VS
BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF) and iShares U.S. High Yield Bond Index ETF (XHY) offer distinct profiles for Canadian ETF investors. A direct comparison shows that ZEF focuses its top 3 sector exposures on Sovereign and Municipal, while XHY leans towards Finance, Consumer Services, and Industrials. When evaluating costs, ZEF features a management fee (MER) of 0.5%, compared to 0.5% for XHY. Performance-wise, ZEF has returned 2.32% year-to-date with +$73 M in net flows, whereas XHY is at 1.46% with +$337 M. Use the comparison tool below to benchmark these funds across top 10 holdings, yield, sector weights and historical returns.
NAV Performance and Flows
Key Data
Compare
ZEF
XHY
| AuM | $759.11 M | $1,228.64 M |
| Management Fees | 0.50% | 0.50% |
| Exp. ratio | 0.55% | 0.56% |
| Tracking Difference | 0.07% | -0.27% |
Historical performance and flows
As of October 26, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | ZEF | +0.47% | -1.95% | -2.32% | -1.95% | +18.28% |
XHY | -0.03% | -1.75% | -1.46% | -0.91% | +21.97% | |
| Flows | ZEF | -$1 M | -$17 M | +$73 M | +$127 M | +$181 M |
XHY | +$61 M | +$114 M | +$337 M | +$372 M | +$889 M |
ZEF vs XHY exposure
Countries
ZEF
Republic of Korea
10.00%
Mexico
9.99%
China
9.88%
Brazil
9.83%
Indonesia
9.25%
Saudi Arabia
8.32%
Other
42.73%
XHY
USA
85.65%
Other
14.35%
Sectors
ZEF
Sovereign
95.51%
XHY
Finance
17.32%
Consumer Services
13.32%
Industrials
9.39%
Energy
8.65%
Non-Energy Materials
7.98%
Business Services
7.24%
Other
36.10%
As of October 26, 2026
Top 10 Holdings
ZEF
Republic of Korea, 3.875% 12feb2031, USD
3.40%
China, 3.625% 13nov2028, USD
3.37%
Mexico, 5.625% 9feb2034, USD
3.35%
Mexico, 5.5% 17aug2030, USD
3.35%
Republic of Korea, 3.625% 12feb2029, USD
3.35%
Brazil, 5.5% 6nov2030, USD
3.31%
China, 1.2% 21oct2030, USD
3.30%
Mexico, 5.375% 22mar2033, USD
3.30%
Brazil, 3.875% 12jun2030, USD
3.28%
Republic of Korea, 2.5% 19jun2029, USD
3.26%
XHY
1261229 B.C., 10% 15apr2032, USD
0.51%
Meridian Arc HoldCo, 6.25% 30apr2031, USD
0.48%
EchoStar, 10.75% 30nov2029, USD
0.43%
PR RNO Property Owner 1, 6.5% 1may2031, USD
0.36%
Cloud Software Group, 9% 30sep2029, USD
0.36%
Quikrete Holdings, 6.375% 1mar2032, USD
0.34%
Cloud Software Group, 6.5% 31mar2029, USD
0.33%
Nexstar Media, 6.5% 15sep2033, USD
0.33%
Centene, 4.625% 15dec2029, USD
0.32%
Asurion LLC, 8% 31dec2032, USD
0.30%
Diversification
ZEF
Total weight of top 10 holdings out of 59 total
33.26%
XHY
Total weight of top 10 holdings out of 1,310 total
3.77%
Characteristics
Compare
ZEF
XHY
| Provider | BMO | iShares |
| Management | Passively managed | Passively managed |
| Benchmark | Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD | Markit iBoxx USD Liquid High Yield Index - CAD Hedged |
| Replication Method | Direct (Physical) | Direct (Physical) |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 4.31% | 6.38% |
| Meets ESG criteria | No | No |
| Inception Date | May 21, 2010 | January 21, 2010 |
Frequently asked questions about ZEF and XHY
Which ETF has performed better year to date: ZEF or XHY?
As of October 26, 2026, ZEF has returned -2.32% year to date, while XHY has returned -1.46%. XHY is ahead on YTD performance.
Which ETF is larger by assets under management: ZEF or XHY?
As of October 26, 2026, ZEF manages $759.11 M in assets, while XHY manages $1.23 B. XHY is the larger fund by AUM.
How are ZEF and XHY managed?
ZEF is passively managed by BMO. It tracks the Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD benchmark. XHY is passively managed by iShares. It tracks the Markit iBoxx USD Liquid High Yield Index - CAD Hedged benchmark.
What sectors do ZEF and XHY emphasize?
ZEF is most exposed to Sovereign and Municipal. XHY is most exposed to Finance, Consumer Services, and Industrials.
Which ETF is attracting more investor flows: ZEF or XHY?
Year to date, ZEF has seen +$73.45 M in net flows, compared with +$336.58 M for XHY. XHY has attracted more net investor money so far.
How do the fees of ZEF and XHY compare?
ZEF has an expense ratio of 0.55%, while XHY has an expense ratio of 0.56%.
What are the top holdings of ZEF and XHY?
ZEF's largest holdings include Republic of Korea, 3.875% 12feb2031, USD, China, 3.625% 13nov2028, USD, and Mexico, 5.625% 9feb2034, USD. XHY's top holdings include 1261229 B.C., 10% 15apr2032, USD and Meridian Arc HoldCo, 6.25% 30apr2031, USD.
Which ETF is more diversified: ZEF or XHY?
ZEF holds 59 securities, while XHY holds 1292. On holdings count, XHY is the more diversified portfolio.
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