ZFL.TO vs. ZEA.TO

Last updated Jun 4, 2026

ZFL.TO (BMO Long Federal Bond) and ZEA.TO (BMO MSCI EAFE Index ETF) are both exchange-traded funds - ZFL.TO is a Canadian Government Bonds fund tracking the FTSE TMX Canada Long Term Federal Bond Index, while ZEA.TO is a Global Equities fund tracking the MSCI EAFE Index. Both are passively managed. Over the past 10 years, ZFL.TO returned -1.37%/yr vs 9.78%/yr for ZEA.TO. At a 0.00 correlation, their price movements are largely independent. Both charge a 0.22% expense ratio.

Performance

ZFL.TO vs. ZEA.TO - Performance Comparison

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

Returns By Period

In the year-to-date period, ZFL.TO achieves a 2.39% return, which is significantly lower than ZEA.TO's 10.01% return. Over the past 10 years, ZFL.TO has underperformed ZEA.TO with an annualized return of -1.37%, while ZEA.TO has yielded a comparatively higher 9.78% 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%

ZEA.TO

• 1D: -0.45%
• 1M: 5.71%
• YTD: 10.01%
• 6M: 10.15%
• 1Y: 22.06%
• 3Y*: 17.46%
• 5Y*: 11.02%
• 10Y*: 9.78%

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

ZFL.TO vs. ZEA.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%
ZEA.TO BMO MSCI EAFE Index ETF	10.01%	24.28%	11.56%	16.02%	-8.51%	10.64%	5.13%	16.71%	-6.24%	16.77%

Correlation

The correlation between ZFL.TO and ZEA.TO is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.00

Over the past year, ZFL.TO and ZEA.TO have become more correlated (0.40) than their long-term average of 0.00, meaning their price movements have been converging.

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

Sectors	ZFL.TO	ZEA.TO
Financial Services	100.0%	24.4%
Basic Materials	-	6.0%
Communication Services	-	4.6%
Consumer Cyclical	-	7.6%
Consumer Defensive	-	6.8%
Energy	-	3.9%
Healthcare	-	10.5%
Industrials	-	20.0%
Real Estate	-	1.9%
Technology	-	10.5%
Utilities	-	3.9%

Return for Risk

ZFL.TO vs. ZEA.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: 7
ZFL.TO Sharpe Ratio Rank: 8
ZFL.TO Sortino Ratio Rank: 7
ZFL.TO Omega Ratio Rank: 7
ZFL.TO Calmar Ratio Rank: 7
ZFL.TO Martin Ratio Rank: 8

ZEA.TO

ZEA.TO Risk / Return Rank: 44
ZEA.TO Sharpe Ratio Rank: 45
ZEA.TO Sortino Ratio Rank: 45
ZEA.TO Omega Ratio Rank: 46
ZEA.TO Calmar Ratio Rank: 40
ZEA.TO Martin Ratio Rank: 47

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. ZEA.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Long Federal Bond (ZFL.TO) and BMO MSCI EAFE Index ETF (ZEA.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	ZEA.TO	Difference
Sharpe ratio: Return per unit of total volatility	-0.09	1.59	-1.68
Sortino ratio: Return per unit of downside risk	-0.05	2.28	-2.34
Omega ratio: Gain probability vs. loss probability	0.99	1.30	-0.30
Calmar ratio: Return relative to maximum drawdown	-0.12	2.03	-2.16
Martin ratio: Return relative to average drawdown	-0.22	7.92	-8.13
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. ZEA.TO - Sharpe Ratio Comparison

The current ZFL.TO Sharpe Ratio is -0.09, which is lower than the ZEA.TO Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of ZFL.TO and ZEA.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

	ZFL.TO	ZEA.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.09	1.59	-1.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.27	0.82	-1.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.11	0.66	-0.77
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.59	-0.43

Drawdowns

ZFL.TO vs. ZEA.TO - Drawdown Comparison

The maximum ZFL.TO drawdown since its inception was -40.32%, which is greater than ZEA.TO's maximum drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for ZFL.TO and ZEA.TO.

Drawdown Indicators

	ZFL.TO	ZEA.TO	Difference
Max Drawdown Largest peak-to-trough decline	-40.32%	-27.80%	-12.52%
Max Drawdown (1Y) Largest decline over 1 year	-6.68%	-10.91%	+4.23%
Max Drawdown (3Y) Largest decline over 3 years	-14.51%	-14.11%	-0.40%
Max Drawdown (5Y) Largest decline over 5 years	-32.25%	-23.67%	-8.58%
Max Drawdown (10Y) Largest decline over 10 years	-40.32%	-27.80%	-12.52%
Current Drawdown Current decline from peak	-31.87%	-2.13%	-29.74%
Average Drawdown Average peak-to-trough decline	-12.45%	-4.63%	-7.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	2.79%	+1.03%

Volatility

ZFL.TO vs. ZEA.TO - Volatility Comparison

The current volatility for BMO Long Federal Bond (ZFL.TO) is 3.14%, while BMO MSCI EAFE Index ETF (ZEA.TO) has a volatility of 5.70%. This indicates that ZFL.TO experiences smaller price fluctuations and is considered to be less risky than ZEA.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZFL.TO	ZEA.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.14%	5.70%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	7.05%	11.68%	-4.63%
Volatility (1Y) Calculated over the trailing 1-year period	9.72%	13.94%	-4.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.71%	13.51%	+1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.54%	14.92%	-2.38%

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

Both ZFL.TO and ZEA.TO have an expense ratio of 0.22%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

ZFL.TO vs. ZEA.TO - Dividend Comparison

ZFL.TO's dividend yield for the trailing twelve months is around 2.84%, more than ZEA.TO's 1.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZEA.TO BMO MSCI EAFE Index ETF	1.94%	2.17%	2.77%	3.00%	3.06%	2.48%	2.72%	2.93%	3.03%	2.39%	2.78%	2.42%
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

Can I hold both ZFL.TO and ZEA.TO in my portfolio?

ZFL.TO and ZEA.TO have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZFL.TO or ZEA.TO?

Both ETFs have the same 0.22% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZFL.TO or ZEA.TO?

ZFL.TO and ZEA.TO have the same expense ratio: 0.22% per year.

What is the main difference between ZFL.TO and ZEA.TO?

ZFL.TO is categorized as Canadian Government Bonds, while ZEA.TO is Global Equities. ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index, while ZEA.TO tracks MSCI EAFE Index.