ZAG: BMO Aggregate Bond Index ETF
ZAG: BMO Aggregate Bond Index ETF

ZAG: BMO Aggregate Bond Index ETF

BMO Aggregate Bond Index ETF (ZAG.TO) has been designed to replicate, to the extent possible, the performance of the FTSE Canada Universe Bond Index™, net of expenses. The Fund invests in a variety of debt securities primarily with a term to maturity greater than one year. Securities held in the Index are a broad measure of the Canadian investment-grade fixed income market consisting of Federal, Provincial and Corporate bonds. 

An Exchange Traded Fund (ETF) is a collection of hundreds or thousands of stocks or bonds in a single fund that trades on major stock exchanges. ETFs combine the diversification of mutual funds with lower investment minimum and real-time pricing. The beauty of ETFs is that they are extremely similar to mutual funds; the difference is you purchase these investments on your own with lower fees!

ZAG ETF Review

The FTSE Canada Universe Bond IndexTM is designed to be a broad measure of the Canadian investment-grade fixed income market consisting of Government of Canada (including Crown Corporations), Provincial and Corporate bonds. The index consists of semi-annual pay fixed rate bonds denominated in Canadian dollars, with an effective term to maturity of greater than one year and a credit rating of BBB or higher. Each security in the index is weighted by its relative market capitalization and rebalanced on a daily basis.

What is the Best Aggregate Bond in Canada?

Here is a table comparing aggregate bond ETFs as of June 30, 2023.

ManagerBlackRock LogoBMO Global Asset Management LogoVanguard Logo
ETFXBBZAGVAB
Inception2000-11-202010-01-192011-11-30
AUM$5,080,270,506$6,176,450,000$4,170,000,000
MER0.10%0.09%0.09%
DistributionsMonthlyMonthlyMonthly
1Y3.12%3.09%3.12%
3Y-3.83%-3.82%-3.85%
5Y0.56%0.54%0.54%
10Y1.87%1.88%1.91%