VSP.TO vs. ZPAY.TO

Last updated Jul 16, 2026

VSP.TO (Vanguard S&P 500 Index ETF (CAD-hedged)) and ZPAY.TO (BMO Premium Yield ETF) are both exchange-traded funds - VSP.TO is a S&P 500 fund tracking the S&P 500 Index (CAD-hedged), while ZPAY.TO is a Large Cap Growth Equities fund actively managed by BMO. VSP.TO is passively managed, while ZPAY.TO is actively managed. Over the past 5 years, VSP.TO returned 11.66%/yr vs 7.26%/yr for ZPAY.TO. A 0.57 correlation means they provide meaningful diversification when combined. VSP.TO charges 0.09%/yr vs 0.73%/yr for ZPAY.TO.

Performance

VSP.TO vs. ZPAY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard S&P 500 Index ETF (CAD-hedged) (VSP.TO) and BMO Premium Yield ETF (ZPAY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSP.TO achieves a 9.65% return, which is significantly higher than ZPAY.TO's 7.80% return.

VSP.TO

• 1D: 0.27%
• 1M: 0.09%
• 6M: 8.40%
• YTD: 9.65%
• 1Y: 19.88%
• 3Y*: 18.33%
• 5Y*: 11.66%
• 10Y*: 13.52%

ZPAY.TO

• 1D: 0.09%
• 1M: 1.61%
• 6M: 6.45%
• YTD: 7.80%
• 1Y: 9.05%
• 3Y*: 9.57%
• 5Y*: 7.26%
• 10Y*: —

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

VSP.TO vs. ZPAY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VSP.TO Vanguard S&P 500 Index ETF (CAD-hedged)	9.65%	15.49%	23.68%	24.16%	-19.23%	27.90%	11.88%
ZPAY.TO BMO Premium Yield ETF	7.80%	-0.12%	16.77%	16.69%	-6.49%	9.36%	6.41%

Correlation

The correlation between VSP.TO and ZPAY.TO is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Jan 21, 2020	0.57

The correlation between VSP.TO and ZPAY.TO has been stable across timeframes, ranging from 0.52 to 0.61 - a consistent structural relationship.

VSP.TO vs. ZPAY.TO - Sectors Allocation Comparison

Sectors	VSP.TO	ZPAY.TO
Technology	39.1%	32.7%
Financial Services	10.9%	14.8%
Communication Services	10.7%	16.2%
Consumer Cyclical	9.9%	2.2%
Healthcare	8.3%	16.4%
Industrials	7.8%	7.2%
Consumer Defensive	4.5%	7.8%
Energy	3.1%	-
Utilities	2.1%	-
Real Estate	1.8%	-
Basic Materials	1.7%	2.6%

Return for Risk

VSP.TO vs. ZPAY.TO — Risk / Return Rank

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

VSP.TO

VSP.TO Risk / Return Rank: 56
VSP.TO Sharpe Ratio Rank: 56
VSP.TO Sortino Ratio Rank: 56
VSP.TO Omega Ratio Rank: 57
VSP.TO Calmar Ratio Rank: 52
VSP.TO Martin Ratio Rank: 60

ZPAY.TO

ZPAY.TO Risk / Return Rank: 29
ZPAY.TO Sharpe Ratio Rank: 35
ZPAY.TO Sortino Ratio Rank: 30
ZPAY.TO Omega Ratio Rank: 35
ZPAY.TO Calmar Ratio Rank: 23
ZPAY.TO Martin Ratio Rank: 22

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.

VSP.TO vs. ZPAY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 Index ETF (CAD-hedged) (VSP.TO) and BMO Premium Yield ETF (ZPAY.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.

	VSP.TO	ZPAY.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.04	+0.49
Sortino ratio: Return per unit of downside risk	2.15	1.41	+0.74
Omega ratio: Gain probability vs. loss probability	1.28	1.20	+0.08
Calmar ratio: Return relative to maximum drawdown	2.12	0.91	+1.21
Martin ratio: Return relative to average drawdown	8.43	2.09	+6.34

VSP.TO vs. ZPAY.TO - Sharpe Ratio Comparison

The current VSP.TO Sharpe Ratio is 1.54, which is higher than the ZPAY.TO Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of VSP.TO and ZPAY.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

VSP.TO vs. ZPAY.TO - Drawdown Comparison

The maximum VSP.TO drawdown since its inception was -35.55%, which is greater than ZPAY.TO's maximum drawdown of -14.90%. Use the drawdown chart below to compare losses from any high point for VSP.TO and ZPAY.TO.

Drawdown Indicators

	VSP.TO	ZPAY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.55%	-14.90%	-20.65%
Max Drawdown (1Y) Largest decline over 1 year	-9.40%	-9.94%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-18.85%	-12.50%	-6.35%
Max Drawdown (5Y) Largest decline over 5 years	-25.54%	-14.80%	-10.74%
Max Drawdown (10Y) Largest decline over 10 years	-35.55%	—	—
Current Drawdown Current decline from peak	-2.04%	-0.65%	-1.39%
Average Drawdown Average peak-to-trough decline	-4.00%	-2.81%	-1.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.36%	4.34%	-1.98%

Volatility

VSP.TO vs. ZPAY.TO - Volatility Comparison

Vanguard S&P 500 Index ETF (CAD-hedged) (VSP.TO) has a higher volatility of 3.28% compared to BMO Premium Yield ETF (ZPAY.TO) at 2.38%. This indicates that VSP.TO's price experiences larger fluctuations and is considered to be riskier than ZPAY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSP.TO	ZPAY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.28%	2.38%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	10.68%	6.49%	+4.19%
Volatility (1Y) Calculated over the trailing 1-year period	13.00%	8.72%	+4.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.99%	10.62%	+6.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.00%	11.92%	+6.08%

VSP.TO vs. ZPAY.TO - Expense Ratio Comparison

VSP.TO has a 0.09% expense ratio, which is lower than ZPAY.TO's 0.73% expense ratio.

Dividends

VSP.TO vs. ZPAY.TO - Dividend Comparison

VSP.TO's dividend yield for the trailing twelve months is around 0.86%, less than ZPAY.TO's 7.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSP.TO Vanguard S&P 500 Index ETF (CAD-hedged)	0.86%	0.92%	1.07%	1.17%	1.37%	1.08%	1.27%	1.53%	1.76%	1.46%	1.72%	1.76%
ZPAY.TO BMO Premium Yield ETF	7.23%	7.48%	5.67%	6.24%	6.83%	5.95%	5.29%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSP.TO and ZPAY.TO in my portfolio?

VSP.TO and ZPAY.TO have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VSP.TO or ZPAY.TO?

On fees, VSP.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VSP.TO or ZPAY.TO?

VSP.TO is cheaper with a 0.09% expense ratio, compared with 0.73% for ZPAY.TO.

What is the main difference between VSP.TO and ZPAY.TO?

VSP.TO is categorized as S&P 500, while ZPAY.TO is Large Cap Growth Equities. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.09% for VSP.TO and 0.73% for ZPAY.TO.