ZMU.TO vs. VAB.TO
ZMU.TO (BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - ZMU.TO is a Corporate Bonds fund managed by BMO, while VAB.TO is a Total Bond Market fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Over the past 10 years, ZMU.TO returned 1.75%/yr vs 1.38%/yr for VAB.TO. A 0.56 correlation means they provide meaningful diversification when combined.
Performance
ZMU.TO vs. VAB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ZMU.TO achieves a -0.41% return, which is significantly lower than VAB.TO's 2.13% return. Over the past 10 years, ZMU.TO has outperformed VAB.TO with an annualized return of 1.75%, while VAB.TO has yielded a comparatively lower 1.38% annualized return.
ZMU.TO
- 1D
- -0.48%
- 1M
- -0.10%
- YTD
- -0.41%
- 6M
- -0.72%
- 1Y
- 2.28%
- 3Y*
- 4.49%
- 5Y*
- -0.16%
- 10Y*
- 1.75%
VAB.TO
- 1D
- -0.04%
- 1M
- 0.44%
- YTD
- 2.13%
- 6M
- 2.04%
- 1Y
- 3.18%
- 3Y*
- 3.84%
- 5Y*
- 0.43%
- 10Y*
- 1.38%
ZMU.TO vs. VAB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZMU.TO BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF | -0.41% | 7.47% | 1.42% | 7.89% | -14.71% | -1.75% | 8.27% | 12.98% | -2.77% | 4.58% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 2.13% | 2.00% | 3.26% | 6.90% | -11.86% | -2.88% | 8.27% | 6.78% | 1.14% | 2.31% |
Correlation
The correlation between ZMU.TO and VAB.TO is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2013 | 0.56 |
The correlation between ZMU.TO and VAB.TO shifts across timeframes, from 0.56 (all time) to 0.70 (5 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ZMU.TO vs. VAB.TO — Risk / Return Rank
ZMU.TO
VAB.TO
ZMU.TO vs. VAB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.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.
| ZMU.TO | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.24 | ||
| Sortino ratioReturn per unit of downside risk | -0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.13 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 0.74 | 1.13 | -0.39 |
| Martin ratioReturn relative to average drawdown | 1.76 | 2.79 | -1.03 |
Loading charts...
Drawdowns
ZMU.TO vs. VAB.TO - Drawdown Comparison
The maximum ZMU.TO drawdown since its inception was -21.30%, 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 ZMU.TO and VAB.TO.
Loading charts...
Drawdown Indicators
| ZMU.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.30% | -18.39% | -2.91% |
Max Drawdown (1Y)Largest decline over 1 year | -3.11% | -2.83% | -0.28% |
Max Drawdown (3Y)Largest decline over 3 years | -6.05% | -5.31% | -0.74% |
Max Drawdown (5Y)Largest decline over 5 years | -21.30% | -15.82% | -5.48% |
Max Drawdown (10Y)Largest decline over 10 years | -21.30% | -18.39% | -2.91% |
Current DrawdownCurrent decline from peak | -2.24% | -2.38% | +0.14% |
Average DrawdownAverage peak-to-trough decline | -4.54% | -4.20% | -0.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.30% | 1.20% | +0.10% |
Volatility
ZMU.TO vs. VAB.TO - Volatility Comparison
BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) has a higher volatility of 1.63% compared to Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) at 1.04%. This indicates that ZMU.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.
Loading charts...
Volatility by Period
| ZMU.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.63% | 1.04% | +0.59% |
Volatility (6M)Calculated over the trailing 6-month period | 3.40% | 3.35% | +0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.70% | 4.38% | +0.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.90% | 6.59% | +0.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.88% | 6.47% | +1.41% |
Dividends
ZMU.TO vs. VAB.TO - Dividend Comparison
ZMU.TO's dividend yield for the trailing twelve months is around 4.48%, 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% | 3.05% | 2.50% | 2.95% | 2.87% | 2.48% | 2.51% | 2.65% | 2.80% | 2.77% | 2.75% | 2.79% |
ZMU.TO BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF | 4.48% | 4.10% | 4.15% | 4.22% | 4.35% | 3.56% | 3.51% | 3.66% | 3.70% | 3.28% | 3.37% | 3.53% |
Frequently Asked Questions
ZMU.TO and VAB.TO have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZMU.TO is categorized as Corporate Bonds, while VAB.TO is Total Bond Market. They also come from different issuers: BMO and Vanguard.
Find the right allocation for ZMU.TO and VAB.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer