ZTWO vs. FLTB

Last updated Jun 26, 2026

ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and FLTB (Fidelity Limited Term Bond ETF) are both Short-Term Bond funds. ZTWO is passively managed, while FLTB is actively managed. Over the past year, ZTWO returned 3.69% vs 4.10% for FLTB. A 0.68 correlation means they provide meaningful diversification when combined. ZTWO charges 0.15%/yr vs 0.25%/yr for FLTB.

Performance

ZTWO vs. FLTB - 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 Fidelity Limited Term Bond ETF (FLTB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ZTWO having a 1.05% return and FLTB slightly higher at 1.10%.

ZTWO

• 1D: 0.04%
• 1M: 0.26%
• YTD: 1.05%
• 6M: 1.17%
• 1Y: 3.69%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FLTB

• 1D: 0.04%
• 1M: 0.48%
• YTD: 1.10%
• 6M: 1.27%
• 1Y: 4.10%
• 3Y*: 5.64%
• 5Y*: 2.35%
• 10Y*: 2.44%

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

ZTWO vs. FLTB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	1.05%	5.49%	0.36%
FLTB Fidelity Limited Term Bond ETF	1.10%	6.60%	0.23%

Correlation

The correlation between ZTWO and FLTB is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024	0.68

The correlation between ZTWO and FLTB has been stable across timeframes, ranging from 0.67 to 0.68 - a consistent structural relationship.

Return for Risk

ZTWO vs. FLTB — Risk / Return Rank

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

ZTWO

ZTWO Risk / Return Rank: 91
ZTWO Sharpe Ratio Rank: 92
ZTWO Sortino Ratio Rank: 95
ZTWO Omega Ratio Rank: 93
ZTWO Calmar Ratio Rank: 84
ZTWO Martin Ratio Rank: 91

FLTB

FLTB Risk / Return Rank: 71
FLTB Sharpe Ratio Rank: 71
FLTB Sortino Ratio Rank: 78
FLTB Omega Ratio Rank: 73
FLTB Calmar Ratio Rank: 63
FLTB Martin Ratio Rank: 70

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. FLTB - 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 Fidelity Limited Term Bond ETF (FLTB). 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	FLTB	Difference
Sharpe ratio: Return per unit of total volatility	2.78	1.97	+0.81
Sortino ratio: Return per unit of downside risk	4.39	3.03	+1.36
Omega ratio: Gain probability vs. loss probability	1.56	1.37	+0.19
Calmar ratio: Return relative to maximum drawdown	3.97	2.70	+1.27
Martin ratio: Return relative to average drawdown	18.56	11.27	+7.29

ZTWO vs. FLTB - Sharpe Ratio Comparison

The current ZTWO Sharpe Ratio is 2.78, which is higher than the FLTB Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of ZTWO and FLTB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ZTWO vs. FLTB - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum FLTB drawdown of -9.37%. Use the drawdown chart below to compare losses from any high point for ZTWO and FLTB.

Drawdown Indicators

	ZTWO	FLTB	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-9.37%	+8.44%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-1.52%	+0.59%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.52%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-9.26%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-9.37%	—
Current Drawdown Current decline from peak	-0.10%	0.00%	-0.10%
Average Drawdown Average peak-to-trough decline	-0.10%	-1.39%	+1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.36%	-0.16%

Volatility

ZTWO vs. FLTB - Volatility Comparison

The current volatility for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) is 0.46%, while Fidelity Limited Term Bond ETF (FLTB) has a volatility of 0.59%. This indicates that ZTWO experiences smaller price fluctuations and is considered to be less risky than FLTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTWO	FLTB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.59%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	1.02%	1.66%	-0.64%
Volatility (1Y) Calculated over the trailing 1-year period	1.34%	2.09%	-0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.50%	2.81%	-1.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.50%	2.94%	-1.44%

ZTWO vs. FLTB - Expense Ratio Comparison

ZTWO has a 0.15% expense ratio, which is lower than FLTB'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. FLTB - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.11%, less than FLTB's 4.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLTB Fidelity Limited Term Bond ETF	4.35%	4.31%	4.11%	3.20%	1.63%	0.89%	1.56%	2.67%	2.50%	1.78%	1.59%	1.63%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.11%	4.31%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZTWO and FLTB in my portfolio?

ZTWO and FLTB have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZTWO or FLTB?

FLTB has higher volatility (0.59%) compared to ZTWO (0.46%). In terms of maximum drawdown, ZTWO dropped -0.93% vs FLTB's -9.37%.

Which ETF is better, ZTWO or FLTB?

On 1-year performance, FLTB leads with 4.10% vs 3.69% for ZTWO. On fees, ZTWO is cheaper at 0.15% per year. On volatility, ZTWO has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZTWO or FLTB?

Over the 1-year period, FLTB has performed better with a 4.10% return vs 3.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZTWO or FLTB?

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

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

FLTB has the higher dividend yield at 4.35%, compared with 4.11% for ZTWO.

What is the main difference between ZTWO and FLTB?

They also come from different issuers: F/m and Fidelity. Their fees differ too: 0.15% for ZTWO and 0.25% for FLTB.

Which has better risk-adjusted returns?

ZTWO currently has the higher Sharpe Ratio (2.78 vs 1.97), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.