ZTWO vs. ZTEN
ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and ZTEN (F/M 10-Year Investment Grade 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 ZTEN is a Long-Term Bond fund tracking the ICE 10-Year US Target Maturity Corporate Index - Benchmark TR Gross. Both are passively managed. Over the past year, ZTWO returned 3.94% vs 6.32% for ZTEN. A 0.78 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.
Performance
ZTWO vs. ZTEN - Performance Comparison
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Returns By Period
In the year-to-date period, ZTWO achieves a 0.93% return, which is significantly higher than ZTEN's 0.33% return.
ZTWO
- 1D
- 0.04%
- 1M
- 0.28%
- YTD
- 0.93%
- 6M
- 1.30%
- 1Y
- 3.94%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZTEN
- 1D
- 0.16%
- 1M
- 0.29%
- YTD
- 0.33%
- 6M
- 0.40%
- 1Y
- 6.32%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ZTWO vs. ZTEN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 0.93% | 5.49% | 0.36% |
ZTEN F/M 10-Year Investment Grade Corporate Bond ETF | 0.33% | 9.15% | 0.29% |
Correlation
The correlation between ZTWO and ZTEN is 0.77, 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 | 0.77 |
Correlation (All Time) Calculated using the full available price history since Dec 20, 2024 | 0.78 |
The correlation between ZTWO and ZTEN has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.
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Return for Risk
ZTWO vs. ZTEN — Risk / Return Rank
ZTWO
ZTEN
ZTWO vs. ZTEN - 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 F/M 10-Year Investment Grade Corporate Bond ETF (ZTEN). 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 | ZTEN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.75 | ||
| Sortino ratioReturn per unit of downside risk | +2.99 | ||
| Omega ratioGain probability vs. loss probability | 1.63 | 1.23 | +0.40 |
| Calmar ratioReturn relative to maximum drawdown | 4.24 | 1.91 | +2.32 |
| Martin ratioReturn relative to average drawdown | 20.10 | 6.21 | +13.90 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZTWO | ZTEN | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.03 | 1.28 | +1.75 |
Sharpe Ratio (All Time)Calculated using the full available price history | 3.17 | 1.16 | +2.01 |
Drawdowns
ZTWO vs. ZTEN - Drawdown Comparison
The maximum ZTWO drawdown since its inception was -0.93%, smaller than the maximum ZTEN drawdown of -3.43%. Use the drawdown chart below to compare losses from any high point for ZTWO and ZTEN.
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Drawdown Indicators
| ZTWO | ZTEN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -0.93% | -3.43% | +2.50% |
Max Drawdown (1Y)Largest decline over 1 year | -0.93% | -3.32% | +2.39% |
Current DrawdownCurrent decline from peak | -0.07% | -1.30% | +1.23% |
Average DrawdownAverage peak-to-trough decline | -0.10% | -0.79% | +0.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 1.02% | -0.82% |
Volatility
ZTWO vs. ZTEN - Volatility Comparison
The current volatility for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) is 0.42%, while F/M 10-Year Investment Grade Corporate Bond ETF (ZTEN) has a volatility of 1.60%. This indicates that ZTWO experiences smaller price fluctuations and is considered to be less risky than ZTEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZTWO | ZTEN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 1.60% | -1.18% |
Volatility (6M)Calculated over the trailing 6-month period | 0.97% | 3.77% | -2.80% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.31% | 4.99% | -3.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.49% | 5.79% | -4.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.49% | 5.79% | -4.30% |
ZTWO vs. ZTEN - Expense Ratio Comparison
Both ZTWO and ZTEN have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
ZTWO vs. ZTEN - Dividend Comparison
ZTWO's dividend yield for the trailing twelve months is around 4.12%, less than ZTEN's 5.07% yield.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
ZTEN F/M 10-Year Investment Grade Corporate Bond ETF | 5.07% | 5.16% | 0.44% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 4.12% | 4.31% | 0.39% |
Frequently Asked Questions
ZTWO and ZTEN have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZTEN has higher volatility (1.60%) compared to ZTWO (0.42%). In terms of maximum drawdown, ZTWO dropped -0.93% vs ZTEN's -3.43%.
On 1-year performance, ZTEN leads with 6.32% vs 3.94% for ZTWO. Both ETFs have the same 0.15% expense ratio. On volatility, ZTWO has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, ZTEN has performed better with a 6.32% return vs 3.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ZTWO and ZTEN have the same expense ratio: 0.15% per year.
ZTEN has the higher dividend yield at 5.07%, compared with 4.12% for ZTWO.
ZTWO is categorized as Short-Term Bond, while ZTEN is Long-Term Bond. ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while ZTEN tracks ICE 10-Year US Target Maturity Corporate Index - Benchmark TR Gross.
ZTWO currently has the higher Sharpe Ratio (3.03 vs 1.28), 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.
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