ZQB.TO vs. RATE.TO

Last updated Jul 25, 2026

ZQB.TO (BMO High Quality Corporate Bond Index ETF) and RATE.TO (Arrow EC Income Advantage Alternative Fund) are both exchange-traded funds - ZQB.TO is a Corporate Bonds fund tracking the FTSE Canada 1-10 Year A+ Corporate Bond Index, while RATE.TO is a Investment Grade Bonds fund actively managed by Arrow Capital Management Inc.. ZQB.TO is passively managed, while RATE.TO is actively managed. Over the past 5 years, ZQB.TO returned 2.49%/yr vs 4.76%/yr for RATE.TO. At a 0.06 correlation, their price movements are largely independent.

Performance

ZQB.TO vs. RATE.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO High Quality Corporate Bond Index ETF (ZQB.TO) and Arrow EC Income Advantage Alternative Fund (RATE.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZQB.TO achieves a 1.14% return, which is significantly lower than RATE.TO's 1.47% return.

ZQB.TO

• 1D: 0.21%
• 1M: -0.23%
• 6M: 0.83%
• YTD: 1.14%
• 1Y: 3.48%
• 3Y*: 5.98%
• 5Y*: 2.49%
• 10Y*: —
• ALL TIME*: 2.56%

RATE.TO

• 1D: 0.10%
• 1M: 0.10%
• 6M: 1.47%
• YTD: 1.47%
• 1Y: 3.09%
• 3Y*: 5.43%
• 5Y*: 4.76%
• 10Y*: —
• ALL TIME*: 4.10%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
RATE.TO Arrow EC Income Advantage Alternative Fund	CA$60.20K	CA$58.91K	CA$69.40K
ZQB.TO BMO High Quality Corporate Bond Index ETF	CA$86.84K	CA$112.29K	CA$76.59K

ZQB.TO vs. RATE.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ZQB.TO BMO High Quality Corporate Bond Index ETF	1.14%	4.80%	6.78%	6.49%	-5.39%	-2.02%	5.33%
RATE.TO Arrow EC Income Advantage Alternative Fund	1.47%	4.60%	5.59%	10.12%	2.34%	2.46%	2.72%

Correlation

The correlation between ZQB.TO and RATE.TO is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (All Time) Calculated using the full available price history since Feb 12, 2020	0.06

Return for Risk

ZQB.TO vs. RATE.TO — Risk / Return Rank

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

ZQB.TO

ZQB.TO Risk / Return Rank: 64
ZQB.TO Sharpe Ratio Rank: 69
ZQB.TO Sortino Ratio Rank: 68
ZQB.TO Omega Ratio Rank: 74
ZQB.TO Calmar Ratio Rank: 55
ZQB.TO Martin Ratio Rank: 57

RATE.TO

RATE.TO Risk / Return Rank: 72
RATE.TO Sharpe Ratio Rank: 59
RATE.TO Sortino Ratio Rank: 63
RATE.TO Omega Ratio Rank: 62
RATE.TO Calmar Ratio Rank: 89
RATE.TO Martin Ratio Rank: 87

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.

ZQB.TO vs. RATE.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO High Quality Corporate Bond Index ETF (ZQB.TO) and Arrow EC Income Advantage Alternative Fund (RATE.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.

	ZQB.TO	RATE.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.39	+0.19
Sortino ratio: Return per unit of downside risk	2.22	2.10	+0.11
Omega ratio: Gain probability vs. loss probability	1.31	1.27	+0.04
Calmar ratio: Return relative to maximum drawdown	1.95	3.87	-1.92
Martin ratio: Return relative to average drawdown	6.74	12.89	-6.15

ZQB.TO vs. RATE.TO - Sharpe Ratio Comparison

The current ZQB.TO Sharpe Ratio is 1.57, which is comparable to the RATE.TO Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of ZQB.TO and RATE.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

ZQB.TO vs. RATE.TO - Drawdown Comparison

The maximum ZQB.TO drawdown since its inception was -10.18%, smaller than the maximum RATE.TO drawdown of -14.01%. Use the drawdown chart below to compare losses from any high point for ZQB.TO and RATE.TO.

Drawdown Indicators

	ZQB.TO	RATE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-10.18%	-14.01%	+3.83%
Max Drawdown (1Y) Largest decline over 1 year	-1.79%	-0.80%	-0.99%
Max Drawdown (3Y) Largest decline over 3 years	-1.79%	-2.78%	+0.99%
Max Drawdown (5Y) Largest decline over 5 years	-9.64%	-3.38%	-6.26%
Current Drawdown Current decline from peak	-0.65%	-0.14%	-0.51%
Average Drawdown Average peak-to-trough decline	-2.32%	-0.84%	-1.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.24%	+0.28%

Volatility

ZQB.TO vs. RATE.TO - Volatility Comparison

BMO High Quality Corporate Bond Index ETF (ZQB.TO) has a higher volatility of 0.74% compared to Arrow EC Income Advantage Alternative Fund (RATE.TO) at 0.67%. This indicates that ZQB.TO's price experiences larger fluctuations and is considered to be riskier than RATE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZQB.TO	RATE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.74%	0.67%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	1.84%	1.56%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	2.22%	2.24%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.50%	4.07%	-0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.17%	5.73%	-1.56%

Dividends

ZQB.TO vs. RATE.TO - Dividend Comparison

ZQB.TO's dividend yield for the trailing twelve months is around 3.94%, less than RATE.TO's 4.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
RATE.TO Arrow EC Income Advantage Alternative Fund	4.64%	4.60%	4.69%	4.74%	4.11%	3.52%	2.98%	2.99%	2.32%
ZQB.TO BMO High Quality Corporate Bond Index ETF	3.94%	3.67%	3.39%	3.00%	2.80%	2.58%	2.46%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZQB.TO and RATE.TO in my portfolio?

ZQB.TO and RATE.TO have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between ZQB.TO and RATE.TO?

ZQB.TO is categorized as Corporate Bonds, while RATE.TO is Investment Grade Bonds. They also come from different issuers: BMO and Arrow Capital Management Inc..