VS
Manulife Smart Short Term Bond ETF (TERM) and BMO Aggregate Bond Index ETF (ZAG) offer distinct profiles for Canadian ETF investors. A direct comparison shows that TERM focuses its top 3 sector exposures on Finance, Energy, and Utilities, while ZAG leans towards Sovereign, Municipal, and Finance. When evaluating costs, TERM features a management fee (MER) of 0.2%, compared to 0.08% for ZAG. Performance-wise, TERM has returned 1.52% year-to-date with +$534 M in net flows, whereas ZAG is at 0.33% with +$1 B. Use the comparison tool below to benchmark these funds across top 10 holdings, yield, sector weights and historical returns.
NAV Performance and Flows
Key Data
Compare
TERM
ZAG
| AuM | $976.12 M | $13,351.06 M |
| Management Fees | 0.20% | 0.08% |
| Exp. ratio | 0.22% | 0.09% |
| Tracking Difference | - | - |
Historical performance and flows
As of October 16, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | TERM | +0.60% | -0.01% | +1.52% | +1.35% | +18.67% |
ZAG | +1.05% | -0.94% | +0.33% | -0.62% | +15.72% | |
| Flows | TERM | +$75 M | +$155 M | +$534 M | +$582 M | +$692 M |
ZAG | +$127 M | +$436 M | +$1,444 M | +$1,960 M | +$7,477 M |
TERM vs ZAG exposure
Countries
TERM
Canada
89.35%
Other
10.65%
ZAG
Canada
95.65%
Sectors
TERM
Finance
59.93%
Energy
15.58%
Other
24.49%
ZAG
Sovereign
34.55%
Municipal
30.89%
Finance
11.07%
Government Agencies
9.38%
Other
14.10%
As of October 16, 2026
Top 10 Holdings
TERM
Athene Global Funding, 4.091% 23may2030, CAD (2025-15)
2.81%
Royal Bank of Canada, 4.829% 8aug2034, CAD (28)
2.52%
Federation des caisses Desjardins du Quebec, 5.467% 17nov2028, CAD
1.65%
Manulife Financial Corporation, 5.409% 10mar2033, CAD
1.62%
BNP Paribas, 4.487% 3sep2035, CAD (20382)
1.59%
Keyera, 3.702% 15oct2030, CAD (5)
1.53%
Amazon.com, 3.7% 12jun2031, CAD
1.45%
iA Financial Corporation, 5.685% 20jun2033, CAD
1.42%
Toyota Credit Canada, 3.74% 21may2030, CAD (93)
1.35%
Magna International, 4.8% 30may2029, CAD
1.30%
ZAG
Canada, Bonds 3% 1jun2034, CAD
4.28%
Canada, Bonds 2.5% 1nov2027, CAD
3.69%
Canada, Bonds 2.25% 1feb2028, CAD
2.94%
Canada, Bond 2.25 1jun2029 10Y
2.90%
Canada, Bonds 2.75% 1dec2055, CAD
2.84%
Canada Housing Trust, 1.1% 15mar2031, CAD (95)
2.68%
Province of Quebec, 3.5% 1dec2048, CAD (B117)
2.38%
Bank of Montreal, 3.19% 1mar2028, CAD
2.22%
Province of Quebec, 2.75% 1sep2028, CAD (B124)
2.21%
Canada, Bonds 2.75% 1mar2030, CAD
2.19%
Diversification
TERM
Total weight of top 10 holdings out of 182 total
17.23%
ZAG
Total weight of top 10 holdings out of 86 total
28.34%
Characteristics
Compare
TERM
ZAG
| Provider | Manulife Investments | BMO |
| Management | Actively managed | Passively managed |
| Benchmark | - | FTSE Canada Universe Bond TR Index - CAD |
| Replication Method | - | Direct (Physical) |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 3.41% | 3.47% |
| Meets ESG criteria | No | No |
| Inception Date | November 10, 2020 | January 19, 2010 |
Frequently asked questions about TERM and ZAG
Which ETF has performed better year to date: TERM or ZAG?
As of October 16, 2026, TERM has returned 1.52% year to date, while ZAG has returned 0.33%. TERM is ahead on YTD performance.
Which ETF is larger by assets under management: TERM or ZAG?
As of October 16, 2026, TERM manages $976.12 M in assets, while ZAG manages $13.35 B. ZAG is the larger fund by AUM.
How are TERM and ZAG managed?
TERM is actively managed by Manulife Investments. It does not track an index. ZAG is passively managed by BMO. It tracks the FTSE Canada Universe Bond TR Index - CAD benchmark.
What sectors do TERM and ZAG emphasize?
TERM is most exposed to Finance, Energy, and Utilities. ZAG is most exposed to Sovereign, Municipal, and Finance.
Which ETF is attracting more investor flows: TERM or ZAG?
Year to date, TERM has seen +$533.80 M in net flows, compared with +$1,444.30 M for ZAG. ZAG has attracted more net investor money so far.
How do the fees of TERM and ZAG compare?
TERM has an expense ratio of 0.22%, while ZAG has an expense ratio of 0.09%.
What are the top holdings of TERM and ZAG?
TERM's largest holdings include Athene Global Funding, 4.091% 23may2030, CAD (2025-15), Royal Bank of Canada, 4.829% 8aug2034, CAD (28), and Federation des caisses Desjardins du Quebec, 5.467% 17nov2028, CAD. ZAG's top holdings include Canada, Bonds 3% 1jun2034, CAD, Canada, Bonds 2.5% 1nov2027, CAD, and Canada, Bonds 2.25% 1feb2028, CAD.
Which ETF is more diversified: TERM or ZAG?
TERM holds 182 securities, while ZAG holds 86. On holdings count, TERM is the more diversified portfolio.
Recent articles about TERM and ZAG
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All content on the ETF Market Canada is for your general information use only, Cboe is not responsible for any use of content by you outside this scope. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by Cboe and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions.