ZAG.TO vs. VFV.TO

Last updated Jun 5, 2026

ZAG.TO (BMO Aggregate Bond Index ETF) and VFV.TO (Vanguard S&P 500 Index ETF) are both exchange-traded funds - ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index, while VFV.TO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. At a 0.28 correlation, their price movements are largely independent. Both charge a 0.09% expense ratio.

Performance

ZAG.TO vs. VFV.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 Vanguard S&P 500 Index ETF (VFV.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZAG.TO achieves a 1.70% return, which is significantly lower than VFV.TO's 10.06% return.

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%

VFV.TO

• 1D: -2.35%
• 1M: 2.71%
• YTD: 10.06%
• 6M: 8.92%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

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

	2026 (YTD)	2025
ZAG.TO BMO Aggregate Bond Index ETF	1.70%	1.97%
VFV.TO Vanguard S&P 500 Index ETF	10.06%	14.91%

Correlation

The correlation between ZAG.TO and VFV.TO is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 9, 2025	0.28

Return for Risk

ZAG.TO vs. VFV.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: 21
ZAG.TO Sharpe Ratio Rank: 21
ZAG.TO Sortino Ratio Rank: 19
ZAG.TO Omega Ratio Rank: 20
ZAG.TO Calmar Ratio Rank: 24
ZAG.TO Martin Ratio Rank: 21

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. VFV.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 S&P 500 Index ETF (VFV.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	VFV.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.67	—	—
Sortino ratio: Return per unit of downside risk	0.94	—	—
Omega ratio: Gain probability vs. loss probability	1.12	—	—
Calmar ratio: Return relative to maximum drawdown	1.06	—	—
Martin ratio: Return relative to average drawdown	2.48	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	ZAG.TO	VFV.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.67	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	2.30	-1.84

Drawdowns

ZAG.TO vs. VFV.TO - Drawdown Comparison

The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than VFV.TO's maximum drawdown of -8.62%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and VFV.TO.

Drawdown Indicators

	ZAG.TO	VFV.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-8.62%	-9.41%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-5.42%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.77%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-18.03%	—	—
Current Drawdown Current decline from peak	-1.09%	-2.35%	+1.26%
Average Drawdown Average peak-to-trough decline	-3.54%	-1.38%	-2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	—	—

Volatility

Volatility by Period

	ZAG.TO	VFV.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.68%	—	—
Volatility (6M) Calculated over the trailing 6-month period	3.43%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	4.45%	11.65%	-7.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.58%	11.65%	-5.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.11%	11.65%	-4.54%

ZAG.TO vs. VFV.TO - Expense Ratio Comparison

Both ZAG.TO and VFV.TO have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

ZAG.TO vs. VFV.TO - Dividend Comparison

ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, more than VFV.TO's 0.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFV.TO Vanguard S&P 500 Index ETF	0.85%	0.92%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	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

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

ZAG.TO and VFV.TO have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZAG.TO or VFV.TO?

Both ETFs have the same 0.09% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZAG.TO or VFV.TO?

ZAG.TO and VFV.TO have the same expense ratio: 0.09% per year.

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

ZAG.TO is categorized as Canadian Government Bonds, while VFV.TO is S&P 500. ZAG.TO tracks FTSE Canada Universe Bond Index, while VFV.TO tracks S&P 500 Index. They also come from different issuers: BMO and Vanguard.