VE.TO vs. ZLB.TO

Last updated Jun 4, 2026

VE.TO (Vanguard FTSE Developed Europe All Cap Index ETF) and ZLB.TO (BMO Low Volatility Canadian Equity ETF) are both exchange-traded funds - VE.TO is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while ZLB.TO is a Canada Equities fund actively managed by BMO. VE.TO is passively managed, while ZLB.TO is actively managed. Over the past 10 years, VE.TO returned 9.78%/yr vs 10.67%/yr for ZLB.TO. A 0.54 correlation means they provide meaningful diversification when combined. VE.TO charges 0.22%/yr vs 0.39%/yr for ZLB.TO.

Performance

VE.TO vs. ZLB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Developed Europe All Cap Index ETF (VE.TO) and BMO Low Volatility Canadian Equity ETF (ZLB.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VE.TO achieves a 6.65% return, which is significantly higher than ZLB.TO's 3.14% return. Over the past 10 years, VE.TO has underperformed ZLB.TO with an annualized return of 9.78%, while ZLB.TO has yielded a comparatively higher 10.67% annualized return.

VE.TO

• 1D: -0.65%
• 1M: 4.95%
• YTD: 6.65%
• 6M: 8.13%
• 1Y: 18.98%
• 3Y*: 17.46%
• 5Y*: 11.07%
• 10Y*: 9.78%

ZLB.TO

• 1D: 0.03%
• 1M: 1.40%
• YTD: 3.14%
• 6M: 4.82%
• 1Y: 14.81%
• 3Y*: 15.17%
• 5Y*: 11.61%
• 10Y*: 10.67%

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

VE.TO vs. ZLB.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VE.TO Vanguard FTSE Developed Europe All Cap Index ETF	6.65%	29.58%	10.77%	16.67%	-10.07%	15.65%	3.00%	18.14%	-7.96%	18.82%
ZLB.TO BMO Low Volatility Canadian Equity ETF	3.14%	25.29%	15.31%	9.41%	-0.35%	22.93%	1.51%	21.92%	-2.76%	11.07%

Correlation

The correlation between VE.TO and ZLB.TO is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jul 10, 2014	0.54

The correlation between VE.TO and ZLB.TO has been stable across timeframes, ranging from 0.47 to 0.55 - a consistent structural relationship.

VE.TO vs. ZLB.TO - Sectors Allocation Comparison

Sectors	VE.TO	ZLB.TO
Financial Services	23.6%	23.7%
Industrials	18.9%	9.8%
Healthcare	12.1%	-
Consumer Defensive	8.5%	18.2%
Technology	8.3%	2.0%
Consumer Cyclical	6.8%	8.6%
Basic Materials	5.5%	6.6%
Energy	5.3%	-
Utilities	4.8%	17.6%
Communication Services	3.5%	9.2%
Real Estate	1.5%	4.3%

Return for Risk

VE.TO vs. ZLB.TO — Risk / Return Rank

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

VE.TO

VE.TO Risk / Return Rank: 34
VE.TO Sharpe Ratio Rank: 35
VE.TO Sortino Ratio Rank: 35
VE.TO Omega Ratio Rank: 34
VE.TO Calmar Ratio Rank: 30
VE.TO Martin Ratio Rank: 37

ZLB.TO

ZLB.TO Risk / Return Rank: 54
ZLB.TO Sharpe Ratio Rank: 51
ZLB.TO Sortino Ratio Rank: 55
ZLB.TO Omega Ratio Rank: 51
ZLB.TO Calmar Ratio Rank: 55
ZLB.TO Martin Ratio Rank: 58

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.

VE.TO vs. ZLB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Europe All Cap Index ETF (VE.TO) and BMO Low Volatility Canadian Equity ETF (ZLB.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.

	VE.TO	ZLB.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.28	1.80	-0.52
Sortino ratio: Return per unit of downside risk	1.88	2.69	-0.80
Omega ratio: Gain probability vs. loss probability	1.23	1.32	-0.09
Calmar ratio: Return relative to maximum drawdown	1.50	2.77	-1.27
Martin ratio: Return relative to average drawdown	5.84	10.29	-4.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VE.TO vs. ZLB.TO - Sharpe Ratio Comparison

The current VE.TO Sharpe Ratio is 1.28, which is comparable to the ZLB.TO Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of VE.TO and ZLB.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

	VE.TO	ZLB.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.28	1.80	-0.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	1.24	-0.50
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.88	-0.28
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	1.14	-0.60

Drawdowns

VE.TO vs. ZLB.TO - Drawdown Comparison

The maximum VE.TO drawdown since its inception was -31.66%, smaller than the maximum ZLB.TO drawdown of -33.96%. Use the drawdown chart below to compare losses from any high point for VE.TO and ZLB.TO.

Drawdown Indicators

	VE.TO	ZLB.TO	Difference
Max Drawdown Largest peak-to-trough decline	-31.66%	-33.96%	+2.30%
Max Drawdown (1Y) Largest decline over 1 year	-12.68%	-5.36%	-7.32%
Max Drawdown (3Y) Largest decline over 3 years	-14.67%	-8.01%	-6.66%
Max Drawdown (5Y) Largest decline over 5 years	-27.26%	-13.00%	-14.26%
Max Drawdown (10Y) Largest decline over 10 years	-31.66%	-33.96%	+2.30%
Current Drawdown Current decline from peak	-2.80%	-1.70%	-1.10%
Average Drawdown Average peak-to-trough decline	-5.60%	-2.46%	-3.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	1.45%	+1.81%

Volatility

VE.TO vs. ZLB.TO - Volatility Comparison

Vanguard FTSE Developed Europe All Cap Index ETF (VE.TO) has a higher volatility of 6.11% compared to BMO Low Volatility Canadian Equity ETF (ZLB.TO) at 2.47%. This indicates that VE.TO's price experiences larger fluctuations and is considered to be riskier than ZLB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VE.TO	ZLB.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.11%	2.47%	+3.64%
Volatility (6M) Calculated over the trailing 6-month period	12.48%	6.38%	+6.10%
Volatility (1Y) Calculated over the trailing 1-year period	14.90%	8.29%	+6.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.04%	9.44%	+5.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.20%	12.15%	+4.05%

VE.TO vs. ZLB.TO - Expense Ratio Comparison

VE.TO has a 0.22% expense ratio, which is lower than ZLB.TO's 0.39% expense ratio.

Dividends

VE.TO vs. ZLB.TO - Dividend Comparison

VE.TO's dividend yield for the trailing twelve months is around 2.42%, more than ZLB.TO's 1.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VE.TO Vanguard FTSE Developed Europe All Cap Index ETF	2.42%	2.58%	2.97%	2.97%	3.20%	2.97%	2.41%	3.79%	3.57%	2.22%	2.33%	2.47%
ZLB.TO BMO Low Volatility Canadian Equity ETF	1.88%	1.93%	2.37%	2.67%	2.66%	2.39%	2.83%	2.44%	2.76%	2.52%	2.94%	2.34%

Frequently Asked Questions

Can I hold both VE.TO and ZLB.TO in my portfolio?

VE.TO and ZLB.TO have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VE.TO or ZLB.TO?

On fees, VE.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, VE.TO or ZLB.TO?

VE.TO is cheaper with a 0.22% expense ratio, compared with 0.39% for ZLB.TO.

What is the main difference between VE.TO and ZLB.TO?

VE.TO is categorized as Europe Equities, while ZLB.TO is Canada Equities. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.22% for VE.TO and 0.39% for ZLB.TO.