BMO Short Corporate Bond Index ETF (ZCS)
Important Information
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- Investment focus:Short-term Canadian corporate bonds
- Category:Canadian corporate bonds
- Management style:Index (passive)
- Managed by:BMO
- Market data as of:October 30, 2026
With C$5.38 billion in assets, ZCS is the 4th largest of the 42 bond ETFs WOWA tracks. Its management expense ratio (MER) is 0.11%, and over the past 12 months it paid out 4.07% of its unit price in distributions.
Jump to section: Overview • Index • Performance • Distributions • Risks • Fit • Ranking • Compare
AUM
C$5.38B
as of Oct 30, 2026
MER
0.11%
annual cost
Trailing yield
4.07%
past 12 months
5-year return
3.04%
annualized
About ZCS
BMO Short Corporate Bond Index ETF (ZCS) is a bond ETF from BMO, launched on October 20, 2009. It tracks a FTSE index of fixed-rate Canadian corporate bonds with five years or less to maturity.
What ZCS tracks
| Fund detail | Value |
|---|---|
| Index | FTSE Canada Short Term Corporate Bond Index |
| Rebalancing | Daily, following the index |
This FTSE index sticks to company bonds that come due within five years. Each one pays a fixed rate in Canadian dollars, is rated BBB or better and has at least C$100 million outstanding. Banks and insurers borrow more in this market than anyone else, so financial companies make up a large part of the fund.
ZCS fund facts
ETF data as of October 30, 2026
Updated weekly| Fund detail | Value |
|---|---|
| Fund basics | |
| Ticker | ZCS |
| Provider | BMO |
| Inception date | October 20, 2009 |
| Legal structure | Mutual fund trust |
| Management style | Index (passive) |
| Portfolio | |
| Bond market | Canada |
| Bond sector | Corporate |
| Maturity segment | Short |
| Credit mandate | Investment grade |
| Currency treatment | Canadian-dollar bonds |
| Number of holdings | 628 (as of September 4, 2026) |
| Costs and distributions | |
| Management fee | 0.10% |
| MER | 0.11% |
| Distribution frequency | Monthly |
| Trailing distribution yield | 4.07% |
| Risk rating (issuer) | Low |
| Size and trading | |
| Assets under management | C$5.38 billion (as of October 30, 2026) |
| Average daily volume | 133,160 units a day (listing exchange) |
ZCS performance
ETF data as of October 30, 2026
Updated weekly| Period | ZCS | Canadian corporate median |
|---|---|---|
| 1 year | 1.51% | 0.76% |
| 3 years, annualized | 5.82% | 6.36% |
| 5 years, annualized | 3.04% | 2.36% |
| 10 years, annualized | 2.68% | 2.68% |
Total returns with distributions reinvested, in CAD, as of October 30, 2026. Category median: the middle value among the funds in the Canadian corporate group with a return for that period (8 funds for one year, 7 for three and five years, 5 for ten years). N/A: no complete return record for the period. Past performance does not predict future results.
$10,000 invested in ZCS ten years ago would be worth about $13,000 as of October 30, 2026, with distributions reinvested and before taxes and trading costs.
Risk and return measures
ETF data as of October 30, 2026
Updated weekly| Measure | 3 years | 5 years | 10 years |
|---|---|---|---|
| Volatility | 2.33% | 2.85% | 3.32% |
| Sharpe ratio | 1.04 | -0.03 | 0.21 |
Volatility shows how much monthly returns have swung, as a yearly percentage. The Sharpe ratio compares the return above 3-month Government of Canada T-bills with that volatility. Higher means more return for each unit of risk, and below 0 means the fund earned less than T-bills.
ZCS distributions
ZCS pays distributions monthly. Over the 12 months to October 30, 2026, it paid 4.07% of its unit price, its trailing distribution yield. Amounts can change from one payment to the next.
What ZCS’s 2025 distributions were made of
| Component | Share of total |
|---|---|
| Total distribution per unit | $0.52 |
| Interest and other income | 99.10% |
| Return of capital | 0.90% |
- Interest and other income is taxed like employment income in a non-registered account.
- Return of capital is not taxed when you receive it, but it lowers your adjusted cost base, which raises the capital gain when you sell.
Inside a TFSA or RRSP, the type of income does not change your tax. Our guide to registered and non-registered accounts explains the trade-offs.
2025 tax-year breakdown reported for the fund. Shares of the total distribution per unit.
Risks to know
BMO rates ZCS’s risk as low on the standard Canadian fund scale, which runs from low to high. The rating reflects how much the fund’s returns have varied, not the chance that a borrower defaults.
It owns only corporate bonds, and about 42% is rated BBB, so company credit matters alongside interest rates. Short maturities keep rate sensitivity modest.
- Credit: It holds investment-grade company debt, which can still lose value if a borrower's outlook weakens or its rating is cut.
Is ZCS a good fit?
| Good fit if you | Think twice if you |
|---|---|
| want more income than government bonds usually pay and accept company credit risk. | want the lowest credit risk: government bond funds carry less. |
| may need the money within a few years and want smaller price swings than a broad bond fund. | want to lock in today's yields for many years: short-term bonds reinvest at whatever rates are on offer when they mature. |
| want a low-cost fund: its 0.11% MER is below the Canadian corporate median of 0.17%. | need a set amount back on a set date: a bond ETF has no maturity date, unlike a GIC. |
General pointers based on the fund’s category, structure and costs, not personal advice.
How ZCS ranks
By assets
4th
of 42 bond ETFs
By lowest MER
15th (tied)
of 42 bond ETFs
By 5-year return
2nd
of 7 Canadian corporate bond ETFs
ZCS ranks 4th by assets among the 42 bond ETFs WOWA monitors, 15th (tied) by lowest MER, and 2nd of 7 by five-year return in the Canadian corporate group, as of October 30, 2026. See the full list of Canadian bond ETFs.
Compare ZCS with similar bond ETFs
ZCS is in the Canadian corporate group on our Best Canadian Bond ETFs page. These are the largest other funds in that group.
ETF data as of October 30, 2026
Updated weekly| Ticker | Exposure and strategy | 5-year return | MER | Trailing yield | AUM (CAD B) |
|---|---|---|---|---|---|
| ZCS | Short-term Canadian corporate bonds | 3.04% | 0.11% | 4.07% | 5.38 |
| XCB | Canadian investment-grade corporate bonds | 2.24% | 0.17% | 4.27% | 3.88 |
| XSH | Short-term corporate bonds issued in Canadian dollars | 3.10% | 0.10% | 4.00% | 3.17 |
| CACB | Canadian investment-grade corporate bonds · active | 2.23% | 0.38% | 4.93% | 2.53 |
| ZCB | Canadian investment-grade corporate bonds | 2.18% | 0.17% | 4.22% | 2.15 |
See all 8 funds in this group.
Other bond ETFs from BMO
| Fund | Investment focus | AUM | Fund page |
|---|---|---|---|
| BMO Aggregate Bond Index ETF (ZAG) | Canadian investment-grade government and corporate bonds | C$13.24B | Learn more |
| BMO Ultra Short-Term Bond ETF (ZST) | Canadian investment-grade bonds with very short maturities · active | C$3.41B | Learn more |
| BMO Mid-Term US IG Corporate Bond Index ETF (ZIC) | Mid-term US investment-grade corporate bonds, unhedged | C$3.35B | Learn more |
| BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU) | Mid-term US investment-grade corporate bonds, hedged to CAD | C$3.31B | Learn more |
| BMO Core Plus Bond Fund ETF (ZCPB) | Canadian bonds with room for foreign and high-yield debt · active | C$2.85B | Learn more |
We cover 9 more bond ETFs from BMO. See them all on our Best Canadian Bond ETFs page.
How to buy ZCS
You can buy ZCS through any Canadian brokerage account, including a TFSA, RRSP or FHSA, by searching for its ticker. When comparing Canadian trading platforms, look at commissions, account fees and currency-conversion costs.
Before you place the order, check the bid-ask spread and consider a limit order, which caps the price you pay but may not fill. If this is your first account, our brokerage account guide walks you through opening one. Buying inside a TFSA? Our guide to the best TFSA investment options covers the other choices for that account.
If you’re from BMO and would like to add or update information on this page, please contact us.
Returns, volatility, Sharpe ratios, trailing yield and trading volume: WOWA calculations from Yahoo Finance prices adjusted for distributions, as of October 30, 2026. Assets under management: as of October 30, 2026. Fees, risk rating and inception date: BMO fund documents. Distribution breakdown: 2025 tax year. Fund page: BMO Short Corporate Bond Index ETF.
Disclaimer: This page is for general information only and is not investment advice. WOWA does not recommend any specific fund. Figures come from issuer and third-party sources, may contain errors and can change after publication, so check the fund’s own documents before you invest.