ZIC.TO vs. VAB.TO
ZIC.TO (BMO Mid-Term US Investment Grade Corporate Bond Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - ZIC.TO is a Corporate Bonds fund tracking the Bloomberg US Investment Grade 5 to 10 Year Corporate Bond Capped 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 10 years, ZIC.TO returned 3.69%/yr vs 1.57%/yr for VAB.TO. At a 0.44 correlation, their price movements are largely independent. ZIC.TO charges 0.25%/yr vs 0.09%/yr for VAB.TO.
Performance
ZIC.TO vs. VAB.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZIC.TO achieves a 4.31% return, which is significantly higher than VAB.TO's 2.17% return. Over the past 10 years, ZIC.TO has outperformed VAB.TO with an annualized return of 3.69%, while VAB.TO has yielded a comparatively lower 1.57% annualized return.
ZIC.TO
- 1D
- 0.80%
- 1M
- 4.11%
- YTD
- 4.31%
- 6M
- 4.70%
- 1Y
- 8.94%
- 3Y*
- 8.99%
- 5Y*
- 4.22%
- 10Y*
- 3.69%
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%
ZIC.TO vs. VAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZIC.TO BMO Mid-Term US Investment Grade Corporate Bond Index ETF | 4.31% | 4.46% | 11.87% | 6.34% | -8.92% | -1.35% | 6.52% | 9.04% | 6.41% | -1.25% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 2.17% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.27% | 6.78% | 1.14% | 2.31% |
Correlation
The correlation between ZIC.TO and VAB.TO is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.51 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2013 | 0.44 |
The correlation between ZIC.TO and VAB.TO has been stable across timeframes, ranging from 0.44 to 0.54 - a consistent structural relationship.
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Return for Risk
ZIC.TO vs. VAB.TO — Risk / Return Rank
ZIC.TO
VAB.TO
ZIC.TO vs. VAB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Mid-Term US Investment Grade Corporate Bond Index ETF (ZIC.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.
| ZIC.TO | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.84 | ||
| Sortino ratioReturn per unit of downside risk | +1.31 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.14 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.21 | 1.24 | +0.97 |
| Martin ratioReturn relative to average drawdown | 4.81 | 2.93 | +1.88 |
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Drawdowns
ZIC.TO vs. VAB.TO - Drawdown Comparison
The maximum ZIC.TO drawdown since its inception was -19.48%, which is greater than VAB.TO's maximum drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for ZIC.TO and VAB.TO.
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Drawdown Indicators
| ZIC.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.48% | -18.39% | -1.09% |
Max Drawdown (1Y)Largest decline over 1 year | -4.06% | -2.83% | -1.23% |
Max Drawdown (3Y)Largest decline over 3 years | -6.96% | -5.31% | -1.65% |
Max Drawdown (5Y)Largest decline over 5 years | -15.65% | -15.82% | +0.17% |
Max Drawdown (10Y)Largest decline over 10 years | -19.48% | -18.39% | -1.09% |
Current DrawdownCurrent decline from peak | 0.00% | -1.38% | +1.38% |
Average DrawdownAverage peak-to-trough decline | -5.12% | -4.10% | -1.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.86% | 1.20% | +0.66% |
Volatility
ZIC.TO vs. VAB.TO - Volatility Comparison
BMO Mid-Term US Investment Grade Corporate Bond Index ETF (ZIC.TO) has a higher volatility of 1.48% compared to Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) at 1.06%. This indicates that ZIC.TO's price experiences larger fluctuations and is considered to be riskier than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZIC.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.48% | 1.06% | +0.42% |
Volatility (6M)Calculated over the trailing 6-month period | 4.25% | 3.36% | +0.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.49% | 4.41% | +1.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.99% | 6.58% | +1.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.88% | 6.47% | +2.41% |
ZIC.TO vs. VAB.TO - Expense Ratio Comparison
ZIC.TO has a 0.25% 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
ZIC.TO vs. VAB.TO - Dividend Comparison
ZIC.TO's dividend yield for the trailing twelve months is around 4.19%, 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% |
ZIC.TO BMO Mid-Term US Investment Grade Corporate Bond Index ETF | 4.19% | 4.03% | 3.80% | 3.85% | 3.94% | 3.53% | 3.46% | 3.57% | 3.46% | 3.33% | 3.29% | 3.12% |
Frequently Asked Questions
ZIC.TO and VAB.TO have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.25% for ZIC.TO.
ZIC.TO is categorized as Corporate Bonds, while VAB.TO is Total Bond Market. ZIC.TO tracks Bloomberg US Investment Grade 5 to 10 Year Corporate Bond Capped 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: 0.25% for ZIC.TO and 0.09% for VAB.TO.
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