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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, Finance, and Industrials exposures, while ZAG is primarily weighted in Sovereign, Municipal, and Finance. When evaluating costs, VBU features a management fee (MER) of 0.2%, compared to 0.08% for ZAG. Performance-wise, VBU has returned 2.48% year-to-date with +$361 M in net flows, whereas ZAG is at 0.84% 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
VBU
ZAG
| AuM | $1,882.14 M | $13,104.16 M |
| Management Fees | 0.20% | 0.08% |
| Exp. ratio | 0.23% | 0.09% |
| Tracking Difference | -0.54% | - |
Historical performance and flows
As of September 11, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | VBU | -1.18% | -2.30% | -2.48% | -2.59% | +9.01% |
ZAG | -1.16% | -2.52% | -0.84% | -0.97% | +12.51% | |
| Flows | VBU | +$32 M | +$121 M | +$361 M | +$544 M | +$1,074 M |
ZAG | +$77 M | +$668 M | +$1,316 M | +$2,421 M | +$7,243 M |
VBU vs ZAG exposure
Countries
VBU
USA
76.35%
Other
17.66%
ZAG
Canada
96.36%
Sectors
VBU
Sovereign
48.70%
Other
17.66%
Finance
10.74%
Industrials
7.30%
Other
15.59%
ZAG
Sovereign
34.56%
Municipal
31.38%
Finance
11.84%
Government Agencies
9.39%
Other
12.84%
As of September 11, 2026
Top 10 Holdings
VBU
USA, Notes 3.5% 31jan2028, USD (U-2028)
0.47%
USA, Notes 4.25% 15nov2034, USD (F-2034)
0.41%
USA, Notes 3.375% 30nov2027, USD (BL-2027)
0.40%
USA, Notes 4.375% 15may2034, USD (C-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 4.125% 15feb2036, USD (B-2036)
0.39%
USA, Notes 4% 15feb2034, USD (B-2034)
0.39%
USA, Notes 4.5% 15nov2033, USD (F-2033)
0.38%
USA, Notes 4.25% 15aug2035, USD (E-2035)
0.38%
ZAG
Canada, Bonds 3% 1jun2034, CAD
4.29%
Canada, Bonds 2.5% 1nov2027, CAD
3.68%
Canada, Bond 2.25 1jun2029 10Y
2.89%
Canada Housing Trust, 1.1% 15mar2031, CAD (95)
2.68%
Province of Quebec, 3.5% 1dec2048, CAD (B117)
2.41%
Canada, Bonds 2.75% 1dec2055, CAD
2.32%
Canada Housing Trust, 3.55% 15sep2032, CAD (107)
2.23%
Bank of Montreal, 3.19% 1mar2028, CAD
2.21%
Province of Quebec, 2.75% 1sep2028, CAD (B124)
2.20%
Canada, Bonds 2.25% 1feb2028, CAD
2.19%
Diversification
VBU
Total weight of top 10 holdings out of 15,693 total
4.03%
ZAG
Total weight of top 10 holdings out of 85 total
27.10%
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 | 3.75% | 3.51% |
| 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 September 11, 2026, VBU has returned -2.48% year to date, while ZAG has returned -0.84%. ZAG is ahead on YTD performance.
Which ETF is larger by assets under management: VBU or ZAG?
As of September 11, 2026, VBU manages $1.88 B in assets, while ZAG manages $13.10 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, Finance, and Industrials. ZAG is most exposed to Sovereign, Municipal, and Finance.
Which ETF is attracting more investor flows: VBU or ZAG?
Year to date, VBU has seen +$360.96 M in net flows, compared with +$1,316.46 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 4.25% 15nov2034, USD (F-2034). ZAG's top holdings include Canada, Bonds 3% 1jun2034, CAD, Canada, Bonds 2.5% 1nov2027, CAD, and Canada, Bond 2.25 1jun2029 10Y.
Which ETF is more diversified: VBU or ZAG?
VBU holds 9573 securities, while ZAG holds 85. On holdings count, VBU is the more diversified portfolio.
Recent articles about VBU and ZAG
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