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?
- VAB.TO: Vanguard Canadian Aggregate Bond Index ETF
- XBB.TO: iShares Core Canadian Universe Bond Index ETF
- XSB.TO: iShares Core Canadian Short Term Bond Index ETF
- ZAG.TO: BMO Aggregate Bond Index ETF
- ZFL.TO: BMO Long Federal Bond Index ETF
- ZDB.TO: BMO Discount Bond Index ETF
Here is a table comparing aggregate bond ETFs as of June 30, 2023.
Manager | |||
ETF | XBB | ZAG | VAB |
Inception | 2000-11-20 | 2010-01-19 | 2011-11-30 |
AUM | $5,080,270,506 | $6,176,450,000 | $4,170,000,000 |
MER | 0.10% | 0.09% | 0.09% |
Distributions | Monthly | Monthly | Monthly |
1Y | 3.12% | 3.09% | 3.12% |
3Y | -3.83% | -3.82% | -3.85% |
5Y | 0.56% | 0.54% | 0.54% |
10Y | 1.87% | 1.88% | 1.91% |