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$6.2 billion RBC Core Plus Bond Pool RPLS, which gained 0.70%. The bottom performer was the C$4.5 billion BMO Core Plus Bond Fund ZCPB, which gained 0.32%.
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 C$39.2 billion PIMCO Monthly Income Fund (Canada) rose 0.49% in June. The gain on the fund was shy of the 0.82% gain on the average fund in the multi-fixed income category, leaving it in the 32nd percentile for performance. The fund beat its benchmark, the Bloomberg US Aggregate Bond Index, by 0.39 percentage points.
Over the past year, the PIMCO fund rose 5.52%, while the average fund in its category rose 5.33%. The fund, launched in September 2017, has climbed 6.44% over the past three years annualized and gained 3.22% annualized over the past five years.
BMO Aggregate Bond Index ETF ZAG
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The BMO Aggregate Bond Index ETF gained 0.49% in June, underperforming the average fund in the Canadian fixed income category, which rose 1.31%. The C$13 billion fund has gained 3.37% over the past year, while the average fund in its category is up 3.03%. The BMO fund, launched in January 2010, has climbed 4.34% over the past three years annualized and gained 0.71% annualized over the past five years.
iShares Core Canadian Universe Bond Index ETF XBB
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
In June, the iShares Core Canadian Universe Bond Index ETF rose 0.50%, while the average Canadian fixed income fund gained 1.31%. The fund placed in the 28th percentile for performance. The C$10.2 billion fund has climbed 3.37% over the past year, outperforming the average fund in its category, which rose 3.03%. The BlackRock fund, launched in November 2000, has climbed 4.33% over the past three years annualized and gained 0.71% annualized over the past five years.
Vanguard Canadian Aggregate Bond Index ETF VAB
- : GoldMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The C$7.5 billion Vanguard Canadian Aggregate Bond Index ETF rose 0.49% in June. The gain on the fund was shy of the 1.31% gain on the average fund in the Canadian fixed income category, leaving it in the 34th percentile for performance. Over the past year, the Vanguard fund rose 3.28%, while the average fund in its category rose 3.03%. The fund, launched in November 2011, has climbed 4.23% over the past three years annualized and gained 0.66% annualized over the past five years.
RBC Core Bond Pool RCOR
- : SilverMorningstar Medalist Rating
- : Global Core Plus Fixed IncomeMorningstar Category
The C$7.1 billion RBC Core Bond Pool rose 0.60% in June. The gain on the fund was shy of the 0.87% gain on the average fund in the global core plus fixed income category, leaving it in the 35th percentile for performance. The fund beat its benchmark, the FTSE Canada Universe_CA Index, by 0.09 percentage points.
Over the past year, the RBC fund rose 4.12%, while the average fund in its category rose 3.86%. The fund was launched in March 2024.
RBC Core Plus Bond Pool RPLS
- : SilverMorningstar Medalist Rating
- : Global Core Plus Fixed IncomeMorningstar Category
The C$6.2 billion RBC Core Plus Bond Pool rose 0.70% in June. The gain on the fund was shy of the 0.87% gain on the average fund in the global core plus fixed income category, leaving it in the 27th percentile for performance. The fund beat its benchmark, the FTSE Canada Universe_CA Index, by 0.18 percentage points.
Over the past year, the RBC fund rose 4.63%, while the average fund in its category rose 3.86%. The fund launched in March 2024.
Manulife Strategic Income Fund STRT
- : NeutralMorningstar Medalist Rating
- : Multi-Fixed IncomeMorningstar Category
The C$5.7 billion Manulife Strategic Income Fund rose 0.37% in June. The gain on the fund was shy of the 0.82% gain on the average fund in the multi-fixed income category, leaving it in the 48th percentile for performance. The fund lagged its benchmark, the Bloomberg Multiverse Index, by 1.99 percentage points.
Over the past year, the Manulife fund rose 3.66%, while the average fund in its category rose 5.33%. The fund launched in October 2024.
BMO Short Corporate Bond Index ETF ZCS.L
- : SilverMorningstar Medalist Rating
- : Canadian Short Term Fixed IncomeMorningstar Category
The C$5 billion BMO Short Corporate Bond Index ETF rose 0.36% in June. The gain on the fund was shy of the 0.61% gain on the average fund in the Canadian short-term fixed-income category, leaving it in the 17th percentile for performance. Over the past year, the BMO fund rose 3.88%, while the average fund in its category rose 2.87%. The fund, launched in February 2017, has climbed 6.14% over the past three years annualized and gained 2.97% annualized over the past five years.
BMO Core Plus Bond Fund ZCPB
- : NeutralMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The BMO Core Plus Bond Fund gained 0.32% in June, underperforming the average fund in the Canadian fixed income category, which rose 1.31%. The fund placed in the 92nd percentile for performance and lagged its benchmark, the FTSE Canada Universe_CA Index, by 0.19 percentage points.
The C$4.5 billion fund has gained 3.73% over the past year, while the average fund in its category is up 3.03%. The BMO fund, launched in May 2018, has climbed 4.55% over the past three years annualized and gained 0.70% annualized over the past five years.
Fidelity Systematic Canadian Bond Index ETF FCCB
- : SilverMorningstar Medalist Rating
- : Canadian Fixed IncomeMorningstar Category
The C$4.4 billion Fidelity Systematic Canadian Bond Index ETF rose 0.47% in June. The gain on the fund was shy of the 1.31% gain on the average fund in the Canadian fixed income category, leaving it in the 47th percentile for performance. Over the past year, the Fidelity International fund rose 3.78%, while the average fund in its category rose 3.03%. The fund, launched in September 2019, has climbed 4.86% over the past three years annualized and gained 1.03% annualized over the past five years.
