ZAG.TO vs. XEF-U.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and XEF-U.TO (iShares Core MSCI EAFE IMI Index ETF) are both exchange-traded funds - ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index, while XEF-U.TO is a Global Equities fund tracking the MSCI EAFE® Investable Market Index. Both are passively managed. Over the past 10 years, ZAG.TO returned 1.63%/yr vs 7.69%/yr for XEF-U.TO. At a 0.09 correlation, their price movements are largely independent. ZAG.TO charges 0.09%/yr vs 0.21%/yr for XEF-U.TO.
Performance
ZAG.TO vs. XEF-U.TO - Performance Comparison
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Different Trading Currencies
ZAG.TO is traded in CAD, while XEF-U.TO is traded in USD. To make them comparable, the XEF-U.TO values have been converted to CAD using the latest available exchange rates.
Returns By Period
In the year-to-date period, ZAG.TO achieves a 1.77% return, which is significantly lower than XEF-U.TO's 12.07% return. Over the past 10 years, ZAG.TO has underperformed XEF-U.TO with an annualized return of 1.63%, while XEF-U.TO has yielded a comparatively higher 7.69% annualized return.
ZAG.TO
- 1D
- 0.00%
- 1M
- 1.30%
- YTD
- 1.77%
- 6M
- 2.14%
- 1Y
- 3.92%
- 3Y*
- 4.75%
- 5Y*
- 0.68%
- 10Y*
- 1.63%
XEF-U.TO
- 1D
- 0.92%
- 1M
- 3.41%
- YTD
- 12.07%
- 6M
- 12.78%
- 1Y
- 26.15%
- 3Y*
- 18.50%
- 5Y*
- 11.30%
- 10Y*
- 7.69%
ZAG.TO vs. XEF-U.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 1.77% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 6.84% | 1.12% | 2.45% |
XEF-U.TO iShares Core MSCI EAFE IMI Index ETF | 12.07% | 25.69% | 11.75% | 13.94% | -9.57% | 11.30% | 7.69% | -15.98% | 0.56% | 9.18% |
Correlation
The correlation between ZAG.TO and XEF-U.TO is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2013 | 0.09 |
Over the past year, ZAG.TO and XEF-U.TO have become more correlated (0.36) than their long-term average of 0.09, meaning their price movements have been converging.
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Return for Risk
ZAG.TO vs. XEF-U.TO — Risk / Return Rank
ZAG.TO
XEF-U.TO
ZAG.TO vs. XEF-U.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 Core MSCI EAFE IMI Index ETF (XEF-U.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 | XEF-U.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.72 | ||
| Sortino ratioReturn per unit of downside risk | -1.07 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.28 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.33 | 2.13 | -0.79 |
| Martin ratioReturn relative to average drawdown | 3.11 | 8.26 | -5.15 |
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Drawdowns
ZAG.TO vs. XEF-U.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, smaller than the maximum XEF-U.TO drawdown of -42.21%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XEF-U.TO.
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Drawdown Indicators
| ZAG.TO | XEF-U.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -42.21% | +24.18% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -11.34% | +8.55% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -14.64% | +9.22% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -25.28% | +9.51% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -42.21% | +24.18% |
Current DrawdownCurrent decline from peak | -1.02% | 0.00% | -1.02% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -9.03% | +5.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 2.92% | -1.73% |
Volatility
ZAG.TO vs. XEF-U.TO - Volatility Comparison
The current volatility for BMO Aggregate Bond Index ETF (ZAG.TO) is 1.47%, while iShares Core MSCI EAFE IMI Index ETF (XEF-U.TO) has a volatility of 5.42%. This indicates that ZAG.TO experiences smaller price fluctuations and is considered to be less risky than XEF-U.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 | XEF-U.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.47% | 5.42% | -3.95% |
Volatility (6M)Calculated over the trailing 6-month period | 3.35% | 13.07% | -9.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 15.55% | -11.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 17.59% | -11.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 18.25% | -11.14% |
ZAG.TO vs. XEF-U.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XEF-U.TO's 0.21% 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. XEF-U.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.41%, more than XEF-U.TO's 2.22% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEF-U.TO iShares Core MSCI EAFE IMI Index ETF | 2.22% | 2.44% | 2.85% | 2.76% | 2.98% | 2.43% | 1.86% | 2.72% | 2.07% | 1.62% | 1.84% | 1.86% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.41% | 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 XEF-U.TO have a correlation of 0.36, 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 0.21% for XEF-U.TO.
ZAG.TO is categorized as Canadian Government Bonds, while XEF-U.TO is Global Equities. ZAG.TO tracks FTSE Canada Universe Bond Index, while XEF-U.TO tracks MSCI EAFE® Investable Market Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.09% for ZAG.TO and 0.21% for XEF-U.TO.
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