ZWB.TO vs. XFN.TO
ZWB.TO (BMO Covered Call Canadian Banks ETF) and XFN.TO (iShares S&P/TSX Capped Financials Index ETF) are both Financials Equities funds. ZWB.TO is actively managed, while XFN.TO is passively managed. Over the past 10 years, ZWB.TO returned 12.24%/yr vs 14.38%/yr for XFN.TO. Their correlation of 0.93 suggests significant overlap in exposure. ZWB.TO charges 0.71%/yr vs 0.61%/yr for XFN.TO.
Performance
ZWB.TO vs. XFN.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZWB.TO achieves a 16.23% return, which is significantly higher than XFN.TO's 12.51% return. Over the past 10 years, ZWB.TO has underperformed XFN.TO with an annualized return of 12.24%, while XFN.TO has yielded a comparatively higher 14.38% annualized return.
ZWB.TO
- 1D
- -0.31%
- 1M
- 5.06%
- YTD
- 16.23%
- 6M
- 21.03%
- 1Y
- 49.97%
- 3Y*
- 25.69%
- 5Y*
- 13.82%
- 10Y*
- 12.24%
XFN.TO
- 1D
- -0.55%
- 1M
- 5.10%
- YTD
- 12.51%
- 6M
- 17.66%
- 1Y
- 41.54%
- 3Y*
- 29.67%
- 5Y*
- 16.93%
- 10Y*
- 14.38%
ZWB.TO vs. XFN.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZWB.TO BMO Covered Call Canadian Banks ETF | 16.23% | 34.91% | 19.41% | 6.67% | -11.00% | 30.81% | 1.68% | 14.32% | -8.08% | 11.52% |
XFN.TO iShares S&P/TSX Capped Financials Index ETF | 12.51% | 34.40% | 29.32% | 13.09% | -9.92% | 35.57% | 0.99% | 20.66% | -9.76% | 12.54% |
Correlation
The correlation between ZWB.TO and XFN.TO is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.93 |
The correlation between ZWB.TO and XFN.TO has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.
ZWB.TO vs. XFN.TO - Sectors Allocation Comparison
Sectors
ZWB.TO
XFN.TO
Financial Services
Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Energy
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Healthcare
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Industrials
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Real Estate
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Technology
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Utilities
-
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Financial Services
ZWB.TO
XFN.TO
Basic Materials
ZWB.TO
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XFN.TO
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Communication Services
ZWB.TO
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XFN.TO
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Consumer Cyclical
ZWB.TO
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XFN.TO
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Consumer Defensive
ZWB.TO
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XFN.TO
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Energy
ZWB.TO
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XFN.TO
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Healthcare
ZWB.TO
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XFN.TO
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Industrials
ZWB.TO
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XFN.TO
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Real Estate
ZWB.TO
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XFN.TO
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Technology
ZWB.TO
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XFN.TO
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Utilities
ZWB.TO
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XFN.TO
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Return for Risk
ZWB.TO vs. XFN.TO — Risk / Return Rank
ZWB.TO
XFN.TO
ZWB.TO vs. XFN.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Covered Call Canadian Banks ETF (ZWB.TO) and iShares S&P/TSX Capped Financials Index ETF (XFN.TO). 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.
| ZWB.TO | XFN.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.98 | ||
| Sortino ratioReturn per unit of downside risk | +1.31 | ||
| Omega ratioGain probability vs. loss probability | 1.86 | 1.61 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 6.42 | 5.35 | +1.07 |
| Martin ratioReturn relative to average drawdown | 28.83 | 21.60 | +7.22 |
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
| ZWB.TO | XFN.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.44 | 3.46 | +0.98 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.10 | 1.26 | -0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.78 | 0.87 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.64 | +0.10 |
Drawdowns
ZWB.TO vs. XFN.TO - Drawdown Comparison
The maximum ZWB.TO drawdown since its inception was -39.36%, smaller than the maximum XFN.TO drawdown of -56.55%. Use the drawdown chart below to compare losses from any high point for ZWB.TO and XFN.TO.
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Drawdown Indicators
| ZWB.TO | XFN.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.36% | -56.55% | +17.19% |
Max Drawdown (1Y)Largest decline over 1 year | -7.82% | -7.80% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -14.05% | -12.37% | -1.68% |
Max Drawdown (5Y)Largest decline over 5 years | -25.26% | -21.90% | -3.36% |
Max Drawdown (10Y)Largest decline over 10 years | -39.36% | -39.93% | +0.57% |
Current DrawdownCurrent decline from peak | -1.85% | -1.39% | -0.46% |
Average DrawdownAverage peak-to-trough decline | -5.56% | -6.60% | +1.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.74% | 1.93% | -0.19% |
Volatility
ZWB.TO vs. XFN.TO - Volatility Comparison
BMO Covered Call Canadian Banks ETF (ZWB.TO) and iShares S&P/TSX Capped Financials Index ETF (XFN.TO) have volatilities of 4.26% and 4.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZWB.TO | XFN.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.26% | 4.19% | +0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 10.03% | 10.10% | -0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.31% | 12.07% | -0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.63% | 13.47% | -0.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.68% | 16.53% | -0.85% |
ZWB.TO vs. XFN.TO - Expense Ratio Comparison
ZWB.TO has a 0.71% expense ratio, which is higher than XFN.TO's 0.61% expense ratio.
Dividends
ZWB.TO vs. XFN.TO - Dividend Comparison
ZWB.TO's dividend yield for the trailing twelve months is around 5.02%, more than XFN.TO's 2.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XFN.TO iShares S&P/TSX Capped Financials Index ETF | 2.17% | 2.39% | 3.16% | 3.60% | 3.48% | 2.67% | 3.35% | 3.00% | 3.43% | 2.73% | 2.83% | 3.17% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 5.02% | 5.38% | 6.66% | 7.62% | 7.30% | 5.46% | 5.80% | 5.53% | 5.59% | 4.80% | 5.04% | 5.64% |
Frequently Asked Questions
With a correlation of 0.90, ZWB.TO and XFN.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, XFN.TO is cheaper at 0.61% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XFN.TO is cheaper with a 0.61% expense ratio, compared with 0.71% for ZWB.TO.
They also come from different issuers: BMO and iShares. Their fees differ too: 0.71% for ZWB.TO and 0.61% for XFN.TO.
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