XCB.TO vs. ZAG.TO
Compare and contrast key facts about iShares Core Canadian Corporate Bond Index ETF (XCB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO).
XCB.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. XCB.TO is a passively managed fund by iShares that tracks the performance of the Morningstar Can Corp Bd GR CAD. It was launched on Nov 6, 2006. 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 XCB.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: XCB.TO or ZAG.TO.
Key characteristics
| XCB.TO | ZAG.TO | |
|---|---|---|
| YTD Return | 5.78% | 3.66% |
| 1Y Return | 11.39% | 9.16% |
| 3Y Return (Ann) | 1.54% | -0.18% |
| 5Y Return (Ann) | 2.07% | 0.64% |
| 10Y Return (Ann) | 2.74% | 2.02% |
| Sharpe Ratio | 2.28 | 1.54 |
| Sortino Ratio | 3.47 | 2.27 |
| Omega Ratio | 1.44 | 1.27 |
| Calmar Ratio | 1.21 | 0.66 |
| Martin Ratio | 13.50 | 5.36 |
| Ulcer Index | 0.85% | 1.75% |
| Daily Std Dev | 5.04% | 6.12% |
| Max Drawdown | -22.59% | -18.03% |
| Current Drawdown | -0.10% | -5.64% |
Correlation
The correlation between XCB.TO and ZAG.TO is 0.90, 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
XCB.TO vs. ZAG.TO - Performance Comparison
In the year-to-date period, XCB.TO achieves a 5.78% return, which is significantly higher than ZAG.TO's 3.66% return. Over the past 10 years, XCB.TO has outperformed ZAG.TO with an annualized return of 2.74%, while ZAG.TO has yielded a comparatively lower 2.02% annualized return. 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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XCB.TO vs. ZAG.TO - Expense Ratio Comparison
XCB.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%.
Risk-Adjusted Performance
XCB.TO vs. ZAG.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Corporate Bond Index ETF (XCB.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
XCB.TO vs. ZAG.TO - Dividend Comparison
XCB.TO's dividend yield for the trailing twelve months is around 3.95%, more than ZAG.TO's 3.45% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XCB.TO iShares Core Canadian Corporate Bond Index ETF | 3.95% | 3.69% | 3.55% | 3.01% | 2.75% | 2.95% | 3.10% | 3.07% | 3.19% | 3.31% | 3.44% | 3.80% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.45% | 3.47% | 3.56% | 3.04% | 2.88% | 3.03% | 2.92% | 2.95% | 3.07% | 3.13% | 3.23% | 3.63% |
Drawdowns
XCB.TO vs. ZAG.TO - Drawdown Comparison
The maximum XCB.TO drawdown since its inception was -22.59%, 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 XCB.TO and ZAG.TO. For additional features, visit the drawdowns tool.
Volatility
XCB.TO vs. ZAG.TO - Volatility Comparison
The current volatility for iShares Core Canadian Corporate Bond Index ETF (XCB.TO) is 2.08%, while BMO Aggregate Bond Index ETF (ZAG.TO) has a volatility of 2.43%. This indicates that XCB.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.