VS
Compare Vanguard U.S. Aggregate Bond Index ETF (VBU) vs BMO Aggregate Bond Index ETF (ZAG) to find the best fit for your portfolio. VBU provides Sovereign, Other sectors, and Banks exposures, while ZAG is primarily weighted in Municipal, Sovereign, and Government agencies. When evaluating costs, VBU features a management fee (MER) of 0.2%, compared to 0.08% for ZAG. Performance-wise, VBU has returned 0.32% year-to-date with +$243 M in net flows, whereas ZAG is at 1.77% with +$674 M. 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
VBU
ZAG
| AuM | $1,820.76 M | $12,916.30 M |
| Management Fees | 0.20% | 0.08% |
| Exp. ratio | 0.23% | 0.09% |
| Tracking Difference | -0.60% | - |
Historical performance and flows
As of June 12, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | VBU | +0.30% | -0.01% | -0.32% | +2.35% | +9.50% |
ZAG | +1.52% | +2.00% | +1.77% | +3.72% | +14.08% | |
| Flows | VBU | +$34 M | +$116 M | +$243 M | +$494 M | +$975 M |
ZAG | +$611 M | +$647 M | +$674 M | +$1,692 M | +$6,426 M |
VBU vs ZAG exposure
Countries
VBU
USA
91.64%
Other
8.36%
ZAG
Canada
99.27%
Sectors
VBU
Other
36.17%
Sovereign
35.93%
Other
27.90%
ZAG
Municipal
28.61%
Sovereign
24.95%
Other
17.41%
Government agencies
9.35%
Other
19.68%
As of June 12, 2026
Top 10 Holdings
VBU
USA, Notes 3.5% 31jan2028, USD (U-2028)
0.47%
US91282CPZ85
0.47%
USA, Notes 4.375% 15may2034, USD (C-2034)
0.41%
US91282CPL99
0.41%
USA, Notes 4.25% 15nov2034, USD (F-2034)
0.40%
USA, Notes 4.625% 15feb2035, USD (B-2035)
0.40%
USA, Notes 3.875% 15aug2034, USD (E-2034)
0.40%
USA, Notes 4% 15feb2034, USD (B-2034)
0.40%
USA, Notes 4.5% 15nov2033, USD (F-2033)
0.38%
US91282CNT44
0.38%
ZAG
Canada, Bonds 3% 1jun2034, CAD
4.26%
Canada, Bond 2.25 1jun2029 10Y
3.59%
Province of Quebec, 2.75% 1sep2028, CAD (B124)
2.92%
Canada Housing Trust, 1.1% 15mar2031, CAD (95)
2.65%
Canada, Bond 2.75 1dec2048 30Y
2.43%
Province of Quebec, 3.5% 1dec2048, CAD (B117)
2.42%
Canada Housing Trust, 3.55% 15sep2032, CAD (107)
2.21%
Bank of Montreal, 3.19% 1mar2028, CAD
2.20%
Province of Ontario, 2.9% 2jun2028, CAD (DMTN238)
2.20%
CA135087T461
2.20%
Diversification
VBU
Total weight of top 10 holdings out of 15,764 total
4.11%
ZAG
Total weight of top 10 holdings out of 88 total
27.07%
Characteristics
Compare
VBU
ZAG
| Provider | Vanguard | BMO |
| Management | Passively managed | Passively managed |
| Benchmark | Bloomberg U.S. Aggregate Float Adjusted Bond (CAD Hedged) Total Return Index - CAD | 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 | 3.63% | 3.41% |
| Meets ESG criteria | No | No |
| Inception Date | June 30, 2014 | January 19, 2010 |
Frequently asked questions about VBU and ZAG
Which ETF has performed better year to date: VBU or ZAG?
As of June 12, 2026, VBU has returned -0.32% year to date, while ZAG has returned 1.77%. ZAG is ahead on YTD performance.
Which ETF is larger by assets under management: VBU or ZAG?
As of June 12, 2026, VBU manages $1.82 B in assets, while ZAG manages $12.92 B. ZAG is the larger fund by AUM.
How are VBU and ZAG managed?
VBU is passively managed by Vanguard. It tracks the Bloomberg U.S. Aggregate Float Adjusted Bond (CAD Hedged) Total Return Index - CAD benchmark. ZAG is passively managed by BMO. It tracks the FTSE Canada Universe Bond TR Index - CAD benchmark.
What sectors do VBU and ZAG emphasize?
VBU is most exposed to Sovereign, Other sectors, and Banks. ZAG is most exposed to Municipal, Sovereign, and Government agencies.
Which ETF is attracting more investor flows: VBU or ZAG?
Year to date, VBU has seen +$242.92 M in net flows, compared with +$673.77 M for ZAG. ZAG has attracted more net investor money so far.
How do the fees of VBU and ZAG compare?
VBU has an expense ratio of 0.23%, while ZAG has an expense ratio of 0.09%.
What are the top holdings of VBU and ZAG?
VBU's largest holdings include USA, Notes 3.5% 31jan2028, USD (U-2028) and USA, Notes 4.375% 15may2034, USD (C-2034). ZAG's top holdings include Canada, Bonds 3% 1jun2034, CAD and Canada, Bond 2.25 1jun2029 10Y.
Which ETF is more diversified: VBU or ZAG?
VBU holds 7924 securities, while ZAG holds 73. On holdings count, VBU is the more diversified portfolio.
Recent articles about VBU and ZAG
BMO ETF Spotlight - More than Just a Bank
BMO is more than just a bank, learn more about BMO’s extensive ETF offerings.
Posted on 3/22/2023 by ETF Market Canada inBanks
The ETF Market Canada is brought to you by Cboe in partnership with Trackinsight SA who is providing all the data, analysis and editorial content on this site. Unless explicitly stated as such, any information that you receive is not real-time.
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.
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.