XGB.TO vs. ZAG.TO
XGB.TO (iShares Core Canadian Government Bond Index ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both Canadian Government Bonds funds - XGB.TO tracks the Morningstar Can Core Bd GR CAD while ZAG.TO tracks the FTSE Canada Universe Bond Index. Both are passively managed. Over the past 10 years, XGB.TO returned 1.06%/yr vs 1.68%/yr for ZAG.TO. Their correlation of 0.85 suggests significant overlap in exposure. XGB.TO charges 0.13%/yr vs 0.09%/yr for ZAG.TO.
Performance
XGB.TO vs. ZAG.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XGB.TO achieves a 1.57% return, which is significantly lower than ZAG.TO's 1.70% return. Over the past 10 years, XGB.TO has underperformed ZAG.TO with an annualized return of 1.06%, while ZAG.TO has yielded a comparatively higher 1.68% annualized return.
XGB.TO
- 1D
- 0.00%
- 1M
- 1.53%
- YTD
- 1.57%
- 6M
- 0.83%
- 1Y
- 2.46%
- 3Y*
- 3.58%
- 5Y*
- 0.13%
- 10Y*
- 1.06%
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%
XGB.TO vs. ZAG.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XGB.TO iShares Core Canadian Government Bond Index ETF | 1.57% | 1.65% | 3.54% | 5.57% | -12.25% | -3.11% | 8.14% | 6.10% | 1.34% | 1.71% |
ZAG.TO BMO Aggregate Bond Index ETF | 1.70% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 6.84% | 1.12% | 2.45% |
Correlation
The correlation between XGB.TO and ZAG.TO is 0.92, 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 | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Jan 26, 2010 | 0.85 |
The correlation between XGB.TO and ZAG.TO shifts across timeframes, from 0.85 (all time) to 0.95 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XGB.TO vs. ZAG.TO — Risk / Return Rank
XGB.TO
ZAG.TO
XGB.TO vs. ZAG.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Canadian Government Bond Index ETF (XGB.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.
| XGB.TO | ZAG.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.12 | ||
| Sortino ratioReturn per unit of downside risk | -0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.12 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.86 | 1.06 | -0.20 |
| Martin ratioReturn relative to average drawdown | 1.86 | 2.48 | -0.62 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XGB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.55 | 0.67 | -0.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 0.12 | -0.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.18 | 0.24 | -0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.45 | +0.06 |
Drawdowns
XGB.TO vs. ZAG.TO - Drawdown Comparison
The maximum XGB.TO drawdown since its inception was -19.53%, 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 XGB.TO and ZAG.TO.
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Drawdown Indicators
| XGB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.53% | -18.03% | -1.50% |
Max Drawdown (1Y)Largest decline over 1 year | -2.86% | -2.79% | -0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -5.83% | -5.42% | -0.41% |
Max Drawdown (5Y)Largest decline over 5 years | -16.44% | -15.77% | -0.67% |
Max Drawdown (10Y)Largest decline over 10 years | -19.53% | -18.03% | -1.50% |
Current DrawdownCurrent decline from peak | -5.25% | -1.09% | -4.16% |
Average DrawdownAverage peak-to-trough decline | -3.94% | -3.54% | -0.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.33% | 1.19% | +0.14% |
Volatility
XGB.TO vs. ZAG.TO - Volatility Comparison
iShares Core Canadian Government Bond Index ETF (XGB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO) have volatilities of 1.71% and 1.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XGB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.71% | 1.68% | +0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 3.49% | 3.43% | +0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.52% | 4.45% | +0.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.92% | 6.58% | +0.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.99% | 7.11% | -1.12% |
XGB.TO vs. ZAG.TO - Expense Ratio Comparison
XGB.TO has a 0.13% 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
XGB.TO vs. ZAG.TO - Dividend Comparison
XGB.TO's dividend yield for the trailing twelve months is around 3.11%, less than ZAG.TO's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XGB.TO iShares Core Canadian Government Bond Index ETF | 3.11% | 3.11% | 2.95% | 2.73% | 2.64% | 2.25% | 2.12% | 2.32% | 2.44% | 2.41% | 2.53% | 2.62% |
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
With a correlation of 0.92, XGB.TO and ZAG.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
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 0.13% for XGB.TO.
XGB.TO tracks Morningstar Can Core Bd GR CAD, while ZAG.TO tracks FTSE Canada Universe Bond Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.13% for XGB.TO and 0.09% for ZAG.TO.
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