VSC.TO vs. ZAG.TO
VSC.TO (Vanguard Canadian Short-Term Corporate Bond Index ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - VSC.TO is a Short-Term Bond fund tracking the Bloomberg Global Aggregate Canadian 1-5 Year Corporate Float Adjusted Index, while ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index. Both are passively managed. Over the past 10 years, VSC.TO returned 2.79%/yr vs 1.70%/yr for ZAG.TO. A 0.63 correlation means they provide meaningful diversification when combined. VSC.TO charges 0.11%/yr vs 0.09%/yr for ZAG.TO.
Performance
VSC.TO vs. ZAG.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VSC.TO achieves a 1.52% return, which is significantly lower than ZAG.TO's 2.21% return. Over the past 10 years, VSC.TO has outperformed ZAG.TO with an annualized return of 2.79%, while ZAG.TO has yielded a comparatively lower 1.70% annualized return.
VSC.TO
- 1D
- 0.25%
- 1M
- 0.55%
- YTD
- 1.52%
- 6M
- 1.51%
- 1Y
- 3.79%
- 3Y*
- 6.09%
- 5Y*
- 2.93%
- 10Y*
- 2.79%
ZAG.TO
- 1D
- 0.51%
- 1M
- 1.00%
- YTD
- 2.21%
- 6M
- 2.06%
- 1Y
- 3.62%
- 3Y*
- 4.70%
- 5Y*
- 0.81%
- 10Y*
- 1.70%
VSC.TO vs. ZAG.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VSC.TO Vanguard Canadian Short-Term Corporate Bond Index ETF | 1.52% | 4.63% | 6.69% | 6.75% | -4.23% | -0.97% | 6.27% | 4.72% | 1.19% | 0.92% |
ZAG.TO BMO Aggregate Bond Index ETF | 2.21% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 6.84% | 1.12% | 2.45% |
Correlation
The correlation between VSC.TO and ZAG.TO is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.79 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Nov 8, 2012 | 0.63 |
The correlation between VSC.TO and ZAG.TO shifts across timeframes, from 0.63 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VSC.TO vs. ZAG.TO — Risk / Return Rank
VSC.TO
ZAG.TO
VSC.TO vs. ZAG.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC.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.
| VSC.TO | ZAG.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.08 | ||
| Sortino ratioReturn per unit of downside risk | +1.54 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.15 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 2.49 | 1.31 | +1.18 |
| Martin ratioReturn relative to average drawdown | 9.91 | 3.04 | +6.86 |
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Drawdowns
VSC.TO vs. ZAG.TO - Drawdown Comparison
The maximum VSC.TO drawdown since its inception was -15.87%, smaller than the maximum ZAG.TO drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VSC.TO and ZAG.TO.
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Drawdown Indicators
| VSC.TO | ZAG.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.87% | -18.03% | +2.16% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -2.79% | +1.26% |
Max Drawdown (3Y)Largest decline over 3 years | -1.53% | -5.42% | +3.89% |
Max Drawdown (5Y)Largest decline over 5 years | -7.68% | -15.77% | +8.09% |
Max Drawdown (10Y)Largest decline over 10 years | -15.87% | -18.03% | +2.16% |
Current DrawdownCurrent decline from peak | 0.00% | -0.59% | +0.59% |
Average DrawdownAverage peak-to-trough decline | -0.96% | -3.53% | +2.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 1.19% | -0.81% |
Volatility
VSC.TO vs. ZAG.TO - Volatility Comparison
The current volatility for Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC.TO) is 0.58%, while BMO Aggregate Bond Index ETF (ZAG.TO) has a volatility of 1.08%. This indicates that VSC.TO experiences smaller price fluctuations and is considered to be less risky than ZAG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VSC.TO | ZAG.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.58% | 1.08% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 1.62% | 3.39% | -1.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.01% | 4.48% | -2.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.74% | 6.58% | -3.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.15% | 7.11% | -1.96% |
VSC.TO vs. ZAG.TO - Expense Ratio Comparison
VSC.TO has a 0.11% 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
VSC.TO vs. ZAG.TO - Dividend Comparison
VSC.TO's dividend yield for the trailing twelve months is around 3.68%, more than ZAG.TO's 3.40% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSC.TO Vanguard Canadian Short-Term Corporate Bond Index ETF | 3.68% | 3.61% | 3.54% | 3.14% | 2.85% | 2.59% | 2.64% | 2.71% | 2.77% | 2.75% | 2.89% | 3.05% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.40% | 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
VSC.TO and ZAG.TO have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
ZAG.TO is cheaper with a 0.09% expense ratio, compared with 0.11% for VSC.TO.
VSC.TO is categorized as Short-Term Bond, while ZAG.TO is Canadian Government Bonds. VSC.TO tracks Bloomberg Global Aggregate Canadian 1-5 Year Corporate Float Adjusted Index, while ZAG.TO tracks FTSE Canada Universe Bond Index. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.11% for VSC.TO and 0.09% for ZAG.TO.
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