ZTWO vs. TSEC

Last updated Jul 14, 2026

ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and TSEC (Touchstone Securitized Income ETF) are both Short-Term Bond funds. ZTWO is passively managed, while TSEC is actively managed. Over the past year, ZTWO returned 3.62% vs 5.59% for TSEC. At a 0.35 correlation, their price movements are largely independent. ZTWO charges 0.15%/yr vs 0.40%/yr for TSEC.

Performance

ZTWO vs. TSEC - 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 Touchstone Securitized Income ETF (TSEC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTWO achieves a 1.10% return, which is significantly lower than TSEC's 1.52% return.

ZTWO

• 1D: -0.11%
• 1M: 0.11%
• 6M: 1.07%
• YTD: 1.10%
• 1Y: 3.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSEC

• 1D: -0.17%
• 1M: 0.10%
• 6M: 1.27%
• YTD: 1.52%
• 1Y: 5.59%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTWO vs. TSEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	1.10%	5.49%	0.36%
TSEC Touchstone Securitized Income ETF	1.52%	7.47%	0.23%

Correlation

The correlation between ZTWO and TSEC is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024	0.35

The correlation between ZTWO and TSEC shifts across timeframes, from 0.35 (all time) to 0.48 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ZTWO vs. TSEC — Risk / Return Rank

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

ZTWO

ZTWO Risk / Return Rank: 92
ZTWO Sharpe Ratio Rank: 93
ZTWO Sortino Ratio Rank: 95
ZTWO Omega Ratio Rank: 94
ZTWO Calmar Ratio Rank: 87
ZTWO Martin Ratio Rank: 92

TSEC

TSEC Risk / Return Rank: 82
TSEC Sharpe Ratio Rank: 82
TSEC Sortino Ratio Rank: 82
TSEC Omega Ratio Rank: 92
TSEC Calmar Ratio Rank: 80
TSEC Martin Ratio Rank: 74

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. TSEC - 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 Touchstone Securitized Income ETF (TSEC). 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	TSEC	Difference
Sharpe ratio: Return per unit of total volatility	2.68	2.07	+0.61
Sortino ratio: Return per unit of downside risk	4.27	2.91	+1.36
Omega ratio: Gain probability vs. loss probability	1.54	1.48	+0.06
Calmar ratio: Return relative to maximum drawdown	3.89	3.35	+0.54
Martin ratio: Return relative to average drawdown	18.27	10.96	+7.31

ZTWO vs. TSEC - Sharpe Ratio Comparison

The current ZTWO Sharpe Ratio is 2.68, which is comparable to the TSEC Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of ZTWO and TSEC, 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. TSEC - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum TSEC drawdown of -1.78%. Use the drawdown chart below to compare losses from any high point for ZTWO and TSEC.

Drawdown Indicators

	ZTWO	TSEC	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-1.78%	+0.85%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-1.67%	+0.74%
Current Drawdown Current decline from peak	-0.24%	-0.52%	+0.28%
Average Drawdown Average peak-to-trough decline	-0.10%	-0.33%	+0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.51%	-0.31%

Volatility

ZTWO vs. TSEC - Volatility Comparison

The current volatility for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) is 0.49%, while Touchstone Securitized Income ETF (TSEC) has a volatility of 0.93%. This indicates that ZTWO experiences smaller price fluctuations and is considered to be less risky than TSEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTWO	TSEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.49%	0.93%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	1.06%	1.75%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	2.72%	-1.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.50%	2.89%	-1.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.50%	2.89%	-1.39%

ZTWO vs. TSEC - Expense Ratio Comparison

ZTWO has a 0.15% expense ratio, which is lower than TSEC's 0.40% expense ratio.

Dividends

ZTWO vs. TSEC - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.08%, less than TSEC's 7.41% yield.

Position	TTM	2025	2024	2023
TSEC Touchstone Securitized Income ETF	7.41%	6.47%	5.83%	2.86%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.08%	4.31%	0.39%	0.00%

Frequently Asked Questions

Can I hold both ZTWO and TSEC in my portfolio?

ZTWO and TSEC have a correlation of 0.48, 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 TSEC?

TSEC has higher volatility (0.93%) compared to ZTWO (0.49%). In terms of maximum drawdown, ZTWO dropped -0.93% vs TSEC's -1.78%.

Which ETF is better, ZTWO or TSEC?

On 1-year performance, TSEC leads with 5.59% vs 3.62% for ZTWO. On fees, ZTWO is cheaper at 0.15% per year. On volatility, ZTWO has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZTWO or TSEC?

Over the 1-year period, TSEC has performed better with a 5.59% return vs 3.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZTWO or TSEC?

ZTWO is cheaper with a 0.15% expense ratio, compared with 0.40% for TSEC.

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

TSEC has the higher dividend yield at 7.41%, compared with 4.08% for ZTWO.

What is the main difference between ZTWO and TSEC?

They also come from different issuers: F/m and Touchstone. Their fees differ too: 0.15% for ZTWO and 0.40% for TSEC.

Which has better risk-adjusted returns?

ZTWO currently has the higher Sharpe Ratio (2.68 vs 2.07), 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.