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Compare BMO Mid Federal Bond Index ETF (ZFM) vs BMO Discount Bond Index ETF (ZDB) to find the best fit for your portfolio. ZFM provides Sovereign and Government Agencies exposures, while ZDB is primarily weighted in Sovereign, Municipal, and Finance. When evaluating costs, ZFM features a management fee (MER) of 0.2%, compared to 0.09% for ZDB. Performance-wise, ZFM has returned 0.04% year-to-date with -$176 M in net flows, whereas ZDB is at 0.13% with +$275 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
ZDB
| AuM | $624.71 M | $1,410.61 M |
| Management Fees | 0.20% | 0.09% |
| Exp. ratio | 0.21% | 0.10% |
| Tracking Difference | - | - |
Historical performance and flows
As of October 16, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | ZFM | +1.07% | -1.13% | -0.04% | -1.44% | +14.77% |
ZDB | +1.06% | -0.92% | +0.13% | -0.86% | +15.24% | |
| Flows | ZFM | -$85 M | -$151 M | -$176 M | -$179 M | -$437 M |
ZDB | +$18 M | +$99 M | +$275 M | +$582 M | +$546 M |
ZFM vs ZDB exposure
Countries
ZFM
Canada
100.00%
ZDB
Canada
100.00%
Sectors
ZFM
Sovereign
75.33%
Government Agencies
24.67%
ZDB
Sovereign
33.39%
Municipal
31.40%
Finance
11.58%
Government Agencies
9.96%
Other
13.67%
As of October 16, 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%
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
ZFM
Total weight of top 10 holdings out of 18 total
83.48%
ZDB
Total weight of top 10 holdings out of 45 total
59.81%
Characteristics
Compare
ZFM
ZDB
| Provider | BMO | BMO |
| Management | Passively managed | Passively managed |
| Benchmark | FTSE Canada Mid Term Federal 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 | 2.71% | 1.83% |
| Meets ESG criteria | No | No |
| Inception Date | May 29, 2009 | February 10, 2014 |
Frequently asked questions about ZFM and ZDB
Which ETF has performed better year to date: ZFM or ZDB?
As of October 16, 2026, ZFM has returned -0.04% year to date, while ZDB has returned 0.13%. ZDB is ahead on YTD performance.
Which ETF is larger by assets under management: ZFM or ZDB?
As of October 16, 2026, ZFM manages $624.71 M in assets, while ZDB manages $1.41 B. ZDB is the larger fund by AUM.
How are ZFM and ZDB managed?
ZFM is passively managed by BMO. It tracks the FTSE Canada Mid Term Federal 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 ZFM and ZDB emphasize?
ZFM is most exposed to Sovereign and Government Agencies. ZDB is most exposed to Sovereign, Municipal, and Finance.
Which ETF is attracting more investor flows: ZFM or ZDB?
Year to date, ZFM has seen -$176.08 M in net flows, compared with +$275.25 M for ZDB. ZDB has attracted more net investor money so far.
How do the fees of ZFM and ZDB compare?
ZFM has an expense ratio of 0.21%, while ZDB has an expense ratio of 0.10%.
What are the top holdings of ZFM and ZDB?
ZFM's largest holdings include Canada, Bonds 3.25% 1jun2035, CAD, Canada, Bonds 3.25% 1dec2034, CAD, and Canada, Bonds 3% 1jun2034, 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: ZFM or ZDB?
ZFM holds 18 securities, while ZDB holds 45. On holdings count, ZDB is the more diversified portfolio.
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