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ZST.TO vs. ZGB.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZST.TO vs. ZGB.TO

Last updated Jun 25, 2026

ZST.TO (BMO Ultra Short-Term Bond ETF) and ZGB.TO (BMO Government Bond Index ETF) are both Canadian Government Bonds funds from BMO. ZST.TO is actively managed, while ZGB.TO is passively managed. Over the past 5 years, ZST.TO returned 3.02%/yr vs 0.18%/yr for ZGB.TO. At a 0.24 correlation, their price movements are largely independent. Both charge a 0.17% expense ratio.

Performance

ZST.TO vs. ZGB.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 BMO Government Bond Index ETF (ZGB.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZST.TO achieves a 1.24% return, which is significantly lower than ZGB.TO's 2.31% return.

ZST.TO

1D
0.02%
1M
0.25%
YTD
1.24%
6M
0.27%
1Y
1.72%
3Y*
3.86%
5Y*
3.02%
10Y*
2.38%

ZGB.TO

1D
0.74%
1M
1.03%
YTD
2.31%
6M
2.13%
1Y
3.38%
3Y*
3.98%
5Y*
0.18%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZST.TO vs. ZGB.TO - Yearly Performance Comparison

2026 (YTD)20252024202320222021202020192018
ZST.TO
BMO Ultra Short-Term Bond ETF		1.24%2.06%5.21%5.38%1.22%0.24%1.77%2.39%1.69%
ZGB.TO
BMO Government Bond Index ETF		2.31%1.64%3.30%5.92%-12.38%-2.74%8.37%5.43%4.92%

Correlation

The correlation between ZST.TO and ZGB.TO is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.32

Correlation (3Y)
Calculated over the trailing 3-year period

0.30

Correlation (5Y)
Calculated over the trailing 5-year period

0.30

Correlation (All Time)
Calculated using the full available price history since Mar 7, 2018

0.24

Compare stocks, funds, or ETFs

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BMO Ultra Short-Term Bond ETF

BMO Government Bond Index ETF

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Often compared with ZGB.TO:
ZGB.TO vs. ZBI.TOZGB.TO vs. ZSB.TOZGB.TO vs. ZDB.TOZGB.TO vs. XSH.TOZGB.TO vs. TCSH.TOZGB.TO vs. ZFL.TOZGB.TO vs. ZSP.TO

Return for Risk

ZST.TO vs. ZGB.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: 5151
Overall Rank
ZST.TO Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
ZST.TO Sortino Ratio Rank: 3434
Sortino Ratio Rank
ZST.TO Omega Ratio Rank: 9797
Omega Ratio Rank
ZST.TO Calmar Ratio Rank: 3737
Calmar Ratio Rank
ZST.TO Martin Ratio Rank: 3434
Martin Ratio Rank
ZGB.TO
ZGB.TO Risk / Return Rank: 2323
Overall Rank
ZGB.TO Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
ZGB.TO Sortino Ratio Rank: 2020
Sortino Ratio Rank
ZGB.TO Omega Ratio Rank: 2121
Omega Ratio Rank
ZGB.TO Calmar Ratio Rank: 2727
Calmar Ratio Rank
ZGB.TO Martin Ratio Rank: 2222
Martin Ratio Rank
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. ZGB.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 BMO Government Bond Index ETF (ZGB.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.TOZGB.TODifference
Sharpe ratioReturn per unit of total volatility
1.59
0.75

+0.85

Sortino ratioReturn per unit of downside risk
1.68
1.05

+0.63

Omega ratioGain probability vs. loss probability

1.84

1.14

+0.70

Calmar ratioReturn relative to maximum drawdown

1.72

1.23

+0.49

Martin ratioReturn relative to average drawdown

4.62

2.62

+1.99

ZST.TO vs. ZGB.TO - Sharpe Ratio Comparison

The current ZST.TO Sharpe Ratio is 1.59, which is higher than the ZGB.TO Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of ZST.TO and ZGB.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.

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Drawdowns

ZST.TO vs. ZGB.TO - Drawdown Comparison

The maximum ZST.TO drawdown since its inception was -3.60%, smaller than the maximum ZGB.TO drawdown of -19.30%. Use the drawdown chart below to compare losses from any high point for ZST.TO and ZGB.TO.

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Drawdown Indicators

ZST.TOZGB.TODifference

Max Drawdown

Largest peak-to-trough decline

-3.60%

-19.30%

+15.70%

Max Drawdown (1Y)

Largest decline over 1 year

-1.01%

-2.76%

+1.75%

Max Drawdown (3Y)

Largest decline over 3 years

-1.01%

-5.86%

+4.85%

Max Drawdown (5Y)

Largest decline over 5 years

-1.01%

-16.35%

+15.34%

Max Drawdown (10Y)

Largest decline over 10 years

-1.06%

—

—

Current Drawdown

Current decline from peak

0.00%

-4.41%

+4.41%

Average Drawdown

Average peak-to-trough decline

-0.58%

-6.94%

+6.36%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.37%

1.29%

-0.92%

Volatility

ZST.TO vs. ZGB.TO - Volatility Comparison

The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.10%, while BMO Government Bond Index ETF (ZGB.TO) has a volatility of 1.37%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than ZGB.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.TOZGB.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

0.10%

1.37%

-1.27%

Volatility (6M)

Calculated over the trailing 6-month period

1.05%

3.51%

-2.46%

Volatility (1Y)

Calculated over the trailing 1-year period

1.08%

4.55%

-3.47%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

0.72%

6.79%

-6.07%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

0.71%

6.12%

-5.41%

ZST.TO vs. ZGB.TO - Expense Ratio Comparison

Both ZST.TO and ZGB.TO have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

ZST.TO vs. ZGB.TO - Dividend Comparison

ZST.TO's dividend yield for the trailing twelve months is around 2.56%, less than ZGB.TO's 3.02% yield.

PositionTTM20252024202320222021202020192018201720162015
ZGB.TO
BMO Government Bond Index ETF		3.02%2.81%2.69%2.71%2.77%2.38%2.26%2.41%3.86%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

ZST.TO and ZGB.TO have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Both ETFs have the same 0.17% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

ZST.TO and ZGB.TO have the same expense ratio: 0.17% per year.

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