ZAG.TO vs. VCB.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and VCB.TO (Vanguard Canadian Corporate Bond Index ETF) are both exchange-traded funds - ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index, while VCB.TO is a Corporate Bonds fund tracking the Bloomberg Global Aggregate Canadian Corporate Float Adjusted Bond Index. Both are passively managed. Over the past 5 years, ZAG.TO returned 0.76%/yr vs 2.32%/yr for VCB.TO. A 0.69 correlation means they provide meaningful diversification when combined. ZAG.TO charges 0.09%/yr vs 0.17%/yr for VCB.TO.
Performance
ZAG.TO vs. VCB.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 VCB.TO's 1.58% return.
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%
VCB.TO
- 1D
- 0.04%
- 1M
- 1.53%
- YTD
- 1.58%
- 6M
- 1.39%
- 1Y
- 4.28%
- 3Y*
- 6.09%
- 5Y*
- 2.32%
- 10Y*
- —
ZAG.TO vs. VCB.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% | 2.13% |
VCB.TO Vanguard Canadian Corporate Bond Index ETF | 1.58% | 4.46% | 6.63% | 7.98% | -8.96% | -1.55% | 8.11% | 6.20% | 0.28% | 1.75% |
Correlation
The correlation between ZAG.TO and VCB.TO is 0.87, 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 | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Feb 10, 2017 | 0.69 |
The correlation between ZAG.TO and VCB.TO shifts across timeframes, from 0.69 (all time) to 0.88 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZAG.TO vs. VCB.TO — Risk / Return Rank
ZAG.TO
VCB.TO
ZAG.TO vs. VCB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and Vanguard Canadian Corporate Bond Index ETF (VCB.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 | VCB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.52 | ||
| Sortino ratioReturn per unit of downside risk | -0.73 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.23 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 1.75 | -0.58 |
| Martin ratioReturn relative to average drawdown | 2.73 | 5.51 | -2.79 |
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 | VCB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.73 | 1.26 | -0.52 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.48 | -0.36 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.49 | -0.04 |
Drawdowns
ZAG.TO vs. VCB.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than VCB.TO's maximum drawdown of -13.99%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and VCB.TO.
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Drawdown Indicators
| ZAG.TO | VCB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -13.99% | -4.04% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.45% | -0.34% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -3.22% | -2.20% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -13.17% | -2.60% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -1.09% | -0.03% | -1.06% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -2.86% | -0.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 0.78% | +0.41% |
Volatility
ZAG.TO vs. VCB.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 1.68% compared to Vanguard Canadian Corporate Bond Index ETF (VCB.TO) at 1.26%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than VCB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZAG.TO | VCB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 1.26% | +0.42% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 2.64% | +0.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 3.42% | +1.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 4.89% | +1.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 5.51% | +1.60% |
ZAG.TO vs. VCB.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than VCB.TO's 0.17% expense ratio. Despite the difference, 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. VCB.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, less than VCB.TO's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCB.TO Vanguard Canadian Corporate Bond Index ETF | 3.87% | 3.88% | 3.74% | 3.41% | 3.21% | 2.69% | 2.75% | 2.82% | 2.85% | 2.51% | 0.00% | 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
ZAG.TO and VCB.TO have a correlation of 0.87, 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 0.17% for VCB.TO.
ZAG.TO is categorized as Canadian Government Bonds, while VCB.TO is Corporate Bonds. ZAG.TO tracks FTSE Canada Universe Bond Index, while VCB.TO tracks Bloomberg Global Aggregate Canadian Corporate Float Adjusted Bond Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.09% for ZAG.TO and 0.17% for VCB.TO.
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