ZAG.TO vs. ZUQ.TO

Last updated Jun 4, 2026

ZAG.TO (BMO Aggregate Bond Index ETF) and ZUQ.TO (BMO MSCI USA High Quality Index ETF) are both exchange-traded funds - ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index, while ZUQ.TO is a Large Cap Blend Equities fund tracking the MSCI USA Quality Index. Both are passively managed. Over the past 10 years, ZAG.TO returned 1.66%/yr vs 16.38%/yr for ZUQ.TO. At a 0.05 correlation, their price movements are largely independent. ZAG.TO charges 0.09%/yr vs 0.33%/yr for ZUQ.TO.

Performance

ZAG.TO vs. ZUQ.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Aggregate Bond Index ETF (ZAG.TO) and BMO MSCI USA High Quality Index ETF (ZUQ.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZAG.TO achieves a 1.70% return, which is significantly lower than ZUQ.TO's 9.39% return. Over the past 10 years, ZAG.TO has underperformed ZUQ.TO with an annualized return of 1.66%, while ZUQ.TO has yielded a comparatively higher 16.38% 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%

ZUQ.TO

• 1D: 0.28%
• 1M: 5.91%
• YTD: 9.39%
• 6M: 3.18%
• 1Y: 19.10%
• 3Y*: 20.39%
• 5Y*: 15.26%
• 10Y*: 16.38%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ZAG.TO vs. ZUQ.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%
ZUQ.TO BMO MSCI USA High Quality Index ETF	9.39%	5.78%	34.02%	33.24%	-18.33%	26.40%	19.92%	31.74%	4.70%	16.90%

Correlation

The correlation between ZAG.TO and ZUQ.TO is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.05
Correlation (All Time) Calculated using the full available price history since Nov 14, 2014	0.05

Over the past year, ZAG.TO and ZUQ.TO have become more correlated (0.27) than their long-term average of 0.05, meaning their price movements have been converging.

ZAG.TO vs. ZUQ.TO - Sectors Allocation Comparison

Sectors	ZAG.TO	ZUQ.TO
Real Estate	0.0%	-
Basic Materials	-	1.7%
Communication Services	-	14.5%
Consumer Cyclical	-	2.8%
Consumer Defensive	-	11.1%
Energy	-	0.2%
Financial Services	-	10.1%
Healthcare	-	14.8%
Industrials	-	11.0%
Technology	-	33.8%
Utilities	-	0.1%

Return for Risk

ZAG.TO vs. ZUQ.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZAG.TO

ZAG.TO Risk / Return Rank: 21
ZAG.TO Sharpe Ratio Rank: 20
ZAG.TO Sortino Ratio Rank: 19
ZAG.TO Omega Ratio Rank: 20
ZAG.TO Calmar Ratio Rank: 24
ZAG.TO Martin Ratio Rank: 22

ZUQ.TO

ZUQ.TO Risk / Return Rank: 41
ZUQ.TO Sharpe Ratio Rank: 43
ZUQ.TO Sortino Ratio Rank: 42
ZUQ.TO Omega Ratio Rank: 46
ZUQ.TO Calmar Ratio Rank: 36
ZUQ.TO Martin Ratio Rank: 37

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ZAG.TO vs. ZUQ.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Aggregate Bond Index ETF (ZAG.TO) and BMO MSCI USA High Quality Index ETF (ZUQ.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	ZUQ.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.73	1.56	-0.83
Sortino ratio: Return per unit of downside risk	1.02	2.15	-1.12
Omega ratio: Gain probability vs. loss probability	1.13	1.30	-0.16
Calmar ratio: Return relative to maximum drawdown	1.17	1.81	-0.64
Martin ratio: Return relative to average drawdown	2.73	5.87	-3.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZAG.TO vs. ZUQ.TO - Sharpe Ratio Comparison

The current ZAG.TO Sharpe Ratio is 0.73, which is lower than the ZUQ.TO Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of ZAG.TO and ZUQ.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ZAG.TO	ZUQ.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.73	1.56	-0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	0.94	-0.82
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.94	-0.70
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.94	-0.48

Drawdowns

ZAG.TO vs. ZUQ.TO - Drawdown Comparison

The maximum ZAG.TO drawdown since its inception was -18.03%, smaller than the maximum ZUQ.TO drawdown of -26.94%. Use the drawdown chart below to compare losses from any high point for ZAG.TO and ZUQ.TO.

Drawdown Indicators

	ZAG.TO	ZUQ.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-26.94%	+8.91%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	-10.57%	+7.78%
Max Drawdown (3Y) Largest decline over 3 years	-5.42%	-17.93%	+12.51%
Max Drawdown (5Y) Largest decline over 5 years	-15.77%	-26.94%	+11.17%
Max Drawdown (10Y) Largest decline over 10 years	-18.03%	-26.94%	+8.91%
Current Drawdown Current decline from peak	-1.09%	-0.10%	-0.99%
Average Drawdown Average peak-to-trough decline	-3.54%	-4.60%	+1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	3.26%	-2.07%

Volatility

ZAG.TO vs. ZUQ.TO - Volatility Comparison

The current volatility for BMO Aggregate Bond Index ETF (ZAG.TO) is 1.68%, while BMO MSCI USA High Quality Index ETF (ZUQ.TO) has a volatility of 2.31%. This indicates that ZAG.TO experiences smaller price fluctuations and is considered to be less risky than ZUQ.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZAG.TO	ZUQ.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.68%	2.31%	-0.63%
Volatility (6M) Calculated over the trailing 6-month period	3.43%	9.60%	-6.17%
Volatility (1Y) Calculated over the trailing 1-year period	4.46%	12.29%	-7.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.58%	16.35%	-9.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.11%	17.52%	-10.41%

ZAG.TO vs. ZUQ.TO - Expense Ratio Comparison

ZAG.TO has a 0.09% expense ratio, which is lower than ZUQ.TO's 0.33% expense ratio.

Dividends

ZAG.TO vs. ZUQ.TO - Dividend Comparison

ZAG.TO's dividend yield for the trailing twelve months is around 3.42%, more than ZUQ.TO's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZUQ.TO BMO MSCI USA High Quality Index ETF	0.43%	0.46%	0.57%	0.86%	0.99%	0.80%	0.96%	0.96%	1.07%	1.16%	1.00%	0.88%

Frequently Asked Questions

Can I hold both ZAG.TO and ZUQ.TO in my portfolio?

ZAG.TO and ZUQ.TO have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZAG.TO or ZUQ.TO?

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.

Which ETF is cheaper, ZAG.TO or ZUQ.TO?

ZAG.TO is cheaper with a 0.09% expense ratio, compared with 0.33% for ZUQ.TO.

What is the main difference between ZAG.TO and ZUQ.TO?

ZAG.TO is categorized as Canadian Government Bonds, while ZUQ.TO is Large Cap Blend Equities. ZAG.TO tracks FTSE Canada Universe Bond Index, while ZUQ.TO tracks MSCI USA Quality Index. Their fees differ too: 0.09% for ZAG.TO and 0.33% for ZUQ.TO.