ZTWO vs. DDV

Last updated Jun 24, 2026

ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and DDV (Defined Duration 5 ETF) are both exchange-traded funds - ZTWO is a Short-Term Bond fund tracking the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while DDV is a Intermediate Core Bond fund actively managed by Discipline Funds. ZTWO is passively managed, while DDV is actively managed. A 0.61 correlation means they provide meaningful diversification when combined. ZTWO charges 0.15%/yr vs 0.25%/yr for DDV.

Performance

ZTWO vs. DDV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and Defined Duration 5 ETF (DDV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTWO achieves a 0.93% return, which is significantly lower than DDV's 2.12% return.

ZTWO

• 1D: 0.06%
• 1M: 0.26%
• YTD: 0.93%
• 6M: 1.13%
• 1Y: 3.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DDV

• 1D: -0.30%
• 1M: 0.20%
• YTD: 2.12%
• 6M: 2.22%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTWO vs. DDV - Yearly Performance Comparison

	2026 (YTD)	2025
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.93%	0.69%
DDV Defined Duration 5 ETF	2.12%	0.47%

Correlation

The correlation between ZTWO and DDV is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 13, 2025	0.61

Return for Risk

ZTWO vs. DDV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZTWO

ZTWO Risk / Return Rank: 88
ZTWO Sharpe Ratio Rank: 89
ZTWO Sortino Ratio Rank: 93
ZTWO Omega Ratio Rank: 91
ZTWO Calmar Ratio Rank: 80
ZTWO Martin Ratio Rank: 89

DDV

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

ZTWO vs. DDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and Defined Duration 5 ETF (DDV). 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.

	ZTWO	DDV	Difference
Sharpe ratio: Return per unit of total volatility	2.73	—	—
Sortino ratio: Return per unit of downside risk	4.32	—	—
Omega ratio: Gain probability vs. loss probability	1.55	—	—
Calmar ratio: Return relative to maximum drawdown	3.90	—	—
Martin ratio: Return relative to average drawdown	18.28	—	—

Drawdowns

ZTWO vs. DDV - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum DDV drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for ZTWO and DDV.

Drawdown Indicators

	ZTWO	DDV	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-1.92%	+0.99%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	—	—
Current Drawdown Current decline from peak	-0.22%	-0.32%	+0.10%
Average Drawdown Average peak-to-trough decline	-0.10%	-0.35%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	—	—

Volatility

Volatility by Period

	ZTWO	DDV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.02%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.34%	2.69%	-1.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.50%	2.69%	-1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.50%	2.69%	-1.19%

ZTWO vs. DDV - Expense Ratio Comparison

ZTWO has a 0.15% expense ratio, which is lower than DDV's 0.25% 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

ZTWO vs. DDV - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.12%, more than DDV's 1.21% yield.

Position	TTM	2025	2024
DDV Defined Duration 5 ETF	1.21%	0.42%	0.00%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.12%	4.31%	0.39%

Frequently Asked Questions

Can I hold both ZTWO and DDV in my portfolio?

ZTWO and DDV have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZTWO or DDV?

On fees, ZTWO is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZTWO or DDV?

ZTWO is cheaper with a 0.15% expense ratio, compared with 0.25% for DDV.

Which ETF pays a higher dividend yield, ZTWO or DDV?

ZTWO has the higher dividend yield at 4.12%, compared with 1.21% for DDV.

What is the main difference between ZTWO and DDV?

ZTWO is categorized as Short-Term Bond, while DDV is Intermediate Core Bond. They also come from different issuers: F/m and Discipline Funds. Their fees differ too: 0.15% for ZTWO and 0.25% for DDV.