Each month, we check in on the performance of the largest Canadian bond exchange-traded funds.
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
Out of the 10 largest Canadian bond ETFs, the top performer last month was the C$4.7 billion BMO Short Corporate Bond Index ETF ZCS, which lost 0.56%. The bottom performer was the C$38.1 billion PIMCO Monthly Income Fund (Canada) PMIF, which lost 3.11%.
Here’s more about the performance of the largest bond ETFs.
PIMCO Monthly Income Fund (Canada) PMIF
- : GoldMorningstar Medalist Rating
- : Multi-Fixed IncomeMorningstar Category
The PIMCO Monthly Income Fund (Canada) lost 3.11% in September, underperforming the average fund in the multi-fixed income category, which rose 0.10%. The fund underperformed 94% of its peers and fell further than its benchmark, the Bloomberg US Aggregate Bond Index, by 0.28 percentage points.
The C$38.1 billion fund has lost 1.17% over the past 12 months, while the average fund in its category is up 2.56%. The PIMCO fund, launched in September 2017, has climbed 5.31% over the past three years annualized and 2.24% annualized over the past five.
BMO Aggregate Bond Index ETF ZAG
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The BMO Aggregate Bond Index ETF lost 1.22% in September, falling further than the average fund in the Canadian fixed income category, which fell 0.20%. The C$13 billion fund has lost 1.19% over the past 12 months, while the average fund in its category is up 1.85%. The BMO fund, launched in January 2010, has climbed 4.67% over the past three years annualized and 0.21% annualized over the past five.
iShares Core Canadian Universe Bond Index ETF XBB
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The C$10.9 billion iShares Core Canadian Universe Bond Index ETF fell 1.22% in September. The loss on the fund was worse than the 0.20% loss on the average fund in the Canadian fixed income category, outperforming 58% of its peers. Over the past 12 months, the BlackRock fund fell 1.19%, while the average fund in its category rose 1.85%. The fund, launched in November 2000, has climbed 4.66% over the past three years annualized and 0.21% annualized over the past five.
Vanguard Canadian Aggregate Bond Index ETF VAB
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The Vanguard Canadian Aggregate Bond Index ETF lost 1.22% in September, falling further than the average fund in the Canadian fixed income category, which fell 0.20%. The C$7.6 billion fund has lost 1.28% over the past 12 months, while the average fund in its category is up 1.85%. The Vanguard fund, launched in November 2011, has climbed 4.55% over the past three years annualized and 0.14% annualized over the past five.
RBC Core Bond Pool RCOR
- : SilverMorningstar Medalist Rating
- : Global Core Plus Fixed IncomeMorningstar Category
The RBC Core Bond Pool lost 1.15% in September, falling further than the average fund in the global core plus fixed income category, which fell 0.08%. The fund outperformed 80% of its peers and fell further than its benchmark, the FTSE Canada Universe_CA Index, by 0.93 percentage points.
The C$6.9 billion fund has gained 0.2% over the past 12 months, while the average fund in its category is up 1.7%. The RBC fund launched in March 2024.
RBC Core Plus Bond Pool RPLS
- : SilverMorningstar Medalist Rating
- : Global Core Plus Fixed IncomeMorningstar Category
The RBC Core Plus Bond Pool lost 1.21% in September, falling further than the average fund in the global core plus fixed income category, which fell 0.08%. The fund outperformed 77% of its peers and fell further than its benchmark, the FTSE Canada Universe_CA Index, by 1.00 percentage points.
The C$6.5 billion fund has gained 0.47% over the past 12 months, while the average fund in its category is up 1.70%. The RBC fund launched in March 2024.
Manulife Strategic Income Fund STRT
- : NeutralMorningstar Medalist Rating
- : Multi-Fixed IncomeMorningstar Category
The Manulife Strategic Income Fund lost 1.69% in September, underperforming the average fund in the multi-fixed income category, which rose 0.10%. The fund outperformed 54% of its peers and fell further than its benchmark, the Bloomberg Multiverse Index, by 1.67 percentage points.
The C$5.2 billion fund has lost 1.03% over the past 12 months, while the average fund in its category is up 2.56%. The Manulife fund launched in October 2024.
Fidelity Systematic Canadian Bond Index ETF FCCB
- : SilverMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The C$4.7 billion Fidelity Systematic Canadian Bond Index ETF fell 1.15% in September. The loss on the fund was worse than the 0.20% loss on the average fund in the Canadian fixed income category, outperforming 78% of its peers. Over the past 12 months, the Fidelity International fund fell 0.86%, while the average fund in its category rose 1.85%. The fund, launched in September 2019, has climbed 5.13% over the past three years annualized and 0.55% annualized over the past five.
BMO Short Corporate Bond Index ETF ZCS
- : SilverMorningstar Medalist Rating
- : Canadian Short Term Fixed IncomeMorningstar Category
The C$4.7 billion BMO Short Corporate Bond Index ETF fell 0.56% in September. The loss on the fund was worse than the 0.11% gain on the average fund in the Canadian short-term fixed-income category, outperforming 51% of its peers. Over the past 12 months, the BMO fund rose 1.48%, while the average fund in its category rose 2.29%. The fund, launched in October 2009, has climbed 5.85% over the past three years annualized and gained 2.78% annualized over the past five years.
iShares Core Canadian Short Term Bond Index ETF XSB
- : GoldMorningstar Medalist Rating
- : Canadian Short Term Fixed IncomeMorningstar Category
The C$4.5 billion iShares Core Canadian Short Term Bond Index ETF fell 0.68% in September. The loss on the fund was worse than the 0.11% gain on the average fund in the Canadian short-term fixed-income category, underperforming 77% of its peers. Over the past 12 months, the BlackRock fund rose 0.77%, while the average fund in its category rose 2.29%. The fund, which launched in November 2000, has climbed 4.65% annualized over the past three years and 1.96% annualized over the past five.
