VDY.TO vs. RY

Last updated Jun 14, 2026

VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) is Dividend fund tracking the FTSE Canada High Dividend Yield Index, while RY (Royal Bank of Canada) is a stock. Over the past 10 years, VDY.TO returned 14.58%/yr vs 18.19%/yr for RY. A 0.67 correlation means they provide meaningful diversification when combined.

Performance

VDY.TO vs. RY - Performance Comparison

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

Different Trading Currencies

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

Returns By Period

In the year-to-date period, VDY.TO achieves a 23.81% return, which is significantly higher than RY's 21.09% return. Over the past 10 years, VDY.TO has underperformed RY with an annualized return of 14.58%, while RY has yielded a comparatively higher 18.19% annualized return.

VDY.TO

• 1D: 0.65%
• 1M: 5.30%
• YTD: 23.81%
• 6M: 23.43%
• 1Y: 49.57%
• 3Y*: 27.42%
• 5Y*: 17.91%
• 10Y*: 14.58%

RY

• 1D: 0.32%
• 1M: 10.77%
• YTD: 21.09%
• 6M: 23.73%
• 1Y: 65.38%
• 3Y*: 35.55%
• 5Y*: 21.80%
• 10Y*: 18.19%

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

VDY.TO vs. RY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	23.81%	29.21%	21.44%	8.41%	-0.23%	36.60%	-1.37%	21.42%	-10.09%	8.32%
RY Royal Bank of Canada	21.09%	39.61%	34.28%	10.04%	-2.17%	34.05%	5.85%	15.22%	-5.56%	16.49%

Correlation

The correlation between VDY.TO and RY is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Nov 8, 2012	0.67

The correlation between VDY.TO and RY has been stable across timeframes, ranging from 0.61 to 0.70 - a consistent structural relationship.

Return for Risk

VDY.TO vs. RY — Risk / Return Rank

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

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

RY

RY Risk / Return Rank: 97
RY Sharpe Ratio Rank: 98
RY Sortino Ratio Rank: 99
RY Omega Ratio Rank: 98
RY Calmar Ratio Rank: 94
RY Martin Ratio Rank: 97

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) and Royal Bank of Canada (RY). 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.

	VDY.TO	RY	Difference
Sharpe ratio: Return per unit of total volatility	5.98	4.08	+1.90
Sortino ratio: Return per unit of downside risk	8.59	5.69	+2.90
Omega ratio: Gain probability vs. loss probability	2.21	1.72	+0.49
Calmar ratio: Return relative to maximum drawdown	15.94	7.83	+8.11
Martin ratio: Return relative to average drawdown	64.95	28.12	+36.83

VDY.TO vs. RY - Sharpe Ratio Comparison

The current VDY.TO Sharpe Ratio is 5.98, which is higher than the RY Sharpe Ratio of 4.08. The chart below compares the historical Sharpe Ratios of VDY.TO and RY, 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

VDY.TO vs. RY - Drawdown Comparison

The maximum VDY.TO drawdown since its inception was -39.21%, smaller than the maximum RY drawdown of -53.85%. Use the drawdown chart below to compare losses from any high point for VDY.TO and RY.

Drawdown Indicators

	VDY.TO	RY	Difference
Max Drawdown Largest peak-to-trough decline	-39.21%	-53.85%	+14.64%
Max Drawdown (1Y) Largest decline over 1 year	-3.12%	-8.11%	+4.99%
Max Drawdown (3Y) Largest decline over 3 years	-10.38%	-16.37%	+5.99%
Max Drawdown (5Y) Largest decline over 5 years	-16.17%	-20.93%	+4.76%
Max Drawdown (10Y) Largest decline over 10 years	-39.21%	-34.52%	-4.69%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.47%	-6.43%	+1.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	2.26%	-1.50%

Volatility

VDY.TO vs. RY - Volatility Comparison

The current volatility for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) is 3.27%, while Royal Bank of Canada (RY) has a volatility of 4.29%. This indicates that VDY.TO experiences smaller price fluctuations and is considered to be less risky than RY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDY.TO	RY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.27%	4.29%	-1.02%
Volatility (6M) Calculated over the trailing 6-month period	6.96%	11.83%	-4.87%
Volatility (1Y) Calculated over the trailing 1-year period	8.32%	15.56%	-7.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.58%	18.61%	-7.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.95%	20.51%	-4.56%

Dividends

VDY.TO vs. RY - Dividend Comparison

VDY.TO's dividend yield for the trailing twelve months is around 2.83%, more than RY's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RY Royal Bank of Canada	2.32%	2.54%	3.39%	4.29%	4.07%	3.24%	3.88%	3.88%	4.27%	3.22%	3.95%	5.41%
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 VDY.TO and RY in my portfolio?

VDY.TO and RY have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.