XSE.TO vs. ZAG.TO
XSE.TO (iShares Conservative Strategic Fixed Income ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - XSE.TO is a Intermediate Core Bond fund actively managed by iShares, while ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index. XSE.TO is actively managed, while ZAG.TO is passively managed. Over the past 10 years, XSE.TO returned 1.70%/yr vs 1.68%/yr for ZAG.TO. A 0.72 correlation means they provide meaningful diversification when combined. XSE.TO charges 0.55%/yr vs 0.09%/yr for ZAG.TO.
Performance
XSE.TO vs. ZAG.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XSE.TO achieves a 0.34% return, which is significantly lower than ZAG.TO's 1.70% return. Both investments have delivered pretty close results over the past 10 years, with XSE.TO having a 1.70% annualized return and ZAG.TO not far behind at 1.68%.
XSE.TO
- 1D
- 0.06%
- 1M
- 0.72%
- YTD
- 0.34%
- 6M
- 0.04%
- 1Y
- 2.09%
- 3Y*
- 3.75%
- 5Y*
- 0.26%
- 10Y*
- 1.70%
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%
XSE.TO vs. ZAG.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XSE.TO iShares Conservative Strategic Fixed Income ETF | 0.34% | 3.06% | 2.99% | 6.75% | -11.99% | -2.79% | 7.95% | 8.26% | -0.52% | 4.13% |
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 XSE.TO and ZAG.TO is 0.69, 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 | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.81 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2015 | 0.72 |
The correlation between XSE.TO and ZAG.TO shifts across timeframes, from 0.69 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.
XSE.TO vs. ZAG.TO - Sectors Allocation Comparison
Sectors
XSE.TO
ZAG.TO
Energy
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Real Estate
Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Financial Services
-
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Healthcare
-
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Industrials
-
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Technology
-
-
Utilities
-
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Energy
XSE.TO
ZAG.TO
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Real Estate
XSE.TO
ZAG.TO
Basic Materials
XSE.TO
-
ZAG.TO
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Communication Services
XSE.TO
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ZAG.TO
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Consumer Cyclical
XSE.TO
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ZAG.TO
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Consumer Defensive
XSE.TO
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ZAG.TO
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Financial Services
XSE.TO
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ZAG.TO
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Healthcare
XSE.TO
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ZAG.TO
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Industrials
XSE.TO
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ZAG.TO
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Technology
XSE.TO
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ZAG.TO
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Utilities
XSE.TO
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ZAG.TO
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Return for Risk
XSE.TO vs. ZAG.TO — Risk / Return Rank
XSE.TO
ZAG.TO
XSE.TO vs. ZAG.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Conservative Strategic Fixed Income ETF (XSE.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.
| XSE.TO | ZAG.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.12 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 0.87 | 1.06 | -0.20 |
| Martin ratioReturn relative to average drawdown | 2.15 | 2.48 | -0.33 |
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
| XSE.TO | ZAG.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.63 | 0.67 | -0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.12 | -0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.20 | 0.24 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.24 | 0.45 | -0.21 |
Drawdowns
XSE.TO vs. ZAG.TO - Drawdown Comparison
The maximum XSE.TO drawdown since its inception was -22.43%, 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 XSE.TO and ZAG.TO.
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Drawdown Indicators
| XSE.TO | ZAG.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.43% | -18.03% | -4.40% |
Max Drawdown (1Y)Largest decline over 1 year | -2.62% | -2.79% | +0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -4.73% | -5.42% | +0.69% |
Max Drawdown (5Y)Largest decline over 5 years | -15.86% | -15.77% | -0.09% |
Max Drawdown (10Y)Largest decline over 10 years | -22.43% | -18.03% | -4.40% |
Current DrawdownCurrent decline from peak | -2.93% | -1.09% | -1.84% |
Average DrawdownAverage peak-to-trough decline | -4.72% | -3.54% | -1.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.02% | 1.19% | -0.17% |
Volatility
XSE.TO vs. ZAG.TO - Volatility Comparison
The current volatility for iShares Conservative Strategic Fixed Income ETF (XSE.TO) is 1.33%, while BMO Aggregate Bond Index ETF (ZAG.TO) has a volatility of 1.68%. This indicates that XSE.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
| XSE.TO | ZAG.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.33% | 1.68% | -0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 2.59% | 3.43% | -0.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.62% | 4.45% | -0.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.70% | 6.58% | -0.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.13% | 7.11% | +2.02% |
XSE.TO vs. ZAG.TO - Expense Ratio Comparison
XSE.TO has a 0.55% expense ratio, which is higher than ZAG.TO's 0.09% expense ratio.
Dividends
XSE.TO vs. ZAG.TO - Dividend Comparison
XSE.TO's dividend yield for the trailing twelve months is around 4.34%, more than ZAG.TO's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSE.TO iShares Conservative Strategic Fixed Income ETF | 4.34% | 4.24% | 3.66% | 3.36% | 2.67% | 2.63% | 2.62% | 2.82% | 2.89% | 3.62% | 3.95% | 1.39% |
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
XSE.TO and ZAG.TO have a correlation of 0.69, 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 0.55% for XSE.TO.
XSE.TO is categorized as Intermediate Core Bond, while ZAG.TO is Canadian Government Bonds. They also come from different issuers: iShares and BMO. Their fees differ too: 0.55% for XSE.TO and 0.09% for ZAG.TO.
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