XHB.TO vs. ZAG.TO
XHB.TO (iShares Canadian HYBrid Corporate Bond Index ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - XHB.TO is a Corporate Bonds fund tracking the Morningstar Can Corp Bd GR CAD, 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, XHB.TO returned 5.63%/yr vs 1.66%/yr for ZAG.TO. A 0.51 correlation means they provide meaningful diversification when combined. XHB.TO charges 0.50%/yr vs 0.09%/yr for ZAG.TO.
Performance
XHB.TO vs. ZAG.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XHB.TO achieves a 2.17% return, which is significantly higher than ZAG.TO's 1.70% return. Over the past 10 years, XHB.TO has outperformed ZAG.TO with an annualized return of 5.63%, while ZAG.TO has yielded a comparatively lower 1.66% annualized return.
XHB.TO
- 1D
- 0.00%
- 1M
- 1.76%
- YTD
- 2.17%
- 6M
- 2.20%
- 1Y
- 5.90%
- 3Y*
- 9.70%
- 5Y*
- 5.68%
- 10Y*
- 5.63%
ZAG.TO
- 1D
- 0.00%
- 1M
- 1.75%
- YTD
- 1.70%
- 6M
- 0.89%
- 1Y
- 3.25%
- 3Y*
- 4.24%
- 5Y*
- 0.76%
- 10Y*
- 1.66%
XHB.TO vs. ZAG.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF | 2.17% | 5.34% | 11.53% | 14.52% | -6.53% | 2.10% | 11.03% | 10.73% | 0.59% | 4.49% |
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 XHB.TO and ZAG.TO is 0.75, 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 | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2010 | 0.51 |
Over the past year, XHB.TO and ZAG.TO have become more correlated (0.75) than their long-term average of 0.51, meaning their price movements have been converging.
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Return for Risk
XHB.TO vs. ZAG.TO — Risk / Return Rank
XHB.TO
ZAG.TO
XHB.TO vs. ZAG.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Canadian HYBrid Corporate Bond Index ETF (XHB.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.
| XHB.TO | ZAG.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.06 | ||
| Sortino ratioReturn per unit of downside risk | +1.60 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.13 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.45 | 1.17 | +1.28 |
| Martin ratioReturn relative to average drawdown | 8.07 | 2.73 | +5.35 |
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
| XHB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.80 | 0.73 | +1.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.02 | 0.12 | +0.91 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.51 | 0.23 | +0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.45 | +0.13 |
Drawdowns
XHB.TO vs. ZAG.TO - Drawdown Comparison
The maximum XHB.TO drawdown since its inception was -26.03%, 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 XHB.TO and ZAG.TO.
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Drawdown Indicators
| XHB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.03% | -18.03% | -8.00% |
Max Drawdown (1Y)Largest decline over 1 year | -2.42% | -2.79% | +0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -2.42% | -5.42% | +3.00% |
Max Drawdown (5Y)Largest decline over 5 years | -11.83% | -15.77% | +3.94% |
Max Drawdown (10Y)Largest decline over 10 years | -26.03% | -18.03% | -8.00% |
Current DrawdownCurrent decline from peak | 0.00% | -1.09% | +1.09% |
Average DrawdownAverage peak-to-trough decline | -1.59% | -3.54% | +1.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | 1.19% | -0.46% |
Volatility
XHB.TO vs. ZAG.TO - Volatility Comparison
The current volatility for iShares Canadian HYBrid Corporate Bond Index ETF (XHB.TO) is 1.17%, while BMO Aggregate Bond Index ETF (ZAG.TO) has a volatility of 1.68%. This indicates that XHB.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
| XHB.TO | ZAG.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.17% | 1.68% | -0.51% |
Volatility (6M)Calculated over the trailing 6-month period | 2.62% | 3.43% | -0.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.32% | 4.46% | -1.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.61% | 6.58% | -0.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.05% | 7.11% | +3.94% |
XHB.TO vs. ZAG.TO - Expense Ratio Comparison
XHB.TO has a 0.50% expense ratio, which is higher than ZAG.TO's 0.09% expense ratio.
Dividends
XHB.TO vs. ZAG.TO - Dividend Comparison
XHB.TO's dividend yield for the trailing twelve months is around 4.52%, more than ZAG.TO's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XHB.TO iShares Canadian HYBrid Corporate Bond Index ETF | 4.52% | 4.48% | 7.49% | 8.06% | 7.74% | 5.57% | 5.47% | 5.75% | 4.07% | 4.08% | 4.35% | 4.78% |
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
XHB.TO and ZAG.TO have a correlation of 0.75, 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 0.50% for XHB.TO.
XHB.TO is categorized as Corporate Bonds, while ZAG.TO is Canadian Government Bonds. XHB.TO tracks Morningstar Can Corp 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: 0.50% for XHB.TO and 0.09% for ZAG.TO.
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