VAB.TO vs. ZAG.TO
Compare and contrast key facts about Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO).
VAB.TO and ZAG.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VAB.TO is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. It was launched on Nov 30, 2011. ZAG.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Bond Index. It was launched on Jan 19, 2010. Both VAB.TO and ZAG.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VAB.TO or ZAG.TO.
Key characteristics
| VAB.TO | ZAG.TO | |
|---|---|---|
| YTD Return | 3.55% | 3.81% |
| 1Y Return | 10.03% | 10.32% |
| 3Y Return (Ann) | -0.05% | 0.00% |
| 5Y Return (Ann) | 0.51% | 0.62% |
| 10Y Return (Ann) | 1.95% | 2.02% |
| Sharpe Ratio | 1.68 | 1.70 |
| Sortino Ratio | 2.46 | 2.54 |
| Omega Ratio | 1.29 | 1.30 |
| Calmar Ratio | 0.70 | 0.72 |
| Martin Ratio | 5.72 | 5.89 |
| Ulcer Index | 1.78% | 1.75% |
| Daily Std Dev | 6.06% | 6.07% |
| Max Drawdown | -18.39% | -18.03% |
| Current Drawdown | -6.02% | -5.50% |
Correlation
The correlation between VAB.TO and ZAG.TO is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VAB.TO vs. ZAG.TO - Performance Comparison
In the year-to-date period, VAB.TO achieves a 3.55% return, which is significantly lower than ZAG.TO's 3.81% return. Both investments have delivered pretty close results over the past 10 years, with VAB.TO having a 1.95% annualized return and ZAG.TO not far ahead at 2.02%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VAB.TO vs. ZAG.TO - Expense Ratio Comparison
Both VAB.TO and ZAG.TO have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VAB.TO vs. ZAG.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and BMO Aggregate Bond Index ETF (ZAG.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.
Dividends
VAB.TO vs. ZAG.TO - Dividend Comparison
VAB.TO's dividend yield for the trailing twelve months is around 3.17%, less than ZAG.TO's 3.44% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.17% | 2.95% | 2.87% | 2.48% | 2.50% | 2.65% | 2.79% | 2.77% | 2.75% | 2.78% | 2.87% | 3.21% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.44% | 3.47% | 3.56% | 3.04% | 2.88% | 3.03% | 2.92% | 2.95% | 3.07% | 3.13% | 3.23% | 3.63% |
Drawdowns
VAB.TO vs. ZAG.TO - Drawdown Comparison
The maximum VAB.TO drawdown since its inception was -18.39%, roughly equal to the maximum ZAG.TO drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VAB.TO and ZAG.TO. For additional features, visit the drawdowns tool.
Volatility
VAB.TO vs. ZAG.TO - Volatility Comparison
Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) has a higher volatility of 2.50% compared to BMO Aggregate Bond Index ETF (ZAG.TO) at 2.37%. This indicates that VAB.TO's price experiences larger fluctuations and is considered to be riskier than ZAG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.