BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU)

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• Investment focus:Mid-term US investment-grade corporate bonds, hedged to CAD
• Category:US and global bonds
• Management style:Index (passive)
• Managed by:BMO
• Market data as of:October 30, 2026

With C$3.31 billion in assets, ZMU is the 12th largest of the 42 bond ETFs WOWA tracks. Its management expense ratio (MER) is 0.28%, and over the past 12 months it paid out 4.81% of its unit price in distributions.

Jump to section: Overview • Index • Performance • Distributions • Risks • Fit • Ranking • Compare

BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU) is a bond ETF from BMO, launched on March 20, 2013. It tracks a Bloomberg index of US-dollar investment-grade corporate bonds with five to ten years to maturity, hedged to Canadian dollars. It holds BMO Mid-Term US IG Corporate Bond Index ETF (ZIC) for the bonds.

ZMU follows the same Bloomberg index as ZIC: investment-grade US corporate bonds with five to ten years left to run, with a cap on how much any one company can take up. The difference is the currency. ZMU tracks the version of the index hedged to Canadian dollars. It doesn’t buy the bonds itself. It gets them by holding ZIC.

ZMU shares its index with one other ETF. They aim for the same return before costs, so fees and currency treatment are the main differences.

All of ZMU's holdings are in US dollars, and the fund hedges that exposure back to Canadian dollars. The hedge takes out most of the effect of exchange-rate moves, so returns depend mainly on the bonds. It is not perfect, and its cost or benefit depends on the gap between Canadian and foreign interest rates. For the same bonds without the currency hedge, see ZIC.

Total returns with distributions reinvested, in CAD, as of October 30, 2026. Category median: the middle value among the funds in the US and global group with a return for that period (10 funds for one and three years, 9 for five years, 6 for ten years). N/A: no complete return record for the period. Past performance does not predict future results.

$10,000 invested in ZMU ten years ago would be worth about $11,500 as of October 30, 2026, with distributions reinvested and before taxes and trading costs.

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.

ZMU pays distributions monthly. Over the 12 months to October 30, 2026, it paid 4.81% of its unit price, its trailing distribution yield. Amounts can change from one payment to the next.

• Foreign income is also taxed as regular income. For funds that hold foreign bonds, it is mostly interest from those bonds.
• 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.

BMO rates ZMU’s risk as low to medium 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.

Hedging removes most currency effects, leaving credit and US interest-rate risk. About half the fund is rated BBB, the lowest investment-grade band.

• Credit: It holds investment-grade company debt, which can still lose value if a borrower's outlook weakens or its rating is cut.
• Currency: Its foreign-currency exposure is hedged to Canadian dollars, which removes most, not all, exchange-rate effects and has a cost.

General pointers based on the fund’s category, structure and costs, not personal advice.

ZMU ranks 12th by assets among the 42 bond ETFs WOWA monitors, 28th (tied) by lowest MER, and 7th of 9 by five-year return in the US and global group, as of October 30, 2026. See the full list of Canadian bond ETFs.

ZMU is in the US and global group on our Best Canadian Bond ETFs page. These are the largest other funds in that group.

See all 10 funds in this group.

We cover 9 more bond ETFs from BMO. See them all on our Best Canadian Bond ETFs page.

You can buy ZMU 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 Mid-Term US IG Corporate Bond Hedged to CAD 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.