VS
BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF) and Vanguard Global ex-U.S. Aggregate Bond Index ETF (VBG) offer distinct profiles for Canadian ETF investors. A direct comparison shows that ZEF focuses its top 3 sector exposures on Sovereign and Municipal, while VBG leans towards Sovereign, Banks, and Municipal. When evaluating costs, ZEF features a management fee (MER) of 0.5%, compared to 0.35% for VBG. Performance-wise, ZEF has returned 0.19% year-to-date with +$92 M in net flows, whereas VBG is at 0.34% with +$191 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
ZEF
VBG
| AuM | $813.50 M | $1,388.30 M |
| Management Fees | 0.50% | 0.35% |
| Exp. ratio | 0.55% | 0.40% |
| Tracking Difference | -0.03% | -0.75% |
Historical performance and flows
As of April 24, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | ZEF | +1.69% | +0.03% | +0.19% | +5.89% | +20.25% |
VBG | +0.72% | -0.65% | -0.34% | -0.93% | +8.91% | |
| Flows | ZEF | -$1 M | +$38 M | +$92 M | +$176 M | +$131 M |
VBG | +$30 M | +$139 M | +$191 M | +$556 M | +$821 M |
ZEF vs VBG exposure
Countries
ZEF
Mexico
10.20%
Brazil
10.05%
China
9.96%
Indonesia
9.90%
Saudi Arabia
9.23%
Turkey
8.70%
Other
41.96%
VBG
France
11.80%
Germany
10.80%
Japan
10.63%
Italy
7.63%
United Kingdom
7.53%
Other
51.62%
Sectors
ZEF
Sovereign
99.14%
VBG
Sovereign
53.13%
Other
17.41%
Banks
10.85%
Other
18.60%
As of April 24, 2026
Top 10 Holdings
ZEF
Argentina, 1% 9jul2029, USD
4.17%
Mexico, 3.5% 12feb2034, USD
3.42%
Mexico, 4.5% 22apr2029, USD
3.40%
China, 1.2% 21oct2030, USD
3.39%
Mexico, 2.659% 24may2031, USD
3.39%
Brazil, 6.625% 15mar2035, USD
3.38%
Brazil, 3.875% 12jun2030, USD
3.35%
Indonesia, 3.85% 15oct2030, USD
3.34%
China, 2.125% 3dec2029, USD
3.32%
Brazil, 4.5% 30may2029, USD
3.31%
VBG
DE000F2Y2E04
1.04%
France, OAT 2.75% 25feb2029, EUR
0.40%
FR001400Z2L7
0.39%
United Kingdom, Gilt 4.375% 7mar2030, GBP
0.37%
United Kingdom, Gilt 4.375% 7mar2028, GBP
0.36%
United Kingdom, Gilt 4.125% 22jul2029, GBP
0.35%
GB00BVP99673
0.32%
United Kingdom, Gilt 3.75% 29jan2038, GBP
0.30%
Italy, BTP 4.1% 01feb2029, EUR
0.28%
Spain, BON 2.4% 31may2028, EUR
0.28%
Diversification
ZEF
Total weight of top 10 holdings out of 59 total
34.46%
VBG
Total weight of top 10 holdings out of 6,722 total
4.09%
Characteristics
Compare
ZEF
VBG
| Provider | BMO | Vanguard |
| Management | Passively managed | Passively managed |
| Benchmark | Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD | Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped (CAD Hedged) Total Return Index - CAD |
| Replication Method | Direct (Physical) | |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 4.26% | 3.53% |
| Meets ESG criteria | No | No |
| Inception Date | May 21, 2010 | June 30, 2014 |
Frequently asked questions about ZEF and VBG
Which ETF has performed better year to date: ZEF or VBG?
As of April 24, 2026, ZEF has returned 0.19% year to date, while VBG has returned -0.34%. ZEF is ahead on YTD performance.
Which ETF is larger by assets under management: ZEF or VBG?
As of April 24, 2026, ZEF manages $813.50 M in assets, while VBG manages $1.39 B. VBG is the larger fund by AUM.
How are ZEF and VBG managed?
ZEF is passively managed by BMO. It tracks the Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD benchmark. VBG is passively managed by Vanguard. It tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped (CAD Hedged) Total Return Index - CAD benchmark.
What sectors do ZEF and VBG emphasize?
ZEF is most exposed to Sovereign and Municipal. VBG is most exposed to Sovereign, Banks, and Municipal.
Which ETF is attracting more investor flows: ZEF or VBG?
Year to date, ZEF has seen +$91.74 M in net flows, compared with +$190.93 M for VBG. VBG has attracted more net investor money so far.
How do the fees of ZEF and VBG compare?
ZEF has an expense ratio of 0.55%, while VBG has an expense ratio of 0.40%.
What are the top holdings of ZEF and VBG?
ZEF's largest holdings include Argentina, 1% 9jul2029, USD, Mexico, 3.5% 12feb2034, USD, and Mexico, 4.5% 22apr2029, USD. VBG's top holdings include France, OAT 2.75% 25feb2029, EUR and United Kingdom, Gilt 4.375% 7mar2030, GBP.
Which ETF is more diversified: ZEF or VBG?
ZEF holds 59 securities, while VBG holds 5990. On holdings count, VBG is the more diversified portfolio.
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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.