ZWB.TO vs. XHY.TO
ZWB.TO (BMO Covered Call Canadian Banks ETF) and XHY.TO (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) are both exchange-traded funds - ZWB.TO is a Financials Equities fund actively managed by BMO, while XHY.TO is a High Yield Bonds fund tracking the Morningstar Gbl HY Bd GR CAD. ZWB.TO is actively managed, while XHY.TO is passively managed. Over the past 10 years, ZWB.TO returned 12.43%/yr vs 3.94%/yr for XHY.TO. At a 0.40 correlation, their price movements are largely independent. ZWB.TO charges 0.71%/yr vs 0.56%/yr for XHY.TO.
Performance
ZWB.TO vs. XHY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZWB.TO achieves a 18.31% return, which is significantly higher than XHY.TO's 0.58% return. Over the past 10 years, ZWB.TO has outperformed XHY.TO with an annualized return of 12.43%, while XHY.TO has yielded a comparatively lower 3.94% annualized return.
ZWB.TO
- 1D
- 0.35%
- 1M
- 5.16%
- YTD
- 18.31%
- 6M
- 20.90%
- 1Y
- 52.20%
- 3Y*
- 26.73%
- 5Y*
- 14.38%
- 10Y*
- 12.43%
XHY.TO
- 1D
- 0.12%
- 1M
- -0.34%
- YTD
- 0.58%
- 6M
- 0.90%
- 1Y
- 4.28%
- 3Y*
- 7.19%
- 5Y*
- 2.71%
- 10Y*
- 3.94%
ZWB.TO vs. XHY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZWB.TO BMO Covered Call Canadian Banks ETF | 18.31% | 34.91% | 19.41% | 6.67% | -11.00% | 30.81% | 1.68% | 14.32% | -8.08% | 11.52% |
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged) | 0.58% | 6.33% | 7.05% | 11.06% | -11.10% | 3.51% | 2.65% | 13.83% | -3.89% | 5.35% |
Correlation
The correlation between ZWB.TO and XHY.TO 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 (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.40 |
The correlation between ZWB.TO and XHY.TO shifts across timeframes, from 0.37 (10 years) to 0.48 (1 year), reflecting how their relationship changes across market environments.
ZWB.TO vs. XHY.TO - Sectors Allocation Comparison
Sectors
ZWB.TO
XHY.TO
Financial Services
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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
XHY.TO
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Basic Materials
ZWB.TO
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XHY.TO
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Communication Services
ZWB.TO
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XHY.TO
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Consumer Cyclical
ZWB.TO
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XHY.TO
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Consumer Defensive
ZWB.TO
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XHY.TO
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Energy
ZWB.TO
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XHY.TO
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Healthcare
ZWB.TO
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XHY.TO
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Industrials
ZWB.TO
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XHY.TO
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Real Estate
ZWB.TO
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XHY.TO
Technology
ZWB.TO
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XHY.TO
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Utilities
ZWB.TO
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XHY.TO
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Return for Risk
ZWB.TO vs. XHY.TO — Risk / Return Rank
ZWB.TO
XHY.TO
ZWB.TO vs. XHY.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 U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.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 | XHY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.70 | ||
| Sortino ratioReturn per unit of downside risk | +5.01 | ||
| Omega ratioGain probability vs. loss probability | 1.89 | 1.17 | +0.72 |
| Calmar ratioReturn relative to maximum drawdown | 6.71 | 1.50 | +5.21 |
| Martin ratioReturn relative to average drawdown | 30.11 | 6.42 | +23.68 |
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 | XHY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.62 | 0.92 | +3.70 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.14 | 0.31 | +0.83 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.80 | 0.37 | +0.42 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.75 | 0.49 | +0.26 |
Drawdowns
ZWB.TO vs. XHY.TO - Drawdown Comparison
The maximum ZWB.TO drawdown since its inception was -39.36%, which is greater than XHY.TO's maximum drawdown of -28.48%. Use the drawdown chart below to compare losses from any high point for ZWB.TO and XHY.TO.
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Drawdown Indicators
| ZWB.TO | XHY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.36% | -28.48% | -10.88% |
Max Drawdown (1Y)Largest decline over 1 year | -7.82% | -2.87% | -4.95% |
Max Drawdown (3Y)Largest decline over 3 years | -14.05% | -4.94% | -9.11% |
Max Drawdown (5Y)Largest decline over 5 years | -25.26% | -16.67% | -8.59% |
Max Drawdown (10Y)Largest decline over 10 years | -39.36% | -28.48% | -10.88% |
Current DrawdownCurrent decline from peak | -0.10% | -0.80% | +0.70% |
Average DrawdownAverage peak-to-trough decline | -5.56% | -2.55% | -3.01% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.74% | 0.67% | +1.07% |
Volatility
ZWB.TO vs. XHY.TO - Volatility Comparison
BMO Covered Call Canadian Banks ETF (ZWB.TO) has a higher volatility of 3.89% compared to iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY.TO) at 1.33%. This indicates that ZWB.TO's price experiences larger fluctuations and is considered to be riskier than XHY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZWB.TO | XHY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.89% | 1.33% | +2.56% |
Volatility (6M)Calculated over the trailing 6-month period | 9.91% | 3.58% | +6.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.39% | 4.70% | +6.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.64% | 8.65% | +3.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.68% | 10.63% | +5.05% |
ZWB.TO vs. XHY.TO - Expense Ratio Comparison
ZWB.TO has a 0.71% expense ratio, which is higher than XHY.TO's 0.56% expense ratio.
Dividends
ZWB.TO vs. XHY.TO - Dividend Comparison
ZWB.TO's dividend yield for the trailing twelve months is around 4.93%, less than XHY.TO's 6.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XHY.TO iShares U.S. High Yield Bond Index ETF (CAD-Hedged) | 6.14% | 6.04% | 5.87% | 5.56% | 5.70% | 4.72% | 5.18% | 5.38% | 5.87% | 5.46% | 5.64% | 6.83% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 4.93% | 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
ZWB.TO and XHY.TO 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.
On fees, XHY.TO is cheaper at 0.56% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XHY.TO is cheaper with a 0.56% expense ratio, compared with 0.71% for ZWB.TO.
ZWB.TO is categorized as Financials Equities, while XHY.TO is High Yield Bonds. They also come from different issuers: BMO and iShares. Their fees differ too: 0.71% for ZWB.TO and 0.56% for XHY.TO.
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