ZST.TO vs. ZMI.TO

Last updated Jun 9, 2026

ZST.TO (BMO Ultra Short-Term Bond ETF) and ZMI.TO (BMO Monthly Income ETF) are both exchange-traded funds - ZST.TO is a Canadian Government Bonds fund actively managed by BMO, while ZMI.TO is a Diversified Portfolio fund actively managed by BMO. Both are actively managed. Over the past 10 years, ZST.TO returned 2.37%/yr vs 6.69%/yr for ZMI.TO. At a 0.09 correlation, their price movements are largely independent. ZST.TO charges 0.17%/yr vs 0.18%/yr for ZMI.TO.

Performance

ZST.TO vs. ZMI.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 Monthly Income ETF (ZMI.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZST.TO achieves a 1.08% return, which is significantly lower than ZMI.TO's 8.17% return. Over the past 10 years, ZST.TO has underperformed ZMI.TO with an annualized return of 2.37%, while ZMI.TO has yielded a comparatively higher 6.69% annualized return.

ZST.TO

• 1D: 0.00%
• 1M: 0.21%
• YTD: 1.08%
• 6M: 0.29%
• 1Y: 1.70%
• 3Y*: 3.86%
• 5Y*: 2.98%
• 10Y*: 2.37%

ZMI.TO

• 1D: -0.10%
• 1M: 2.25%
• YTD: 8.17%
• 6M: 5.67%
• 1Y: 15.02%
• 3Y*: 12.29%
• 5Y*: 7.70%
• 10Y*: 6.69%

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

ZST.TO vs. ZMI.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%	2.06%	5.21%	5.38%	1.22%	0.24%	1.77%	2.39%	1.99%	1.47%
ZMI.TO BMO Monthly Income ETF	8.17%	8.04%	13.60%	9.17%	-5.76%	11.38%	2.54%	13.52%	-2.39%	4.98%

Correlation

The correlation between ZST.TO and ZMI.TO is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011	0.09

Return for Risk

ZST.TO vs. ZMI.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: 51
ZST.TO Sharpe Ratio Rank: 50
ZST.TO Sortino Ratio Rank: 35
ZST.TO Omega Ratio Rank: 97
ZST.TO Calmar Ratio Rank: 38
ZST.TO Martin Ratio Rank: 33

ZMI.TO

ZMI.TO Risk / Return Rank: 71
ZMI.TO Sharpe Ratio Rank: 72
ZMI.TO Sortino Ratio Rank: 67
ZMI.TO Omega Ratio Rank: 81
ZMI.TO Calmar Ratio Rank: 70
ZMI.TO Martin Ratio Rank: 63

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. ZMI.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 Monthly Income ETF (ZMI.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	ZMI.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.11	-0.53
Sortino ratio: Return per unit of downside risk	1.66	2.77	-1.11
Omega ratio: Gain probability vs. loss probability	1.84	1.43	+0.40
Calmar ratio: Return relative to maximum drawdown	1.70	3.17	-1.48
Martin ratio: Return relative to average drawdown	4.56	10.36	-5.80
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. ZMI.TO - Sharpe Ratio Comparison

The current ZST.TO Sharpe Ratio is 1.58, which is comparable to the ZMI.TO Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of ZST.TO and ZMI.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	ZMI.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.58	2.11	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	4.16	1.04	+3.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	3.37	0.76	+2.61
Sharpe Ratio (All Time) Calculated using the full available price history	1.43	0.79	+0.64

Drawdowns

ZST.TO vs. ZMI.TO - Drawdown Comparison

The maximum ZST.TO drawdown since its inception was -3.60%, smaller than the maximum ZMI.TO drawdown of -26.64%. Use the drawdown chart below to compare losses from any high point for ZST.TO and ZMI.TO.

Drawdown Indicators

	ZST.TO	ZMI.TO	Difference
Max Drawdown Largest peak-to-trough decline	-3.60%	-26.64%	+23.04%
Max Drawdown (1Y) Largest decline over 1 year	-1.01%	-4.75%	+3.74%
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	-8.80%	+7.79%
Max Drawdown (5Y) Largest decline over 5 years	-1.01%	-12.68%	+11.67%
Max Drawdown (10Y) Largest decline over 10 years	-1.06%	-26.64%	+25.58%
Current Drawdown Current decline from peak	-0.02%	-1.10%	+1.08%
Average Drawdown Average peak-to-trough decline	-0.58%	-2.09%	+1.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	1.45%	-1.08%

Volatility

ZST.TO vs. ZMI.TO - Volatility Comparison

The current volatility for BMO Ultra Short-Term Bond ETF (ZST.TO) is 0.08%, while BMO Monthly Income ETF (ZMI.TO) has a volatility of 2.42%. This indicates that ZST.TO experiences smaller price fluctuations and is considered to be less risky than ZMI.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZST.TO	ZMI.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.08%	2.42%	-2.34%
Volatility (6M) Calculated over the trailing 6-month period	1.05%	5.88%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	1.08%	7.17%	-6.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.72%	7.44%	-6.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.71%	8.87%	-8.16%

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

ZST.TO has a 0.17% expense ratio, which is lower than ZMI.TO's 0.18% 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. ZMI.TO - Dividend Comparison

ZST.TO's dividend yield for the trailing twelve months is around 2.56%, less than ZMI.TO's 4.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZMI.TO BMO Monthly Income ETF	4.03%	4.67%	4.82%	5.09%	4.63%	3.82%	4.34%	4.37%	4.72%	4.18%	4.01%	4.01%
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

Can I hold both ZST.TO and ZMI.TO in my portfolio?

ZST.TO and ZMI.TO have a correlation of 0.14, 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 ZMI.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 ZMI.TO?

ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.18% for ZMI.TO.

What is the main difference between ZST.TO and ZMI.TO?

ZST.TO is categorized as Canadian Government Bonds, while ZMI.TO is Diversified Portfolio. Their fees differ too: 0.17% for ZST.TO and 0.18% for ZMI.TO.