ZCB.TO vs. VDY.TO
ZCB.TO (BMO Corporate Bond Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - ZCB.TO is a Corporate Bonds fund tracking the FTSE Canada All Corporate Bond Index, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 5 years, ZCB.TO returned 2.19%/yr vs 17.21%/yr for VDY.TO. At a 0.01 correlation, their price movements are largely independent. ZCB.TO charges 0.17%/yr vs 0.22%/yr for VDY.TO.
Performance
ZCB.TO vs. VDY.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZCB.TO achieves a 1.93% return, which is significantly lower than VDY.TO's 20.59% return.
ZCB.TO
- 1D
- -0.08%
- 1M
- 1.58%
- YTD
- 1.93%
- 6M
- 1.46%
- 1Y
- 4.16%
- 3Y*
- 6.00%
- 5Y*
- 2.19%
- 10Y*
- —
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%
ZCB.TO vs. VDY.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
ZCB.TO BMO Corporate Bond Index ETF | 1.93% | 3.81% | 6.60% | 8.73% | -10.20% | -2.22% | 8.33% | 8.03% | 1.27% |
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% | -4.36% |
Correlation
The correlation between ZCB.TO and VDY.TO is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.19 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2018 | 0.01 |
The correlation between ZCB.TO and VDY.TO shifts across timeframes, from 0.01 (all time) to 0.19 (3 years), reflecting how their relationship changes across market environments.
ZCB.TO vs. VDY.TO - Sectors Allocation Comparison
Sectors
ZCB.TO
VDY.TO
Real Estate
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Basic Materials
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Communication Services
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Consumer Cyclical
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Consumer Defensive
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Energy
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Financial Services
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Healthcare
-
Industrials
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Technology
-
Utilities
-
Real Estate
ZCB.TO
VDY.TO
-
Basic Materials
ZCB.TO
-
VDY.TO
Communication Services
ZCB.TO
-
VDY.TO
Consumer Cyclical
ZCB.TO
-
VDY.TO
Consumer Defensive
ZCB.TO
-
VDY.TO
Energy
ZCB.TO
-
VDY.TO
Financial Services
ZCB.TO
-
VDY.TO
Healthcare
ZCB.TO
-
VDY.TO
Industrials
ZCB.TO
-
VDY.TO
Technology
ZCB.TO
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VDY.TO
Utilities
ZCB.TO
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VDY.TO
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Return for Risk
ZCB.TO vs. VDY.TO — Risk / Return Rank
ZCB.TO
VDY.TO
ZCB.TO vs. VDY.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Corporate Bond Index ETF (ZCB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.
| ZCB.TO | VDY.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.53 | ||
| Sortino ratioReturn per unit of downside risk | -6.59 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 2.14 | -0.93 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | 14.88 | -13.25 |
| Martin ratioReturn relative to average drawdown | 4.82 | 60.75 | -55.93 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZCB.TO | VDY.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.12 | 5.65 | -4.53 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.43 | 1.50 | -1.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.88 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.84 | -0.28 |
Drawdowns
ZCB.TO vs. VDY.TO - Drawdown Comparison
The maximum ZCB.TO drawdown since its inception was -15.70%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for ZCB.TO and VDY.TO.
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Drawdown Indicators
| ZCB.TO | VDY.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.70% | -39.21% | +23.51% |
Max Drawdown (1Y)Largest decline over 1 year | -2.55% | -3.12% | +0.57% |
Max Drawdown (3Y)Largest decline over 3 years | -3.27% | -10.87% | +7.60% |
Max Drawdown (5Y)Largest decline over 5 years | -14.20% | -16.18% | +1.98% |
Max Drawdown (10Y)Largest decline over 10 years | — | -39.21% | — |
Current DrawdownCurrent decline from peak | -0.10% | -0.77% | +0.67% |
Average DrawdownAverage peak-to-trough decline | -3.70% | -4.61% | +0.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.76% | +0.10% |
Volatility
ZCB.TO vs. VDY.TO - Volatility Comparison
The current volatility for BMO Corporate Bond Index ETF (ZCB.TO) is 1.50%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.31%. This indicates that ZCB.TO experiences smaller price fluctuations and is considered to be less risky than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZCB.TO | VDY.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.50% | 3.31% | -1.81% |
Volatility (6M)Calculated over the trailing 6-month period | 3.00% | 6.87% | -3.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.72% | 8.21% | -4.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.17% | 11.56% | -6.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 15.96% | -10.55% |
ZCB.TO vs. VDY.TO - Expense Ratio Comparison
ZCB.TO has a 0.17% expense ratio, which is lower than VDY.TO's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ZCB.TO vs. VDY.TO - Dividend Comparison
ZCB.TO's dividend yield for the trailing twelve months is around 4.03%, more than VDY.TO's 2.90% 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% |
ZCB.TO BMO Corporate Bond Index ETF | 4.03% | 4.00% | 3.84% | 3.89% | 3.62% | 3.13% | 2.97% | 3.12% | 3.27% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ZCB.TO and VDY.TO have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZCB.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZCB.TO is cheaper with a 0.17% expense ratio, compared with 0.22% for VDY.TO.
ZCB.TO is categorized as Corporate Bonds, while VDY.TO is Dividend. ZCB.TO tracks FTSE Canada All Corporate Bond Index, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.17% for ZCB.TO and 0.22% for VDY.TO.
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