ZMI.TO vs. ZST.TO

Last updated Jun 9, 2026

ZMI.TO (BMO Monthly Income ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both exchange-traded funds - ZMI.TO is a Diversified Portfolio fund actively managed by BMO, while ZST.TO is a Canadian Government Bonds fund actively managed by BMO. Both are actively managed. Over the past 10 years, ZMI.TO returned 6.69%/yr vs 2.37%/yr for ZST.TO. At a 0.09 correlation, their price movements are largely independent. ZMI.TO charges 0.18%/yr vs 0.17%/yr for ZST.TO.

Performance

ZMI.TO vs. ZST.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Monthly Income ETF (ZMI.TO) and BMO Ultra Short-Term Bond ETF (ZST.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZMI.TO achieves a 8.17% return, which is significantly higher than ZST.TO's 1.08% return. Over the past 10 years, ZMI.TO has outperformed ZST.TO with an annualized return of 6.69%, while ZST.TO has yielded a comparatively lower 2.37% annualized return.

ZMI.TO

• 1D: -0.10%
• 1M: 2.25%
• YTD: 8.17%
• 6M: 5.67%
• 1Y: 15.02%
• 3Y*: 12.29%
• 5Y*: 7.70%
• 10Y*: 6.69%

ZST.TO

• 1D: 0.00%
• 1M: 0.21%
• YTD: 1.08%
• 6M: 0.29%
• 1Y: 1.70%
• 3Y*: 3.86%
• 5Y*: 2.98%
• 10Y*: 2.37%

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

ZMI.TO vs. ZST.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZMI.TO BMO Monthly Income ETF	8.17%	8.04%	13.60%	9.17%	-5.76%	11.38%	2.54%	13.52%	-2.39%	4.98%
ZST.TO BMO Ultra Short-Term Bond ETF	1.08%	2.06%	5.21%	5.38%	1.22%	0.24%	1.77%	2.39%	1.99%	1.47%

Correlation

The correlation between ZMI.TO and ZST.TO is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011	0.09

Return for Risk

ZMI.TO vs. ZST.TO — Risk / Return Rank

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

ZMI.TO

ZMI.TO Risk / Return Rank: 71
ZMI.TO Sharpe Ratio Rank: 72
ZMI.TO Sortino Ratio Rank: 67
ZMI.TO Omega Ratio Rank: 81
ZMI.TO Calmar Ratio Rank: 70
ZMI.TO Martin Ratio Rank: 63

ZST.TO

ZST.TO Risk / Return Rank: 51
ZST.TO Sharpe Ratio Rank: 50
ZST.TO Sortino Ratio Rank: 35
ZST.TO Omega Ratio Rank: 97
ZST.TO Calmar Ratio Rank: 38
ZST.TO Martin Ratio Rank: 33

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.

ZMI.TO vs. ZST.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Monthly Income ETF (ZMI.TO) and BMO Ultra Short-Term Bond ETF (ZST.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.

	ZMI.TO	ZST.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.11	1.58	+0.53
Sortino ratio: Return per unit of downside risk	2.77	1.66	+1.11
Omega ratio: Gain probability vs. loss probability	1.43	1.84	-0.40
Calmar ratio: Return relative to maximum drawdown	3.17	1.70	+1.48
Martin ratio: Return relative to average drawdown	10.36	4.56	+5.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZMI.TO vs. ZST.TO - Sharpe Ratio Comparison

The current ZMI.TO Sharpe Ratio is 2.11, which is higher than the ZST.TO Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of ZMI.TO and ZST.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

	ZMI.TO	ZST.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	1.58	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.04	4.16	-3.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.76	3.37	-2.61
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	1.43	-0.64

Drawdowns

ZMI.TO vs. ZST.TO - Drawdown Comparison

The maximum ZMI.TO drawdown since its inception was -26.64%, which is greater than ZST.TO's maximum drawdown of -3.60%. Use the drawdown chart below to compare losses from any high point for ZMI.TO and ZST.TO.

Drawdown Indicators

	ZMI.TO	ZST.TO	Difference
Max Drawdown Largest peak-to-trough decline	-26.64%	-3.60%	-23.04%
Max Drawdown (1Y) Largest decline over 1 year	-4.75%	-1.01%	-3.74%
Max Drawdown (3Y) Largest decline over 3 years	-8.80%	-1.01%	-7.79%
Max Drawdown (5Y) Largest decline over 5 years	-12.68%	-1.01%	-11.67%
Max Drawdown (10Y) Largest decline over 10 years	-26.64%	-1.06%	-25.58%
Current Drawdown Current decline from peak	-1.10%	-0.02%	-1.08%
Average Drawdown Average peak-to-trough decline	-2.09%	-0.58%	-1.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.45%	0.37%	+1.08%

Volatility

ZMI.TO vs. ZST.TO - Volatility Comparison

BMO Monthly Income ETF (ZMI.TO) has a higher volatility of 2.42% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that ZMI.TO's price experiences larger fluctuations and is considered to be riskier than ZST.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZMI.TO	ZST.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.42%	0.08%	+2.34%
Volatility (6M) Calculated over the trailing 6-month period	5.88%	1.05%	+4.83%
Volatility (1Y) Calculated over the trailing 1-year period	7.17%	1.08%	+6.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.44%	0.72%	+6.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.87%	0.71%	+8.16%

ZMI.TO vs. ZST.TO - Expense Ratio Comparison

ZMI.TO has a 0.18% expense ratio, which is higher than ZST.TO's 0.17% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZMI.TO vs. ZST.TO - Dividend Comparison

ZMI.TO's dividend yield for the trailing twelve months is around 4.03%, more than ZST.TO's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZMI.TO BMO Monthly Income ETF	4.03%	4.67%	4.82%	5.09%	4.63%	3.82%	4.34%	4.37%	4.72%	4.18%	4.01%	4.01%
ZST.TO BMO Ultra Short-Term Bond ETF	2.56%	2.85%	4.70%	4.84%	2.78%	2.31%	2.68%	2.84%	3.47%	4.09%	3.96%	3.94%

Frequently Asked Questions

Can I hold both ZMI.TO and ZST.TO in my portfolio?

ZMI.TO and ZST.TO have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZMI.TO or ZST.TO?

On fees, ZST.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZMI.TO or ZST.TO?

ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.18% for ZMI.TO.

What is the main difference between ZMI.TO and ZST.TO?

ZMI.TO is categorized as Diversified Portfolio, while ZST.TO is Canadian Government Bonds. Their fees differ too: 0.18% for ZMI.TO and 0.17% for ZST.TO.