ZTWO vs. SPSB

Last updated Jun 4, 2026

ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and SPSB (SPDR Portfolio Short Term Corporate Bond 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 SPSB is a Corporate Bonds fund tracking the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index. Both are passively managed. Over the past year, ZTWO returned 4.02% vs 4.29% for SPSB. Their correlation of 0.85 suggests significant overlap in exposure. ZTWO charges 0.15%/yr vs 0.07%/yr for SPSB.

Performance

ZTWO vs. SPSB - 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 SPDR Portfolio Short Term Corporate Bond ETF (SPSB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTWO achieves a 0.89% return, which is significantly higher than SPSB's 0.84% return.

ZTWO

• 1D: 0.00%
• 1M: 0.30%
• YTD: 0.89%
• 6M: 1.21%
• 1Y: 4.02%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPSB

• 1D: -0.07%
• 1M: 0.26%
• YTD: 0.84%
• 6M: 1.17%
• 1Y: 4.29%
• 3Y*: 5.29%
• 5Y*: 2.69%
• 10Y*: 2.63%

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

ZTWO vs. SPSB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.89%	5.49%	0.36%
SPSB SPDR Portfolio Short Term Corporate Bond ETF	0.84%	5.86%	0.30%

Correlation

The correlation between ZTWO and SPSB is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (All Time) Calculated using the full available price history since Dec 20, 2024	0.85

The correlation between ZTWO and SPSB has been stable across timeframes, ranging from 0.85 to 0.85 - a consistent structural relationship.

Return for Risk

ZTWO vs. SPSB — Risk / Return Rank

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

ZTWO

ZTWO Risk / Return Rank: 90
ZTWO Sharpe Ratio Rank: 90
ZTWO Sortino Ratio Rank: 94
ZTWO Omega Ratio Rank: 93
ZTWO Calmar Ratio Rank: 82
ZTWO Martin Ratio Rank: 90

SPSB

SPSB Risk / Return Rank: 92
SPSB Sharpe Ratio Rank: 91
SPSB Sortino Ratio Rank: 95
SPSB Omega Ratio Rank: 95
SPSB Calmar Ratio Rank: 86
SPSB Martin Ratio Rank: 91

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. SPSB - 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 SPDR Portfolio Short Term Corporate Bond ETF (SPSB). 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.

	ZTWO	SPSB	Difference
Sharpe ratio Return per unit of total volatility	3.09	3.25	-0.16
Sortino ratio Return per unit of downside risk	4.96	5.36	-0.40
Omega ratio Gain probability vs. loss probability	1.64	1.72	-0.08
Calmar ratio Return relative to maximum drawdown	4.32	4.94	-0.62
Martin ratio Return relative to average drawdown	20.46	22.90	-2.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZTWO vs. SPSB - Sharpe Ratio Comparison

The current ZTWO Sharpe Ratio is 3.09, which is comparable to the SPSB Sharpe Ratio of 3.25. The chart below compares the historical Sharpe Ratios of ZTWO and SPSB, 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

	ZTWO	SPSB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.09	3.25	-0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.36	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.86	—
Sharpe Ratio (All Time) Calculated using the full available price history	3.16	0.87	+2.29

Drawdowns

ZTWO vs. SPSB - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum SPSB drawdown of -11.75%. Use the drawdown chart below to compare losses from any high point for ZTWO and SPSB.

Drawdown Indicators

	ZTWO	SPSB	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-11.75%	+10.82%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-0.87%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.87%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.96%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-11.75%	—
Current Drawdown Current decline from peak	-0.11%	-0.14%	+0.03%
Average Drawdown Average peak-to-trough decline	-0.10%	-0.54%	+0.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.19%	+0.01%

Volatility

ZTWO vs. SPSB - Volatility Comparison

F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) has a higher volatility of 0.42% compared to SPDR Portfolio Short Term Corporate Bond ETF (SPSB) at 0.35%. This indicates that ZTWO's price experiences larger fluctuations and is considered to be riskier than SPSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTWO	SPSB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.42%	0.35%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	0.97%	0.94%	+0.03%
Volatility (1Y) Calculated over the trailing 1-year period	1.31%	1.33%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.49%	1.98%	-0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.49%	3.06%	-1.57%

ZTWO vs. SPSB - Expense Ratio Comparison

ZTWO has a 0.15% expense ratio, which is higher than SPSB's 0.07% expense ratio. However, 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. SPSB - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.12%, less than SPSB's 4.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPSB SPDR Portfolio Short Term Corporate Bond ETF	4.41%	4.55%	4.85%	4.05%	1.92%	1.19%	1.94%	2.77%	2.36%	1.94%	1.65%	1.43%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.12%	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 SPSB in my portfolio?

ZTWO and SPSB have a correlation of 0.85, 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 SPSB?

ZTWO has higher volatility (0.42%) compared to SPSB (0.35%). In terms of maximum drawdown, ZTWO dropped -0.93% vs SPSB's -11.75%.

Which ETF is better, ZTWO or SPSB?

On 1-year performance, SPSB leads with 4.29% vs 4.02% for ZTWO. On fees, SPSB is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZTWO or SPSB?

Over the 1-year period, SPSB has performed better with a 4.29% return vs 4.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZTWO or SPSB?

SPSB is cheaper with a 0.07% expense ratio, compared with 0.15% for ZTWO.

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

SPSB has the higher dividend yield at 4.41%, compared with 4.12% for ZTWO.

What is the main difference between ZTWO and SPSB?

ZTWO is categorized as Short-Term Bond, while SPSB is Corporate Bonds. ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while SPSB tracks Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index. They also come from different issuers: F/m and State Street. Their fees differ too: 0.15% for ZTWO and 0.07% for SPSB.

Which has better risk-adjusted returns?

SPSB currently has the higher Sharpe Ratio (3.25 vs 3.09), 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.