RAAX vs. VDY.TO

Last updated Jun 14, 2026

RAAX (VanEck Inflation Allocation ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - RAAX is a Diversified Portfolio fund actively managed by VanEck, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. RAAX is actively managed, while VDY.TO is passively managed. Over the past 5 years, RAAX returned 13.17%/yr vs 14.55%/yr for VDY.TO. At a 0.46 correlation, their price movements are largely independent. RAAX charges 0.78%/yr vs 0.22%/yr for VDY.TO.

Performance

RAAX vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Inflation Allocation ETF (RAAX) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

RAAX is traded in USD, while VDY.TO is traded in CAD. To make them comparable, the VDY.TO values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, RAAX achieves a 17.64% return, which is significantly lower than VDY.TO's 21.35% return.

RAAX

• 1D: 2.26%
• 1M: -3.39%
• YTD: 17.64%
• 6M: 17.56%
• 1Y: 32.08%
• 3Y*: 21.35%
• 5Y*: 13.17%
• 10Y*: —

VDY.TO

• 1D: 0.47%
• 1M: 3.28%
• YTD: 21.35%
• 6M: 21.69%
• 1Y: 45.54%
• 3Y*: 25.54%
• 5Y*: 14.55%
• 10Y*: 13.61%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RAAX vs. VDY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
RAAX VanEck Inflation Allocation ETF	17.64%	26.74%	12.50%	6.71%	1.51%	21.56%	-8.27%	6.14%	-2.41%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	21.35%	35.39%	11.96%	11.05%	-6.18%	36.67%	1.03%	26.64%	-10.05%

Correlation

The correlation between RAAX and VDY.TO is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Apr 10, 2018	0.46

The correlation between RAAX and VDY.TO shifts across timeframes, from 0.41 (1 year) to 0.53 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

RAAX vs. VDY.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RAAX

RAAX Risk / Return Rank: 85
RAAX Sharpe Ratio Rank: 84
RAAX Sortino Ratio Rank: 81
RAAX Omega Ratio Rank: 83
RAAX Calmar Ratio Rank: 89
RAAX Martin Ratio Rank: 88

VDY.TO

VDY.TO Risk / Return Rank: 98
VDY.TO Sharpe Ratio Rank: 99
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 98
VDY.TO Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RAAX vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Inflation Allocation ETF (RAAX) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	RAAX	VDY.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.37	4.99	-2.62
Sortino ratio: Return per unit of downside risk	3.10	6.89	-3.79
Omega ratio: Gain probability vs. loss probability	1.43	1.94	-0.51
Calmar ratio: Return relative to maximum drawdown	4.68	12.92	-8.24
Martin ratio: Return relative to average drawdown	16.90	44.56	-27.65

RAAX vs. VDY.TO - Sharpe Ratio Comparison

The current RAAX Sharpe Ratio is 2.37, which is lower than the VDY.TO Sharpe Ratio of 4.99. The chart below compares the historical Sharpe Ratios of RAAX and VDY.TO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

RAAX vs. VDY.TO - Drawdown Comparison

The maximum RAAX drawdown since its inception was -33.91%, smaller than the maximum VDY.TO drawdown of -44.42%. Use the drawdown chart below to compare losses from any high point for RAAX and VDY.TO.

Drawdown Indicators

	RAAX	VDY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-33.91%	-44.42%	+10.51%
Max Drawdown (1Y) Largest decline over 1 year	-7.17%	-3.59%	-3.58%
Max Drawdown (3Y) Largest decline over 3 years	-11.59%	-12.92%	+1.33%
Max Drawdown (5Y) Largest decline over 5 years	-23.55%	-23.69%	+0.14%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.42%	—
Current Drawdown Current decline from peak	-3.77%	0.00%	-3.77%
Average Drawdown Average peak-to-trough decline	-6.77%	-8.79%	+2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.04%	+0.94%

Volatility

RAAX vs. VDY.TO - Volatility Comparison

VanEck Inflation Allocation ETF (RAAX) has a higher volatility of 4.67% compared to Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) at 3.14%. This indicates that RAAX's price experiences larger fluctuations and is considered to be riskier than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RAAX	VDY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.67%	3.14%	+1.53%
Volatility (6M) Calculated over the trailing 6-month period	12.21%	7.41%	+4.80%
Volatility (1Y) Calculated over the trailing 1-year period	14.18%	9.31%	+4.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.70%	13.44%	+2.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.79%	17.45%	-1.66%

RAAX vs. VDY.TO - Expense Ratio Comparison

RAAX has a 0.78% expense ratio, which is higher than VDY.TO's 0.22% expense ratio.

Dividends

RAAX vs. VDY.TO - Dividend Comparison

RAAX's dividend yield for the trailing twelve months is around 1.99%, less than VDY.TO's 2.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RAAX VanEck Inflation Allocation ETF	1.99%	2.34%	1.91%	3.66%	1.53%	8.72%	6.27%	2.37%	0.56%	0.00%	0.00%	0.00%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.83%	3.59%	4.37%	4.64%	4.42%	3.46%	4.59%	4.25%	4.44%	3.42%	3.25%	4.11%

Frequently Asked Questions

Can I hold both RAAX and VDY.TO in my portfolio?

RAAX and VDY.TO have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, RAAX or VDY.TO?

On fees, VDY.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, RAAX or VDY.TO?

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.78% for RAAX.

What is the main difference between RAAX and VDY.TO?

RAAX is categorized as Diversified Portfolio, while VDY.TO is Dividend. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.78% for RAAX and 0.22% for VDY.TO.