BMO Aggregate Bond Index ETF (ZAG)
Important Information
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- Investment focus:Canadian investment-grade government and corporate bonds
- Category:Canadian diversified bonds
- Management style:Index (passive)
- Managed by:BMO
- Market data as of:October 30, 2026
With C$13.24 billion in assets, ZAG is the largest of the 42 bond ETFs WOWA tracks. Its management expense ratio (MER) is 0.09%, and over the past 12 months it paid out 3.45% of its unit price in distributions.
Jump to section: Overview • Index • Performance • Distributions • Risks • Fit • Ranking • Compare
AUM
C$13.24B
as of Oct 30, 2026
MER
0.09%
annual cost
Trailing yield
3.45%
past 12 months
5-year return
0.64%
annualized
About ZAG
BMO Aggregate Bond Index ETF (ZAG) is a bond ETF from BMO, launched on January 19, 2010. It tracks the FTSE Canada Universe Bond Index, the standard benchmark for Canadian investment-grade bonds.
What ZAG tracks
| Fund detail | Value |
|---|---|
| Index | FTSE Canada Universe Bond Index |
| Rebalancing | Daily, following the index |
FTSE, the index arm of the London Stock Exchange Group, runs this benchmark. The word “Universe” is the clue: it spans every maturity, from bonds a little over a year from repayment to those decades away. FTSE’s Short, Mid and Long indexes each take just one slice. To get in, a bond has to pay a fixed rate in Canadian dollars and be rated BBB or better. Federal, provincial, municipal and corporate borrowers all qualify.
Funds that track the same index
ZAG shares its index with one other ETF. They aim for the same return before costs, so fees and currency treatment are the main differences.
ETF data as of October 30, 2026
Updated weekly| Ticker | Fund | Currency treatment | MER | 5-year return | AUM (CAD B) |
|---|---|---|---|---|---|
| ZAG | BMO Aggregate Bond Index ETF | Canadian-dollar bonds | 0.09% | 0.64% | 13.24 |
| XBB | iShares Core Canadian Universe Bond Index ETF | Canadian-dollar bonds | 0.10% | 0.70% | 10.94 |
ZAG fund facts
ETF data as of October 30, 2026
Updated weekly| Fund detail | Value |
|---|---|
| Fund basics | |
| Ticker | ZAG |
| Provider | BMO |
| Inception date | January 19, 2010 |
| Legal structure | Mutual fund trust |
| Management style | Index (passive) |
| Portfolio | |
| Bond market | Canada |
| Bond sector | Aggregate |
| Maturity segment | Broad |
| Credit mandate | Investment grade |
| Currency treatment | Canadian-dollar bonds |
| Number of holdings | 1,903 (as of August 26, 2026) |
| Costs and distributions | |
| Management fee | 0.08% |
| MER | 0.09% |
| Distribution frequency | Monthly |
| Trailing distribution yield | 3.45% |
| Risk rating (issuer) | Low |
| Size and trading | |
| Assets under management | C$13.24 billion (as of October 30, 2026) |
| Average daily volume | 423,708 units a day (listing exchange) |
ZAG performance
ETF data as of October 30, 2026
Updated weekly| Period | ZAG | Canadian diversified median |
|---|---|---|
| 1 year | -0.47% | -0.41% |
| 3 years, annualized | 5.00% | 4.86% |
| 5 years, annualized | 0.64% | 0.70% |
| 10 years, annualized | 1.40% | 1.44% |
Total returns with distributions reinvested, in CAD, as of October 30, 2026. Category median: the middle value among the funds in the Canadian diversified group with a return for that period (14 funds for one year, 13 for three and five years, 8 for ten years). N/A: no complete return record for the period. Past performance does not predict future results.
$10,000 invested in ZAG ten years ago would be worth about $11,500 as of October 30, 2026, with distributions reinvested and before taxes and trading costs.
Risk and return measures
ETF data as of October 30, 2026
Updated weekly| Measure | 3 years | 5 years | 10 years |
|---|---|---|---|
| Volatility | 5.10% | 6.15% | 5.54% |
| Sharpe ratio | 0.34 | -0.37 | -0.08 |
Volatility shows how much monthly returns have swung, as a yearly percentage. The Sharpe ratio compares the return above 3-month Government of Canada T-bills with that volatility. Higher means more return for each unit of risk, and below 0 means the fund earned less than T-bills.
ZAG distributions
ZAG pays distributions monthly. Over the 12 months to October 30, 2026, it paid 3.45% of its unit price, its trailing distribution yield. Amounts can change from one payment to the next.
What ZAG’s 2025 distributions were made of
| Component | Share of total |
|---|---|
| Total distribution per unit | $0.48 |
| Interest and other income | 94.40% |
| Return of capital | 5.60% |
- Interest and other income is taxed like employment income in a non-registered account.
- Return of capital is not taxed when you receive it, but it lowers your adjusted cost base, which raises the capital gain when you sell.
Inside a TFSA or RRSP, the type of income does not change your tax. Our guide to registered and non-registered accounts explains the trade-offs.
2025 tax-year breakdown reported for the fund. Shares of the total distribution per unit.
Risks to know
BMO rates ZAG’s risk as low on the standard Canadian fund scale, which runs from low to high. The rating reflects how much the fund’s returns have varied, not the chance that a borrower defaults.
Its mix of maturities means prices can drop noticeably when interest rates rise. It is heavy in federal and provincial government debt.
- Credit: It holds mostly government and investment-grade company debt, so default risk is low.
Is ZAG a good fit?
| Good fit if you | Think twice if you |
|---|---|
| want one core holding that covers the Canadian investment-grade bond market. | may need the money within a year or two: its price can fall noticeably when yields rise. |
| want a low-cost fund: its 0.09% MER is below the Canadian diversified median of 0.10%. | need a set amount back on a set date: a bond ETF has no maturity date, unlike a GIC. |
General pointers based on the fund’s category, structure and costs, not personal advice.
How ZAG ranks
By assets
1st
of 42 bond ETFs
By lowest MER
5th (tied)
of 42 bond ETFs
By 5-year return
9th
of 13 Canadian diversified bond ETFs
ZAG ranks 1st by assets among the 42 bond ETFs WOWA monitors, 5th (tied) by lowest MER, and 9th of 13 by five-year return in the Canadian diversified group, as of October 30, 2026. See the full list of Canadian bond ETFs.
Compare ZAG with similar bond ETFs
ZAG is in the Canadian diversified group on our Best Canadian Bond ETFs page. These are the largest other funds in that group.
ETF data as of October 30, 2026
Updated weekly| Ticker | Exposure and strategy | 5-year return | MER | Trailing yield | AUM (CAD B) |
|---|---|---|---|---|---|
| ZAG | Canadian investment-grade government and corporate bonds | 0.64% | 0.09% | 3.45% | 13.24 |
| XBB | Canadian investment-grade government and corporate bonds | 0.70% | 0.10% | 3.52% | 10.94 |
| VAB | Canadian investment-grade government and corporate bonds | 0.66% | 0.08% | 3.42% | 7.76 |
| FCCB | Canadian investment-grade bonds with a corporate tilt | 1.01% | 0.28% | 3.73% | 4.93 |
| XSB | Short-term Canadian investment-grade bonds | 2.32% | 0.10% | 3.11% | 4.54 |
See all 14 funds in this group.
Other bond ETFs from BMO
| Fund | Investment focus | AUM | Fund page |
|---|---|---|---|
| BMO Short Corporate Bond Index ETF (ZCS) | Short-term Canadian corporate bonds | C$5.38B | Learn more |
| BMO Ultra Short-Term Bond ETF (ZST) | Canadian investment-grade bonds with very short maturities · active | C$3.41B | Learn more |
| BMO Mid-Term US IG Corporate Bond Index ETF (ZIC) | Mid-term US investment-grade corporate bonds, unhedged | C$3.35B | Learn more |
| BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU) | Mid-term US investment-grade corporate bonds, hedged to CAD | C$3.31B | Learn more |
| BMO Core Plus Bond Fund ETF (ZCPB) | Canadian bonds with room for foreign and high-yield debt · active | C$2.85B | Learn more |
We cover 9 more bond ETFs from BMO. See them all on our Best Canadian Bond ETFs page.
How to buy ZAG
You can buy ZAG through any Canadian brokerage account, including a TFSA, RRSP or FHSA, by searching for its ticker. When comparing Canadian trading platforms, look at commissions, account fees and currency-conversion costs.
Before you place the order, check the bid-ask spread and consider a limit order, which caps the price you pay but may not fill. If this is your first account, our brokerage account guide walks you through opening one. Buying inside a TFSA? Our guide to the best TFSA investment options covers the other choices for that account.
If you’re from BMO and would like to add or update information on this page, please contact us.
Returns, volatility, Sharpe ratios, trailing yield and trading volume: WOWA calculations from Yahoo Finance prices adjusted for distributions, as of October 30, 2026. Assets under management: as of October 30, 2026. Fees, risk rating and inception date: BMO fund documents. Distribution breakdown: 2025 tax year. Fund page: BMO Aggregate Bond Index ETF.
Disclaimer: This page is for general information only and is not investment advice. WOWA does not recommend any specific fund. Figures come from issuer and third-party sources, may contain errors and can change after publication, so check the fund’s own documents before you invest.