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ZMU.TO vs. XCS.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZMU.TO vs. XCS.TO

Last updated Jul 18, 2026
Documentation

ZMU.TO (BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF) and XCS.TO (iShares S&P/TSX SmallCap Index ETF) are both exchange-traded funds - ZMU.TO is a Corporate Bonds fund managed by BMO, while XCS.TO is a Canada Equities fund tracking the Morningstar Canada Sml GR CAD. Over the past 10 years, ZMU.TO returned 1.66%/yr vs 8.19%/yr for XCS.TO. At a 0.12 correlation, their price movements are largely independent.

Performance

ZMU.TO vs. XCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZMU.TO achieves a -0.96% return, which is significantly lower than XCS.TO's 15.23% return. Over the past 10 years, ZMU.TO has underperformed XCS.TO with an annualized return of 1.66%, while XCS.TO has yielded a comparatively higher 8.19% annualized return.

ZMU.TO

1D
0.08%
1M
-0.18%
6M
-0.89%
YTD
-0.96%
1Y
2.51%
3Y*
3.99%
5Y*
-0.42%
10Y*
1.66%

XCS.TO

1D
0.20%
1M
-3.10%
6M
5.51%
YTD
15.23%
1Y
36.94%
3Y*
23.00%
5Y*
11.04%
10Y*
8.19%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZMU.TO vs. XCS.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZMU.TO
BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF		-0.96%7.47%1.42%7.89%-14.71%-1.75%8.27%12.98%-2.77%4.58%
XCS.TO
iShares S&P/TSX SmallCap Index ETF		15.23%37.65%18.11%4.17%-8.97%7.71%13.37%6.12%-10.40%2.51%

Correlation

The correlation between ZMU.TO and XCS.TO is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.21

Correlation (3Y)
Calculated over the trailing 3-year period

0.20

Correlation (5Y)
Calculated over the trailing 5-year period

0.21

Correlation (10Y)
Calculated over the trailing 10-year period

0.16

Correlation (All Time)
Calculated using the full available price history since Mar 27, 2013

0.12

Compare stocks, funds, or ETFs

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BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF

iShares S&P/TSX SmallCap Index ETF

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Often compared with XCS.TO:
XCS.TO vs. XCV.TOXCS.TO vs. XMD.TOXCS.TO vs. XCSR.TOXCS.TO vs. XEI.TOXCS.TO vs. VBRXCS.TO vs. XUS.TOXCS.TO vs. VEQT.TO

Return for Risk

ZMU.TO vs. XCS.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZMU.TO
ZMU.TO Risk / Return Rank: 2020
Overall Rank
ZMU.TO Sharpe Ratio Rank: 2121
Sharpe Ratio Rank
ZMU.TO Sortino Ratio Rank: 1919
Sortino Ratio Rank
ZMU.TO Omega Ratio Rank: 1919
Omega Ratio Rank
ZMU.TO Calmar Ratio Rank: 2323
Calmar Ratio Rank
ZMU.TO Martin Ratio Rank: 2121
Martin Ratio Rank
XCS.TO
XCS.TO Risk / Return Rank: 5858
Overall Rank
XCS.TO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
XCS.TO Sortino Ratio Rank: 4949
Sortino Ratio Rank
XCS.TO Omega Ratio Rank: 5858
Omega Ratio Rank
XCS.TO Calmar Ratio Rank: 6565
Calmar Ratio Rank
XCS.TO Martin Ratio Rank: 5656
Martin Ratio Rank
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.

ZMU.TO vs. XCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) and iShares S&P/TSX SmallCap Index ETF (XCS.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.

ZMU.TOXCS.TODifference
Sharpe ratioReturn per unit of total volatility
0.53
1.58

-1.05

Sortino ratioReturn per unit of downside risk
0.77
1.96

-1.19

Omega ratioGain probability vs. loss probability

1.10

1.28

-0.19

Calmar ratioReturn relative to maximum drawdown

0.81

2.54

-1.73

Martin ratioReturn relative to average drawdown

1.83

7.50

-5.67

ZMU.TO vs. XCS.TO - Sharpe Ratio Comparison

The current ZMU.TO Sharpe Ratio is 0.53, which is lower than the XCS.TO Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of ZMU.TO and XCS.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.

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Drawdowns

ZMU.TO vs. XCS.TO - Drawdown Comparison

The maximum ZMU.TO drawdown since its inception was -21.30%, smaller than the maximum XCS.TO drawdown of -62.43%. Use the drawdown chart below to compare losses from any high point for ZMU.TO and XCS.TO.

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Drawdown Indicators

ZMU.TOXCS.TODifference

Max Drawdown

Largest peak-to-trough decline

-21.30%

-62.43%

+41.13%

Max Drawdown (1Y)

Largest decline over 1 year

-3.11%

-14.58%

+11.47%

Max Drawdown (3Y)

Largest decline over 3 years

-5.90%

-15.55%

+9.65%

Max Drawdown (5Y)

Largest decline over 5 years

-21.30%

-35.08%

+13.78%

Max Drawdown (10Y)

Largest decline over 10 years

-21.30%

-51.50%

+30.20%

Current Drawdown

Current decline from peak

-2.79%

-7.93%

+5.14%

Average Drawdown

Average peak-to-trough decline

-4.53%

-17.43%

+12.90%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.37%

4.94%

-3.57%

Volatility

ZMU.TO vs. XCS.TO - Volatility Comparison

The current volatility for BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) is 1.45%, while iShares S&P/TSX SmallCap Index ETF (XCS.TO) has a volatility of 4.78%. This indicates that ZMU.TO experiences smaller price fluctuations and is considered to be less risky than XCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZMU.TOXCS.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.45%

4.78%

-3.33%

Volatility (6M)

Calculated over the trailing 6-month period

3.51%

18.34%

-14.83%

Volatility (1Y)

Calculated over the trailing 1-year period

4.73%

23.47%

-18.74%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.90%

21.80%

-14.90%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.88%

24.34%

-16.46%

Dividends

ZMU.TO vs. XCS.TO - Dividend Comparison

ZMU.TO's dividend yield for the trailing twelve months is around 4.51%, more than XCS.TO's 1.33% yield.

PositionTTM20252024202320222021202020192018201720162015
XCS.TO
iShares S&P/TSX SmallCap Index ETF		1.33%1.41%1.73%2.59%2.05%1.69%1.98%2.51%2.07%2.05%1.60%2.64%
ZMU.TO
BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF		4.51%4.10%4.15%4.22%4.35%3.56%3.51%3.66%3.70%3.28%3.37%3.53%

Frequently Asked Questions

ZMU.TO and XCS.TO have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

ZMU.TO is categorized as Corporate Bonds, while XCS.TO is Canada Equities. They also come from different issuers: BMO and iShares.

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