ZCN.TO vs. VOO
Compare and contrast key facts about BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and Vanguard S&P 500 ETF (VOO).
ZCN.TO and VOO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZCN.TO is a passively managed fund by BMO that tracks the performance of the S&P/TSX Capped Composite Index. It was launched on May 29, 2009. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both ZCN.TO and VOO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ZCN.TO or VOO.
Key characteristics
| ZCN.TO | VOO | |
|---|---|---|
| YTD Return | 7.37% | 10.48% |
| 1Y Return | 11.89% | 28.69% |
| 3Y Return (Ann) | 7.99% | 9.60% |
| 5Y Return (Ann) | 9.62% | 14.65% |
| 10Y Return (Ann) | 7.63% | 12.89% |
| Sharpe Ratio | 1.11 | 2.52 |
| Daily Std Dev | 11.24% | 11.57% |
| Max Drawdown | -37.18% | -33.99% |
| Current Drawdown | -0.47% | -0.06% |
Correlation
The correlation between ZCN.TO and VOO is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ZCN.TO vs. VOO - Performance Comparison
In the year-to-date period, ZCN.TO achieves a 7.37% return, which is significantly lower than VOO's 10.48% return. Over the past 10 years, ZCN.TO has underperformed VOO with an annualized return of 7.63%, while VOO has yielded a comparatively higher 12.89% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ZCN.TO vs. VOO - Expense Ratio Comparison
ZCN.TO has a 0.06% expense ratio, which is higher than VOO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
ZCN.TO vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) and Vanguard S&P 500 ETF (VOO). 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.
Dividends
ZCN.TO vs. VOO - Dividend Comparison
ZCN.TO's dividend yield for the trailing twelve months is around 3.08%, more than VOO's 1.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZCN.TO BMO S&P/TSX Capped Composite Index ETF | 3.08% | 3.29% | 3.27% | 2.74% | 3.24% | 3.13% | 3.16% | 2.71% | 2.84% | 3.33% | 2.66% | 3.17% |
VOO Vanguard S&P 500 ETF | 1.33% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
ZCN.TO vs. VOO - Drawdown Comparison
The maximum ZCN.TO drawdown since its inception was -37.18%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for ZCN.TO and VOO. For additional features, visit the drawdowns tool.
Volatility
ZCN.TO vs. VOO - Volatility Comparison
BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) has a higher volatility of 3.55% compared to Vanguard S&P 500 ETF (VOO) at 3.36%. This indicates that ZCN.TO's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.