ZST.TO vs. ESGB

Last updated Jun 24, 2026

ZST.TO (BMO Ultra Short-Term Bond ETF) and ESGB (IQ MacKay ESG Core Plus Bond ETF) are both exchange-traded funds - ZST.TO is a Canadian Government Bonds fund actively managed by BMO, while ESGB is a Intermediate Core-Plus Bond fund actively managed by IndexIQ. Both are actively managed. At a 0.22 correlation, their price movements are largely independent. ZST.TO charges 0.17%/yr vs 0.39%/yr for ESGB.

Performance

ZST.TO vs. ESGB - Performance Comparison

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

Different Trading Currencies

ZST.TO is traded in CAD, while ESGB is traded in USD. To make them comparable, the ESGB values have been converted to CAD using the latest available exchange rates.

Returns By Period

ZST.TO

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.22%
• 6M: 0.27%
• 1Y: 1.70%
• 3Y*: 3.85%
• 5Y*: 3.01%
• 10Y*: 2.38%

ESGB

• 1D: 0.23%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZST.TO vs. ESGB - Yearly Performance Comparison

	2026 (YTD)
ZST.TO BMO Ultra Short-Term Bond ETF	0.14%
ESGB IQ MacKay ESG Core Plus Bond ETF	0.26%

Correlation

The correlation between ZST.TO and ESGB is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 4, 2026	0.22

Return for Risk

ZST.TO vs. ESGB — Risk / Return Rank

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

ZST.TO

ZST.TO Risk / Return Rank: 49
ZST.TO Sharpe Ratio Rank: 47
ZST.TO Sortino Ratio Rank: 32
ZST.TO Omega Ratio Rank: 96
ZST.TO Calmar Ratio Rank: 35
ZST.TO Martin Ratio Rank: 33

ESGB

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

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

This table presents a comparison of risk-adjusted performance metrics for BMO Ultra Short-Term Bond ETF (ZST.TO) and IQ MacKay ESG Core Plus Bond ETF (ESGB). 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.

	ZST.TO	ESGB	Difference
Sharpe ratio: Return per unit of total volatility	1.57	—	—
Sortino ratio: Return per unit of downside risk	1.66	—	—
Omega ratio: Gain probability vs. loss probability	1.83	—	—
Calmar ratio: Return relative to maximum drawdown	1.70	—	—
Martin ratio: Return relative to average drawdown	4.56	—	—

Drawdowns

ZST.TO vs. ESGB - Drawdown Comparison

The maximum ZST.TO drawdown since its inception was -3.60%, which is greater than ESGB's maximum drawdown of -0.25%. Use the drawdown chart below to compare losses from any high point for ZST.TO and ESGB.

Drawdown Indicators

	ZST.TO	ESGB	Difference
Max Drawdown Largest peak-to-trough decline	-3.60%	-0.25%	-3.35%
Max Drawdown (1Y) Largest decline over 1 year	-1.01%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-1.01%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-1.06%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.58%	-0.12%	-0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	—	—

Volatility

Volatility by Period

	ZST.TO	ESGB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.10%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.05%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.08%	3.12%	-2.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.72%	3.12%	-2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.71%	3.12%	-2.41%

ZST.TO vs. ESGB - Expense Ratio Comparison

ZST.TO has a 0.17% expense ratio, which is lower than ESGB's 0.39% expense ratio.

Dividends

ZST.TO vs. ESGB - Dividend Comparison

ZST.TO's dividend yield for the trailing twelve months is around 2.56%, while ESGB has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGB IQ MacKay ESG Core Plus Bond ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 ZST.TO and ESGB in my portfolio?

ZST.TO and ESGB have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZST.TO or ESGB?

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, ZST.TO or ESGB?

ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.39% for ESGB.

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

ZST.TO is categorized as Canadian Government Bonds, while ESGB is Intermediate Core-Plus Bond. They also come from different issuers: BMO and IndexIQ. Their fees differ too: 0.17% for ZST.TO and 0.39% for ESGB.