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

ZLB.TO vs. ZAG.TO

Last updated Jun 4, 2026

ZLB.TO (BMO Low Volatility Canadian Equity ETF) and ZAG.TO (BMO Aggregate Bond Index ETF) are both exchange-traded funds - ZLB.TO is a Canada Equities fund actively managed by BMO, while ZAG.TO is a Canadian Government Bonds fund tracking the FTSE Canada Universe Bond Index. ZLB.TO is actively managed, while ZAG.TO is passively managed. Over the past 10 years, ZLB.TO returned 10.67%/yr vs 1.66%/yr for ZAG.TO. At a 0.09 correlation, their price movements are largely independent. ZLB.TO charges 0.39%/yr vs 0.09%/yr for ZAG.TO.

Performance

ZLB.TO vs. ZAG.TO - Performance Comparison

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

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Returns By Period

In the year-to-date period, ZLB.TO achieves a 3.14% return, which is significantly higher than ZAG.TO's 1.70% return. Over the past 10 years, ZLB.TO has outperformed ZAG.TO with an annualized return of 10.67%, while ZAG.TO has yielded a comparatively lower 1.66% annualized return.

ZLB.TO

1D
0.03%
1M
1.40%
YTD
3.14%
6M
4.82%
1Y
14.81%
3Y*
15.17%
5Y*
11.61%
10Y*
10.67%

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

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

2026 (YTD)202520242023202220212020201920182017
ZLB.TO
BMO Low Volatility Canadian Equity ETF		3.14%25.29%15.31%9.41%-0.35%22.93%1.51%21.92%-2.76%11.07%
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%

Correlation

The correlation between ZLB.TO and ZAG.TO is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.35

Correlation (3Y)
Calculated over the trailing 3-year period

0.33

Correlation (5Y)
Calculated over the trailing 5-year period

0.28

Correlation (10Y)
Calculated over the trailing 10-year period

0.19

Correlation (All Time)
Calculated using the full available price history since Oct 28, 2011

0.09

Over the past year, ZLB.TO and ZAG.TO have become more correlated (0.35) than their long-term average of 0.09, meaning their price movements have been converging.

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

Sectors
ZLB.TO
ZAG.TO

Financial Services

23.7%

-

Consumer Defensive

18.2%

-

Utilities

17.6%

-

Industrials

9.8%

-

Communication Services

9.2%

-

Consumer Cyclical

8.6%

-

Basic Materials

6.6%

-

Real Estate

4.3%
0.0%

Technology

2.0%

-

Energy

-

-

Healthcare

-

-

Financial Services

ZLB.TO
23.7%
ZAG.TO

-

Consumer Defensive

ZLB.TO
18.2%
ZAG.TO

-

Utilities

ZLB.TO
17.6%
ZAG.TO

-

Industrials

ZLB.TO
9.8%
ZAG.TO

-

Communication Services

ZLB.TO
9.2%
ZAG.TO

-

Consumer Cyclical

ZLB.TO
8.6%
ZAG.TO

-

Basic Materials

ZLB.TO
6.6%
ZAG.TO

-

Real Estate

ZLB.TO
4.3%
ZAG.TO
0.0%

Technology

ZLB.TO
2.0%
ZAG.TO

-

Energy

ZLB.TO

-

ZAG.TO

-

Healthcare

ZLB.TO

-

ZAG.TO

-

Compare stocks, funds, or ETFs

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BMO Low Volatility Canadian Equity ETF

BMO Aggregate Bond Index ETF

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Often compared with ZAG.TO:
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Return for Risk

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

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZLB.TO
ZLB.TO Risk / Return Rank: 5454
Overall Rank
ZLB.TO Sharpe Ratio Rank: 5151
Sharpe Ratio Rank
ZLB.TO Sortino Ratio Rank: 5555
Sortino Ratio Rank
ZLB.TO Omega Ratio Rank: 5151
Omega Ratio Rank
ZLB.TO Calmar Ratio Rank: 5555
Calmar Ratio Rank
ZLB.TO Martin Ratio Rank: 5858
Martin Ratio Rank
ZAG.TO
ZAG.TO Risk / Return Rank: 2121
Overall Rank
ZAG.TO Sharpe Ratio Rank: 2020
Sharpe Ratio Rank
ZAG.TO Sortino Ratio Rank: 1919
Sortino Ratio Rank
ZAG.TO Omega Ratio Rank: 2020
Omega Ratio Rank
ZAG.TO Calmar Ratio Rank: 2424
Calmar Ratio Rank
ZAG.TO Martin Ratio Rank: 2222
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.

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

This table presents a comparison of risk-adjusted performance metrics for BMO Low Volatility Canadian Equity ETF (ZLB.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.

ZLB.TOZAG.TODifference
Sharpe ratioReturn per unit of total volatility
1.80
0.73

+1.07

Sortino ratioReturn per unit of downside risk
2.69
1.02

+1.66

Omega ratioGain probability vs. loss probability

1.32

1.13

+0.19

Calmar ratioReturn relative to maximum drawdown

2.77

1.17

+1.60

Martin ratioReturn relative to average drawdown

10.29

2.73

+7.56

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

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

The current ZLB.TO Sharpe Ratio is 1.80, which is higher than the ZAG.TO Sharpe Ratio of 0.73. The chart below compares the historical Sharpe Ratios of ZLB.TO and ZAG.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.

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Sharpe Ratios by Period

ZLB.TOZAG.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.80

0.73

+1.07

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.24

0.12

+1.12

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.88

0.23

+0.65

Sharpe Ratio (All Time)

Calculated using the full available price history

1.14

0.45

+0.69

Drawdowns

ZLB.TO vs. ZAG.TO - Drawdown Comparison

The maximum ZLB.TO drawdown since its inception was -33.96%, which is greater than ZAG.TO's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for ZLB.TO and ZAG.TO.

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Drawdown Indicators

ZLB.TOZAG.TODifference

Max Drawdown

Largest peak-to-trough decline

-33.96%

-18.03%

-15.93%

Max Drawdown (1Y)

Largest decline over 1 year

-5.36%

-2.79%

-2.57%

Max Drawdown (3Y)

Largest decline over 3 years

-8.01%

-5.42%

-2.59%

Max Drawdown (5Y)

Largest decline over 5 years

-13.00%

-15.77%

+2.77%

Max Drawdown (10Y)

Largest decline over 10 years

-33.96%

-18.03%

-15.93%

Current Drawdown

Current decline from peak

-1.70%

-1.09%

-0.61%

Average Drawdown

Average peak-to-trough decline

-2.46%

-3.54%

+1.08%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.45%

1.19%

+0.26%

Volatility

ZLB.TO vs. ZAG.TO - Volatility Comparison

BMO Low Volatility Canadian Equity ETF (ZLB.TO) has a higher volatility of 2.47% compared to BMO Aggregate Bond Index ETF (ZAG.TO) at 1.68%. This indicates that ZLB.TO's price experiences larger fluctuations and is considered to be riskier than ZAG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZLB.TOZAG.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

2.47%

1.68%

+0.79%

Volatility (6M)

Calculated over the trailing 6-month period

6.38%

3.43%

+2.95%

Volatility (1Y)

Calculated over the trailing 1-year period

8.29%

4.46%

+3.83%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

9.44%

6.58%

+2.86%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.15%

7.11%

+5.04%

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

ZLB.TO has a 0.39% expense ratio, which is higher than ZAG.TO's 0.09% expense ratio.

Dividends

ZLB.TO vs. ZAG.TO - Dividend Comparison

ZLB.TO's dividend yield for the trailing twelve months is around 1.88%, less than ZAG.TO's 3.42% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
ZLB.TO
BMO Low Volatility Canadian Equity ETF		1.88%1.93%2.37%2.67%2.66%2.39%2.83%2.44%2.76%2.52%2.94%2.34%

Frequently Asked Questions

ZLB.TO and ZAG.TO have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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.

ZAG.TO is cheaper with a 0.09% expense ratio, compared with 0.39% for ZLB.TO.

ZLB.TO is categorized as Canada Equities, while ZAG.TO is Canadian Government Bonds. Their fees differ too: 0.39% for ZLB.TO and 0.09% for ZAG.TO.

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