ZAG.TO vs. TDB.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and TDB.TO (TD Canadian Aggregate Bond Index ETF) are both Canadian Government Bonds funds - ZAG.TO tracks the FTSE Canada Universe Bond Index while TDB.TO tracks the Solactive Broad Canadian Bond Universe Index. Both are passively managed. Over the past 10 years, ZAG.TO returned 1.66%/yr vs 1.60%/yr for TDB.TO. A 0.79 correlation means they provide meaningful diversification when combined. ZAG.TO charges 0.09%/yr vs 0.08%/yr for TDB.TO.
Performance
ZAG.TO vs. TDB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZAG.TO achieves a 1.70% return, which is significantly higher than TDB.TO's 1.60% return. Both investments have delivered pretty close results over the past 10 years, with ZAG.TO having a 1.66% annualized return and TDB.TO not far behind at 1.60%.
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%
TDB.TO
- 1D
- -0.08%
- 1M
- 1.60%
- YTD
- 1.60%
- 6M
- 0.82%
- 1Y
- 3.01%
- 3Y*
- 4.14%
- 5Y*
- 0.78%
- 10Y*
- 1.60%
ZAG.TO vs. TDB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
TDB.TO TD Canadian Aggregate Bond Index ETF | 1.60% | 2.24% | 4.11% | 6.57% | -10.94% | -2.98% | 8.31% | 6.24% | 1.46% | 2.55% |
Correlation
The correlation between ZAG.TO and TDB.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 | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2016 | 0.79 |
The correlation between ZAG.TO and TDB.TO shifts across timeframes, from 0.79 (all time) to 0.94 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZAG.TO vs. TDB.TO — Risk / Return Rank
ZAG.TO
TDB.TO
ZAG.TO vs. TDB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and TD Canadian Aggregate Bond Index ETF (TDB.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.
| ZAG.TO | TDB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.05 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.13 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 1.10 | +0.07 |
| Martin ratioReturn relative to average drawdown | 2.73 | 2.55 | +0.18 |
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
| ZAG.TO | TDB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.73 | 0.69 | +0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.12 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.24 | -0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.27 | +0.19 |
Drawdowns
ZAG.TO vs. TDB.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, roughly equal to the maximum TDB.TO drawdown of -17.29%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and TDB.TO.
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Drawdown Indicators
| ZAG.TO | TDB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -17.29% | -0.74% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.74% | -0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -5.11% | -0.31% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -15.14% | -0.63% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -17.29% | -0.74% |
Current DrawdownCurrent decline from peak | -1.09% | -0.85% | -0.24% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -4.73% | +1.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 1.18% | +0.01% |
Volatility
ZAG.TO vs. TDB.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) and TD Canadian Aggregate Bond Index ETF (TDB.TO) have volatilities of 1.68% and 1.64%, 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
| ZAG.TO | TDB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 1.64% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 3.39% | +0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 4.40% | +0.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 6.38% | +0.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 6.59% | +0.52% |
ZAG.TO vs. TDB.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is higher than TDB.TO's 0.08% 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
ZAG.TO vs. TDB.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, less than TDB.TO's 3.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TDB.TO TD Canadian Aggregate Bond Index ETF | 3.51% | 3.71% | 4.11% | 4.11% | 2.67% | 2.37% | 2.38% | 2.05% | 4.32% | 2.94% | 2.45% | 0.00% |
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, ZAG.TO and TDB.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, TDB.TO is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TDB.TO is cheaper with a 0.08% expense ratio, compared with 0.09% for ZAG.TO.
ZAG.TO tracks FTSE Canada Universe Bond Index, while TDB.TO tracks Solactive Broad Canadian Bond Universe Index. They also come from different issuers: BMO and TD. Their fees differ too: 0.09% for ZAG.TO and 0.08% for TDB.TO.
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