ZAG.TO vs. XSH.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and XSH.TO (iShares Core Canadian Short Term Corporate Bond Index ETF) are both Canadian Government Bonds funds - ZAG.TO tracks the FTSE Canada Universe Bond Index while XSH.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 10 years, ZAG.TO returned 1.66%/yr vs 2.82%/yr for XSH.TO. A 0.57 correlation means they provide meaningful diversification when combined. ZAG.TO charges 0.09%/yr vs 0.10%/yr for XSH.TO.
Performance
ZAG.TO vs. XSH.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 XSH.TO's 1.33% return. Over the past 10 years, ZAG.TO has underperformed XSH.TO with an annualized return of 1.66%, while XSH.TO has yielded a comparatively higher 2.82% annualized 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%
XSH.TO
- 1D
- 0.00%
- 1M
- 1.13%
- YTD
- 1.33%
- 6M
- 1.34%
- 1Y
- 3.85%
- 3Y*
- 6.05%
- 5Y*
- 2.86%
- 10Y*
- 2.82%
ZAG.TO vs. XSH.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 1.70% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 6.84% | 1.12% | 2.45% |
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 1.33% | 4.61% | 7.11% | 6.80% | -4.52% | -0.81% | 6.28% | 5.02% | 1.28% | 0.78% |
Correlation
The correlation between ZAG.TO and XSH.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 | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2011 | 0.57 |
The correlation between ZAG.TO and XSH.TO shifts across timeframes, from 0.57 (all time) to 0.78 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZAG.TO vs. XSH.TO — Risk / Return Rank
ZAG.TO
XSH.TO
ZAG.TO vs. XSH.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 Canadian Short Term Corporate Bond Index ETF (XSH.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 | XSH.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.06 | ||
| Sortino ratioReturn per unit of downside risk | -1.48 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.36 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 2.57 | -1.39 |
| Martin ratioReturn relative to average drawdown | 2.73 | 10.05 | -7.32 |
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 | XSH.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.73 | 1.79 | -1.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 1.02 | -0.90 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.64 | -0.41 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.74 | -0.28 |
Drawdowns
ZAG.TO vs. XSH.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than XSH.TO's maximum drawdown of -14.24%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XSH.TO.
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Drawdown Indicators
| ZAG.TO | XSH.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -14.24% | -3.79% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -1.51% | -1.28% |
Max Drawdown (3Y)Largest decline over 3 years | -5.42% | -1.51% | -3.91% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -7.80% | -7.97% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -14.24% | -3.79% |
Current DrawdownCurrent decline from peak | -1.09% | 0.00% | -1.09% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -0.93% | -2.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 0.38% | +0.81% |
Volatility
ZAG.TO vs. XSH.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 1.68% compared to iShares Core Canadian Short Term Corporate Bond Index ETF (XSH.TO) at 0.80%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than XSH.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 | XSH.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 0.80% | +0.88% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 1.83% | +1.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 2.16% | +2.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.58% | 2.83% | +3.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 4.42% | +2.69% |
ZAG.TO vs. XSH.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XSH.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%.
Dividends
ZAG.TO vs. XSH.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, less than XSH.TO's 3.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSH.TO iShares Core Canadian Short Term Corporate Bond Index ETF | 3.89% | 3.82% | 3.64% | 3.24% | 2.97% | 2.65% | 2.61% | 2.80% | 2.86% | 2.93% | 3.08% | 3.18% |
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 XSH.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 0.10% for XSH.TO.
ZAG.TO tracks FTSE Canada Universe Bond Index, while XSH.TO tracks Morningstar Can 1-5Y Core Bd GR CAD. They also come from different issuers: BMO and iShares. Their fees differ too: 0.09% for ZAG.TO and 0.10% for XSH.TO.
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