ZAG.TO vs. XSTB.TO
ZAG.TO (BMO Aggregate Bond Index ETF) and XSTB.TO (iShares ESG Aware Canadian Short Term Bond Index ETF) are both Canadian Government Bonds funds - ZAG.TO tracks the FTSE Canada Universe Bond Index while XSTB.TO tracks the Morningstar Can 1-5Y Core Bd GR CAD. Both are passively managed. Over the past 5 years, ZAG.TO returned 0.39%/yr vs 2.02%/yr for XSTB.TO. A 0.62 correlation means they provide meaningful diversification when combined. ZAG.TO charges 0.09%/yr vs 0.17%/yr for XSTB.TO.
Performance
ZAG.TO vs. XSTB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZAG.TO achieves a 1.25% return, which is significantly higher than XSTB.TO's 1.18% return.
ZAG.TO
- 1D
- 0.22%
- 1M
- -0.59%
- 6M
- 0.66%
- YTD
- 1.25%
- 1Y
- 4.30%
- 3Y*
- 4.31%
- 5Y*
- 0.39%
- 10Y*
- 1.52%
XSTB.TO
- 1D
- 0.15%
- 1M
- 0.04%
- 6M
- 0.92%
- YTD
- 1.18%
- 1Y
- 3.27%
- 3Y*
- 4.68%
- 5Y*
- 2.02%
- 10Y*
- —
ZAG.TO vs. XSTB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
ZAG.TO BMO Aggregate Bond Index ETF | 1.25% | 2.25% | 4.48% | 6.41% | -11.60% | -2.60% | 8.34% | 3.85% |
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF | 1.18% | 3.60% | 5.28% | 4.86% | -3.91% | -1.12% | 4.95% | 1.59% |
Correlation
The correlation between ZAG.TO and XSTB.TO is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Mar 18, 2019 | 0.62 |
The correlation between ZAG.TO and XSTB.TO has been stable across timeframes, ranging from 0.62 to 0.71 - a consistent structural relationship.
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Return for Risk
ZAG.TO vs. XSTB.TO — Risk / Return Rank
ZAG.TO
XSTB.TO
ZAG.TO vs. XSTB.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 Short Term Bond Index ETF (XSTB.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 | XSTB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.84 | ||
| Sortino ratioReturn per unit of downside risk | -1.13 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.37 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.55 | 2.43 | -0.88 |
| Martin ratioReturn relative to average drawdown | 3.86 | 7.67 | -3.81 |
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Drawdowns
ZAG.TO vs. XSTB.TO - Drawdown Comparison
The maximum ZAG.TO drawdown since its inception was -18.03%, which is greater than XSTB.TO's maximum drawdown of -6.92%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and XSTB.TO.
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Drawdown Indicators
| ZAG.TO | XSTB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -6.92% | -11.11% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -1.35% | -1.44% |
Max Drawdown (3Y)Largest decline over 3 years | -4.93% | -1.35% | -3.58% |
Max Drawdown (5Y)Largest decline over 5 years | -15.77% | -6.76% | -9.01% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -1.53% | -0.20% | -1.33% |
Average DrawdownAverage peak-to-trough decline | -3.53% | -1.38% | -2.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.12% | 0.43% | +0.69% |
Volatility
ZAG.TO vs. XSTB.TO - Volatility Comparison
BMO Aggregate Bond Index ETF (ZAG.TO) has a higher volatility of 1.23% compared to iShares ESG Aware Canadian Short Term Bond Index ETF (XSTB.TO) at 0.43%. This indicates that ZAG.TO's price experiences larger fluctuations and is considered to be riskier than XSTB.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 | XSTB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.23% | 0.43% | +0.80% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 1.47% | +1.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.40% | 1.82% | +2.58% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.59% | 2.55% | +4.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.10% | 2.70% | +4.40% |
ZAG.TO vs. XSTB.TO - Expense Ratio Comparison
ZAG.TO has a 0.09% expense ratio, which is lower than XSTB.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. XSTB.TO - Dividend Comparison
ZAG.TO's dividend yield for the trailing twelve months is around 3.43%, more than XSTB.TO's 2.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSTB.TO iShares ESG Aware Canadian Short Term Bond Index ETF | 2.87% | 2.88% | 2.64% | 2.22% | 1.93% | 1.82% | 2.10% | 1.83% | 0.00% | 0.00% | 0.00% | 0.00% |
ZAG.TO BMO Aggregate Bond Index ETF | 3.43% | 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 XSTB.TO have a correlation of 0.67, 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 XSTB.TO.
ZAG.TO tracks FTSE Canada Universe Bond Index, while XSTB.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 0.17% for XSTB.TO.
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