VDY.TO vs. ZWC.TO

Last updated Jun 4, 2026

VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) and ZWC.TO (BMO CA High Dividend Covered Call ETF) are both exchange-traded funds - VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index, while ZWC.TO is a Derivative Income fund actively managed by BMO. VDY.TO is passively managed, while ZWC.TO is actively managed. Over the past 5 years, VDY.TO returned 17.21%/yr vs 11.09%/yr for ZWC.TO. Their correlation of 0.91 suggests significant overlap in exposure. VDY.TO charges 0.22%/yr vs 0.91%/yr for ZWC.TO.

Performance

VDY.TO vs. ZWC.TO - 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 BMO CA High Dividend Covered Call ETF (ZWC.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDY.TO achieves a 20.59% return, which is significantly higher than ZWC.TO's 11.12% return.

VDY.TO

• 1D: -0.07%
• 1M: 4.52%
• YTD: 20.59%
• 6M: 22.32%
• 1Y: 46.18%
• 3Y*: 26.00%
• 5Y*: 17.21%
• 10Y*: 14.02%

ZWC.TO

• 1D: -0.27%
• 1M: 2.71%
• YTD: 11.12%
• 6M: 12.78%
• 1Y: 28.05%
• 3Y*: 17.17%
• 5Y*: 11.09%
• 10Y*: —

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

VDY.TO vs. ZWC.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	20.59%	29.20%	20.71%	8.40%	-0.23%	36.78%	-1.37%	21.43%	-10.09%	5.47%
ZWC.TO BMO CA High Dividend Covered Call ETF	11.12%	22.79%	12.00%	7.54%	-3.54%	25.39%	-6.92%	17.32%	-10.05%	7.34%

Correlation

The correlation between VDY.TO and ZWC.TO is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 13, 2017	0.91

The correlation between VDY.TO and ZWC.TO has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

VDY.TO vs. ZWC.TO - Sectors Allocation Comparison

Sectors	VDY.TO	ZWC.TO
Financial Services	56.0%	38.7%
Energy	30.8%	22.9%
Utilities	4.1%	8.9%
Consumer Cyclical	3.0%	4.1%
Communication Services	2.8%	6.4%
Basic Materials	2.2%	12.7%
Consumer Defensive	0.4%	1.5%
Technology	0.4%	-
Industrials	0.2%	4.9%
Healthcare	0.1%	-
Real Estate	-	-

Return for Risk

VDY.TO vs. ZWC.TO — 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: 98
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 98
VDY.TO Martin Ratio Rank: 98

ZWC.TO

ZWC.TO Risk / Return Rank: 92
ZWC.TO Sharpe Ratio Rank: 93
ZWC.TO Sortino Ratio Rank: 95
ZWC.TO Omega Ratio Rank: 94
ZWC.TO Calmar Ratio Rank: 85
ZWC.TO Martin Ratio Rank: 92

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. ZWC.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 CA High Dividend Covered Call ETF (ZWC.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	ZWC.TO	Difference
Sharpe ratio: Return per unit of total volatility	5.65	3.61	+2.04
Sortino ratio: Return per unit of downside risk	8.14	5.11	+3.04
Omega ratio: Gain probability vs. loss probability	2.14	1.69	+0.45
Calmar ratio: Return relative to maximum drawdown	14.88	4.71	+10.18
Martin ratio: Return relative to average drawdown	60.75	23.23	+37.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDY.TO vs. ZWC.TO - Sharpe Ratio Comparison

The current VDY.TO Sharpe Ratio is 5.65, which is higher than the ZWC.TO Sharpe Ratio of 3.61. The chart below compares the historical Sharpe Ratios of VDY.TO and ZWC.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.

Sharpe Ratios by Period

	VDY.TO	ZWC.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.65	3.61	+2.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.50	1.10	+0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.88	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.56	+0.29

Drawdowns

VDY.TO vs. ZWC.TO - Drawdown Comparison

The maximum VDY.TO drawdown since its inception was -39.21%, roughly equal to the maximum ZWC.TO drawdown of -40.57%. Use the drawdown chart below to compare losses from any high point for VDY.TO and ZWC.TO.

Drawdown Indicators

	VDY.TO	ZWC.TO	Difference
Max Drawdown Largest peak-to-trough decline	-39.21%	-40.57%	+1.36%
Max Drawdown (1Y) Largest decline over 1 year	-3.12%	-5.99%	+2.87%
Max Drawdown (3Y) Largest decline over 3 years	-10.87%	-9.09%	-1.78%
Max Drawdown (5Y) Largest decline over 5 years	-16.18%	-16.43%	+0.25%
Max Drawdown (10Y) Largest decline over 10 years	-39.21%	—	—
Current Drawdown Current decline from peak	-0.77%	-0.97%	+0.20%
Average Drawdown Average peak-to-trough decline	-4.61%	-4.69%	+0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	1.21%	-0.45%

Volatility

VDY.TO vs. ZWC.TO - Volatility Comparison

Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a higher volatility of 3.31% compared to BMO CA High Dividend Covered Call ETF (ZWC.TO) at 2.40%. This indicates that VDY.TO's price experiences larger fluctuations and is considered to be riskier than ZWC.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDY.TO	ZWC.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.31%	2.40%	+0.91%
Volatility (6M) Calculated over the trailing 6-month period	6.87%	6.77%	+0.10%
Volatility (1Y) Calculated over the trailing 1-year period	8.21%	7.80%	+0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.56%	10.13%	+1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.96%	14.94%	+1.02%

VDY.TO vs. ZWC.TO - Expense Ratio Comparison

VDY.TO has a 0.22% expense ratio, which is lower than ZWC.TO's 0.91% expense ratio.

Dividends

VDY.TO vs. ZWC.TO - Dividend Comparison

VDY.TO's dividend yield for the trailing twelve months is around 2.90%, less than ZWC.TO's 5.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.90%	3.59%	4.40%	4.64%	4.42%	3.58%	4.59%	4.25%	4.43%	3.82%	3.25%	4.11%
ZWC.TO BMO CA High Dividend Covered Call ETF	5.64%	5.92%	6.73%	7.62%	7.01%	6.60%	8.15%	6.92%	7.11%	5.46%	0.00%	0.00%

Frequently Asked Questions

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

VDY.TO and ZWC.TO have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDY.TO or ZWC.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, VDY.TO or ZWC.TO?

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.91% for ZWC.TO.

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

VDY.TO is categorized as Dividend, while ZWC.TO is Derivative Income. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.22% for VDY.TO and 0.91% for ZWC.TO.