ZHY.TO vs. ZBI.TO

Last updated Jul 18, 2026

ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) and ZBI.TO (BMO Canadian Bank Income Index ETF) are both exchange-traded funds - ZHY.TO is a High Yield Bonds fund tracking the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged, while ZBI.TO is a Canadian Government Bonds fund tracking the Solactive Canadian Bank Income Index. Both are passively managed. Over the past 3 years, ZHY.TO returned 6.60%/yr vs 8.04%/yr for ZBI.TO. At a 0.16 correlation, their price movements are largely independent. ZHY.TO charges 0.61%/yr vs 0.28%/yr for ZBI.TO.

Performance

ZHY.TO vs. ZBI.TO - 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 BMO Canadian Bank Income Index ETF (ZBI.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZHY.TO achieves a 0.88% return, which is significantly lower than ZBI.TO's 2.05% return.

ZHY.TO

• 1D: -0.18%
• 1M: -0.46%
• 6M: 0.07%
• YTD: 0.88%
• 1Y: 3.75%
• 3Y*: 6.60%
• 5Y*: 2.36%
• 10Y*: 3.53%

ZBI.TO

• 1D: -0.03%
• 1M: 0.25%
• 6M: 1.60%
• YTD: 2.05%
• 1Y: 4.54%
• 3Y*: 8.04%
• 5Y*: —
• 10Y*: —

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

ZHY.TO vs. ZBI.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	0.88%	6.27%	6.04%	11.48%	-8.60%
ZBI.TO BMO Canadian Bank Income Index ETF	2.05%	4.79%	12.50%	6.85%	-7.29%

Correlation

The correlation between ZHY.TO and ZBI.TO 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	0.16
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.16

The correlation between ZHY.TO and ZBI.TO shifts across timeframes, from 0.16 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ZHY.TO vs. ZBI.TO — 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: 28
ZHY.TO Sharpe Ratio Rank: 24
ZHY.TO Sortino Ratio Rank: 23
ZHY.TO Omega Ratio Rank: 23
ZHY.TO Calmar Ratio Rank: 31
ZHY.TO Martin Ratio Rank: 38

ZBI.TO

ZBI.TO Risk / Return Rank: 89
ZBI.TO Sharpe Ratio Rank: 87
ZBI.TO Sortino Ratio Rank: 87
ZBI.TO Omega Ratio Rank: 92
ZBI.TO Calmar Ratio Rank: 87
ZBI.TO Martin Ratio Rank: 92

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. ZBI.TO - 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 BMO Canadian Bank Income Index ETF (ZBI.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.

	ZHY.TO	ZBI.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.70	2.20	-1.50
Sortino ratio: Return per unit of downside risk	1.03	3.15	-2.12
Omega ratio: Gain probability vs. loss probability	1.13	1.48	-0.36
Calmar ratio: Return relative to maximum drawdown	1.27	3.78	-2.51
Martin ratio: Return relative to average drawdown	4.79	17.13	-12.34

ZHY.TO vs. ZBI.TO - Sharpe Ratio Comparison

The current ZHY.TO Sharpe Ratio is 0.70, which is lower than the ZBI.TO Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of ZHY.TO and ZBI.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.

Drawdowns

ZHY.TO vs. ZBI.TO - Drawdown Comparison

The maximum ZHY.TO drawdown since its inception was -28.44%, which is greater than ZBI.TO's maximum drawdown of -8.31%. Use the drawdown chart below to compare losses from any high point for ZHY.TO and ZBI.TO.

Drawdown Indicators

	ZHY.TO	ZBI.TO	Difference
Max Drawdown Largest peak-to-trough decline	-28.44%	-8.31%	-20.13%
Max Drawdown (1Y) Largest decline over 1 year	-2.96%	-1.21%	-1.75%
Max Drawdown (3Y) Largest decline over 3 years	-5.65%	-1.47%	-4.18%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-28.44%	—	—
Current Drawdown Current decline from peak	-1.00%	-0.10%	-0.90%
Average Drawdown Average peak-to-trough decline	-2.85%	-2.24%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	0.27%	+0.51%

Volatility

ZHY.TO vs. ZBI.TO - Volatility Comparison

BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) has a higher volatility of 0.98% compared to BMO Canadian Bank Income Index ETF (ZBI.TO) at 0.49%. This indicates that ZHY.TO's price experiences larger fluctuations and is considered to be riskier than ZBI.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZHY.TO	ZBI.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	0.49%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	4.23%	1.49%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	5.38%	2.07%	+3.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.55%	3.62%	+5.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.86%	3.62%	+7.24%

ZHY.TO vs. ZBI.TO - Expense Ratio Comparison

ZHY.TO has a 0.61% expense ratio, which is higher than ZBI.TO's 0.28% expense ratio.

Dividends

ZHY.TO vs. ZBI.TO - Dividend Comparison

ZHY.TO's dividend yield for the trailing twelve months is around 6.43%, more than ZBI.TO's 4.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZBI.TO BMO Canadian Bank Income Index ETF	4.35%	4.02%	3.36%	3.58%	2.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	6.43%	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 ZBI.TO in my portfolio?

ZHY.TO and ZBI.TO 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 ZBI.TO?

On fees, ZBI.TO is cheaper at 0.28% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZHY.TO or ZBI.TO?

ZBI.TO is cheaper with a 0.28% expense ratio, compared with 0.61% for ZHY.TO.

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

ZHY.TO is categorized as High Yield Bonds, while ZBI.TO is Canadian Government Bonds. ZHY.TO tracks Bloomberg U.S. High Yield Very Liquid Index CAD Hedged, while ZBI.TO tracks Solactive Canadian Bank Income Index. Their fees differ too: 0.61% for ZHY.TO and 0.28% for ZBI.TO.