VEF.TO vs. PZW.TO

Last updated Jun 24, 2026

VEF.TO (Vanguard FTSE Developed All Cap Ex US) and PZW.TO (Invesco FTSE RAFI Global Small-Mid ETF) are both Global Equities funds - VEF.TO tracks the Spliced FTSE Developed ex US Index Hedged in CAD while PZW.TO tracks the 50% FTSE RAFI Developed ex US Mid-Small 1500 Index / 50% FTSE RAFI US 1500 Mid-Small Index. Both are passively managed. Over the past 10 years, VEF.TO returned 11.86%/yr vs 11.63%/yr for PZW.TO. At a 0.27 correlation, their price movements are largely independent.

Performance

VEF.TO vs. PZW.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Developed All Cap Ex US (VEF.TO) and Invesco FTSE RAFI Global Small-Mid ETF (PZW.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VEF.TO having a 16.16% return and PZW.TO slightly higher at 16.48%. Both investments have delivered pretty close results over the past 10 years, with VEF.TO having a 11.86% annualized return and PZW.TO not far behind at 11.63%.

VEF.TO

• 1D: -2.66%
• 1M: 2.25%
• YTD: 16.16%
• 6M: 16.27%
• 1Y: 34.54%
• 3Y*: 19.27%
• 5Y*: 12.37%
• 10Y*: 11.86%

PZW.TO

• 1D: 1.10%
• 1M: 4.21%
• YTD: 16.48%
• 6M: 15.19%
• 1Y: 34.57%
• 3Y*: 20.29%
• 5Y*: 10.96%
• 10Y*: 11.63%

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

VEF.TO vs. PZW.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEF.TO Vanguard FTSE Developed All Cap Ex US	16.16%	24.61%	9.69%	18.03%	-7.56%	18.04%	2.10%	22.61%	-11.95%	16.91%
PZW.TO Invesco FTSE RAFI Global Small-Mid ETF	16.48%	18.48%	16.03%	12.88%	-10.53%	17.53%	7.48%	18.01%	-8.08%	13.64%

Correlation

The correlation between VEF.TO and PZW.TO is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since May 13, 2015	0.27

The correlation between VEF.TO and PZW.TO shifts across timeframes, from 0.26 (1 year) to 0.37 (5 years), reflecting how their relationship changes across market environments.

VEF.TO vs. PZW.TO - Sectors Allocation Comparison

Sectors	VEF.TO	PZW.TO
Financial Services	23.3%	13.3%
Industrials	19.2%	19.2%
Technology	13.8%	12.2%
Healthcare	8.2%	12.7%
Basic Materials	7.5%	7.0%
Consumer Cyclical	7.5%	12.1%
Consumer Defensive	5.6%	4.6%
Energy	5.4%	4.1%
Communication Services	3.4%	3.8%
Utilities	3.3%	2.3%
Real Estate	2.7%	8.8%

Return for Risk

VEF.TO vs. PZW.TO — Risk / Return Rank

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

VEF.TO

VEF.TO Risk / Return Rank: 79
VEF.TO Sharpe Ratio Rank: 81
VEF.TO Sortino Ratio Rank: 78
VEF.TO Omega Ratio Rank: 83
VEF.TO Calmar Ratio Rank: 73
VEF.TO Martin Ratio Rank: 79

PZW.TO

PZW.TO Risk / Return Rank: 85
PZW.TO Sharpe Ratio Rank: 84
PZW.TO Sortino Ratio Rank: 88
PZW.TO Omega Ratio Rank: 86
PZW.TO Calmar Ratio Rank: 84
PZW.TO Martin Ratio Rank: 81

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.

VEF.TO vs. PZW.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed All Cap Ex US (VEF.TO) and Invesco FTSE RAFI Global Small-Mid ETF (PZW.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.

	VEF.TO	PZW.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.44	0.00
Sortino ratio: Return per unit of downside risk	3.27	3.57	-0.30
Omega ratio: Gain probability vs. loss probability	1.47	1.48	-0.01
Calmar ratio: Return relative to maximum drawdown	3.51	4.07	-0.56
Martin ratio: Return relative to average drawdown	14.84	14.54	+0.30

VEF.TO vs. PZW.TO - Sharpe Ratio Comparison

The current VEF.TO Sharpe Ratio is 2.45, which is comparable to the PZW.TO Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of VEF.TO and PZW.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

VEF.TO vs. PZW.TO - Drawdown Comparison

The maximum VEF.TO drawdown since its inception was -33.03%, roughly equal to the maximum PZW.TO drawdown of -32.45%. Use the drawdown chart below to compare losses from any high point for VEF.TO and PZW.TO.

Drawdown Indicators

	VEF.TO	PZW.TO	Difference
Max Drawdown Largest peak-to-trough decline	-33.03%	-32.45%	-0.58%
Max Drawdown (1Y) Largest decline over 1 year	-9.89%	-8.50%	-1.39%
Max Drawdown (3Y) Largest decline over 3 years	-13.78%	-16.88%	+3.10%
Max Drawdown (5Y) Largest decline over 5 years	-16.34%	-22.13%	+5.79%
Max Drawdown (10Y) Largest decline over 10 years	-33.03%	-32.45%	-0.58%
Current Drawdown Current decline from peak	-3.44%	0.00%	-3.44%
Average Drawdown Average peak-to-trough decline	-4.26%	-5.73%	+1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.33%	2.38%	-0.05%

Volatility

VEF.TO vs. PZW.TO - Volatility Comparison

Vanguard FTSE Developed All Cap Ex US (VEF.TO) has a higher volatility of 6.08% compared to Invesco FTSE RAFI Global Small-Mid ETF (PZW.TO) at 3.07%. This indicates that VEF.TO's price experiences larger fluctuations and is considered to be riskier than PZW.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEF.TO	PZW.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	3.07%	+3.01%
Volatility (6M) Calculated over the trailing 6-month period	12.41%	10.46%	+1.95%
Volatility (1Y) Calculated over the trailing 1-year period	14.19%	14.19%	0.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.76%	14.66%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.44%	15.94%	-0.50%

Dividends

VEF.TO vs. PZW.TO - Dividend Comparison

VEF.TO's dividend yield for the trailing twelve months is around 1.97%, more than PZW.TO's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PZW.TO Invesco FTSE RAFI Global Small-Mid ETF	1.67%	1.97%	2.12%	3.23%	1.90%	1.93%	1.52%	2.26%	1.78%	1.57%	1.09%	0.96%
VEF.TO Vanguard FTSE Developed All Cap Ex US	1.97%	2.61%	2.56%	2.50%	2.20%	2.55%	1.73%	2.41%	2.64%	2.21%	2.31%	2.39%

Frequently Asked Questions

Can I hold both VEF.TO and PZW.TO in my portfolio?

VEF.TO and PZW.TO have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VEF.TO and PZW.TO?

VEF.TO tracks Spliced FTSE Developed ex US Index Hedged in CAD, while PZW.TO tracks 50% FTSE RAFI Developed ex US Mid-Small 1500 Index / 50% FTSE RAFI US 1500 Mid-Small Index. They also come from different issuers: Vanguard and Invesco.