XBB.TO vs. ZAG.TO
Compare and contrast key facts about iShares Core Canadian Universe Bond Index ETF (XBB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO).
XBB.TO and ZAG.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XBB.TO is a passively managed fund by iShares that tracks the performance of the Morningstar Can Core Bd GR CAD. It was launched on Nov 20, 2000. ZAG.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Bond Index. It was launched on Jan 19, 2010. Both XBB.TO and ZAG.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XBB.TO or ZAG.TO.
Key characteristics
| XBB.TO | ZAG.TO | |
|---|---|---|
| YTD Return | 2.80% | 3.06% |
| 1Y Return | 8.13% | 8.13% |
| 3Y Return (Ann) | -0.27% | -0.24% |
| 5Y Return (Ann) | 0.34% | 0.36% |
| 10Y Return (Ann) | 1.92% | 1.94% |
| Sharpe Ratio | 1.53 | 1.54 |
| Sortino Ratio | 2.22 | 2.30 |
| Omega Ratio | 1.27 | 1.27 |
| Calmar Ratio | 0.66 | 0.68 |
| Martin Ratio | 5.35 | 5.33 |
| Ulcer Index | 1.70% | 1.76% |
| Daily Std Dev | 5.93% | 6.08% |
| Max Drawdown | -18.16% | -18.03% |
| Current Drawdown | -6.40% | -6.18% |
Correlation
The correlation between XBB.TO and ZAG.TO is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XBB.TO vs. ZAG.TO - Performance Comparison
In the year-to-date period, XBB.TO achieves a 2.80% return, which is significantly lower than ZAG.TO's 3.06% return. Both investments have delivered pretty close results over the past 10 years, with XBB.TO having a 1.92% annualized return and ZAG.TO not far ahead at 1.94%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XBB.TO vs. ZAG.TO - Expense Ratio Comparison
XBB.TO has a 0.10% 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%.
Risk-Adjusted Performance
XBB.TO vs. ZAG.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Universe Bond Index ETF (XBB.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.
Dividends
XBB.TO vs. ZAG.TO - Dividend Comparison
XBB.TO's dividend yield for the trailing twelve months is around 3.23%, less than ZAG.TO's 3.47% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB.TO iShares Core Canadian Universe Bond Index ETF | 3.23% | 3.01% | 2.91% | 2.54% | 2.55% | 2.80% | 2.92% | 2.83% | 2.81% | 2.87% | 3.04% | 3.32% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.47% | 3.47% | 3.56% | 3.04% | 2.88% | 3.03% | 2.92% | 2.95% | 3.07% | 3.13% | 3.23% | 3.63% |
Drawdowns
XBB.TO vs. ZAG.TO - Drawdown Comparison
The maximum XBB.TO drawdown since its inception was -18.16%, roughly equal to the maximum ZAG.TO drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XBB.TO and ZAG.TO. For additional features, visit the drawdowns tool.
Volatility
XBB.TO vs. ZAG.TO - Volatility Comparison
iShares Core Canadian Universe Bond Index ETF (XBB.TO) has a higher volatility of 2.67% compared to BMO Aggregate Bond Index ETF (ZAG.TO) at 2.46%. This indicates that XBB.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.