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ZDB.TO vs. ZAG.TO
Performance
Return for Risk
Dividends
Drawdowns
Volatility

ZDB.TO vs. ZAG.TO

Last updated Apr 2, 2026

Compare and contrast key facts about BMO Discount Bond (ZDB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO).

ZDB.TO and ZAG.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZDB.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Discount Bond Index. It was launched on Feb 10, 2014. 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. Both ZDB.TO and ZAG.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.

Performance

ZDB.TO vs. ZAG.TO - Performance Comparison

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

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ZDB.TO vs. ZAG.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZDB.TO
BMO Discount Bond		-0.10%2.03%4.26%6.69%-11.99%-2.77%9.50%6.74%1.33%2.00%
ZAG.TO
BMO Aggregate Bond Index ETF		-0.11%2.25%4.48%6.41%-11.60%-2.60%8.34%6.84%1.12%2.45%

Returns By Period

In the year-to-date period, ZDB.TO achieves a -0.10% return, which is significantly higher than ZAG.TO's -0.11% return. Over the past 10 years, ZDB.TO has underperformed ZAG.TO with an annualized return of 1.56%, while ZAG.TO has yielded a comparatively higher 1.65% annualized return.

ZDB.TO

1D
-0.27%
1M
-1.68%
YTD
-0.10%
6M
-0.46%
1Y
-0.12%
3Y*
3.16%
5Y*
0.44%
10Y*
1.56%

ZAG.TO

1D
-0.15%
1M
-1.81%
YTD
-0.11%
6M
-0.19%
1Y
0.05%
3Y*
3.29%
5Y*
0.55%
10Y*
1.65%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

BMO Discount Bond

BMO Aggregate Bond Index ETF

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ZDB.TO vs. ZMMK.TOZDB.TO vs. XSAB.TOZDB.TO vs. ZST.TOZDB.TO vs. XDV.TOZDB.TO vs. VAB.TOZDB.TO vs. HSAV.TOZDB.TO vs. PSA.TO
Often compared with ZAG.TO:
ZAG.TO vs. VAB.TOZAG.TO vs. XBB.TOZAG.TO vs. XSB.TOZAG.TO vs. ZST.TOZAG.TO vs. ZMMK.TOZAG.TO vs. XBBZAG.TO vs. XCB.TO

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

ZDB.TO has a 0.10% expense ratio, which is higher than ZAG.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%.

ZDB.TO
BMO Discount Bond
ZAG.TO
BMO Aggregate Bond Index ETF

Return for Risk

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

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZDB.TO
ZDB.TO Risk / Return Rank: 1111
Overall Rank
ZDB.TO Sharpe Ratio Rank: 1111
Sharpe Ratio Rank
ZDB.TO Sortino Ratio Rank: 99
Sortino Ratio Rank
ZDB.TO Omega Ratio Rank: 99
Omega Ratio Rank
ZDB.TO Calmar Ratio Rank: 1313
Calmar Ratio Rank
ZDB.TO Martin Ratio Rank: 1212
Martin Ratio Rank
ZAG.TO
ZAG.TO Risk / Return Rank: 1212
Overall Rank
ZAG.TO Sharpe Ratio Rank: 1212
Sharpe Ratio Rank
ZAG.TO Sortino Ratio Rank: 1010
Sortino Ratio Rank
ZAG.TO Omega Ratio Rank: 1010
Omega Ratio Rank
ZAG.TO Calmar Ratio Rank: 1515
Calmar Ratio Rank
ZAG.TO Martin Ratio Rank: 1414
Martin Ratio Rank
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.

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

This table presents a comparison of risk-adjusted performance metrics for BMO Discount Bond (ZDB.TO) and BMO Aggregate Bond Index ETF (ZAG.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.

ZDB.TOZAG.TODifference

Sharpe ratio

Return per unit of total volatility

-0.03

0.01

-0.04

Sortino ratio

Return per unit of downside risk

-0.00

0.05

-0.05

Omega ratio

Gain probability vs. loss probability

1.00

1.01

-0.01

Calmar ratio

Return relative to maximum drawdown

0.05

0.14

-0.09

Martin ratio

Return relative to average drawdown

0.10

0.29

-0.19

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

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

The current ZDB.TO Sharpe Ratio is -0.03, which is lower than the ZAG.TO Sharpe Ratio of 0.01. The chart below compares the historical Sharpe Ratios of ZDB.TO and ZAG.TO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Sharpe Ratios by Period

ZDB.TOZAG.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.03

0.01

-0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.07

0.08

-0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.24

0.23

+0.01

Sharpe Ratio (All Time)

Calculated using the full available price history

0.37

0.44

-0.07

Correlation

The correlation between ZDB.TO and ZAG.TO is 0.78, 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.

Dividends

ZDB.TO vs. ZAG.TO - Dividend Comparison

ZDB.TO's dividend yield for the trailing twelve months is around 2.14%, less than ZAG.TO's 3.49% yield.

TTM20252024202320222021202020192018201720162015
ZDB.TO
BMO Discount Bond		2.14%2.28%2.38%2.42%2.52%2.16%2.06%2.20%2.07%2.06%1.95%1.99%
ZAG.TO
BMO Aggregate Bond Index ETF		3.49%3.48%3.44%3.47%3.56%3.04%2.88%3.03%2.92%2.95%3.07%3.13%

Drawdowns

ZDB.TO vs. ZAG.TO - Drawdown Comparison

The maximum ZDB.TO drawdown since its inception was -18.09%, roughly equal to the maximum ZAG.TO drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for ZDB.TO and ZAG.TO.

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Drawdown Indicators

ZDB.TOZAG.TODifference

Max Drawdown

Largest peak-to-trough decline

-18.09%

-18.03%

-0.06%

Max Drawdown (1Y)

Largest decline over 1 year

-2.87%

-2.79%

-0.08%

Max Drawdown (5Y)

Largest decline over 5 years

-16.25%

-15.77%

-0.48%

Max Drawdown (10Y)

Largest decline over 10 years

-18.09%

-18.03%

-0.06%

Current Drawdown

Current decline from peak

-3.02%

-2.85%

-0.17%

Average Drawdown

Average peak-to-trough decline

-4.24%

-3.56%

-0.68%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.44%

1.41%

+0.03%

Volatility

ZDB.TO vs. ZAG.TO - Volatility Comparison

BMO Discount Bond (ZDB.TO) and BMO Aggregate Bond Index ETF (ZAG.TO) have volatilities of 1.95% and 1.91%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZDB.TOZAG.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.95%

1.91%

+0.04%

Volatility (6M)

Calculated over the trailing 6-month period

3.07%

2.97%

+0.10%

Volatility (1Y)

Calculated over the trailing 1-year period

4.64%

4.65%

-0.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.50%

6.53%

-0.03%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.39%

7.09%

-0.70%