A side-by-side comparison of Vanguard Canadian Short Term Bond (VSB) and BMO Aggregate Bond Index ETF (ZAG) to help Canadian investors make an informed decision.
1-Year Performance
Normalised to 100 at the start — shows relative return over the trailing 12 months.
Head-to-Head Comparison
| Metric | VSB | ZAG |
|---|---|---|
| YTD Return | -1.24%✓ | -2.04% |
| 1-Day Change | +0.20%✓ | +0.07% |
| 1-Week Change | -0.06%✓ | -0.48% |
| 1-Month Change | +0.26%✓ | +0.98% |
| Current Price | $23.11 | $13.45 |
| AUM | $1.85B | $13.23B✓ |
| MER (Expense Ratio) | — | — |
| Dividend Yield | 3.06% | 3.45%✓ |
| Distribution Frequency | Monthly | Monthly |
| Inception Date | 2011-11-30 | 2010-01-19 |
| Holdings Count | 6 | 7 |
| MorningStar Rating | — | — |
| Category | Canadian Bonds | Canadian Bonds |
| Beta | 1.01 | 1.00 |
| 52-Week High | $23.24 | $13.70 |
| 52-Week Low | $22.76 | $13.24 |
| 50-Day MA | $23.13 | $13.45 |
| 200-Day MA | $23.31 | $13.69 |
✓ marks the better value for return/yield/AUM metrics. Lower ✓ for MER.
Annualised Returns
| Period | VSB | ZAG |
|---|---|---|
| YTD | -1.24%✓ | -2.04% |
| 1 Year | +0.73%✓ | -0.87% |
| 3 Year | +4.21% | +4.80%✓ |
| 5 Year | +2.30%✓ | +0.56% |
| 10 Year | +1.92%✓ | +1.44% |
| 1Y Volatility | 1.79% | 4.02% |
| Sharpe Ratio (3Y) | 0.59 | 0.27 |
Past performance is not a guarantee of future results.
Top 10 Holdings
| 1 | Canada (Government of) 0.5% | 3.06% | |
| 2 | Canada (Government of) 1% | 2.21% | |
| 3 | Canada Housing Trust No.1 2.4% | 2.31% | |
| 4 | Canada (Government of) 0.25% | 2.03% | |
| 5 | Canada Housing Trust No.1 2.9% | 2.06% | |
| 6 | Canada (Government of) 2% | 1.88% |
| 1 | Canada (Government of) 0.5% | 1.25% | |
| 2 | Quebec (Province Of) 3.5% | 1.21% | |
| 3 | Canada (Government of) 1.5% | 1.02% | |
| 4 | Ontario (Province Of) 3.5% | 1.02% | |
| 5 | Canada (Government of) | 0.95% | |
| 6 | Ontario (Province Of) 3.45% | 0.95% | |
| 7 | Ontario (Province Of) 2.9% | 0.95% |
Sector Weights
| Sector | VSB | ZAG |
|---|---|---|
| Basic Materials | 0.00% | 0.00% |
| Communication Services | 0.00% | 0.00% |
| Consumer Cyclicals | 0.00% | 0.00% |
| Consumer Defensive | 0.00% | 0.00% |
| Energy | 0.00% | 0.00% |
| Financial Services | 0.00% | 0.00% |
| Healthcare | 0.00% | 0.00% |
| Industrials | 0.00% | 0.00% |
| Real Estate | 0.00% | 0.00% |
| Technology | 0.00% | 0.00% |
| Utilities | 0.00% | 0.00% |
About VSB
Vanguard Canadian Short-Term Bond Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian bond index with a short-term dollar-weighted average maturity. Currently, this Vanguard ETF seeks to track the Bloomberg Global Aggregate Canadian Government/Credit 1–5 year Float Adjusted Bond Index (or any successor thereto). It invests primarily in public, investment-grade fixed income securities issued in Canada.
About ZAG
BMO Aggregate Bond Index ETF (ZAG.TO) is a Canadian-listed ETF traded on the Toronto Stock Exchange. More detailed information will be available soon.
Which ETF is Right for You?
Both VSB and ZAG are listed on Canadian exchanges and accessible through most Canadian brokerages including Questrade, Wealthsimple Trade, TD Direct, and Interactive Brokers.
Based on the available data, ZAG scores higher across our tracked metrics including YTD performance, dividend yield, and AUM — though both ETFs warrant individual research before investing.
- Consider your account type (TFSA, RRSP, non-registered) as it can affect dividend taxation.
- Compare management expense ratios (MER) directly on each provider's website.
- Look at average daily trading volume to assess liquidity.
- Review the fund's underlying index and holdings to ensure the exposure matches your goals.
This is not financial advice. Always do your own research or consult a licensed financial advisor before investing.
Frequently Asked Questions
What is the difference between VSB and ZAG?
VSB (Vanguard Canadian Short Term Bond) and ZAG (BMO Aggregate Bond Index ETF) are both Canadian-listed ETFs. Key differences include their AUM ($1.85B vs $13.23B), dividend yield (3.06% vs 3.45%), and year-to-date performance (-1.24% vs -2.04%).
Is VSB better than ZAG?
There is no single "better" ETF — it depends on your investment goals. If you prioritise recent performance, VSB has outperformed year-to-date. Always review the fund's prospectus and consider your tax situation.
Can I buy VSB and ZAG on Wealthsimple?
Most Canadian-listed ETFs are available on Wealthsimple Trade commission-free. Both VSB and ZAG should be accessible. Check Wealthsimple's supported tickers list to confirm availability.
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