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BMO US Dividend ETF (CAD) (ZDY.TO) Sharpe Ratio: 1.37

ETF · Currency in CAD · Last updated Jun 25, 2026

BMO US Dividend ETF aims to provide exposure to a yield-weighted portfolio of U.S. dividend-paying stocks using a rules-based methodology that evaluates dividend growth rate, yield, and payout ratio.

ZDY.TO's Sharpe Ratio of 1.37 indicates that for each unit of volatility, it generates 1.37 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 25, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

ZDY.TO Sharpe Ratio Rank

ZDY.TO Sharpe Ratio Rank: 43.243
Average

ZDY.TO ranks above 43.2% of all investments in our database based on Sharpe Ratio over the past 12 months, showing balanced returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns are proportional to volatility—neither strong nor weak
  • Evaluate whether the volatility profile aligns with your risk tolerance
  • Review higher-ranked alternatives in the same category
  • Monitor rank direction to identify improving or deteriorating trends

ZDY.TO Sharpe Ratio Market Positioning

The chart shows ZDY.TO's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.82 or lower
  • Yellow zone (middle 50%): 0.82 to 2.07
  • Green zone (top 25%): 2.07 or higher
  • Top 1%: 6.84+
  • Median: 1.50 — half of all investments score higher

How it compares to other similar ETFs

The table compares BMO US Dividend ETF (CAD)'s Sharpe Ratio with other ETFs in the Dividend, Large Cap Blend Equities category across multiple time periods, showing how ZDY.TO's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 25, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
VDY.TOVanguard FTSE Canadian High Dividend Yield Index ETF5.98
TBNK.TOTD Canadian Bank Dividend Index ETF5.50
XDIV.TOiShares Core MSCI Canadian Quality Dividend Index ETF4.57
FCCD.TOFidelity Canadian High Dividend Index ETF3.66
KNGC.TOBrompton Canadian Cash Flow Kings ETF3.30
CWIN.TOHAMILTON CHAMPIONS Enhanced Canadian Dividend ETF Class E Units3.14
PDIV.TOPurpose Enhanced Dividend Fund ETF2.74
CNCL.TOGlobal X Enhanced S&P/TSX 60 Covered Call ETF2.49
VIDY.TOVanguard FTSE Developed ex North America High Dividend Yield Index ETF2.30
ETSX.TOEvolve S&P/TSX 60 Enhanced Yield Fund CAD Unhedged2.28
ZDY.TOBMO US Dividend ETF (CAD)1.37

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows ZDY.TO's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ZDY.TO consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does ZDY.TO fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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