ZAG.TO vs. XSB.TO
Compare and contrast key facts about BMO Aggregate Bond Index ETF (ZAG.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.TO).
ZAG.TO and XSB.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZAG.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Bond Index. It was launched on Jan 19, 2010. XSB.TO is a passively managed fund by iShares that tracks the performance of the Morningstar Can 1-5Y Core Bd GR CAD. It was launched on Nov 20, 2000. Both ZAG.TO and XSB.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ZAG.TO or XSB.TO.
Key characteristics
| ZAG.TO | XSB.TO | |
|---|---|---|
| YTD Return | 3.51% | 4.63% |
| 1Y Return | 9.84% | 7.23% |
| 3Y Return (Ann) | -0.10% | 1.82% |
| 5Y Return (Ann) | 0.46% | 1.80% |
| 10Y Return (Ann) | 1.99% | 1.75% |
| Sharpe Ratio | 1.65 | 2.95 |
| Sortino Ratio | 2.46 | 4.76 |
| Omega Ratio | 1.29 | 1.61 |
| Calmar Ratio | 0.70 | 2.30 |
| Martin Ratio | 5.70 | 24.85 |
| Ulcer Index | 1.76% | 0.29% |
| Daily Std Dev | 6.06% | 2.48% |
| Max Drawdown | -18.03% | -8.65% |
| Current Drawdown | -5.77% | -0.47% |
Correlation
The correlation between ZAG.TO and XSB.TO is 0.88, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ZAG.TO vs. XSB.TO - Performance Comparison
In the year-to-date period, ZAG.TO achieves a 3.51% return, which is significantly lower than XSB.TO's 4.63% return. Over the past 10 years, ZAG.TO has outperformed XSB.TO with an annualized return of 1.99%, while XSB.TO has yielded a comparatively lower 1.75% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ZAG.TO vs. XSB.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XSB.TO's 0.10% 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%.
Risk-Adjusted Performance
ZAG.TO vs. XSB.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and iShares Core Canadian Short Term Bond Index ETF (XSB.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.
Dividends
ZAG.TO vs. XSB.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.45%, more than XSB.TO's 3.03% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 3.45% | 3.47% | 3.56% | 3.04% | 2.88% | 3.03% | 2.92% | 2.95% | 3.07% | 3.13% | 3.23% | 3.63% |
XSB.TO iShares Core Canadian Short Term Bond Index ETF | 3.03% | 2.67% | 2.28% | 2.05% | 2.21% | 2.39% | 2.39% | 2.36% | 2.36% | 2.50% | 2.59% | 2.69% |
Drawdowns
ZAG.TO vs. XSB.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than XSB.TO's maximum drawdown of -8.65%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XSB.TO. For additional features, visit the drawdowns tool.
Volatility
ZAG.TO vs. XSB.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 2.40% compared to iShares Core Canadian Short Term Bond Index ETF (XSB.TO) at 1.66%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than XSB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.