ZFL.TO vs. AGG
ZFL.TO (BMO Long Federal Bond) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - ZFL.TO is a Canadian Government Bonds fund tracking the FTSE TMX Canada Long Term Federal Bond Index, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Both are passively managed. Over the past 10 years, ZFL.TO returned -1.37%/yr vs 2.30%/yr for AGG. A 0.51 correlation means they provide meaningful diversification when combined. ZFL.TO charges 0.22%/yr vs 0.03%/yr for AGG.
Performance
ZFL.TO vs. AGG - Performance Comparison
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Different Trading Currencies
ZFL.TO is traded in CAD, while AGG is traded in USD. To make them comparable, the AGG values have been converted to CAD using the latest available exchange rates.
Returns By Period
In the year-to-date period, ZFL.TO achieves a 2.39% return, which is significantly higher than AGG's 1.53% return. Over the past 10 years, ZFL.TO has underperformed AGG with an annualized return of -1.37%, while AGG has yielded a comparatively higher 2.30% annualized return.
ZFL.TO
- 1D
- -0.33%
- 1M
- 2.93%
- YTD
- 2.39%
- 6M
- -0.37%
- 1Y
- -0.83%
- 3Y*
- -0.42%
- 5Y*
- -3.89%
- 10Y*
- -1.37%
AGG
- 1D
- 0.20%
- 1M
- 2.25%
- YTD
- 1.53%
- 6M
- -0.30%
- 1Y
- 6.50%
- 3Y*
- 5.16%
- 5Y*
- 2.96%
- 10Y*
- 2.30%
ZFL.TO vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZFL.TO BMO Long Federal Bond | 2.39% | -5.14% | -2.20% | 7.30% | -23.89% | -7.47% | 12.68% | 8.73% | 2.69% | 2.84% |
AGG iShares Core U.S. Aggregate Bond ETF | 1.53% | 2.28% | 10.01% | 3.33% | -6.82% | -2.66% | 5.66% | 3.13% | 8.58% | -3.04% |
Correlation
The correlation between ZFL.TO and AGG is 0.51, 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 | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since May 27, 2010 | 0.51 |
The correlation between ZFL.TO and AGG shifts across timeframes, from 0.51 (all time) to 0.61 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ZFL.TO vs. AGG — Risk / Return Rank
ZFL.TO
AGG
ZFL.TO vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Long Federal Bond (ZFL.TO) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.
| ZFL.TO | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.28 | ||
| Sortino ratioReturn per unit of downside risk | -1.79 | ||
| Omega ratioGain probability vs. loss probability | 0.99 | 1.21 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | -0.12 | 1.51 | -1.64 |
| Martin ratioReturn relative to average drawdown | -0.22 | 3.48 | -3.70 |
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
| ZFL.TO | AGG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.09 | 1.20 | -1.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.27 | 0.38 | -0.65 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.11 | 0.29 | -0.40 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.16 | 0.43 | -0.27 |
Drawdowns
ZFL.TO vs. AGG - Drawdown Comparison
The maximum ZFL.TO drawdown since its inception was -40.32%, which is greater than AGG's maximum drawdown of -19.83%. Use the drawdown chart below to compare losses from any high point for ZFL.TO and AGG.
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Drawdown Indicators
| ZFL.TO | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -40.32% | -19.83% | -20.49% |
Max Drawdown (1Y)Largest decline over 1 year | -6.68% | -4.31% | -2.37% |
Max Drawdown (3Y)Largest decline over 3 years | -14.51% | -6.71% | -7.80% |
Max Drawdown (5Y)Largest decline over 5 years | -32.25% | -12.72% | -19.53% |
Max Drawdown (10Y)Largest decline over 10 years | -40.32% | -19.83% | -20.49% |
Current DrawdownCurrent decline from peak | -31.87% | -1.53% | -30.34% |
Average DrawdownAverage peak-to-trough decline | -12.45% | -6.47% | -5.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.82% | 1.87% | +1.95% |
Volatility
ZFL.TO vs. AGG - Volatility Comparison
BMO Long Federal Bond (ZFL.TO) has a higher volatility of 3.14% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.37%. This indicates that ZFL.TO's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZFL.TO | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.14% | 1.37% | +1.77% |
Volatility (6M)Calculated over the trailing 6-month period | 7.05% | 4.24% | +2.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.72% | 5.44% | +4.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.71% | 7.78% | +6.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.54% | 7.86% | +4.68% |
ZFL.TO vs. AGG - Expense Ratio Comparison
ZFL.TO has a 0.22% expense ratio, which is higher than AGG's 0.03% 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
ZFL.TO vs. AGG - Dividend Comparison
ZFL.TO's dividend yield for the trailing twelve months is around 2.84%, less than AGG's 3.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.99% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
ZFL.TO BMO Long Federal Bond | 2.84% | 3.13% | 3.20% | 3.49% | 3.77% | 2.85% | 2.57% | 2.95% | 3.00% | 2.99% | 3.05% | 3.10% |
Frequently Asked Questions
ZFL.TO and AGG have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, AGG is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.
AGG is cheaper with a 0.03% expense ratio, compared with 0.22% for ZFL.TO.
ZFL.TO is categorized as Canadian Government Bonds, while AGG is Total Bond Market. ZFL.TO tracks FTSE TMX Canada Long Term Federal Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.22% for ZFL.TO and 0.03% for AGG.
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