Investing · ETF deep dive
ZBAL BMO Balanced ETF
The value 60/40: cheapest at the rung, tax-aware bonds, quarterly discipline.
Best for: Balanced investors who want the classic mix at the lowest sticker — especially in taxable accounts
Pros
- 0.15% fee / 0.18% MER — cheapest big-three 60/40
- ZDB discount-bond sleeve helps after-tax returns outside registered accounts
- 1.35% quarterly distribution yield
Cons
- S&P-style construction, as across the family
- Smaller than VBAL/XBAL ($592M)
What's inside ZBAL
| Underlying fund | Weight |
|---|---|
| BMO Discount Bond Index ETFZDB | 28.2% |
| BMO S&P 500 Index ETFZSP | 27.1% |
| BMO S&P/TSX Capped Composite Index ETFZCN | 15.1% |
| BMO US Aggregate Bond Index ETF (Hedged Units)ZUAG.F | 12.1% |
| BMO MSCI EAFE Index ETFZEA | 9.8% |
| BMO MSCI Emerging Markets Index ETFZEM | 5.5% |
| BMO S&P US Mid Cap Index ETFZMID | 1.5% |
| BMO S&P US Small Cap Index ETFZSML | 0.7% |
Canada 43.1% · US 40.4% (total-portfolio look-through incl. bonds) (Provider look-through including bonds, June 9, 2026) · holdings as of June 9, 2026
The deep dive
ZBAL applies the family formula at 60/40: 40% bonds led by the tax-aware ZDB sleeve plus hedged US aggregate, 60% equities in BMO’s S&P-flavoured stack. For a non-registered balanced holding — common for retirees who’ve filled registered room — the discount-bond sleeve makes ZBAL the most tax-thoughtful 60/40 of the trio.
Everything else is the family story: cheapest sticker, explicit quarterly rebalancing, slightly less mid/small-cap America than total-market rivals. At this rung those differences are pennies and preference — which is exactly what our category guide concludes.
Same family, different dose
The BMO ETFs ladder lets you change risk level without changing philosophy:
- ZEQT — 100% equity (actual) · 0.18% MER · quarterly distributions
- ZGRO — 81/19 actual · 0.18% MER · quarterly distributions
- ZCON — 42/58 actual · 0.18% MER · quarterly distributions
Frequently asked questions
What does ZBAL hold?
ZBAL holds 62/38 actual — led by BMO Discount Bond Index ETF (ZDB) at 28.2%, BMO S&P 500 Index ETF (ZSP) at 27.1%, BMO S&P/TSX Capped Composite Index ETF (ZCN) at 15.1% (as of June 9, 2026). Geographic mix: Canada 43.1% · US 40.4% (total-portfolio look-through incl. bonds) (provider look-through including bonds, june 9, 2026). Weights drift between rebalances — rebalances quarterly to strategic weights — the most explicit schedule.
What does ZBAL cost?
Currently 0.15% management fee; 0.18% published MER (fact sheets as of May 31, 2026). For context, the asset-allocation category now runs roughly 0.17%–0.25% all-in at the index families after the 2025 fee war — see the full cost table, and what fee gaps compound into with the MER calculator.
Should I pick ZBAL or one of its siblings?
The BMO ETFs ladder runs ZEQT · ZGRO · ZBAL · ZCON — same construction, different equity/bond dose. ZBAL sits at 62/38 actual. The risk level is the decision that matters; pick the rung whose worst year you could actually sit through (the asset-allocation calculator helps), then stay put. Comparing across providers instead? Start with the family-by-family guide.
The bottom line
The best-priced 60/40, and the best taxable-account one. Interchangeable with VBAL/XBAL for registered money.
This page is for educational purposes only and is not investment advice. Fund facts were verified at BMO ETFs's published fact sheets and product pages on June 10, 2026; holdings and weights are point-in-time and drift between rebalances; published MERs may lag recent fee changes (fact sheets as of May 31, 2026). We deliberately do not compare or project returns. Read the fund facts document before buying. See our methodology.