VBAL.TO vs. ZAG.TO

Last updated Jun 14, 2026

VBAL.TO (Vanguard Balanced ETF Portfolio) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - VBAL.TO is a Diversified Portfolio fund actively managed by Vanguard, while ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index. VBAL.TO is actively managed, while ZAG.TO is passively managed. Over the past 5 years, VBAL.TO returned 7.73%/yr vs 0.68%/yr for ZAG.TO. At a 0.29 correlation, their price movements are largely independent. VBAL.TO charges 0.24%/yr vs 0.09%/yr for ZAG.TO.

Performance

VBAL.TO vs. ZAG.TO - Performance Comparison

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

Returns By Period

In the year-to-date period, VBAL.TO achieves a 7.94% return, which is significantly higher than ZAG.TO's 1.77% return.

VBAL.TO

• 1D: 0.48%
• 1M: 2.81%
• YTD: 7.94%
• 6M: 7.00%
• 1Y: 18.37%
• 3Y*: 13.77%
• 5Y*: 7.73%
• 10Y*: —

ZAG.TO

• 1D: 0.00%
• 1M: 2.12%
• YTD: 1.77%
• 6M: 2.14%
• 1Y: 3.92%
• 3Y*: 4.75%
• 5Y*: 0.68%
• 10Y*: 1.63%

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

VBAL.TO vs. ZAG.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VBAL.TO Vanguard Balanced ETF Portfolio	7.94%	11.92%	14.62%	12.49%	-11.39%	10.21%	10.27%	14.90%	-3.35%
ZAG.TO BMO Aggregate Bond Index ETF	1.77%	2.25%	4.48%	6.41%	-11.60%	-2.60%	8.34%	6.84%	2.31%

Correlation

The correlation between VBAL.TO and ZAG.TO is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (All Time) Calculated using the full available price history since Feb 1, 2018	0.29

The correlation between VBAL.TO and ZAG.TO shifts across timeframes, from 0.29 (all time) to 0.48 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VBAL.TO vs. ZAG.TO — Risk / Return Rank

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

VBAL.TO

VBAL.TO Risk / Return Rank: 75
VBAL.TO Sharpe Ratio Rank: 76
VBAL.TO Sortino Ratio Rank: 77
VBAL.TO Omega Ratio Rank: 78
VBAL.TO Calmar Ratio Rank: 68
VBAL.TO Martin Ratio Rank: 75

ZAG.TO

ZAG.TO Risk / Return Rank: 26
ZAG.TO Sharpe Ratio Rank: 26
ZAG.TO Sortino Ratio Rank: 24
ZAG.TO Omega Ratio Rank: 25
ZAG.TO Calmar Ratio Rank: 31
ZAG.TO Martin Ratio Rank: 26

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.

VBAL.TO vs. ZAG.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Balanced ETF Portfolio (VBAL.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VBAL.TO	ZAG.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.10	0.83	+1.27
Sortino ratio: Return per unit of downside risk	2.97	1.17	+1.81
Omega ratio: Gain probability vs. loss probability	1.40	1.15	+0.24
Calmar ratio: Return relative to maximum drawdown	2.95	1.33	+1.62
Martin ratio: Return relative to average drawdown	12.36	3.11	+9.26

VBAL.TO vs. ZAG.TO - Sharpe Ratio Comparison

The current VBAL.TO Sharpe Ratio is 2.10, which is higher than the ZAG.TO Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of VBAL.TO and ZAG.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.

Drawdowns

VBAL.TO vs. ZAG.TO - Drawdown Comparison

The maximum VBAL.TO drawdown since its inception was -21.19%, which is greater than ZAG.TO's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VBAL.TO and ZAG.TO.

Drawdown Indicators

	VBAL.TO	ZAG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-21.19%	-18.03%	-3.16%
Max Drawdown (1Y) Largest decline over 1 year	-5.93%	-2.79%	-3.14%
Max Drawdown (3Y) Largest decline over 3 years	-9.66%	-5.42%	-4.24%
Max Drawdown (5Y) Largest decline over 5 years	-16.38%	-15.77%	-0.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-0.50%	-1.02%	+0.52%
Average Drawdown Average peak-to-trough decline	-3.14%	-3.54%	+0.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.42%	1.19%	+0.23%

Volatility

VBAL.TO vs. ZAG.TO - Volatility Comparison

Vanguard Balanced ETF Portfolio (VBAL.TO) has a higher volatility of 3.41% compared to BMO Aggregate Bond Index ETF (ZAG.TO) at 1.47%. This indicates that VBAL.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.

Volatility by Period

	VBAL.TO	ZAG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	1.47%	+1.94%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	3.35%	+3.65%
Volatility (1Y) Calculated over the trailing 1-year period	8.33%	4.46%	+3.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.70%	6.58%	+2.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.11%	7.11%	+3.00%

VBAL.TO vs. ZAG.TO - Expense Ratio Comparison

VBAL.TO has a 0.24% expense ratio, which is higher than ZAG.TO's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBAL.TO vs. ZAG.TO - Dividend Comparison

VBAL.TO's dividend yield for the trailing twelve months is around 2.07%, less than ZAG.TO's 3.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBAL.TO Vanguard Balanced ETF Portfolio	2.07%	2.23%	2.30%	2.37%	2.21%	1.95%	1.82%	2.25%	2.04%	0.00%	0.00%	0.00%
ZAG.TO BMO Aggregate Bond Index ETF	3.41%	3.48%	3.44%	3.47%	3.56%	3.04%	2.88%	3.03%	2.92%	2.95%	3.07%	3.13%

Frequently Asked Questions

Can I hold both VBAL.TO and ZAG.TO in my portfolio?

VBAL.TO and ZAG.TO have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBAL.TO or ZAG.TO?

On fees, ZAG.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, VBAL.TO or ZAG.TO?

ZAG.TO is cheaper with a 0.09% expense ratio, compared with 0.24% for VBAL.TO.

What is the main difference between VBAL.TO and ZAG.TO?

VBAL.TO is categorized as Diversified Portfolio, while ZAG.TO is Canadian Government Bonds. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.24% for VBAL.TO and 0.09% for ZAG.TO.