ZFL.TO vs. ZQQ.TO

Last updated Jun 4, 2026

ZFL.TO (BMO Long Federal Bond) and ZQQ.TO (BMO NASDAQ 100 Equity (CAD Hedged)) are both exchange-traded funds - ZFL.TO is a Canadian Government Bonds fund tracking the FTSE TMX Canada Long Term Federal Bond Index, while ZQQ.TO is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, ZFL.TO returned -1.37%/yr vs 20.08%/yr for ZQQ.TO. At a correlation of -0.11, they often move in opposite directions. ZFL.TO charges 0.22%/yr vs 0.39%/yr for ZQQ.TO.

Performance

ZFL.TO vs. ZQQ.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 NASDAQ 100 Equity (CAD Hedged) (ZQQ.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 ZQQ.TO's 19.82% return. Over the past 10 years, ZFL.TO has underperformed ZQQ.TO with an annualized return of -1.37%, while ZQQ.TO has yielded a comparatively higher 20.08% 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%

ZQQ.TO

• 1D: -0.28%
• 1M: 10.63%
• YTD: 19.82%
• 6M: 18.08%
• 1Y: 38.53%
• 3Y*: 26.42%
• 5Y*: 16.12%
• 10Y*: 20.08%

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

ZFL.TO vs. ZQQ.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%
ZQQ.TO BMO NASDAQ 100 Equity (CAD Hedged)	19.82%	18.38%	24.00%	52.52%	-33.75%	26.68%	45.33%	37.08%	-2.29%	31.51%

Correlation

The correlation between ZFL.TO and ZQQ.TO is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (10Y) Calculated over the trailing 10-year period	-0.02
Correlation (All Time) Calculated using the full available price history since May 27, 2010	-0.11

The correlation between ZFL.TO and ZQQ.TO shifts across timeframes, from -0.11 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.

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

Sectors	ZFL.TO	ZQQ.TO
Financial Services	100.0%	0.2%
Basic Materials	-	1.2%
Communication Services	-	15.5%
Consumer Cyclical	-	12.2%
Consumer Defensive	-	7.6%
Energy	-	0.6%
Healthcare	-	4.2%
Industrials	-	3.1%
Real Estate	-	0.1%
Technology	-	54.1%
Utilities	-	1.4%

Return for Risk

ZFL.TO vs. ZQQ.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

ZQQ.TO

ZQQ.TO Risk / Return Rank: 67
ZQQ.TO Sharpe Ratio Rank: 74
ZQQ.TO Sortino Ratio Rank: 69
ZQQ.TO Omega Ratio Rank: 69
ZQQ.TO Calmar Ratio Rank: 60
ZQQ.TO Martin Ratio Rank: 61

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. ZQQ.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Long Federal Bond (ZFL.TO) and BMO NASDAQ 100 Equity (CAD Hedged) (ZQQ.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	ZQQ.TO	Difference
Sharpe ratio: Return per unit of total volatility	-0.09	2.46	-2.55
Sortino ratio: Return per unit of downside risk	-0.05	3.25	-3.30
Omega ratio: Gain probability vs. loss probability	0.99	1.43	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.12	3.01	-3.13
Martin ratio: Return relative to average drawdown	-0.22	11.25	-11.46
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. ZQQ.TO - Sharpe Ratio Comparison

The current ZFL.TO Sharpe Ratio is -0.09, which is lower than the ZQQ.TO Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of ZFL.TO and ZQQ.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	ZQQ.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.09	2.46	-2.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.27	0.72	-0.99
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.11	0.90	-1.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.91	-0.74

Drawdowns

ZFL.TO vs. ZQQ.TO - Drawdown Comparison

The maximum ZFL.TO drawdown since its inception was -40.32%, which is greater than ZQQ.TO's maximum drawdown of -36.39%. Use the drawdown chart below to compare losses from any high point for ZFL.TO and ZQQ.TO.

Drawdown Indicators

	ZFL.TO	ZQQ.TO	Difference
Max Drawdown Largest peak-to-trough decline	-40.32%	-36.39%	-3.93%
Max Drawdown (1Y) Largest decline over 1 year	-6.68%	-12.86%	+6.18%
Max Drawdown (3Y) Largest decline over 3 years	-14.51%	-22.79%	+8.28%
Max Drawdown (5Y) Largest decline over 5 years	-32.25%	-36.39%	+4.14%
Max Drawdown (10Y) Largest decline over 10 years	-40.32%	-36.39%	-3.93%
Current Drawdown Current decline from peak	-31.87%	-0.28%	-31.59%
Average Drawdown Average peak-to-trough decline	-12.45%	-5.37%	-7.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	3.43%	+0.39%

Volatility

ZFL.TO vs. ZQQ.TO - Volatility Comparison

The current volatility for BMO Long Federal Bond (ZFL.TO) is 3.14%, while BMO NASDAQ 100 Equity (CAD Hedged) (ZQQ.TO) has a volatility of 4.54%. This indicates that ZFL.TO experiences smaller price fluctuations and is considered to be less risky than ZQQ.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZFL.TO	ZQQ.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.14%	4.54%	-1.40%
Volatility (6M) Calculated over the trailing 6-month period	7.05%	12.02%	-4.97%
Volatility (1Y) Calculated over the trailing 1-year period	9.72%	15.73%	-6.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.71%	22.57%	-7.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.54%	22.41%	-9.87%

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

ZFL.TO has a 0.22% expense ratio, which is lower than ZQQ.TO's 0.39% expense ratio.

Dividends

ZFL.TO vs. ZQQ.TO - Dividend Comparison

ZFL.TO's dividend yield for the trailing twelve months is around 2.84%, more than ZQQ.TO's 0.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZQQ.TO BMO NASDAQ 100 Equity (CAD Hedged)	0.22%	0.27%	0.37%	0.32%	0.45%	0.14%	0.41%	0.51%	0.64%	0.57%	1.60%	0.81%

Frequently Asked Questions

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

ZFL.TO and ZQQ.TO have a correlation of 0.21, 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 ZQQ.TO?

On fees, ZFL.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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

ZFL.TO is cheaper with a 0.22% expense ratio, compared with 0.39% for ZQQ.TO.

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

ZFL.TO is categorized as Canadian Government Bonds, while ZQQ.TO is Nasdaq-100. ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index, while ZQQ.TO tracks NASDAQ-100 Index. Their fees differ too: 0.22% for ZFL.TO and 0.39% for ZQQ.TO.