VAB.TO vs. ZCM.TO

Last updated Jun 4, 2026

VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) and ZCM.TO (BMO Mid Corporate Bond Index ETF) are both exchange-traded funds - VAB.TO is a Canadian Government Bonds fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while ZCM.TO is a Corporate Bonds fund tracking the FTSE Canada Mid Term Corporate Bond Index. Both are passively managed. Over the past 10 years, VAB.TO returned 1.51%/yr vs 3.01%/yr for ZCM.TO. A 0.75 correlation means they provide meaningful diversification when combined. VAB.TO charges 0.09%/yr vs 0.33%/yr for ZCM.TO.

Performance

VAB.TO vs. ZCM.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and BMO Mid Corporate Bond Index ETF (ZCM.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VAB.TO achieves a 1.62% return, which is significantly lower than ZCM.TO's 1.96% return. Over the past 10 years, VAB.TO has underperformed ZCM.TO with an annualized return of 1.51%, while ZCM.TO has yielded a comparatively higher 3.01% annualized return.

VAB.TO

• 1D: -0.07%
• 1M: 1.70%
• YTD: 1.62%
• 6M: 0.78%
• 1Y: 3.12%
• 3Y*: 4.12%
• 5Y*: 0.66%
• 10Y*: 1.51%

ZCM.TO

• 1D: -0.06%
• 1M: 1.85%
• YTD: 1.96%
• 6M: 1.40%
• 1Y: 5.13%
• 3Y*: 6.78%
• 5Y*: 2.32%
• 10Y*: 3.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VAB.TO vs. ZCM.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	1.62%	2.28%	3.98%	6.90%	-11.86%	-2.88%	8.26%	6.77%	1.13%	2.30%
ZCM.TO BMO Mid Corporate Bond Index ETF	1.96%	4.84%	8.07%	7.96%	-10.18%	-2.09%	10.34%	8.59%	0.58%	2.28%

Correlation

The correlation between VAB.TO and ZCM.TO is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Dec 7, 2011	0.75

The correlation between VAB.TO and ZCM.TO shifts across timeframes, from 0.75 (all time) to 0.89 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VAB.TO vs. ZCM.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VAB.TO

VAB.TO Risk / Return Rank: 21
VAB.TO Sharpe Ratio Rank: 20
VAB.TO Sortino Ratio Rank: 18
VAB.TO Omega Ratio Rank: 19
VAB.TO Calmar Ratio Rank: 24
VAB.TO Martin Ratio Rank: 21

ZCM.TO

ZCM.TO Risk / Return Rank: 32
ZCM.TO Sharpe Ratio Rank: 31
ZCM.TO Sortino Ratio Rank: 29
ZCM.TO Omega Ratio Rank: 31
ZCM.TO Calmar Ratio Rank: 34
ZCM.TO Martin Ratio Rank: 32

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VAB.TO vs. ZCM.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) and BMO Mid Corporate Bond Index ETF (ZCM.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.

	VAB.TO	ZCM.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.72	1.14	-0.43
Sortino ratio: Return per unit of downside risk	0.98	1.57	-0.59
Omega ratio: Gain probability vs. loss probability	1.12	1.21	-0.09
Calmar ratio: Return relative to maximum drawdown	1.10	1.67	-0.57
Martin ratio: Return relative to average drawdown	2.61	4.77	-2.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VAB.TO vs. ZCM.TO - Sharpe Ratio Comparison

The current VAB.TO Sharpe Ratio is 0.72, which is lower than the ZCM.TO Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VAB.TO and ZCM.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VAB.TO	ZCM.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	1.14	-0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.38	-0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.35	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.56	-0.17

Drawdowns

VAB.TO vs. ZCM.TO - Drawdown Comparison

The maximum VAB.TO drawdown since its inception was -18.39%, smaller than the maximum ZCM.TO drawdown of -26.06%. Use the drawdown chart below to compare losses from any high point for VAB.TO and ZCM.TO.

Drawdown Indicators

	VAB.TO	ZCM.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.39%	-26.06%	+7.67%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-3.08%	+0.25%
Max Drawdown (3Y) Largest decline over 3 years	-5.31%	-4.02%	-1.29%
Max Drawdown (5Y) Largest decline over 5 years	-15.82%	-15.82%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-18.39%	-26.06%	+7.67%
Current Drawdown Current decline from peak	-1.92%	-0.37%	-1.55%
Average Drawdown Average peak-to-trough decline	-4.11%	-2.61%	-1.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.20%	1.08%	+0.12%

Volatility

VAB.TO vs. ZCM.TO - Volatility Comparison

The current volatility for Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) is 1.59%, while BMO Mid Corporate Bond Index ETF (ZCM.TO) has a volatility of 1.81%. This indicates that VAB.TO experiences smaller price fluctuations and is considered to be less risky than ZCM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAB.TO	ZCM.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.59%	1.81%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	3.45%	3.65%	-0.20%
Volatility (1Y) Calculated over the trailing 1-year period	4.38%	4.51%	-0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.58%	6.09%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.48%	8.76%	-2.28%

VAB.TO vs. ZCM.TO - Expense Ratio Comparison

VAB.TO has a 0.09% expense ratio, which is lower than ZCM.TO's 0.33% expense ratio.

Dividends

VAB.TO vs. ZCM.TO - Dividend Comparison

VAB.TO's dividend yield for the trailing twelve months is around 3.32%, less than ZCM.TO's 4.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	3.32%	3.33%	3.19%	2.95%	2.87%	2.48%	2.50%	2.65%	2.79%	2.77%	2.75%	2.78%
ZCM.TO BMO Mid Corporate Bond Index ETF	4.25%	4.03%	3.84%	3.93%	3.80%	3.29%	3.12%	3.33%	3.22%	3.04%	3.18%	3.42%

Frequently Asked Questions

Can I hold both VAB.TO and ZCM.TO in my portfolio?

VAB.TO and ZCM.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VAB.TO or ZCM.TO?

On fees, VAB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VAB.TO or ZCM.TO?

VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.33% for ZCM.TO.

What is the main difference between VAB.TO and ZCM.TO?

VAB.TO is categorized as Canadian Government Bonds, while ZCM.TO is Corporate Bonds. VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, while ZCM.TO tracks FTSE Canada Mid Term Corporate Bond Index. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.09% for VAB.TO and 0.33% for ZCM.TO.