VFV.TO vs. ZAG.TO

Last updated Jun 6, 2026

VFV.TO (Vanguard S&P 500 Index ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - VFV.TO is a S&P 500 fund tracking the S&P 500 Index, while ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index. Both are passively managed. At a 0.28 correlation, their price movements are largely independent. Both charge a 0.09% expense ratio.

Performance

VFV.TO vs. ZAG.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard S&P 500 Index ETF (VFV.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, VFV.TO achieves a 10.06% return, which is significantly higher than ZAG.TO's 1.70% return.

VFV.TO

• 1D: -2.35%
• 1M: 2.71%
• YTD: 10.06%
• 6M: 8.92%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZAG.TO

• 1D: 0.00%
• 1M: 1.82%
• YTD: 1.70%
• 6M: 1.18%
• 1Y: 2.95%
• 3Y*: 4.31%
• 5Y*: 0.76%
• 10Y*: 1.68%

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

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

	2026 (YTD)	2025
VFV.TO Vanguard S&P 500 Index ETF	10.06%	14.91%
ZAG.TO BMO Aggregate Bond Index ETF	1.70%	1.97%

Correlation

The correlation between VFV.TO and ZAG.TO is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 9, 2025	0.28

Return for Risk

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

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

ZAG.TO

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

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 Index ETF (VFV.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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VFV.TO	ZAG.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.67	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.12	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.24	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.30	0.45	+1.84

Drawdowns

VFV.TO vs. ZAG.TO - Drawdown Comparison

The maximum VFV.TO drawdown since its inception was -8.62%, smaller than the maximum ZAG.TO drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VFV.TO and ZAG.TO.

Drawdown Indicators

	VFV.TO	ZAG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-8.62%	-18.03%	+9.41%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.79%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-5.42%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.77%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-2.35%	-1.09%	-1.26%
Average Drawdown Average peak-to-trough decline	-1.38%	-3.54%	+2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.19%	—

Volatility

Volatility by Period

	VFV.TO	ZAG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.68%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.43%	—
Volatility (1Y) Calculated over the trailing 1-year period	11.65%	4.45%	+7.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.65%	6.58%	+5.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.65%	7.11%	+4.54%

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

Both VFV.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%.

Dividends

VFV.TO vs. ZAG.TO - Dividend Comparison

VFV.TO's dividend yield for the trailing twelve months is around 0.85%, less than ZAG.TO's 3.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFV.TO Vanguard S&P 500 Index ETF	0.85%	0.92%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ZAG.TO BMO Aggregate Bond Index ETF	3.42%	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 VFV.TO and ZAG.TO in my portfolio?

VFV.TO and ZAG.TO have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

Both ETFs have the same 0.09% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VFV.TO or ZAG.TO?

VFV.TO and ZAG.TO have the same expense ratio: 0.09% per year.

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

VFV.TO is categorized as S&P 500, while ZAG.TO is Canadian Government Bonds. VFV.TO tracks S&P 500 Index, while ZAG.TO tracks FTSE Canada Universe Bond Index. They also come from different issuers: Vanguard and BMO.