ZAG.TO vs. XAGH.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and XAGH.TO (iShares U.S. Aggregate Bond Index ETF (CAD-Hedged)) are both exchange-traded funds - ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index, while XAGH.TO is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index (CAD-Hedged). Both are passively managed. Over the past 3 years, ZAG.TO returned 4.24%/yr vs 2.34%/yr for XAGH.TO. A 0.51 correlation means they provide meaningful diversification when combined. ZAG.TO charges 0.09%/yr vs 0.18%/yr for XAGH.TO.
Performance
ZAG.TO vs. XAGH.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 XAGH.TO's -0.57% 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%
XAGH.TO
- 1D
- -0.46%
- 1M
- 0.11%
- YTD
- -0.57%
- 6M
- -0.86%
- 1Y
- 3.18%
- 3Y*
- 2.34%
- 5Y*
- —
- 10Y*
- —
ZAG.TO vs. XAGH.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 1.70% | 2.25% | 4.48% | 6.41% | -11.60% | 2.07% |
XAGH.TO iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) | -0.57% | 5.24% | 0.01% | 4.10% | -13.03% | 0.15% |
Correlation
The correlation between ZAG.TO and XAGH.TO is 0.71, 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 | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Oct 21, 2021 | 0.51 |
Over the past year, ZAG.TO and XAGH.TO have become more correlated (0.71) than their long-term average of 0.51, meaning their price movements have been converging.
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Return for Risk
ZAG.TO vs. XAGH.TO — Risk / Return Rank
ZAG.TO
XAGH.TO
ZAG.TO vs. XAGH.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) (XAGH.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 | XAGH.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.13 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 1.00 | +0.17 |
| Martin ratioReturn relative to average drawdown | 2.73 | 2.86 | -0.13 |
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 | XAGH.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.73 | 0.72 | +0.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | — | — |
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 | -0.21 | +0.67 |
Drawdowns
ZAG.TO vs. XAGH.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than XAGH.TO's maximum drawdown of -17.09%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XAGH.TO.
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Drawdown Indicators
| ZAG.TO | XAGH.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -17.09% | -0.94% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -3.18% | +0.39% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -6.03% | +0.61% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -1.09% | -5.62% | +4.53% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -8.71% | +5.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 1.11% | +0.08% |
Volatility
ZAG.TO vs. XAGH.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) and iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) (XAGH.TO) have volatilities of 1.68% and 1.70%, 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 | XAGH.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 1.70% | -0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 3.00% | +0.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 4.42% | +0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 7.95% | -1.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 7.95% | -0.84% |
ZAG.TO vs. XAGH.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XAGH.TO's 0.18% 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. XAGH.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, less than XAGH.TO's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XAGH.TO iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) | 4.01% | 3.78% | 3.51% | 3.05% | 1.91% | 0.42% | 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
ZAG.TO and XAGH.TO have a correlation of 0.71, 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 0.18% for XAGH.TO.
ZAG.TO is categorized as Canadian Government Bonds, while XAGH.TO is Total Bond Market. ZAG.TO tracks FTSE Canada Universe Bond Index, while XAGH.TO tracks Bloomberg US Aggregate Bond Index (CAD-Hedged). They also come from different issuers: BMO and iShares. Their fees differ too: 0.09% for ZAG.TO and 0.18% for XAGH.TO.
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