ZLC.TO vs. ZHY.TO

Last updated Jun 4, 2026

ZLC.TO (BMO Long Corporate Bond Index ETF) and ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) are both exchange-traded funds - ZLC.TO is a Long-Term Bond fund tracking the FTSE Canada Long Term Corporate Bond Index, while ZHY.TO is a High Yield Bonds fund tracking the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged. Both are passively managed. Over the past 10 years, ZLC.TO returned 2.60%/yr vs 3.81%/yr for ZHY.TO. At a 0.05 correlation, their price movements are largely independent. ZLC.TO charges 0.33%/yr vs 0.61%/yr for ZHY.TO.

Performance

ZLC.TO vs. ZHY.TO - Performance Comparison

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

Returns By Period

In the year-to-date period, ZLC.TO achieves a 2.51% return, which is significantly higher than ZHY.TO's 0.75% return. Over the past 10 years, ZLC.TO has underperformed ZHY.TO with an annualized return of 2.60%, while ZHY.TO has yielded a comparatively higher 3.81% annualized return.

ZLC.TO

• 1D: -0.20%
• 1M: 2.72%
• YTD: 2.51%
• 6M: 1.64%
• 1Y: 4.27%
• 3Y*: 5.50%
• 5Y*: 0.95%
• 10Y*: 2.60%

ZHY.TO

• 1D: -0.23%
• 1M: 0.04%
• YTD: 0.75%
• 6M: 0.88%
• 1Y: 4.98%
• 3Y*: 7.01%
• 5Y*: 2.54%
• 10Y*: 3.81%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZLC.TO BMO Long Corporate Bond Index ETF	2.51%	2.38%	4.69%	11.50%	-18.31%	-3.20%	9.51%	14.51%	-1.66%	8.69%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	0.75%	6.27%	6.04%	11.48%	-12.80%	4.03%	3.31%	13.45%	-3.88%	5.06%

Correlation

The correlation between ZLC.TO and ZHY.TO is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.16
Correlation (All Time) Calculated using the full available price history since Jan 26, 2010	0.05

Over the past year, ZLC.TO and ZHY.TO have become more correlated (0.42) than their long-term average of 0.05, meaning their price movements have been converging.

Return for Risk

ZLC.TO vs. ZHY.TO — Risk / Return Rank

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

ZLC.TO

ZLC.TO Risk / Return Rank: 19
ZLC.TO Sharpe Ratio Rank: 19
ZLC.TO Sortino Ratio Rank: 18
ZLC.TO Omega Ratio Rank: 18
ZLC.TO Calmar Ratio Rank: 21
ZLC.TO Martin Ratio Rank: 19

ZHY.TO

ZHY.TO Risk / Return Rank: 30
ZHY.TO Sharpe Ratio Rank: 25
ZHY.TO Sortino Ratio Rank: 25
ZHY.TO Omega Ratio Rank: 25
ZHY.TO Calmar Ratio Rank: 34
ZHY.TO Martin Ratio Rank: 40

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.

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

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

	ZLC.TO	ZHY.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.59	0.91	-0.32
Sortino ratio: Return per unit of downside risk	0.86	1.34	-0.47
Omega ratio: Gain probability vs. loss probability	1.11	1.17	-0.06
Calmar ratio: Return relative to maximum drawdown	0.92	1.69	-0.76
Martin ratio: Return relative to average drawdown	2.15	6.32	-4.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

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

The current ZLC.TO Sharpe Ratio is 0.59, which is lower than the ZHY.TO Sharpe Ratio of 0.91. The chart below compares the historical Sharpe Ratios of ZLC.TO and ZHY.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

	ZLC.TO	ZHY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	0.91	-0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.27	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	0.35	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.45	+0.02

Drawdowns

ZLC.TO vs. ZHY.TO - Drawdown Comparison

The maximum ZLC.TO drawdown since its inception was -28.61%, roughly equal to the maximum ZHY.TO drawdown of -28.44%. Use the drawdown chart below to compare losses from any high point for ZLC.TO and ZHY.TO.

Drawdown Indicators

	ZLC.TO	ZHY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-28.61%	-28.44%	-0.17%
Max Drawdown (1Y) Largest decline over 1 year	-4.64%	-2.96%	-1.68%
Max Drawdown (3Y) Largest decline over 3 years	-9.67%	-5.70%	-3.97%
Max Drawdown (5Y) Largest decline over 5 years	-24.86%	-17.11%	-7.75%
Max Drawdown (10Y) Largest decline over 10 years	-28.61%	-28.44%	-0.17%
Current Drawdown Current decline from peak	-4.27%	-0.86%	-3.41%
Average Drawdown Average peak-to-trough decline	-5.99%	-2.86%	-3.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	0.79%	+1.20%

Volatility

ZLC.TO vs. ZHY.TO - Volatility Comparison

BMO Long Corporate Bond Index ETF (ZLC.TO) has a higher volatility of 2.34% compared to BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) at 1.97%. This indicates that ZLC.TO's price experiences larger fluctuations and is considered to be riskier than ZHY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZLC.TO	ZHY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.34%	1.97%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	5.55%	4.11%	+1.44%
Volatility (1Y) Calculated over the trailing 1-year period	7.24%	5.50%	+1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.05%	9.51%	+1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.87%	10.92%	-0.05%

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

ZLC.TO has a 0.33% expense ratio, which is lower than ZHY.TO's 0.61% expense ratio.

Dividends

ZLC.TO vs. ZHY.TO - Dividend Comparison

ZLC.TO's dividend yield for the trailing twelve months is around 4.56%, less than ZHY.TO's 6.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZLC.TO BMO Long Corporate Bond Index ETF	4.56%	4.75%	4.70%	5.01%	5.30%	4.12%	3.82%	4.02%	4.26%	4.01%	4.33%	4.53%

Frequently Asked Questions

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

ZLC.TO and ZHY.TO have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZLC.TO or ZHY.TO?

On fees, ZLC.TO is cheaper at 0.33% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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

ZLC.TO is cheaper with a 0.33% expense ratio, compared with 0.61% for ZHY.TO.

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

ZLC.TO is categorized as Long-Term Bond, while ZHY.TO is High Yield Bonds. ZLC.TO tracks FTSE Canada Long Term Corporate Bond Index, while ZHY.TO tracks Bloomberg U.S. High Yield Very Liquid Index CAD Hedged. Their fees differ too: 0.33% for ZLC.TO and 0.61% for ZHY.TO.