ZST.TO vs. MNU-U.TO

Last updated Jun 4, 2026

ZST.TO (BMO Ultra Short-Term Bond ETF) and MNU-U.TO (Purpose USD Cash Management ETF) are both exchange-traded funds - ZST.TO is a Canadian Government Bonds fund actively managed by BMO, while MNU-U.TO is a Ultrashort Bond fund actively managed by Purpose Investments. Both are actively managed. Over the past 3 years, ZST.TO returned 3.84%/yr vs 4.82%/yr for MNU-U.TO. At a correlation of -0.05, they often move in opposite directions. ZST.TO charges 0.17%/yr vs 0.20%/yr for MNU-U.TO.

Performance

ZST.TO vs. MNU-U.TO - 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 Purpose USD Cash Management ETF (MNU-U.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

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

Returns By Period

In the year-to-date period, ZST.TO achieves a 1.08% return, which is significantly lower than MNU-U.TO's 2.42% return.

ZST.TO

• 1D: 0.02%
• 1M: 0.25%
• YTD: 1.08%
• 6M: 0.26%
• 1Y: 1.68%
• 3Y*: 3.84%
• 5Y*: 2.95%
• 10Y*: 2.34%

MNU-U.TO

• 1D: 0.42%
• 1M: 2.21%
• YTD: 2.42%
• 6M: 0.89%
• 1Y: 4.15%
• 3Y*: 4.82%
• 5Y*: —
• 10Y*: —

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

ZST.TO vs. MNU-U.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ZST.TO BMO Ultra Short-Term Bond ETF	1.08%	2.03%	5.16%	3.67%
MNU-U.TO Purpose USD Cash Management ETF	2.42%	-1.74%	13.18%	0.54%

Correlation

The correlation between ZST.TO and MNU-U.TO is -0.07, 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	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	-0.06
Correlation (All Time) Calculated using the full available price history since May 1, 2023	-0.05

Return for Risk

ZST.TO vs. MNU-U.TO — 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: 47
ZST.TO Sharpe Ratio Rank: 44
ZST.TO Sortino Ratio Rank: 30
ZST.TO Omega Ratio Rank: 96
ZST.TO Calmar Ratio Rank: 34
ZST.TO Martin Ratio Rank: 30

MNU-U.TO

MNU-U.TO Risk / Return Rank: 99
MNU-U.TO Sharpe Ratio Rank: 99
MNU-U.TO Sortino Ratio Rank: 99
MNU-U.TO Omega Ratio Rank: 99
MNU-U.TO Calmar Ratio Rank: 98
MNU-U.TO Martin Ratio Rank: 99

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. MNU-U.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Ultra Short-Term Bond ETF (ZST.TO) and Purpose USD Cash Management ETF (MNU-U.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.

	ZST.TO	MNU-U.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.56	0.91	+0.65
Sortino ratio: Return per unit of downside risk	1.64	1.27	+0.37
Omega ratio: Gain probability vs. loss probability	1.83	1.16	+0.66
Calmar ratio: Return relative to maximum drawdown	1.68	1.04	+0.64
Martin ratio: Return relative to average drawdown	4.51	2.70	+1.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZST.TO vs. MNU-U.TO - Sharpe Ratio Comparison

The current ZST.TO Sharpe Ratio is 1.56, which is higher than the MNU-U.TO Sharpe Ratio of 0.91. The chart below compares the historical Sharpe Ratios of ZST.TO and MNU-U.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

	ZST.TO	MNU-U.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.56	0.91	+0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	4.12	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	3.30	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.81	0.85	+0.95

Drawdowns

ZST.TO vs. MNU-U.TO - Drawdown Comparison

The maximum ZST.TO drawdown since its inception was -1.06%, smaller than the maximum MNU-U.TO drawdown of -5.44%. Use the drawdown chart below to compare losses from any high point for ZST.TO and MNU-U.TO.

Drawdown Indicators

	ZST.TO	MNU-U.TO	Difference
Max Drawdown Largest peak-to-trough decline	-1.06%	-5.44%	+4.38%
Max Drawdown (1Y) Largest decline over 1 year	-1.01%	-4.02%	+3.01%
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	-5.44%	+4.43%
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%	-0.58%	+0.58%
Average Drawdown Average peak-to-trough decline	-0.13%	-1.70%	+1.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	1.54%	-1.17%

Volatility

ZST.TO vs. MNU-U.TO - Volatility Comparison

The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.08%, while Purpose USD Cash Management ETF (MNU-U.TO) has a volatility of 0.83%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than MNU-U.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZST.TO	MNU-U.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.08%	0.83%	-0.75%
Volatility (6M) Calculated over the trailing 6-month period	1.05%	3.46%	-2.41%
Volatility (1Y) Calculated over the trailing 1-year period	1.08%	4.59%	-3.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.72%	5.28%	-4.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.71%	5.28%	-4.57%

ZST.TO vs. MNU-U.TO - Expense Ratio Comparison

ZST.TO has a 0.17% expense ratio, which is lower than MNU-U.TO's 0.20% 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

ZST.TO vs. MNU-U.TO - Dividend Comparison

ZST.TO's dividend yield for the trailing twelve months is around 2.55%, less than MNU-U.TO's 2.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MNU-U.TO Purpose USD Cash Management ETF	2.79%	2.98%	4.25%	2.69%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ZST.TO BMO Ultra Short-Term Bond ETF	2.55%	2.82%	4.65%	4.79%	2.75%	2.29%	2.65%	2.82%	3.43%	4.05%	3.92%	3.90%

Frequently Asked Questions

Can I hold both ZST.TO and MNU-U.TO in my portfolio?

ZST.TO and MNU-U.TO have a correlation of -0.07, 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 MNU-U.TO?

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 MNU-U.TO?

ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.20% for MNU-U.TO.

What is the main difference between ZST.TO and MNU-U.TO?

ZST.TO is categorized as Canadian Government Bonds, while MNU-U.TO is Ultrashort Bond. They also come from different issuers: BMO and Purpose Investments. Their fees differ too: 0.17% for ZST.TO and 0.20% for MNU-U.TO.