Bond ETFs are the standard way for Canadian investors to add fixed income to a portfolio. They give instant diversification across hundreds of bonds with one trade, automatic reinvestment of maturing bonds, and monthly distributions. Most charge MERs of 0.09–0.20% — far cheaper than buying individual bonds at retail.
| Ticker | Name | MER | AUM | Distribution |
|---|---|---|---|---|
| ZAG | BMO Aggregate Bond Index ETF | 0.09% | $8.4B | Monthly |
| CASH | Global X High Interest Savings ETF | 0.13% | $6.3B | Monthly |
| XBB | iShares Core Canadian Universe Bond Index ETF | 0.10% | $5.2B | Monthly |
| PSA | Purpose High Interest Savings ETF | 0.16% | $4.7B | Monthly |
| VAB | Vanguard Canadian Aggregate Bond Index ETF | 0.09% | $4.1B | Monthly |
| XSB | iShares Core Canadian Short Term Bond Index ETF | 0.10% | $2.8B | Monthly |
| VSB | Vanguard Canadian Short-Term Bond Index ETF | 0.10% | $1.9B | Monthly |
| ZTL | BMO Long Federal Bond Index ETF | 0.20% | $800M | Monthly |
Largest by AUM: ZAG ($8.4B). Lowest MER: VAB at 0.09%. AUM and MER are approximate snapshots — confirm on the issuer's fund page before investing.
Two key dimensions: duration (how sensitive the fund is to interest-rate changes) and credit quality (government vs corporate). ZAG and VAB hold broad aggregate bond markets — government and investment-grade corporate, intermediate duration (~7-8 years). XSB and VSB are short-term (1-5 year) bonds — much less rate-sensitive. ZTL holds long federal bonds (20+ year duration) — most rate-sensitive but used as a deflation hedge. CASH and PSA are HISA ETFs — essentially T-bills paying overnight rates with near-zero duration.
Need filters by issuer, MER, AUM, or distribution frequency? View the full Canadian ETF screener. For one-ticker portfolios, see which account to fund first, and the compound interest calculator to model long-term contributions.
Snapshot date: 2026-04-15. 8 Canadian-listed ETFs covering fixed income, with MERs from 0.09% to 0.20%. Educational only — not advice. Verify all rates and holdings with the issuer before investing.
Last reviewed: April 2026