ZBBB.TO vs. VAB.TO

Last updated Jun 25, 2026

ZBBB.TO (BMO BBB Corporate Bond Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - ZBBB.TO is a Corporate Bonds fund tracking the FTSE Canada 1-10 Year BBB Corporate Bond Index, while VAB.TO is a Total Bond Market fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Both are passively managed. Over the past 5 years, ZBBB.TO returned 3.08%/yr vs 0.71%/yr for VAB.TO. At a 0.34 correlation, their price movements are largely independent. ZBBB.TO charges 0.17%/yr vs 0.09%/yr for VAB.TO.

Performance

ZBBB.TO vs. VAB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO BBB Corporate Bond Index ETF (ZBBB.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZBBB.TO achieves a 1.74% return, which is significantly lower than VAB.TO's 2.17% return.

ZBBB.TO

• 1D: 0.00%
• 1M: 0.52%
• YTD: 1.74%
• 6M: 1.74%
• 1Y: 4.68%
• 3Y*: 6.94%
• 5Y*: 3.08%
• 10Y*: —

VAB.TO

• 1D: 0.43%
• 1M: 1.01%
• YTD: 2.17%
• 6M: 1.94%
• 1Y: 3.50%
• 3Y*: 4.51%
• 5Y*: 0.71%
• 10Y*: 1.57%

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

ZBBB.TO vs. VAB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ZBBB.TO BMO BBB Corporate Bond Index ETF	1.74%	4.83%	8.00%	5.61%	-4.43%	-1.12%	8.43%
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	2.17%	2.28%	3.98%	6.90%	-11.86%	-2.88%	5.56%

Correlation

The correlation between ZBBB.TO and VAB.TO is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (All Time) Calculated using the full available price history since Feb 5, 2020	0.34

Over the past year, ZBBB.TO and VAB.TO have become more correlated (0.55) than their long-term average of 0.34, meaning their price movements have been converging.

Return for Risk

ZBBB.TO vs. VAB.TO — Risk / Return Rank

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

ZBBB.TO

ZBBB.TO Risk / Return Rank: 55
ZBBB.TO Sharpe Ratio Rank: 51
ZBBB.TO Sortino Ratio Rank: 57
ZBBB.TO Omega Ratio Rank: 65
ZBBB.TO Calmar Ratio Rank: 56
ZBBB.TO Martin Ratio Rank: 46

VAB.TO

VAB.TO Risk / Return Rank: 24
VAB.TO Sharpe Ratio Rank: 24
VAB.TO Sortino Ratio Rank: 21
VAB.TO Omega Ratio Rank: 21
VAB.TO Calmar Ratio Rank: 27
VAB.TO Martin Ratio Rank: 24

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.

ZBBB.TO vs. VAB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO BBB Corporate Bond Index ETF (ZBBB.TO) and Vanguard Canadian Aggregate Bond Index ETF (VAB.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.

	ZBBB.TO	VAB.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.52	0.80	+0.72
Sortino ratio: Return per unit of downside risk	2.36	1.10	+1.26
Omega ratio: Gain probability vs. loss probability	1.34	1.14	+0.20
Calmar ratio: Return relative to maximum drawdown	2.40	1.24	+1.16
Martin ratio: Return relative to average drawdown	6.77	2.93	+3.84

ZBBB.TO vs. VAB.TO - Sharpe Ratio Comparison

The current ZBBB.TO Sharpe Ratio is 1.52, which is higher than the VAB.TO Sharpe Ratio of 0.80. The chart below compares the historical Sharpe Ratios of ZBBB.TO and VAB.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.

Drawdowns

ZBBB.TO vs. VAB.TO - Drawdown Comparison

The maximum ZBBB.TO drawdown since its inception was -11.55%, smaller than the maximum VAB.TO drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for ZBBB.TO and VAB.TO.

Drawdown Indicators

	ZBBB.TO	VAB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-11.55%	-18.39%	+6.84%
Max Drawdown (1Y) Largest decline over 1 year	-1.97%	-2.83%	+0.86%
Max Drawdown (3Y) Largest decline over 3 years	-1.97%	-5.31%	+3.34%
Max Drawdown (5Y) Largest decline over 5 years	-11.23%	-15.82%	+4.59%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.39%	—
Current Drawdown Current decline from peak	0.00%	-1.38%	+1.38%
Average Drawdown Average peak-to-trough decline	-2.65%	-4.10%	+1.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.70%	1.20%	-0.50%

Volatility

ZBBB.TO vs. VAB.TO - Volatility Comparison

The current volatility for BMO BBB Corporate Bond Index ETF (ZBBB.TO) is 0.66%, while Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) has a volatility of 1.06%. This indicates that ZBBB.TO experiences smaller price fluctuations and is considered to be less risky than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZBBB.TO	VAB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	1.06%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	1.98%	3.36%	-1.38%
Volatility (1Y) Calculated over the trailing 1-year period	3.13%	4.41%	-1.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.51%	6.58%	-2.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.93%	6.47%	-0.54%

ZBBB.TO vs. VAB.TO - Expense Ratio Comparison

ZBBB.TO has a 0.17% expense ratio, which is higher than VAB.TO's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZBBB.TO vs. VAB.TO - Dividend Comparison

ZBBB.TO's dividend yield for the trailing twelve months is around 4.18%, more than VAB.TO's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAB.TO Vanguard Canadian Aggregate Bond Index ETF	3.30%	3.33%	3.19%	2.95%	2.87%	2.48%	2.51%	2.65%	2.80%	2.77%	2.75%	2.79%
ZBBB.TO BMO BBB Corporate Bond Index ETF	4.18%	4.11%	3.72%	3.47%	4.42%	3.23%	4.65%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZBBB.TO and VAB.TO in my portfolio?

ZBBB.TO and VAB.TO have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZBBB.TO or VAB.TO?

On fees, VAB.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, ZBBB.TO or VAB.TO?

VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.17% for ZBBB.TO.

What is the main difference between ZBBB.TO and VAB.TO?

ZBBB.TO is categorized as Corporate Bonds, while VAB.TO is Total Bond Market. ZBBB.TO tracks FTSE Canada 1-10 Year BBB Corporate Bond Index, while VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.17% for ZBBB.TO and 0.09% for VAB.TO.