ZST.TO vs. ZAAA.NEO
ZST.TO (BMO Ultra Short-Term Bond ETF) and ZAAA.NEO (BMO AAA CLO ETF) are both exchange-traded funds - ZST.TO is a Ultrashort Bond fund actively managed by BMO, while ZAAA.NEO is a CLO fund actively managed by BMO. Both are actively managed. Over the past year, ZST.TO returned 1.72% vs 8.75% for ZAAA.NEO. At a correlation of -0.02, they often move in opposite directions. ZST.TO charges 0.17%/yr vs 0.23%/yr for ZAAA.NEO.
Performance
ZST.TO vs. ZAAA.NEO - Performance Comparison
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Returns By Period
In the year-to-date period, ZST.TO achieves a 1.35% return, which is significantly lower than ZAAA.NEO's 5.56% return.
ZST.TO
- 1D
- 0.00%
- 1M
- 0.19%
- 6M
- 1.27%
- YTD
- 1.35%
- 1Y
- 1.72%
- 3Y*
- 3.79%
- 5Y*
- 3.04%
- 10Y*
- 2.37%
ZAAA.NEO
- 1D
- 0.03%
- 1M
- 2.30%
- 6M
- 4.38%
- YTD
- 5.56%
- 1Y
- 8.75%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZST.TO vs. ZAAA.NEO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
ZST.TO BMO Ultra Short-Term Bond ETF | 1.35% | 0.90% |
ZAAA.NEO BMO AAA CLO ETF | 5.56% | 3.10% |
Correlation
The correlation between ZST.TO and ZAAA.NEO 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 (All Time) Calculated using the full available price history since May 5, 2025 | -0.02 |
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Return for Risk
ZST.TO vs. ZAAA.NEO — Risk / Return Rank
ZST.TO
ZAAA.NEO
ZST.TO vs. ZAAA.NEO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Ultra Short-Term Bond ETF (ZST.TO) and BMO AAA CLO ETF (ZAAA.NEO). 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 | ZAAA.NEO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.36 | ||
| Sortino ratioReturn per unit of downside risk | -1.21 | ||
| Omega ratioGain probability vs. loss probability | 1.85 | 1.40 | +0.45 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | 2.93 | -1.21 |
| Martin ratioReturn relative to average drawdown | 4.62 | 7.11 | -2.49 |
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Drawdowns
ZST.TO vs. ZAAA.NEO - Drawdown Comparison
The maximum ZST.TO drawdown since its inception was -3.60%, which is greater than ZAAA.NEO's maximum drawdown of -3.01%. Use the drawdown chart below to compare losses from any high point for ZST.TO and ZAAA.NEO.
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Drawdown Indicators
| ZST.TO | ZAAA.NEO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.60% | -3.01% | -0.59% |
Max Drawdown (1Y)Largest decline over 1 year | -1.01% | -3.01% | +2.00% |
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 DrawdownCurrent decline from peak | -0.02% | -0.30% | +0.28% |
Average DrawdownAverage peak-to-trough decline | -0.58% | -1.00% | +0.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.37% | 1.23% | -0.86% |
Volatility
ZST.TO vs. ZAAA.NEO - Volatility Comparison
The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.11%, while BMO AAA CLO ETF (ZAAA.NEO) has a volatility of 1.40%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than ZAAA.NEO 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 | ZAAA.NEO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.11% | 1.40% | -1.29% |
Volatility (6M)Calculated over the trailing 6-month period | 0.25% | 3.28% | -3.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.09% | 4.53% | -3.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.72% | 4.60% | -3.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.70% | 4.60% | -3.90% |
ZST.TO vs. ZAAA.NEO - Expense Ratio Comparison
ZST.TO has a 0.17% expense ratio, which is lower than ZAAA.NEO's 0.23% 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. ZAAA.NEO - Dividend Comparison
ZST.TO's dividend yield for the trailing twelve months is around 2.54%, less than ZAAA.NEO's 5.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZAAA.NEO BMO AAA CLO ETF | 5.08% | 3.16% | 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 | 2.54% | 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 ZAAA.NEO 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.
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 0.23% for ZAAA.NEO.
ZST.TO is categorized as Ultrashort Bond, while ZAAA.NEO is CLO. Their fees differ too: 0.17% for ZST.TO and 0.23% for ZAAA.NEO.
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