ZFL.TO vs. XSB.TO
ZFL.TO (BMO Long Federal Bond) and XSB.TO (iShares Core Canadian Short Term Bond Index ETF) are both Canadian Government Bonds funds - ZFL.TO tracks the FTSE TMX Canada Long Term Federal Bond Index while XSB.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, ZFL.TO returned -1.37%/yr vs 1.96%/yr for XSB.TO. A 0.64 correlation means they provide meaningful diversification when combined. ZFL.TO charges 0.22%/yr vs 0.10%/yr for XSB.TO.
Performance
ZFL.TO vs. XSB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZFL.TO achieves a 2.39% return, which is significantly higher than XSB.TO's 1.03% return. Over the past 10 years, ZFL.TO has underperformed XSB.TO with an annualized return of -1.37%, while XSB.TO has yielded a comparatively higher 1.96% annualized 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%
XSB.TO
- 1D
- 0.04%
- 1M
- 0.93%
- YTD
- 1.03%
- 6M
- 0.80%
- 1Y
- 2.95%
- 3Y*
- 4.75%
- 5Y*
- 2.02%
- 10Y*
- 1.96%
ZFL.TO vs. XSB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZFL.TO BMO Long Federal Bond | 2.39% | -5.14% | -2.20% | 7.30% | -23.89% | -7.47% | 12.68% | 8.73% | 2.69% | 2.84% |
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 1.03% | 3.70% | 5.87% | 4.67% | -4.04% | -1.11% | 5.20% | 3.20% | 1.60% | 0.13% |
Correlation
The correlation between ZFL.TO and XSB.TO is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.81 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since May 27, 2010 | 0.64 |
The correlation between ZFL.TO and XSB.TO shifts across timeframes, from 0.64 (all time) to 0.81 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZFL.TO vs. XSB.TO — Risk / Return Rank
ZFL.TO
XSB.TO
ZFL.TO vs. XSB.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 Canadian Short Term Bond Index ETF (XSB.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.TO | XSB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.57 | ||
| Sortino ratioReturn per unit of downside risk | -2.16 | ||
| Omega ratioGain probability vs. loss probability | 0.99 | 1.29 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | -0.12 | 2.01 | -2.14 |
| Martin ratioReturn relative to average drawdown | -0.22 | 6.68 | -6.89 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZFL.TO | XSB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.09 | 1.48 | -1.57 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.27 | 0.75 | -1.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.11 | 0.58 | -0.69 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.16 | 1.11 | -0.94 |
Drawdowns
ZFL.TO vs. XSB.TO - Drawdown Comparison
The maximum ZFL.TO drawdown since its inception was -40.32%, which is greater than XSB.TO's maximum drawdown of -8.65%. Use the drawdown chart below to compare losses from any high point for ZFL.TO and XSB.TO.
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Drawdown Indicators
| ZFL.TO | XSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -40.32% | -8.65% | -31.67% |
Max Drawdown (1Y)Largest decline over 1 year | -6.68% | -1.47% | -5.21% |
Max Drawdown (3Y)Largest decline over 3 years | -14.51% | -1.47% | -13.04% |
Max Drawdown (5Y)Largest decline over 5 years | -32.25% | -6.99% | -25.26% |
Max Drawdown (10Y)Largest decline over 10 years | -40.32% | -8.65% | -31.67% |
Current DrawdownCurrent decline from peak | -31.87% | -0.12% | -31.75% |
Average DrawdownAverage peak-to-trough decline | -12.45% | -0.83% | -11.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.82% | 0.44% | +3.38% |
Volatility
ZFL.TO vs. XSB.TO - Volatility Comparison
BMO Long Federal Bond (ZFL.TO) has a higher volatility of 3.14% compared to iShares Core Canadian Short Term Bond Index ETF (XSB.TO) at 0.78%. This indicates that ZFL.TO's price experiences larger fluctuations and is considered to be riskier than XSB.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.TO | XSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.14% | 0.78% | +2.36% |
Volatility (6M)Calculated over the trailing 6-month period | 7.05% | 1.68% | +5.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.72% | 2.00% | +7.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.71% | 2.72% | +11.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.54% | 3.40% | +9.14% |
ZFL.TO vs. XSB.TO - Expense Ratio Comparison
ZFL.TO has a 0.22% expense ratio, which is higher than XSB.TO's 0.10% 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. XSB.TO - Dividend Comparison
ZFL.TO's dividend yield for the trailing twelve months is around 2.84%, less than XSB.TO's 3.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 3.11% | 3.15% | 3.05% | 2.67% | 2.28% | 2.05% | 2.21% | 2.39% | 2.39% | 2.36% | 2.36% | 2.50% |
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 XSB.TO have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XSB.TO is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XSB.TO is cheaper with a 0.10% expense ratio, compared with 0.22% for ZFL.TO.
ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index, while XSB.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.22% for ZFL.TO and 0.10% for XSB.TO.
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