ZSDB.TO vs. XSB.TO

Last updated Jun 4, 2026

ZSDB.TO (BMO Short-Term Discount Bond ETF) and XSB.TO (iShares Core Canadian Short Term Bond Index ETF) are both exchange-traded funds - ZSDB.TO is a Short-Term Bond fund actively managed by BMO, while XSB.TO is a Canadian Government Bonds fund tracking the Morningstar Can 1-5Y Core Bd GR CAD. ZSDB.TO is actively managed, while XSB.TO is passively managed. Over the past 3 years, ZSDB.TO returned 4.81%/yr vs 4.75%/yr for XSB.TO. A 0.53 correlation means they provide meaningful diversification when combined. ZSDB.TO charges 0.09%/yr vs 0.10%/yr for XSB.TO.

Performance

ZSDB.TO vs. XSB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Short-Term Discount Bond ETF (ZSDB.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZSDB.TO achieves a 0.74% return, which is significantly lower than XSB.TO's 1.03% return.

ZSDB.TO

• 1D: -0.03%
• 1M: 0.86%
• YTD: 0.74%
• 6M: 0.77%
• 1Y: 2.82%
• 3Y*: 4.81%
• 5Y*: —
• 10Y*: —

XSB.TO

• 1D: 0.04%
• 1M: 0.93%
• YTD: 1.03%
• 6M: 0.80%
• 1Y: 2.95%
• 3Y*: 4.75%
• 5Y*: 2.02%
• 10Y*: 1.96%

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

ZSDB.TO vs. XSB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
ZSDB.TO BMO Short-Term Discount Bond ETF	0.74%	3.93%	5.94%	4.67%	-2.83%
XSB.TO iShares Core Canadian Short Term Bond Index ETF	1.03%	3.70%	5.87%	4.67%	-3.07%

Correlation

The correlation between ZSDB.TO and XSB.TO is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (All Time) Calculated using the full available price history since Jan 28, 2022	0.53

The correlation between ZSDB.TO and XSB.TO shifts across timeframes, from 0.53 (all time) to 0.69 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

ZSDB.TO vs. XSB.TO — Risk / Return Rank

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

ZSDB.TO

ZSDB.TO Risk / Return Rank: 43
ZSDB.TO Sharpe Ratio Rank: 44
ZSDB.TO Sortino Ratio Rank: 42
ZSDB.TO Omega Ratio Rank: 47
ZSDB.TO Calmar Ratio Rank: 41
ZSDB.TO Martin Ratio Rank: 42

XSB.TO

XSB.TO Risk / Return Rank: 41
XSB.TO Sharpe Ratio Rank: 41
XSB.TO Sortino Ratio Rank: 40
XSB.TO Omega Ratio Rank: 45
XSB.TO Calmar Ratio Rank: 40
XSB.TO Martin Ratio Rank: 41

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.

ZSDB.TO vs. XSB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Short-Term Discount Bond ETF (ZSDB.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.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.

	ZSDB.TO	XSB.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.53	1.48	+0.04
Sortino ratio: Return per unit of downside risk	2.11	2.11	0.00
Omega ratio: Gain probability vs. loss probability	1.29	1.29	0.00
Calmar ratio: Return relative to maximum drawdown	1.99	2.01	-0.02
Martin ratio: Return relative to average drawdown	6.59	6.68	-0.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZSDB.TO vs. XSB.TO - Sharpe Ratio Comparison

The current ZSDB.TO Sharpe Ratio is 1.53, which is comparable to the XSB.TO Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of ZSDB.TO and XSB.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

	ZSDB.TO	XSB.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.53	1.48	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.75	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.17	1.11	+0.06

Drawdowns

ZSDB.TO vs. XSB.TO - Drawdown Comparison

The maximum ZSDB.TO drawdown since its inception was -4.88%, smaller than the maximum XSB.TO drawdown of -8.65%. Use the drawdown chart below to compare losses from any high point for ZSDB.TO and XSB.TO.

Drawdown Indicators

	ZSDB.TO	XSB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-4.88%	-8.65%	+3.77%
Max Drawdown (1Y) Largest decline over 1 year	-1.44%	-1.47%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-1.44%	-1.47%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	—	-6.99%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-8.65%	—
Current Drawdown Current decline from peak	-0.18%	-0.12%	-0.06%
Average Drawdown Average peak-to-trough decline	-0.72%	-0.83%	+0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.43%	0.44%	-0.01%

Volatility

ZSDB.TO vs. XSB.TO - Volatility Comparison

The current volatility for BMO Short-Term Discount Bond ETF (ZSDB.TO) is 0.63%, while iShares Core Canadian Short Term Bond Index ETF (XSB.TO) has a volatility of 0.78%. This indicates that ZSDB.TO experiences smaller price fluctuations and is considered to be less risky than XSB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZSDB.TO	XSB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.63%	0.78%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	1.68%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	1.89%	2.00%	-0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.52%	2.72%	+0.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.52%	3.40%	+0.12%

ZSDB.TO vs. XSB.TO - Expense Ratio Comparison

ZSDB.TO has a 0.09% expense ratio, which is lower than XSB.TO's 0.10% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZSDB.TO vs. XSB.TO - Dividend Comparison

ZSDB.TO's dividend yield for the trailing twelve months is around 1.30%, less than XSB.TO's 3.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XSB.TO iShares Core Canadian Short Term Bond Index ETF	3.11%	3.15%	3.05%	2.67%	2.28%	2.05%	2.21%	2.39%	2.39%	2.36%	2.36%	2.50%
ZSDB.TO BMO Short-Term Discount Bond ETF	1.30%	1.28%	1.35%	1.77%	1.77%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZSDB.TO and XSB.TO in my portfolio?

ZSDB.TO and XSB.TO have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZSDB.TO or XSB.TO?

On fees, ZSDB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZSDB.TO or XSB.TO?

ZSDB.TO is cheaper with a 0.09% expense ratio, compared with 0.10% for XSB.TO.

What is the main difference between ZSDB.TO and XSB.TO?

ZSDB.TO is categorized as Short-Term Bond, while XSB.TO is Canadian Government Bonds. They also come from different issuers: BMO and iShares. Their fees differ too: 0.09% for ZSDB.TO and 0.10% for XSB.TO.