ZAG.TO vs. PFL.TO

Last updated Jul 16, 2026

ZAG.TO (BMO Aggregate Bond Index ETF) and PFL.TO (Invesco Canadian Government Floating Rate Index ETF) are both Canadian Government Bonds funds - ZAG.TO tracks the FTSE Canada Universe Bond Index while PFL.TO tracks the FTSE Canada Government Floating Rate Note Index. Both are passively managed. Over the past 10 years, ZAG.TO returned 1.52%/yr vs 2.16%/yr for PFL.TO. At a 0.05 correlation, their price movements are largely independent.

Performance

ZAG.TO vs. PFL.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Aggregate Bond Index ETF (ZAG.TO) and Invesco Canadian Government Floating Rate Index ETF (PFL.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ZAG.TO having a 1.25% return and PFL.TO slightly higher at 1.31%. Over the past 10 years, ZAG.TO has underperformed PFL.TO with an annualized return of 1.52%, while PFL.TO has yielded a comparatively higher 2.16% annualized return.

ZAG.TO

• 1D: 0.22%
• 1M: -0.59%
• 6M: 0.66%
• YTD: 1.25%
• 1Y: 4.30%
• 3Y*: 4.31%
• 5Y*: 0.39%
• 10Y*: 1.52%

PFL.TO

• 1D: 0.05%
• 1M: 0.25%
• 6M: 1.26%
• YTD: 1.31%
• 1Y: 2.67%
• 3Y*: 3.74%
• 5Y*: 3.15%
• 10Y*: 2.16%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ZAG.TO vs. PFL.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZAG.TO BMO Aggregate Bond Index ETF	1.25%	2.25%	4.48%	6.41%	-11.60%	-2.60%	8.34%	6.84%	1.12%	2.45%
PFL.TO Invesco Canadian Government Floating Rate Index ETF	1.31%	3.00%	4.53%	5.09%	1.78%	0.25%	0.91%	1.80%	1.09%	1.46%

Correlation

The correlation between ZAG.TO and PFL.TO is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (10Y) Calculated over the trailing 10-year period	0.05
Correlation (All Time) Calculated using the full available price history since Aug 18, 2014	0.05

The correlation between ZAG.TO and PFL.TO shifts across timeframes, from 0.05 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ZAG.TO vs. PFL.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZAG.TO

ZAG.TO Risk / Return Rank: 33
ZAG.TO Sharpe Ratio Rank: 33
ZAG.TO Sortino Ratio Rank: 30
ZAG.TO Omega Ratio Rank: 32
ZAG.TO Calmar Ratio Rank: 37
ZAG.TO Martin Ratio Rank: 32

PFL.TO

PFL.TO Risk / Return Rank: 97
PFL.TO Sharpe Ratio Rank: 96
PFL.TO Sortino Ratio Rank: 97
PFL.TO Omega Ratio Rank: 97
PFL.TO Calmar Ratio Rank: 99
PFL.TO Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ZAG.TO vs. PFL.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and Invesco Canadian Government Floating Rate Index ETF (PFL.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ZAG.TO	PFL.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.99	3.26	-2.27
Sortino ratio: Return per unit of downside risk	1.39	5.65	-4.26
Omega ratio: Gain probability vs. loss probability	1.18	1.77	-0.59
Calmar ratio: Return relative to maximum drawdown	1.55	17.43	-15.88
Martin ratio: Return relative to average drawdown	3.86	56.45	-52.59

ZAG.TO vs. PFL.TO - Sharpe Ratio Comparison

The current ZAG.TO Sharpe Ratio is 0.99, which is lower than the PFL.TO Sharpe Ratio of 3.26. The chart below compares the historical Sharpe Ratios of ZAG.TO and PFL.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ZAG.TO vs. PFL.TO - Drawdown Comparison

The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than PFL.TO's maximum drawdown of -2.07%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and PFL.TO.

Drawdown Indicators

	ZAG.TO	PFL.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-2.07%	-15.96%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	-0.15%	-2.64%
Max Drawdown (3Y) Largest decline over 3 years	-4.93%	-0.22%	-4.71%
Max Drawdown (5Y) Largest decline over 5 years	-15.77%	-0.30%	-15.47%
Max Drawdown (10Y) Largest decline over 10 years	-18.03%	-2.07%	-15.96%
Current Drawdown Current decline from peak	-1.53%	0.00%	-1.53%
Average Drawdown Average peak-to-trough decline	-3.53%	-0.08%	-3.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.12%	0.05%	+1.07%

Volatility

ZAG.TO vs. PFL.TO - Volatility Comparison

BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 1.23% compared to Invesco Canadian Government Floating Rate Index ETF (PFL.TO) at 0.24%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than PFL.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZAG.TO	PFL.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	0.24%	+0.99%
Volatility (6M) Calculated over the trailing 6-month period	3.43%	0.56%	+2.87%
Volatility (1Y) Calculated over the trailing 1-year period	4.40%	0.82%	+3.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.59%	0.97%	+5.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.10%	1.33%	+5.77%

Dividends

ZAG.TO vs. PFL.TO - Dividend Comparison

ZAG.TO's dividend yield for the trailing twelve months is around 3.43%, more than PFL.TO's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFL.TO Invesco Canadian Government Floating Rate Index ETF	2.63%	2.95%	5.23%	5.13%	2.22%	0.36%	1.21%	2.10%	1.59%	0.95%	0.81%	0.95%
ZAG.TO BMO Aggregate Bond Index ETF	3.43%	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

Can I hold both ZAG.TO and PFL.TO in my portfolio?

ZAG.TO and PFL.TO have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between ZAG.TO and PFL.TO?

ZAG.TO tracks FTSE Canada Universe Bond Index, while PFL.TO tracks FTSE Canada Government Floating Rate Note Index. They also come from different issuers: BMO and Invesco.