ZCN.TO vs. TLV.TO

Last updated Jun 5, 2026

ZCN.TO (BMO S&P/TSX Capped Composite Index ETF) and TLV.TO (Invesco S&P/TSX Composite Low Volatility Index ETF) are both Canada Equities funds - ZCN.TO tracks the S&P/TSX Capped Composite Index while TLV.TO tracks the S&P/TSX Composite Low Volatility Index. Both are passively managed. Over the past 10 years, ZCN.TO returned 12.72%/yr vs 8.72%/yr for TLV.TO. A 0.61 correlation means they provide meaningful diversification when combined. ZCN.TO charges 0.06%/yr vs 0.33%/yr for TLV.TO.

Performance

ZCN.TO vs. TLV.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and Invesco S&P/TSX Composite Low Volatility Index ETF (TLV.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZCN.TO achieves a 12.08% return, which is significantly higher than TLV.TO's 11.32% return. Over the past 10 years, ZCN.TO has outperformed TLV.TO with an annualized return of 12.72%, while TLV.TO has yielded a comparatively lower 8.72% annualized return.

ZCN.TO

• 1D: 1.24%
• 1M: 5.09%
• YTD: 12.08%
• 6M: 13.16%
• 1Y: 36.95%
• 3Y*: 24.35%
• 5Y*: 15.19%
• 10Y*: 12.72%

TLV.TO

• 1D: 0.44%
• 1M: 2.44%
• YTD: 11.32%
• 6M: 13.07%
• 1Y: 25.31%
• 3Y*: 19.00%
• 5Y*: 10.88%
• 10Y*: 8.72%

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

ZCN.TO vs. TLV.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZCN.TO BMO S&P/TSX Capped Composite Index ETF	12.08%	31.51%	21.64%	11.63%	-5.84%	25.05%	5.69%	22.85%	-8.84%	8.94%
TLV.TO Invesco S&P/TSX Composite Low Volatility Index ETF	11.32%	22.51%	20.36%	4.75%	-10.22%	21.67%	-6.10%	22.29%	-6.62%	10.15%

Correlation

The correlation between ZCN.TO and TLV.TO is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since May 4, 2012	0.61

Over the past year, the correlation between ZCN.TO and TLV.TO has dropped to 0.40 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.

ZCN.TO vs. TLV.TO - Sectors Allocation Comparison

Sectors	ZCN.TO	TLV.TO
Financial Services	32.8%	24.5%
Basic Materials	18.4%	1.5%
Energy	17.5%	7.8%
Industrials	10.3%	3.2%
Technology	7.6%	-
Consumer Cyclical	3.8%	3.1%
Utilities	3.2%	14.3%
Consumer Defensive	2.9%	9.5%
Communication Services	1.8%	6.4%
Real Estate	1.6%	27.8%
Healthcare	0.1%	1.7%

Return for Risk

ZCN.TO vs. TLV.TO — Risk / Return Rank

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

ZCN.TO

ZCN.TO Risk / Return Rank: 85
ZCN.TO Sharpe Ratio Rank: 88
ZCN.TO Sortino Ratio Rank: 85
ZCN.TO Omega Ratio Rank: 87
ZCN.TO Calmar Ratio Rank: 79
ZCN.TO Martin Ratio Rank: 87

TLV.TO

TLV.TO Risk / Return Rank: 94
TLV.TO Sharpe Ratio Rank: 93
TLV.TO Sortino Ratio Rank: 95
TLV.TO Omega Ratio Rank: 95
TLV.TO Calmar Ratio Rank: 92
TLV.TO Martin Ratio Rank: 95

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.

ZCN.TO vs. TLV.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and Invesco S&P/TSX Composite Low Volatility Index ETF (TLV.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.

	ZCN.TO	TLV.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.92	3.44	-0.51
Sortino ratio: Return per unit of downside risk	3.75	5.17	-1.42
Omega ratio: Gain probability vs. loss probability	1.53	1.70	-0.17
Calmar ratio: Return relative to maximum drawdown	3.99	6.25	-2.26
Martin ratio: Return relative to average drawdown	18.58	28.68	-10.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZCN.TO vs. TLV.TO - Sharpe Ratio Comparison

The current ZCN.TO Sharpe Ratio is 2.92, which is comparable to the TLV.TO Sharpe Ratio of 3.44. The chart below compares the historical Sharpe Ratios of ZCN.TO and TLV.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

	ZCN.TO	TLV.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.92	3.44	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.17	1.10	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	0.69	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.80	-0.12

Drawdowns

ZCN.TO vs. TLV.TO - Drawdown Comparison

The maximum ZCN.TO drawdown since its inception was -37.18%, roughly equal to the maximum TLV.TO drawdown of -37.68%. Use the drawdown chart below to compare losses from any high point for ZCN.TO and TLV.TO.

Drawdown Indicators

	ZCN.TO	TLV.TO	Difference
Max Drawdown Largest peak-to-trough decline	-37.18%	-37.68%	+0.50%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-4.07%	-5.23%
Max Drawdown (3Y) Largest decline over 3 years	-12.25%	-9.83%	-2.42%
Max Drawdown (5Y) Largest decline over 5 years	-16.25%	-19.36%	+3.11%
Max Drawdown (10Y) Largest decline over 10 years	-37.18%	-37.68%	+0.50%
Current Drawdown Current decline from peak	0.00%	-0.31%	+0.31%
Average Drawdown Average peak-to-trough decline	-4.76%	-4.06%	-0.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	0.88%	+1.11%

Volatility

ZCN.TO vs. TLV.TO - Volatility Comparison

BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) has a higher volatility of 3.63% compared to Invesco S&P/TSX Composite Low Volatility Index ETF (TLV.TO) at 2.87%. This indicates that ZCN.TO's price experiences larger fluctuations and is considered to be riskier than TLV.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZCN.TO	TLV.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.63%	2.87%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	10.37%	5.78%	+4.59%
Volatility (1Y) Calculated over the trailing 1-year period	12.71%	7.41%	+5.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.10%	9.94%	+3.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.99%	12.68%	+2.31%

ZCN.TO vs. TLV.TO - Expense Ratio Comparison

ZCN.TO has a 0.06% expense ratio, which is lower than TLV.TO's 0.33% expense ratio.

Dividends

ZCN.TO vs. TLV.TO - Dividend Comparison

ZCN.TO's dividend yield for the trailing twelve months is around 2.00%, less than TLV.TO's 3.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLV.TO Invesco S&P/TSX Composite Low Volatility Index ETF	3.01%	3.25%	3.40%	4.12%	4.01%	2.49%	2.75%	3.74%	4.28%	3.58%	3.46%	4.08%
ZCN.TO BMO S&P/TSX Capped Composite Index ETF	2.00%	2.22%	2.78%	3.29%	3.27%	2.74%	3.24%	3.13%	3.16%	2.71%	2.84%	3.33%

Frequently Asked Questions

Can I hold both ZCN.TO and TLV.TO in my portfolio?

ZCN.TO and TLV.TO have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZCN.TO or TLV.TO?

On fees, ZCN.TO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZCN.TO or TLV.TO?

ZCN.TO is cheaper with a 0.06% expense ratio, compared with 0.33% for TLV.TO.

What is the main difference between ZCN.TO and TLV.TO?

ZCN.TO tracks S&P/TSX Capped Composite Index, while TLV.TO tracks S&P/TSX Composite Low Volatility Index. They also come from different issuers: BMO and Invesco. Their fees differ too: 0.06% for ZCN.TO and 0.33% for TLV.TO.