VMO.TO vs. ZCS.TO

Last updated Jun 4, 2026

VMO.TO (Vanguard Global Momentum Factor ETF CAD) and ZCS.TO (BMO Short Corporate Bond Index ETF) are both exchange-traded funds - VMO.TO is a Momentum fund actively managed by Vanguard, while ZCS.TO is a Canadian Government Bonds fund tracking the FTSE Canada Short Term Corporate Bond Index. VMO.TO is actively managed, while ZCS.TO is passively managed. Over the past 5 years, VMO.TO returned 17.80%/yr vs 2.85%/yr for ZCS.TO. At a 0.11 correlation, their price movements are largely independent. VMO.TO charges 0.38%/yr vs 0.11%/yr for ZCS.TO.

Performance

VMO.TO vs. ZCS.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard Global Momentum Factor ETF CAD (VMO.TO) and BMO Short Corporate Bond Index ETF (ZCS.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMO.TO achieves a 25.71% return, which is significantly higher than ZCS.TO's 1.29% return.

VMO.TO

• 1D: 0.55%
• 1M: 7.68%
• YTD: 25.71%
• 6M: 24.99%
• 1Y: 48.00%
• 3Y*: 31.06%
• 5Y*: 17.80%
• 10Y*: —

ZCS.TO

• 1D: -0.04%
• 1M: 1.02%
• YTD: 1.29%
• 6M: 1.26%
• 1Y: 3.96%
• 3Y*: 5.98%
• 5Y*: 2.85%
• 10Y*: 2.79%

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

VMO.TO vs. ZCS.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMO.TO Vanguard Global Momentum Factor ETF CAD	25.71%	23.20%	29.68%	14.93%	-9.09%	15.67%	21.39%	19.55%	-5.19%	16.81%
ZCS.TO BMO Short Corporate Bond Index ETF	1.29%	4.41%	7.42%	6.67%	-4.48%	-0.76%	6.10%	5.01%	1.23%	1.04%

Correlation

The correlation between VMO.TO and ZCS.TO is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (All Time) Calculated using the full available price history since Jun 27, 2016	0.11

The correlation between VMO.TO and ZCS.TO shifts across timeframes, from 0.11 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.

VMO.TO vs. ZCS.TO - Sectors Allocation Comparison

Sectors	VMO.TO	ZCS.TO
Industrials	24.5%	-
Healthcare	16.5%	-
Technology	16.0%	-
Financial Services	11.0%	-
Basic Materials	9.5%	-
Consumer Cyclical	7.4%	-
Energy	6.6%	-
Communication Services	4.1%	-
Consumer Defensive	3.7%	-
Real Estate	0.7%	0.1%
Utilities	0.1%	-

Return for Risk

VMO.TO vs. ZCS.TO — Risk / Return Rank

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

VMO.TO

VMO.TO Risk / Return Rank: 78
VMO.TO Sharpe Ratio Rank: 76
VMO.TO Sortino Ratio Rank: 71
VMO.TO Omega Ratio Rank: 70
VMO.TO Calmar Ratio Rank: 85
VMO.TO Martin Ratio Rank: 88

ZCS.TO

ZCS.TO Risk / Return Rank: 56
ZCS.TO Sharpe Ratio Rank: 56
ZCS.TO Sortino Ratio Rank: 54
ZCS.TO Omega Ratio Rank: 67
ZCS.TO Calmar Ratio Rank: 49
ZCS.TO Martin Ratio Rank: 55

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.

VMO.TO vs. ZCS.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Global Momentum Factor ETF CAD (VMO.TO) and BMO Short Corporate Bond Index ETF (ZCS.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.

	VMO.TO	ZCS.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.51	1.95	+0.56
Sortino ratio: Return per unit of downside risk	3.28	2.63	+0.66
Omega ratio: Gain probability vs. loss probability	1.43	1.41	+0.02
Calmar ratio: Return relative to maximum drawdown	4.79	2.44	+2.35
Martin ratio: Return relative to average drawdown	19.35	9.64	+9.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMO.TO vs. ZCS.TO - Sharpe Ratio Comparison

The current VMO.TO Sharpe Ratio is 2.51, which is comparable to the ZCS.TO Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of VMO.TO and ZCS.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

	VMO.TO	ZCS.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	1.95	+0.56
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.01	1.00	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.89	0.80	+0.09

Drawdowns

VMO.TO vs. ZCS.TO - Drawdown Comparison

The maximum VMO.TO drawdown since its inception was -30.53%, which is greater than ZCS.TO's maximum drawdown of -13.95%. Use the drawdown chart below to compare losses from any high point for VMO.TO and ZCS.TO.

Drawdown Indicators

	VMO.TO	ZCS.TO	Difference
Max Drawdown Largest peak-to-trough decline	-30.53%	-13.95%	-16.58%
Max Drawdown (1Y) Largest decline over 1 year	-10.07%	-1.63%	-8.44%
Max Drawdown (3Y) Largest decline over 3 years	-19.72%	-1.63%	-18.09%
Max Drawdown (5Y) Largest decline over 5 years	-23.27%	-7.76%	-15.51%
Max Drawdown (10Y) Largest decline over 10 years	—	-13.95%	—
Current Drawdown Current decline from peak	0.00%	-0.04%	+0.04%
Average Drawdown Average peak-to-trough decline	-5.21%	-0.89%	-4.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.49%	0.41%	+2.08%

Volatility

VMO.TO vs. ZCS.TO - Volatility Comparison

Vanguard Global Momentum Factor ETF CAD (VMO.TO) has a higher volatility of 6.22% compared to BMO Short Corporate Bond Index ETF (ZCS.TO) at 0.69%. This indicates that VMO.TO's price experiences larger fluctuations and is considered to be riskier than ZCS.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMO.TO	ZCS.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	0.69%	+5.53%
Volatility (6M) Calculated over the trailing 6-month period	15.58%	1.79%	+13.79%
Volatility (1Y) Calculated over the trailing 1-year period	19.21%	2.05%	+17.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.66%	2.87%	+14.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.91%	4.38%	+13.53%

VMO.TO vs. ZCS.TO - Expense Ratio Comparison

VMO.TO has a 0.38% expense ratio, which is higher than ZCS.TO's 0.11% expense ratio.

Dividends

VMO.TO vs. ZCS.TO - Dividend Comparison

VMO.TO's dividend yield for the trailing twelve months is around 0.68%, less than ZCS.TO's 3.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VMO.TO Vanguard Global Momentum Factor ETF CAD	0.68%	0.85%	0.90%	1.03%	1.65%	1.09%	0.70%	1.70%	0.80%	1.15%	0.51%	0.00%
ZCS.TO BMO Short Corporate Bond Index ETF	3.93%	3.60%	3.27%	3.35%	3.23%	2.99%	2.88%	2.96%	2.88%	3.04%	3.34%	3.53%

Frequently Asked Questions

Can I hold both VMO.TO and ZCS.TO in my portfolio?

VMO.TO and ZCS.TO have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VMO.TO or ZCS.TO?

On fees, ZCS.TO is cheaper at 0.11% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VMO.TO or ZCS.TO?

ZCS.TO is cheaper with a 0.11% expense ratio, compared with 0.38% for VMO.TO.

What is the main difference between VMO.TO and ZCS.TO?

VMO.TO is categorized as Momentum, while ZCS.TO is Canadian Government Bonds. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.38% for VMO.TO and 0.11% for ZCS.TO.