VGV.TO vs. ZAG.TO

Last updated Jun 17, 2026

VGV.TO (Vanguard Canadian Government Bond Index ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both Canadian Government Bonds funds - VGV.TO tracks the Bloomberg Global Aggregate Canadian Government Float Adjusted Bond Index while ZAG.TO tracks the FTSE Canada Universe Bond Index. Both are passively managed. Over the past 5 years, VGV.TO returned 0.02%/yr vs 0.72%/yr for ZAG.TO. A 0.69 correlation means they provide meaningful diversification when combined. VGV.TO charges 0.17%/yr vs 0.09%/yr for ZAG.TO.

Performance

VGV.TO vs. ZAG.TO - Performance Comparison

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

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with VGV.TO at 1.92% and ZAG.TO at 1.92%.

VGV.TO

• 1D: 0.13%
• 1M: 2.35%
• YTD: 1.92%
• 6M: 2.24%
• 1Y: 3.98%
• 3Y*: 3.79%
• 5Y*: 0.02%
• 10Y*: —

ZAG.TO

• 1D: 0.07%
• 1M: 2.27%
• YTD: 1.92%
• 6M: 1.92%
• 1Y: 4.23%
• 3Y*: 4.49%
• 5Y*: 0.72%
• 10Y*: 1.63%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGV.TO Vanguard Canadian Government Bond Index ETF	1.92%	1.90%	3.24%	5.61%	-12.28%	-3.53%	7.64%	6.40%	-0.20%	2.91%
ZAG.TO BMO Aggregate Bond Index ETF	1.92%	2.25%	4.48%	6.41%	-11.60%	-2.60%	8.34%	6.84%	1.12%	2.13%

Correlation

The correlation between VGV.TO and ZAG.TO is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 8, 2017	0.69

The correlation between VGV.TO and ZAG.TO shifts across timeframes, from 0.69 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

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

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

VGV.TO

VGV.TO Risk / Return Rank: 23
VGV.TO Sharpe Ratio Rank: 23
VGV.TO Sortino Ratio Rank: 20
VGV.TO Omega Ratio Rank: 21
VGV.TO Calmar Ratio Rank: 28
VGV.TO Martin Ratio Rank: 24

ZAG.TO

ZAG.TO Risk / Return Rank: 27
ZAG.TO Sharpe Ratio Rank: 27
ZAG.TO Sortino Ratio Rank: 24
ZAG.TO Omega Ratio Rank: 26
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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Government Bond Index ETF (VGV.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.

	VGV.TO	ZAG.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.80	0.95	-0.15
Sortino ratio: Return per unit of downside risk	1.11	1.33	-0.22
Omega ratio: Gain probability vs. loss probability	1.14	1.18	-0.03
Calmar ratio: Return relative to maximum drawdown	1.37	1.52	-0.16
Martin ratio: Return relative to average drawdown	2.96	3.55	-0.59

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

The current VGV.TO Sharpe Ratio is 0.80, which is comparable to the ZAG.TO Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of VGV.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

VGV.TO vs. ZAG.TO - Drawdown Comparison

The maximum VGV.TO drawdown since its inception was -20.77%, 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 VGV.TO and ZAG.TO.

Drawdown Indicators

	VGV.TO	ZAG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-20.77%	-18.03%	-2.74%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-2.79%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	-6.05%	-5.42%	-0.63%
Max Drawdown (5Y) Largest decline over 5 years	-16.94%	-15.77%	-1.17%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-6.20%	-0.88%	-5.32%
Average Drawdown Average peak-to-trough decline	-7.27%	-3.54%	-3.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.35%	1.19%	+0.16%

Volatility

VGV.TO vs. ZAG.TO - Volatility Comparison

Vanguard Canadian Government Bond Index ETF (VGV.TO) has a higher volatility of 1.42% compared to BMO Aggregate Bond Index ETF (ZAG.TO) at 1.15%. This indicates that VGV.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

	VGV.TO	ZAG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.42%	1.15%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	3.77%	3.35%	+0.42%
Volatility (1Y) Calculated over the trailing 1-year period	4.99%	4.45%	+0.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.00%	6.58%	+0.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.02%	7.12%	-0.10%

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

VGV.TO has a 0.17% 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

VGV.TO vs. ZAG.TO - Dividend Comparison

VGV.TO's dividend yield for the trailing twelve months is around 3.10%, less than ZAG.TO's 3.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGV.TO Vanguard Canadian Government Bond Index ETF	3.10%	3.04%	2.97%	2.78%	2.63%	2.35%	2.28%	2.36%	2.52%	2.26%	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 VGV.TO and ZAG.TO in my portfolio?

VGV.TO and ZAG.TO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

ZAG.TO is cheaper with a 0.09% expense ratio, compared with 0.17% for VGV.TO.

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

VGV.TO tracks Bloomberg Global Aggregate Canadian Government Float Adjusted Bond Index, while ZAG.TO tracks FTSE Canada Universe Bond Index. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.17% for VGV.TO and 0.09% for ZAG.TO.