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BMO Aggregate Bond Index ETF (TSX: ZAG)

This ETF invests in Canadian investment-grade bonds with a maturity of more than a year. Almost three-quarters are issued by the federal and provincial governments.

This ETF has been designed to track the performance of the FTSE Canada Universe Bond Index, net of expenses. It invests in Canadian investment-grade bonds with a maturity of more than a year and includes federal, provincial, and corporate bonds.


Income Investor

Like iShares XBB, which has been on our recommended list since March 2007, this fund provides exposure to the total Canadian bond universe. It’s slightly cheaper to own (MER of 0.9% versus 0.10% for XBB) and, for now, has a higher yield. The ETF gained 6.57% in 2023 as interest rates started to fall. This year it is up 0.4% at the time of writing. It is up 3.9% in the last 12 months. - Adam Mayers

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Interactive Performance Chart

ZAG was first recommended here on January 11, 2024