VS
iShares Canadian HYBrid Corporate Bond Index ETF (XHB) and BMO Aggregate Bond Index ETF (ZAG) offer distinct profiles for Canadian ETF investors. A direct comparison shows that XHB focuses its top 3 sector exposures on Energy, Telecommunications, and Finance, while ZAG leans towards Sovereign, Municipal, and Finance. When evaluating costs, XHB features a management fee (MER) of 0.45%, compared to 0.08% for ZAG. Performance-wise, XHB has returned 2.11% year-to-date with +$4 M in net flows, whereas ZAG is at 0.81% with +$2 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
XHB
ZAG
| AuM | $221.67 M | $13,438.53 M |
| Management Fees | 0.45% | 0.08% |
| Exp. ratio | 0.50% | 0.09% |
| Tracking Difference | - | - |
Historical performance and flows
As of November 3, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | XHB | +0.84% | +0.08% | +2.11% | +2.11% | +23.36% |
ZAG | +1.45% | -0.44% | +0.81% | -0.08% | +13.57% | |
| Flows | XHB | -$4 M | -$4 M | +$4 M | +$12 M | +$7 M |
ZAG | +$312 M | +$437 M | +$1,506 M | +$2,202 M | +$7,575 M |
XHB vs ZAG exposure
Countries
XHB
Canada
91.41%
Other
8.59%
ZAG
Canada
95.65%
Sectors
XHB
Energy
24.29%
Telecommunications
18.23%
Finance
17.08%
Utilities
11.66%
Industrials
10.38%
Other
18.35%
ZAG
Sovereign
34.55%
Municipal
30.80%
Finance
11.12%
Government Agencies
9.39%
Other
14.14%
As of November 3, 2026
Top 10 Holdings
XHB
Air Canada, 4.625% 15aug2029, CAD
1.62%
TELUS, 6.25% 21jul2055, CAD (CAR)
1.24%
Rogers Communications, 6.25% 31jul2056, CAD
1.06%
Bell Canada, 5.625% 27mar2055, CAD (C)
0.99%
Rogers Communications, 5.625% 15apr2055, CAD (NC5)
0.86%
TELUS, 6.75% 21jul2055, CAD (CAS)
0.80%
Inter Pipeline Ltd, 6.625% 19nov2079, CAD (2019-B, Conv.)
0.65%
Inter Pipeline Ltd, 6.875% 26mar2079, CAD (2019-A)
0.65%
Bell Canada, 5.375% 12may2056, CAD (D)
0.59%
Bell Canada, 5.875% 12may2056, CAD (E)
0.58%
ZAG
Canada, Bonds 3% 1jun2034, CAD
4.26%
Canada, Bonds 2.5% 1nov2027, CAD
3.74%
Canada, Bonds 2.25% 1feb2028, CAD
2.97%
Canada, Bond 2.25 1jun2029 10Y
2.92%
Canada, Bonds 2.75% 1dec2055, CAD
2.80%
Canada Housing Trust, 1.1% 15mar2031, CAD (95)
2.69%
Province of Quebec, 3.5% 1dec2048, CAD (B117)
2.35%
Bank of Montreal, 3.19% 1mar2028, CAD
2.25%
Province of Quebec, 2.75% 1sep2028, CAD (B124)
2.23%
Canada, Bonds 2.75% 1mar2030, CAD
2.20%
Diversification
XHB
Total weight of top 10 holdings out of 704 total
9.04%
ZAG
Total weight of top 10 holdings out of 86 total
28.40%
Characteristics
Compare
XHB
ZAG
| Provider | iShares | BMO |
| Management | Passively managed | Passively managed |
| Benchmark | FTSE Canada HYBrid Bond TR Index - CAD | FTSE Canada Universe Bond TR Index - CAD |
| Replication Method | Direct (Physical) | Direct (Physical) |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 4.66% | 3.45% |
| Meets ESG criteria | No | No |
| Inception Date | September 22, 2010 | January 19, 2010 |
Frequently asked questions about XHB and ZAG
Which ETF has performed better year to date: XHB or ZAG?
As of November 3, 2026, XHB has returned 2.11% year to date, while ZAG has returned 0.81%. XHB is ahead on YTD performance.
Which ETF is larger by assets under management: XHB or ZAG?
As of November 3, 2026, XHB manages $221.67 M in assets, while ZAG manages $13.44 B. ZAG is the larger fund by AUM.
How are XHB and ZAG managed?
XHB is passively managed by iShares. It tracks the FTSE Canada HYBrid Bond TR Index - CAD benchmark. ZAG is passively managed by BMO. It tracks the FTSE Canada Universe Bond TR Index - CAD benchmark.
What sectors do XHB and ZAG emphasize?
XHB is most exposed to Energy, Telecommunications, and Finance. ZAG is most exposed to Sovereign, Municipal, and Finance.
Which ETF is attracting more investor flows: XHB or ZAG?
Year to date, XHB has seen +$4.10 M in net flows, compared with +$1,505.68 M for ZAG. ZAG has attracted more net investor money so far.
How do the fees of XHB and ZAG compare?
XHB has an expense ratio of 0.50%, while ZAG has an expense ratio of 0.09%.
What are the top holdings of XHB and ZAG?
XHB's largest holdings include Air Canada, 4.625% 15aug2029, CAD and TELUS, 6.25% 21jul2055, CAD (CAR). 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: XHB or ZAG?
XHB holds 668 securities, while ZAG holds 86. On holdings count, XHB is the more diversified portfolio.
Recent articles about XHB 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.