VS
iShares Canadian Government Bond Index ETF (XGB) and BMO Discount Bond Index ETF (ZDB) offer distinct profiles for Canadian ETF investors. A direct comparison shows that XGB focuses its top 3 sector exposures on Sovereign, Municipal, and Government Agencies, while ZDB leans towards Sovereign, Municipal, and Finance. When evaluating costs, XGB features a management fee (MER) of 0.12%, compared to 0.09% for ZDB. Performance-wise, XGB has returned 1.16% year-to-date with -$239 M in net flows, whereas ZDB is at 0.75% with +$256 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
XGB
ZDB
| AuM | $1,561.04 M | $1,378.99 M |
| Management Fees | 0.12% | 0.09% |
| Exp. ratio | 0.13% | 0.10% |
| Tracking Difference | - | - |
Historical performance and flows
As of September 30, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | XGB | -1.36% | -3.28% | -1.16% | -1.71% | +12.77% |
ZDB | -0.88% | -2.26% | -0.75% | -1.01% | +14.48% | |
| Flows | XGB | -$104 M | -$32 M | -$239 M | -$37 M | +$660 M |
ZDB | +$33 M | +$96 M | +$256 M | +$581 M | +$516 M |
XGB vs ZDB exposure
Countries
XGB
Canada
99.18%
ZDB
Canada
100.00%
Sectors
XGB
Sovereign
44.40%
Municipal
38.41%
Government Agencies
9.61%
Other
7.58%
ZDB
Sovereign
33.39%
Municipal
31.40%
Finance
11.58%
Government Agencies
9.96%
Other
13.67%
As of September 30, 2026
Top 10 Holdings
XGB
Canada, Bonds 2.75% 1sep2030, CAD
2.01%
Canada, Bonds 3.25% 1jun2036, CAD
2.00%
Canada, Bonds 2.75% 1mar2031, CAD
1.99%
Canada, Bonds 3.25% 1dec2035, CAD
1.98%
Canada, Bonds 3.25% 1jun2035, CAD
1.81%
Canada, Bonds 3% 1jun2034, CAD
1.57%
Canada, Bonds 3% 1sep2031, CAD
1.55%
Canada, Bonds 2.75% 1mar2030, CAD
1.55%
Canada, Bonds 3.5% 1sep2029, CAD
1.51%
Canada, Bonds 3.5% 1dec2057, CAD
1.50%
ZDB
Canada, Bond 0.5 1oct2030 10Y
18.56%
CMHC, 1.9% 15mar2031, CAD (100)
6.30%
Sun Life Financial, 2.06% 1oct2035, CAD (2020-2)
5.65%
Province of Quebec, 1.5% 1sep2031, CAD (B128)
5.50%
Province of Ontario, 2.05% 2jun2030, CAD (DMTN243)
5.13%
Province of Ontario, 2.65% 2dec2050, CAD (DMTN242)
5.06%
Canada, Bonds 2.25% 1dec2029, CAD
4.57%
Toronto-Dominion Bank, 1.896% 11sep2028, CAD
3.27%
Canada, Bonds 2% 1jun2032, CAD
3.11%
Pembina Pipeline Corporation, 3.31% 1feb2030, CAD (15)
2.65%
Diversification
XGB
Total weight of top 10 holdings out of 550 total
17.48%
ZDB
Total weight of top 10 holdings out of 45 total
59.81%
Characteristics
Compare
XGB
ZDB
| Provider | iShares | BMO |
| Management | Passively managed | Passively managed |
| Benchmark | FTSE Canada All Government Bond TR Index - CAD | FTSE Canada Universe Discount Bond Index - CAD |
| Replication Method | Direct (Physical) | Direct (Physical) |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 3.24% | 1.85% |
| Meets ESG criteria | No | No |
| Inception Date | November 6, 2006 | February 10, 2014 |
Frequently asked questions about XGB and ZDB
Which ETF has performed better year to date: XGB or ZDB?
As of September 30, 2026, XGB has returned -1.16% year to date, while ZDB has returned -0.75%. ZDB is ahead on YTD performance.
Which ETF is larger by assets under management: XGB or ZDB?
As of September 30, 2026, XGB manages $1.56 B in assets, while ZDB manages $1.38 B. XGB is the larger fund by AUM.
How are XGB and ZDB managed?
XGB is passively managed by iShares. It tracks the FTSE Canada All Government Bond TR Index - CAD benchmark. ZDB is passively managed by BMO. It tracks the FTSE Canada Universe Discount Bond Index - CAD benchmark.
What sectors do XGB and ZDB emphasize?
XGB is most exposed to Sovereign, Municipal, and Government Agencies. ZDB is most exposed to Sovereign, Municipal, and Finance.
Which ETF is attracting more investor flows: XGB or ZDB?
Year to date, XGB has seen -$238.83 M in net flows, compared with +$255.93 M for ZDB. ZDB has attracted more net investor money so far.
How do the fees of XGB and ZDB compare?
XGB has an expense ratio of 0.13%, while ZDB has an expense ratio of 0.10%.
What are the top holdings of XGB and ZDB?
XGB's largest holdings include Canada, Bonds 2.75% 1sep2030, CAD, Canada, Bonds 3.25% 1jun2036, CAD, and Canada, Bonds 2.75% 1mar2031, CAD. ZDB's top holdings include Canada, Bond 0.5 1oct2030 10Y, CMHC, 1.9% 15mar2031, CAD (100), and Sun Life Financial, 2.06% 1oct2035, CAD (2020-2).
Which ETF is more diversified: XGB or ZDB?
XGB holds 549 securities, while ZDB holds 45. On holdings count, XGB is the more diversified portfolio.
Recent articles about XGB and ZDB
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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.