VDY.TO vs. ZST.TO
VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) and ZST.TO (BMO Ultra Short-Term Bond ETF) are both exchange-traded funds - VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index, while ZST.TO is a Canadian Government Bonds fund actively managed by BMO. VDY.TO is passively managed, while ZST.TO is actively managed. Over the past 10 years, VDY.TO returned 14.25%/yr vs 2.37%/yr for ZST.TO. At a 0.03 correlation, their price movements are largely independent. VDY.TO charges 0.22%/yr vs 0.17%/yr for ZST.TO.
Performance
VDY.TO vs. ZST.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VDY.TO achieves a 21.54% return, which is significantly higher than ZST.TO's 1.08% return. Over the past 10 years, VDY.TO has outperformed ZST.TO with an annualized return of 14.25%, while ZST.TO has yielded a comparatively lower 2.37% annualized return.
VDY.TO
- 1D
- 0.31%
- 1M
- 5.30%
- YTD
- 21.54%
- 6M
- 22.15%
- 1Y
- 47.47%
- 3Y*
- 26.69%
- 5Y*
- 17.54%
- 10Y*
- 14.25%
ZST.TO
- 1D
- 0.00%
- 1M
- 0.21%
- YTD
- 1.08%
- 6M
- 0.29%
- 1Y
- 1.70%
- 3Y*
- 3.86%
- 5Y*
- 2.98%
- 10Y*
- 2.37%
VDY.TO vs. ZST.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 21.54% | 29.21% | 21.44% | 8.41% | -0.23% | 36.60% | -1.37% | 21.42% | -10.09% | 8.32% |
ZST.TO BMO Ultra Short-Term Bond ETF | 1.08% | 2.06% | 5.21% | 5.38% | 1.22% | 0.24% | 1.77% | 2.39% | 1.99% | 1.47% |
Correlation
The correlation between VDY.TO and ZST.TO is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.05 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012 | 0.03 |
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Return for Risk
VDY.TO vs. ZST.TO — Risk / Return Rank
VDY.TO
ZST.TO
VDY.TO vs. ZST.TO - 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 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.
| VDY.TO | ZST.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +4.18 | ||
| Sortino ratioReturn per unit of downside risk | +6.64 | ||
| Omega ratioGain probability vs. loss probability | 2.16 | 1.84 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 15.30 | 1.70 | +13.60 |
| Martin ratioReturn relative to average drawdown | 62.34 | 4.56 | +57.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VDY.TO | ZST.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 5.76 | 1.58 | +4.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.52 | 4.16 | -2.63 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.90 | 3.37 | -2.47 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.85 | 1.43 | -0.58 |
Drawdowns
VDY.TO vs. ZST.TO - Drawdown Comparison
The maximum VDY.TO drawdown since its inception was -39.21%, 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 VDY.TO and ZST.TO.
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Drawdown Indicators
| VDY.TO | ZST.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.21% | -3.60% | -35.61% |
Max Drawdown (1Y)Largest decline over 1 year | -3.12% | -1.01% | -2.11% |
Max Drawdown (3Y)Largest decline over 3 years | -10.38% | -1.01% | -9.37% |
Max Drawdown (5Y)Largest decline over 5 years | -16.17% | -1.01% | -15.16% |
Max Drawdown (10Y)Largest decline over 10 years | -39.21% | -1.06% | -38.15% |
Current DrawdownCurrent decline from peak | -0.38% | -0.02% | -0.36% |
Average DrawdownAverage peak-to-trough decline | -4.48% | -0.58% | -3.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 0.37% | +0.39% |
Volatility
VDY.TO vs. ZST.TO - Volatility Comparison
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a higher volatility of 3.40% compared to BMO Ultra Short-Term Bond ETF (ZST.TO) at 0.08%. This indicates that VDY.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.
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Volatility by Period
| VDY.TO | ZST.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.40% | 0.08% | +3.32% |
Volatility (6M)Calculated over the trailing 6-month period | 6.93% | 1.05% | +5.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.30% | 1.08% | +7.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.58% | 0.72% | +10.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.96% | 0.71% | +15.25% |
VDY.TO vs. ZST.TO - Expense Ratio Comparison
VDY.TO has a 0.22% expense ratio, which is higher than ZST.TO's 0.17% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VDY.TO vs. ZST.TO - Dividend Comparison
VDY.TO's dividend yield for the trailing twelve months is around 2.88%, more than ZST.TO's 2.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 2.88% | 3.59% | 4.37% | 4.64% | 4.42% | 3.46% | 4.59% | 4.25% | 4.44% | 3.42% | 3.25% | 4.11% |
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
VDY.TO and ZST.TO have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZST.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZST.TO is cheaper with a 0.17% expense ratio, compared with 0.22% for VDY.TO.
VDY.TO is categorized as Dividend, while ZST.TO is Canadian Government Bonds. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.22% for VDY.TO and 0.17% for ZST.TO.
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