ZSDB.TO vs. ZDB.TO
ZSDB.TO (BMO Short-Term Discount Bond ETF) and ZDB.TO (BMO Discount Bond) are both exchange-traded funds - ZSDB.TO is a Short-Term Bond fund actively managed by BMO, while ZDB.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Discount Bond Index. ZSDB.TO is actively managed, while ZDB.TO is passively managed. Over the past 3 years, ZSDB.TO returned 4.81%/yr vs 4.07%/yr for ZDB.TO. A 0.53 correlation means they provide meaningful diversification when combined. ZSDB.TO charges 0.09%/yr vs 0.10%/yr for ZDB.TO.
Performance
ZSDB.TO vs. ZDB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZSDB.TO achieves a 0.74% return, which is significantly lower than ZDB.TO's 1.53% return.
ZSDB.TO
- 1D
- -0.03%
- 1M
- 0.86%
- YTD
- 0.74%
- 6M
- 0.77%
- 1Y
- 2.82%
- 3Y*
- 4.81%
- 5Y*
- —
- 10Y*
- —
ZDB.TO
- 1D
- -0.13%
- 1M
- 1.48%
- YTD
- 1.53%
- 6M
- 0.70%
- 1Y
- 2.71%
- 3Y*
- 4.07%
- 5Y*
- 0.56%
- 10Y*
- 1.57%
ZSDB.TO vs. ZDB.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% |
ZDB.TO BMO Discount Bond | 1.53% | 2.03% | 4.26% | 6.69% | -9.04% |
Correlation
The correlation between ZSDB.TO and ZDB.TO is 0.70, 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 | 0.70 |
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 ZDB.TO shifts across timeframes, from 0.53 (all time) to 0.70 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
ZSDB.TO vs. ZDB.TO — Risk / Return Rank
ZSDB.TO
ZDB.TO
ZSDB.TO vs. ZDB.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 BMO Discount Bond (ZDB.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 | ZDB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.90 | ||
| Sortino ratioReturn per unit of downside risk | +1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.11 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.99 | 0.97 | +1.02 |
| Martin ratioReturn relative to average drawdown | 6.59 | 2.23 | +4.36 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZSDB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.53 | 0.63 | +0.90 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.09 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.25 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.17 | 0.38 | +0.79 |
Drawdowns
ZSDB.TO vs. ZDB.TO - Drawdown Comparison
The maximum ZSDB.TO drawdown since its inception was -4.88%, smaller than the maximum ZDB.TO drawdown of -18.09%. Use the drawdown chart below to compare losses from any high point for ZSDB.TO and ZDB.TO.
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Drawdown Indicators
| ZSDB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.88% | -18.09% | +13.21% |
Max Drawdown (1Y)Largest decline over 1 year | -1.44% | -2.79% | +1.35% |
Max Drawdown (3Y)Largest decline over 3 years | -1.44% | -5.07% | +3.63% |
Max Drawdown (5Y)Largest decline over 5 years | — | -16.25% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.09% | — |
Current DrawdownCurrent decline from peak | -0.18% | -1.45% | +1.27% |
Average DrawdownAverage peak-to-trough decline | -0.72% | -4.21% | +3.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.43% | 1.22% | -0.79% |
Volatility
ZSDB.TO vs. ZDB.TO - Volatility Comparison
The current volatility for BMO Short-Term Discount Bond ETF (ZSDB.TO) is 0.63%, while BMO Discount Bond (ZDB.TO) has a volatility of 1.55%. This indicates that ZSDB.TO experiences smaller price fluctuations and is considered to be less risky than ZDB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZSDB.TO | ZDB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.63% | 1.55% | -0.92% |
Volatility (6M)Calculated over the trailing 6-month period | 1.58% | 3.32% | -1.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.89% | 4.34% | -2.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.52% | 6.52% | -3.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.52% | 6.40% | -2.88% |
ZSDB.TO vs. ZDB.TO - Expense Ratio Comparison
ZSDB.TO has a 0.09% expense ratio, which is lower than ZDB.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. ZDB.TO - Dividend Comparison
ZSDB.TO's dividend yield for the trailing twelve months is around 1.30%, less than ZDB.TO's 2.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZDB.TO BMO Discount Bond | 2.00% | 2.28% | 2.38% | 2.42% | 2.52% | 2.16% | 2.06% | 2.20% | 2.07% | 2.06% | 1.95% | 1.99% |
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
ZSDB.TO and ZDB.TO have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
ZSDB.TO is cheaper with a 0.09% expense ratio, compared with 0.10% for ZDB.TO.
ZSDB.TO is categorized as Short-Term Bond, while ZDB.TO is Canadian Government Bonds. Their fees differ too: 0.09% for ZSDB.TO and 0.10% for ZDB.TO.
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