ZST.TO vs. XSE.TO
ZST.TO (BMO Ultra Short-Term Bond ETF) and XSE.TO (iShares Conservative Strategic Fixed Income ETF) are both exchange-traded funds - ZST.TO is a Canadian Government Bonds fund actively managed by BMO, while XSE.TO is a Intermediate Core Bond fund actively managed by iShares. Both are actively managed. Over the past 10 years, ZST.TO returned 2.38%/yr vs 1.69%/yr for XSE.TO. At a 0.22 correlation, their price movements are largely independent. ZST.TO charges 0.17%/yr vs 0.55%/yr for XSE.TO.
Performance
ZST.TO vs. XSE.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZST.TO achieves a 1.22% return, which is significantly higher than XSE.TO's 0.46% return. Over the past 10 years, ZST.TO has outperformed XSE.TO with an annualized return of 2.38%, while XSE.TO has yielded a comparatively lower 1.69% annualized return.
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%
XSE.TO
- 1D
- 0.17%
- 1M
- 0.75%
- YTD
- 0.46%
- 6M
- 0.60%
- 1Y
- 2.03%
- 3Y*
- 3.81%
- 5Y*
- 0.17%
- 10Y*
- 1.69%
ZST.TO vs. XSE.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZST.TO BMO Ultra Short-Term Bond ETF | 1.22% | 2.06% | 5.21% | 5.38% | 1.22% | 0.24% | 1.77% | 2.39% | 1.99% | 1.47% |
XSE.TO iShares Conservative Strategic Fixed Income ETF | 0.46% | 2.95% | 3.11% | 6.75% | -11.99% | -2.79% | 7.95% | 8.26% | -0.52% | 4.13% |
Correlation
The correlation between ZST.TO and XSE.TO is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.28 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Sep 14, 2015 | 0.22 |
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Return for Risk
ZST.TO vs. XSE.TO — Risk / Return Rank
ZST.TO
XSE.TO
ZST.TO vs. XSE.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 Conservative Strategic Fixed Income ETF (XSE.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.
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 | XSE.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.96 | ||
| Sortino ratioReturn per unit of downside risk | +0.78 | ||
| Omega ratioGain probability vs. loss probability | 1.83 | 1.11 | +0.72 |
| Calmar ratioReturn relative to maximum drawdown | 1.70 | 0.78 | +0.92 |
| Martin ratioReturn relative to average drawdown | 4.56 | 1.90 | +2.66 |
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Drawdowns
ZST.TO vs. XSE.TO - Drawdown Comparison
The maximum ZST.TO drawdown since its inception was -3.60%, smaller than the maximum XSE.TO drawdown of -22.43%. Use the drawdown chart below to compare losses from any high point for ZST.TO and XSE.TO.
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Drawdown Indicators
| ZST.TO | XSE.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.60% | -22.43% | +18.83% |
Max Drawdown (1Y)Largest decline over 1 year | -1.01% | -2.62% | +1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -1.01% | -4.73% | +3.72% |
Max Drawdown (5Y)Largest decline over 5 years | -1.01% | -15.91% | +14.90% |
Max Drawdown (10Y)Largest decline over 10 years | -1.06% | -22.43% | +21.37% |
Current DrawdownCurrent decline from peak | 0.00% | -2.82% | +2.82% |
Average DrawdownAverage peak-to-trough decline | -0.58% | -4.79% | +4.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.37% | 1.07% | -0.70% |
Volatility
ZST.TO vs. XSE.TO - Volatility Comparison
The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.10%, while iShares Conservative Strategic Fixed Income ETF (XSE.TO) has a volatility of 0.97%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than XSE.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 | XSE.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.10% | 0.97% | -0.87% |
Volatility (6M)Calculated over the trailing 6-month period | 1.05% | 2.53% | -1.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.08% | 3.34% | -2.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.72% | 5.54% | -4.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.71% | 8.96% | -8.25% |
ZST.TO vs. XSE.TO - Expense Ratio Comparison
ZST.TO has a 0.17% expense ratio, which is lower than XSE.TO's 0.55% expense ratio.
Dividends
ZST.TO vs. XSE.TO - Dividend Comparison
ZST.TO's dividend yield for the trailing twelve months is around 2.56%, less than XSE.TO's 4.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSE.TO iShares Conservative Strategic Fixed Income ETF | 4.34% | 4.24% | 3.65% | 3.36% | 2.67% | 2.63% | 2.62% | 2.82% | 2.89% | 3.62% | 3.62% | 1.06% |
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
ZST.TO and XSE.TO have a correlation of 0.21, 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 0.55% for XSE.TO.
ZST.TO is categorized as Canadian Government Bonds, while XSE.TO is Intermediate Core Bond. They also come from different issuers: BMO and iShares. Their fees differ too: 0.17% for ZST.TO and 0.55% for XSE.TO.
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