TO have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XEQT.TO is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XEQT.TO is cheaper with a 0.20% expense ratio, compared with 0.22% for ZFL.TO.

ZFL.TO is categorized as Canadian Government Bonds, while XEQT.TO is Global Equities. They also come from different issuers: BMO and iShares. Their fees differ too: 0.22% for ZFL.TO and 0.20% for XEQT.TO.

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