ZST.TO vs. XLB.TO
ZST.TO (BMO Ultra Short-Term Bond ETF) and XLB.TO (iShares Core Canadian Long Term Bond Index ETF) are both Canadian Government Bonds funds. ZST.TO is actively managed, while XLB.TO is passively managed. Over the past 10 years, ZST.TO returned 2.34%/yr vs 4.56%/yr for XLB.TO. At a 0.16 correlation, their price movements are largely independent. ZST.TO charges 0.17%/yr vs 0.20%/yr for XLB.TO.
Performance
ZST.TO vs. XLB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZST.TO achieves a 1.08% return, which is significantly lower than XLB.TO's 2.77% return. Over the past 10 years, ZST.TO has underperformed XLB.TO with an annualized return of 2.34%, while XLB.TO has yielded a comparatively higher 4.56% annualized 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%
XLB.TO
- 1D
- -0.11%
- 1M
- 3.02%
- YTD
- 2.77%
- 6M
- 0.93%
- 1Y
- 2.84%
- 3Y*
- 8.16%
- 5Y*
- 4.63%
- 10Y*
- 4.56%
ZST.TO vs. XLB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZST.TO BMO Ultra Short-Term Bond ETF | 1.08% | 2.03% | 5.16% | 5.33% | 1.19% | 0.22% | 1.74% | 2.36% | 1.95% | 1.43% |
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 2.77% | -0.76% | 9.49% | 19.21% | -14.38% | 1.26% | 16.52% | 12.85% | -0.25% | 7.11% |
Correlation
The correlation between ZST.TO and XLB.TO is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.27 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.16 |
The correlation between ZST.TO and XLB.TO shifts across timeframes, from 0.16 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
ZST.TO vs. XLB.TO — Risk / Return Rank
ZST.TO
XLB.TO
ZST.TO vs. XLB.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 iShares Core Canadian Long Term Bond Index ETF (XLB.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 | XLB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.20 | ||
| Sortino ratioReturn per unit of downside risk | +1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.83 | 1.07 | +0.76 |
| Calmar ratioReturn relative to maximum drawdown | 1.68 | 0.59 | +1.09 |
| Martin ratioReturn relative to average drawdown | 4.51 | 1.11 | +3.40 |
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
| ZST.TO | XLB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.56 | 0.36 | +1.20 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 4.12 | 0.37 | +3.75 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 3.30 | 0.39 | +2.91 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.81 | 0.55 | +1.26 |
Drawdowns
ZST.TO vs. XLB.TO - Drawdown Comparison
The maximum ZST.TO drawdown since its inception was -1.06%, smaller than the maximum XLB.TO drawdown of -24.34%. Use the drawdown chart below to compare losses from any high point for ZST.TO and XLB.TO.
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Drawdown Indicators
| ZST.TO | XLB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.06% | -24.34% | +23.28% |
Max Drawdown (1Y)Largest decline over 1 year | -1.01% | -4.85% | +3.84% |
Max Drawdown (3Y)Largest decline over 3 years | -1.01% | -9.74% | +8.73% |
Max Drawdown (5Y)Largest decline over 5 years | -1.01% | -24.34% | +23.33% |
Max Drawdown (10Y)Largest decline over 10 years | -1.06% | -24.34% | +23.28% |
Current DrawdownCurrent decline from peak | -0.00% | -2.17% | +2.17% |
Average DrawdownAverage peak-to-trough decline | -0.13% | -4.05% | +3.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.37% | 2.57% | -2.20% |
Volatility
ZST.TO vs. XLB.TO - Volatility Comparison
The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.08%, while iShares Core Canadian Long Term Bond Index ETF (XLB.TO) has a volatility of 2.77%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than XLB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZST.TO | XLB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.08% | 2.77% | -2.69% |
Volatility (6M)Calculated over the trailing 6-month period | 1.05% | 5.77% | -4.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.08% | 7.93% | -6.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.72% | 12.68% | -11.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.71% | 11.86% | -11.15% |
ZST.TO vs. XLB.TO - Expense Ratio Comparison
ZST.TO has a 0.17% expense ratio, which is lower than XLB.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. XLB.TO - Dividend Comparison
ZST.TO's dividend yield for the trailing twelve months is around 2.55%, less than XLB.TO's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB.TO iShares Core Canadian Long Term Bond Index ETF | 4.01% | 4.05% | 12.10% | 12.22% | 13.13% | 8.82% | 7.43% | 3.18% | 3.56% | 3.45% | 3.62% | 3.64% |
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
ZST.TO and XLB.TO have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.20% for XLB.TO.
They also come from different issuers: BMO and iShares. Their fees differ too: 0.17% for ZST.TO and 0.20% for XLB.TO.
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