VCN.TO vs. ZST.TO

Last updated Jun 14, 2026

VCN.TO (Vanguard FTSE Canada All Cap Index ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both exchange-traded funds - VCN.TO is a Canada Equities fund tracking the FTSE Canada All Cap Domestic Index, while ZST.TO is a Canadian Government Bonds fund actively managed by BMO. VCN.TO is passively managed, while ZST.TO is actively managed. Over the past 10 years, VCN.TO returned 12.80%/yr vs 2.38%/yr for ZST.TO. At a 0.08 correlation, their price movements are largely independent. VCN.TO charges 0.06%/yr vs 0.17%/yr for ZST.TO.

Performance

VCN.TO vs. ZST.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Canada All Cap Index ETF (VCN.TO) and BMO Ultra Short-Term Bond ETF (ZST.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCN.TO achieves a 10.85% return, which is significantly higher than ZST.TO's 1.16% return. Over the past 10 years, VCN.TO has outperformed ZST.TO with an annualized return of 12.80%, while ZST.TO has yielded a comparatively lower 2.38% annualized return.

VCN.TO

• 1D: 0.72%
• 1M: 3.40%
• YTD: 10.85%
• 6M: 11.65%
• 1Y: 33.96%
• 3Y*: 23.86%
• 5Y*: 14.96%
• 10Y*: 12.80%

ZST.TO

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.16%
• 6M: 0.31%
• 1Y: 1.72%
• 3Y*: 3.89%
• 5Y*: 3.00%
• 10Y*: 2.38%

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

VCN.TO vs. ZST.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCN.TO Vanguard FTSE Canada All Cap Index ETF	10.85%	31.00%	22.16%	12.29%	-5.76%	25.65%	4.83%	22.09%	-9.09%	8.44%
ZST.TO BMO Ultra Short-Term Bond ETF	1.16%	2.06%	5.21%	5.38%	1.22%	0.24%	1.77%	2.39%	1.99%	1.47%

Correlation

The correlation between VCN.TO and ZST.TO is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.08
Correlation (All Time) Calculated using the full available price history since Aug 13, 2013	0.08

The correlation between VCN.TO and ZST.TO shifts across timeframes, from 0.08 (10 years) to 0.25 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VCN.TO vs. ZST.TO — Risk / Return Rank

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

VCN.TO

VCN.TO Risk / Return Rank: 86
VCN.TO Sharpe Ratio Rank: 89
VCN.TO Sortino Ratio Rank: 86
VCN.TO Omega Ratio Rank: 87
VCN.TO Calmar Ratio Rank: 81
VCN.TO Martin Ratio Rank: 88

ZST.TO

ZST.TO Risk / Return Rank: 52
ZST.TO Sharpe Ratio Rank: 53
ZST.TO Sortino Ratio Rank: 36
ZST.TO Omega Ratio Rank: 97
ZST.TO Calmar Ratio Rank: 39
ZST.TO Martin Ratio Rank: 35

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.

VCN.TO vs. ZST.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canada All Cap Index ETF (VCN.TO) and BMO Ultra Short-Term Bond ETF (ZST.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.

	VCN.TO	ZST.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.59	1.59	+1.00
Sortino ratio: Return per unit of downside risk	3.35	1.68	+1.67
Omega ratio: Gain probability vs. loss probability	1.47	1.85	-0.38
Calmar ratio: Return relative to maximum drawdown	3.68	1.72	+1.96
Martin ratio: Return relative to average drawdown	16.98	4.62	+12.36

VCN.TO vs. ZST.TO - Sharpe Ratio Comparison

The current VCN.TO Sharpe Ratio is 2.59, which is higher than the ZST.TO Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VCN.TO and ZST.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

VCN.TO vs. ZST.TO - Drawdown Comparison

The maximum VCN.TO drawdown since its inception was -37.32%, which is greater than ZST.TO's maximum drawdown of -3.60%. Use the drawdown chart below to compare losses from any high point for VCN.TO and ZST.TO.

Drawdown Indicators

	VCN.TO	ZST.TO	Difference
Max Drawdown Largest peak-to-trough decline	-37.32%	-3.60%	-33.72%
Max Drawdown (1Y) Largest decline over 1 year	-9.11%	-1.01%	-8.10%
Max Drawdown (3Y) Largest decline over 3 years	-12.24%	-1.01%	-11.23%
Max Drawdown (5Y) Largest decline over 5 years	-16.12%	-1.01%	-15.11%
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	-1.06%	-36.26%
Current Drawdown Current decline from peak	-0.85%	0.00%	-0.85%
Average Drawdown Average peak-to-trough decline	-3.89%	-0.58%	-3.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	0.37%	+1.60%

Volatility

VCN.TO vs. ZST.TO - Volatility Comparison

Vanguard FTSE Canada All Cap Index ETF (VCN.TO) has a higher volatility of 4.44% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that VCN.TO's price experiences larger fluctuations and is considered to be riskier than ZST.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCN.TO	ZST.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	0.08%	+4.36%
Volatility (6M) Calculated over the trailing 6-month period	10.63%	1.05%	+9.58%
Volatility (1Y) Calculated over the trailing 1-year period	12.94%	1.08%	+11.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.10%	0.72%	+12.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.99%	0.71%	+14.28%

VCN.TO vs. ZST.TO - Expense Ratio Comparison

VCN.TO has a 0.06% expense ratio, which is lower than ZST.TO's 0.17% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VCN.TO vs. ZST.TO - Dividend Comparison

VCN.TO's dividend yield for the trailing twelve months is around 2.00%, less than ZST.TO's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCN.TO Vanguard FTSE Canada All Cap Index ETF	2.00%	2.27%	2.71%	3.00%	3.17%	2.49%	2.72%	2.88%	2.83%	2.29%	2.36%	2.68%
ZST.TO BMO Ultra Short-Term Bond ETF	2.56%	2.85%	4.70%	4.84%	2.78%	2.31%	2.68%	2.84%	3.47%	4.09%	3.96%	3.94%

Frequently Asked Questions

Can I hold both VCN.TO and ZST.TO in my portfolio?

VCN.TO and ZST.TO have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VCN.TO or ZST.TO?

On fees, VCN.TO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VCN.TO or ZST.TO?

VCN.TO is cheaper with a 0.06% expense ratio, compared with 0.17% for ZST.TO.

What is the main difference between VCN.TO and ZST.TO?

VCN.TO is categorized as Canada Equities, while ZST.TO is Canadian Government Bonds. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.06% for VCN.TO and 0.17% for ZST.TO.