VS
BMO Mid Federal Bond Index ETF (ZFM) and iShares Canadian Government Bond Index ETF (XGB) offer distinct profiles for Canadian ETF investors. A direct comparison shows that ZFM focuses its top 3 sector exposures on Sovereign and Government Agencies, while XGB leans towards Sovereign, Municipal, and Government Agencies. When evaluating costs, ZFM features a management fee (MER) of 0.2%, compared to 0.12% for XGB. Performance-wise, ZFM has returned 0.35% year-to-date with -$177 M in net flows, whereas XGB is at 0.23% with -$243 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
ZFM
XGB
| AuM | $622.06 M | $1,571.97 M |
| Management Fees | 0.20% | 0.12% |
| Exp. ratio | 0.21% | 0.13% |
| Tracking Difference | - | - |
Historical performance and flows
As of October 13, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | ZFM | +0.88% | -1.19% | -0.35% | -1.32% | +14.41% |
XGB | +0.95% | -1.16% | -0.23% | -0.98% | +13.11% | |
| Flows | ZFM | -$86 M | -$149 M | -$177 M | -$180 M | -$438 M |
XGB | -$110 M | -$41 M | -$243 M | -$147 M | +$653 M |
ZFM vs XGB exposure
Countries
ZFM
Canada
100.00%
XGB
Canada
99.18%
Sectors
ZFM
Sovereign
75.33%
Government Agencies
24.67%
XGB
Sovereign
44.40%
Municipal
38.41%
Government Agencies
9.61%
Other
7.58%
As of October 13, 2026
Top 10 Holdings
ZFM
Canada, Bonds 3.25% 1jun2035, CAD
15.37%
Canada, Bonds 3.25% 1dec2034, CAD
14.76%
Canada, Bonds 3% 1jun2034, CAD
13.90%
Canada, Bonds 1.5% 1dec2031 10Y
7.52%
Canada, Bonds 3.25% 1dec2033, CAD
6.76%
Canada, Bonds 3.25% 1dec2035, CAD
6.65%
Canada Housing Trust, 4.25% 15mar2034, CAD (118)
6.41%
Canada Housing Trust, 3.55% 15sep2032, CAD (107)
4.13%
CMHC, 3.5% 15dec2034, CAD (122)
4.05%
Canada, Bonds 2.75% 1jun2033, CAD
3.95%
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%
Diversification
ZFM
Total weight of top 10 holdings out of 18 total
83.48%
XGB
Total weight of top 10 holdings out of 550 total
17.48%
Characteristics
Compare
ZFM
XGB
| Provider | BMO | iShares |
| Management | Passively managed | Passively managed |
| Benchmark | FTSE Canada Mid Term Federal Bond TR Index - CAD | FTSE Canada All Government Bond TR Index - CAD |
| Replication Method | Direct (Physical) | Direct (Physical) |
| Asset Class | Fixed Income | Fixed Income |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 2.72% | 3.21% |
| Meets ESG criteria | No | No |
| Inception Date | May 29, 2009 | November 6, 2006 |
Frequently asked questions about ZFM and XGB
Which ETF has performed better year to date: ZFM or XGB?
As of October 13, 2026, ZFM has returned -0.35% year to date, while XGB has returned -0.23%. XGB is ahead on YTD performance.
Which ETF is larger by assets under management: ZFM or XGB?
As of October 13, 2026, ZFM manages $622.06 M in assets, while XGB manages $1.57 B. XGB is the larger fund by AUM.
How are ZFM and XGB managed?
ZFM is passively managed by BMO. It tracks the FTSE Canada Mid Term Federal Bond TR Index - CAD benchmark. XGB is passively managed by iShares. It tracks the FTSE Canada All Government Bond TR Index - CAD benchmark.
What sectors do ZFM and XGB emphasize?
ZFM is most exposed to Sovereign and Government Agencies. XGB is most exposed to Sovereign, Municipal, and Government Agencies.
Which ETF is attracting more investor flows: ZFM or XGB?
Year to date, ZFM has seen -$176.80 M in net flows, compared with -$242.56 M for XGB. ZFM has attracted more net investor money so far.
How do the fees of ZFM and XGB compare?
ZFM has an expense ratio of 0.21%, while XGB has an expense ratio of 0.13%.
What are the top holdings of ZFM and XGB?
ZFM's largest holdings include Canada, Bonds 3.25% 1jun2035, CAD, Canada, Bonds 3.25% 1dec2034, CAD, and Canada, Bonds 3% 1jun2034, CAD. XGB's top holdings include Canada, Bonds 2.75% 1sep2030, CAD, Canada, Bonds 3.25% 1jun2036, CAD, and Canada, Bonds 2.75% 1mar2031, CAD.
Which ETF is more diversified: ZFM or XGB?
ZFM holds 18 securities, while XGB holds 549. On holdings count, XGB is the more diversified portfolio.
Recent articles about ZFM and XGB
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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.