ZAG.TO vs. XSAB.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and XSAB.TO (iShares ESG Aware Canadian Aggregate Bond Index ETF) are both Canadian Government Bonds funds - ZAG.TO tracks the FTSE Canada Universe Bond Index while XSAB.TO tracks the Morningstar Can Core Bd GR CAD. Both are passively managed. Over the past 5 years, ZAG.TO returned 0.76%/yr vs 0.59%/yr for XSAB.TO. Their correlation of 0.80 suggests significant overlap in exposure. ZAG.TO charges 0.09%/yr vs 0.17%/yr for XSAB.TO.
Performance
ZAG.TO vs. XSAB.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 XSAB.TO's 1.55% 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%
XSAB.TO
- 1D
- -0.17%
- 1M
- 1.68%
- YTD
- 1.55%
- 6M
- 0.71%
- 1Y
- 2.91%
- 3Y*
- 3.81%
- 5Y*
- 0.59%
- 10Y*
- —
ZAG.TO vs. XSAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 1.70% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 2.60% |
XSAB.TO iShares ESG Aware Canadian Aggregate Bond Index ETF | 1.55% | 2.22% | 4.03% | 6.35% | -11.42% | -2.71% | 7.79% | 2.30% |
Correlation
The correlation between ZAG.TO and XSAB.TO is 0.89, 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 | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Mar 29, 2019 | 0.80 |
The correlation between ZAG.TO and XSAB.TO has been stable across timeframes, ranging from 0.80 to 0.90 - a consistent structural relationship.
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Return for Risk
ZAG.TO vs. XSAB.TO — Risk / Return Rank
ZAG.TO
XSAB.TO
ZAG.TO vs. XSAB.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 ESG Aware Canadian Aggregate Bond Index ETF (XSAB.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 | XSAB.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 | 1.12 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 1.07 | +0.10 |
| Martin ratioReturn relative to average drawdown | 2.73 | 2.50 | +0.22 |
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 | XSAB.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 | 0.09 | +0.02 |
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 | 0.18 | +0.27 |
Drawdowns
ZAG.TO vs. XSAB.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, roughly equal to the maximum XSAB.TO drawdown of -17.96%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XSAB.TO.
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Drawdown Indicators
| ZAG.TO | XSAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -17.96% | -0.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.72% | -0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -5.30% | -0.12% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -15.66% | -0.11% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -1.09% | -1.92% | +0.83% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -6.48% | +2.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 1.17% | +0.02% |
Volatility
ZAG.TO vs. XSAB.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 1.68% compared to iShares ESG Aware Canadian Aggregate Bond Index ETF (XSAB.TO) at 1.50%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than XSAB.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 | XSAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 1.50% | +0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 3.30% | +0.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 4.22% | +0.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 6.33% | +0.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 6.67% | +0.44% |
ZAG.TO vs. XSAB.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XSAB.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. XSAB.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, more than XSAB.TO's 3.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSAB.TO iShares ESG Aware Canadian Aggregate Bond Index ETF | 3.26% | 3.20% | 3.01% | 2.81% | 2.75% | 2.35% | 2.49% | 2.05% | 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 XSAB.TO have a correlation of 0.89, 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 XSAB.TO.
ZAG.TO tracks FTSE Canada Universe Bond Index, while XSAB.TO tracks Morningstar Can Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.09% for ZAG.TO and 0.17% for XSAB.TO.
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