ZHY.TO vs. HYG

Last updated Jun 5, 2026

ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds - ZHY.TO tracks the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged while HYG tracks the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, ZHY.TO returned 3.77%/yr vs 5.77%/yr for HYG. At a 0.25 correlation, their price movements are largely independent. ZHY.TO charges 0.61%/yr vs 0.49%/yr for HYG.

Performance

ZHY.TO vs. HYG - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ZHY.TO is traded in CAD, while HYG is traded in USD. To make them comparable, the HYG values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, ZHY.TO achieves a 0.71% return, which is significantly lower than HYG's 2.91% return. Over the past 10 years, ZHY.TO has underperformed HYG with an annualized return of 3.77%, while HYG has yielded a comparatively higher 5.77% annualized return.

ZHY.TO

• 1D: -0.09%
• 1M: -0.01%
• YTD: 0.71%
• 6M: 0.74%
• 1Y: 4.74%
• 3Y*: 7.06%
• 5Y*: 2.53%
• 10Y*: 3.77%

HYG

• 1D: 0.29%
• 1M: 2.55%
• YTD: 2.91%
• 6M: 1.49%
• 1Y: 8.32%
• 3Y*: 9.81%
• 5Y*: 6.80%
• 10Y*: 5.77%

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

ZHY.TO vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	0.71%	6.27%	6.04%	11.48%	-12.80%	4.03%	3.31%	13.45%	-3.88%	5.06%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	2.91%	3.61%	17.24%	9.08%	-4.64%	2.82%	2.70%	8.48%	6.29%	-0.68%

Correlation

The correlation between ZHY.TO and HYG is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.29
Correlation (All Time) Calculated using the full available price history since Oct 27, 2009	0.25

The correlation between ZHY.TO and HYG shifts across timeframes, from 0.25 (all time) to 0.36 (5 years), reflecting how their relationship changes across market environments.

ZHY.TO vs. HYG - Sectors Allocation Comparison

Sectors	ZHY.TO	HYG
Industrials	60.5%	-
Consumer Cyclical	37.1%	-
Energy	2.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	0.4%
Technology	-	-
Utilities	-	99.6%

Return for Risk

ZHY.TO vs. HYG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZHY.TO

ZHY.TO Risk / Return Rank: 29
ZHY.TO Sharpe Ratio Rank: 25
ZHY.TO Sortino Ratio Rank: 24
ZHY.TO Omega Ratio Rank: 24
ZHY.TO Calmar Ratio Rank: 33
ZHY.TO Martin Ratio Rank: 39

HYG

HYG Risk / Return Rank: 57
HYG Sharpe Ratio Rank: 51
HYG Sortino Ratio Rank: 55
HYG Omega Ratio Rank: 54
HYG Calmar Ratio Rank: 58
HYG Martin Ratio Rank: 68

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.

ZHY.TO vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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.

	ZHY.TO	HYG	Difference
Sharpe ratio: Return per unit of total volatility	0.87	1.61	-0.74
Sortino ratio: Return per unit of downside risk	1.28	2.26	-0.98
Omega ratio: Gain probability vs. loss probability	1.16	1.30	-0.14
Calmar ratio: Return relative to maximum drawdown	1.61	2.46	-0.85
Martin ratio: Return relative to average drawdown	6.01	6.67	-0.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZHY.TO vs. HYG - Sharpe Ratio Comparison

The current ZHY.TO Sharpe Ratio is 0.87, which is lower than the HYG Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of ZHY.TO and HYG, 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

	ZHY.TO	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	1.61	-0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.95	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.72	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.92	-0.47

Drawdowns

ZHY.TO vs. HYG - Drawdown Comparison

The maximum ZHY.TO drawdown since its inception was -28.44%, which is greater than HYG's maximum drawdown of -14.83%. Use the drawdown chart below to compare losses from any high point for ZHY.TO and HYG.

Drawdown Indicators

	ZHY.TO	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-28.44%	-14.83%	-13.61%
Max Drawdown (1Y) Largest decline over 1 year	-2.96%	-3.39%	+0.43%
Max Drawdown (3Y) Largest decline over 3 years	-5.70%	-7.29%	+1.59%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-14.15%	-2.96%
Max Drawdown (10Y) Largest decline over 10 years	-28.44%	-14.83%	-13.61%
Current Drawdown Current decline from peak	-0.91%	0.00%	-0.91%
Average Drawdown Average peak-to-trough decline	-2.86%	-2.16%	-0.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	1.25%	-0.46%

Volatility

ZHY.TO vs. HYG - Volatility Comparison

BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) has a higher volatility of 1.96% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.14%. This indicates that ZHY.TO's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZHY.TO	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.96%	1.14%	+0.82%
Volatility (6M) Calculated over the trailing 6-month period	4.11%	4.18%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	5.50%	5.19%	+0.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.51%	7.22%	+2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.92%	7.99%	+2.93%

ZHY.TO vs. HYG - Expense Ratio Comparison

ZHY.TO has a 0.61% expense ratio, which is higher than HYG's 0.49% expense ratio.

Dividends

ZHY.TO vs. HYG - Dividend Comparison

ZHY.TO's dividend yield for the trailing twelve months is around 6.38%, more than HYG's 5.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.91%	5.71%	6.01%	5.74%	5.30%	4.02%	4.88%	4.99%	5.54%	5.12%	5.27%	5.90%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	6.38%	6.10%	6.13%	6.43%	6.71%	5.49%	6.09%	6.50%	6.25%	6.10%	5.84%	7.12%

Frequently Asked Questions

Can I hold both ZHY.TO and HYG in my portfolio?

ZHY.TO and HYG have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZHY.TO or HYG?

On fees, HYG is cheaper at 0.49% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZHY.TO or HYG?

HYG is cheaper with a 0.49% expense ratio, compared with 0.61% for ZHY.TO.

What is the main difference between ZHY.TO and HYG?

ZHY.TO tracks Bloomberg U.S. High Yield Very Liquid Index CAD Hedged, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.61% for ZHY.TO and 0.49% for HYG.