BMO Aggregate Bond Index ETF
ZAG.TO (TSX)
The BMO Aggregate Bond Index ETF (ZAG) stands out for its ultra-low 0.08% management expense ratio and broad diversification, making it a strong choice for investors seeking stability in their portfolios. Currently, it offers a dividend yield of 3.46%, though its 1-year return is slightly negative at -0.79% and a more significant drop of -15.91% over the past five years. With its strategy of replicating the FTSE Canada Universe Bond Index, ZAG provides a reliable option for rebalancing and long-term fixed-income exposure.
Pros:
- Ultra-low 0.08% MER
- Broad diversification
Cons:
- Negative 1-year and 5-year returns
- Interest rate risk
The BMO Aggregate Bond Index ETF (ZAG.TO) may be suitable for conservative investors looking for a low-cost, diversified option to enhance stability within their portfolios, particularly those focused on long-term fixed-income exposure despite recent negative returns. However, potential investors should weigh the ETF's performance history against their risk tolerance and investment objectives before committing capital.