ZFS.TO vs. ZFM.TO
ZFS.TO (BMO Short Federal Bond Index ETF) and ZFM.TO (BMO Mid Federal Bond Index ETF) are both Government Bonds funds from BMO. Over the past 10 years, ZFS.TO returned 1.39%/yr vs 0.66%/yr for ZFM.TO. A 0.58 correlation means they provide meaningful diversification when combined.
Performance
ZFS.TO vs. ZFM.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZFS.TO achieves a 1.19% return, which is significantly lower than ZFM.TO's 1.97% return. Over the past 10 years, ZFS.TO has outperformed ZFM.TO with an annualized return of 1.39%, while ZFM.TO has yielded a comparatively lower 0.66% annualized return.
ZFS.TO
- 1D
- 0.00%
- 1M
- 0.35%
- YTD
- 1.19%
- 6M
- 1.26%
- 1Y
- 2.43%
- 3Y*
- 4.08%
- 5Y*
- 1.58%
- 10Y*
- 1.39%
ZFM.TO
- 1D
- -0.13%
- 1M
- 0.70%
- YTD
- 1.97%
- 6M
- 1.83%
- 1Y
- 2.94%
- 3Y*
- 3.84%
- 5Y*
- 0.19%
- 10Y*
- 0.66%
ZFS.TO vs. ZFM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZFS.TO BMO Short Federal Bond Index ETF | 1.19% | 3.10% | 4.61% | 3.93% | -4.03% | -1.43% | 4.42% | 2.15% | 1.47% | -0.59% |
ZFM.TO BMO Mid Federal Bond Index ETF | 1.97% | 2.87% | 3.06% | 4.83% | -11.10% | -3.87% | 9.29% | 3.40% | 2.20% | -0.63% |
Correlation
The correlation between ZFS.TO and ZFM.TO is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Apr 20, 2010 | 0.58 |
Over the past year, ZFS.TO and ZFM.TO have become more correlated (0.80) than their long-term average of 0.58, meaning their price movements have been converging.
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Return for Risk
ZFS.TO vs. ZFM.TO — Risk / Return Rank
ZFS.TO
ZFM.TO
ZFS.TO vs. ZFM.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Short Federal Bond Index ETF (ZFS.TO) and BMO Mid Federal Bond Index ETF (ZFM.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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ZFS.TO | ZFM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.60 | ||
| Sortino ratioReturn per unit of downside risk | +0.81 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.12 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.63 | 0.96 | +0.67 |
| Martin ratioReturn relative to average drawdown | 5.19 | 2.23 | +2.96 |
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Drawdowns
ZFS.TO vs. ZFM.TO - Drawdown Comparison
The maximum ZFS.TO drawdown since its inception was -6.80%, smaller than the maximum ZFM.TO drawdown of -19.06%. Use the drawdown chart below to compare losses from any high point for ZFS.TO and ZFM.TO.
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Drawdown Indicators
| ZFS.TO | ZFM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.80% | -19.06% | +12.26% |
Max Drawdown (1Y)Largest decline over 1 year | -1.50% | -3.08% | +1.58% |
Max Drawdown (3Y)Largest decline over 3 years | -1.50% | -5.74% | +4.24% |
Max Drawdown (5Y)Largest decline over 5 years | -6.43% | -16.77% | +10.34% |
Max Drawdown (10Y)Largest decline over 10 years | -6.80% | -19.06% | +12.26% |
Current DrawdownCurrent decline from peak | -0.01% | -3.87% | +3.86% |
Average DrawdownAverage peak-to-trough decline | -1.07% | -4.51% | +3.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.48% | 1.37% | -0.89% |
Volatility
ZFS.TO vs. ZFM.TO - Volatility Comparison
The current volatility for BMO Short Federal Bond Index ETF (ZFS.TO) is 0.49%, while BMO Mid Federal Bond Index ETF (ZFM.TO) has a volatility of 1.34%. This indicates that ZFS.TO experiences smaller price fluctuations and is considered to be less risky than ZFM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZFS.TO | ZFM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.49% | 1.34% | -0.85% |
Volatility (6M)Calculated over the trailing 6-month period | 1.58% | 3.51% | -1.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.97% | 4.60% | -2.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.64% | 7.05% | -4.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.27% | 5.78% | -3.51% |
Dividends
ZFS.TO vs. ZFM.TO - Dividend Comparison
ZFS.TO's dividend yield for the trailing twelve months is around 2.54%, which matches ZFM.TO's 2.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZFM.TO BMO Mid Federal Bond Index ETF | 2.55% | 2.37% | 2.29% | 2.30% | 2.36% | 2.05% | 2.04% | 2.14% | 2.02% | 2.05% | 2.23% | 2.41% |
ZFS.TO BMO Short Federal Bond Index ETF | 2.54% | 2.41% | 2.06% | 1.96% | 1.99% | 1.88% | 1.81% | 1.86% | 1.59% | 1.59% | 1.77% | 1.90% |
Frequently Asked Questions
ZFS.TO and ZFM.TO have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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