ZDB.TO vs. VDY.TO

Last updated Apr 1, 2026

Compare and contrast key facts about BMO Discount Bond (ZDB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO).

ZDB.TO and VDY.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZDB.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Discount Bond Index. It was launched on Feb 10, 2014. VDY.TO is a passively managed fund by Vanguard that tracks the performance of the FTSE Canada High Dividend Yield Index. It was launched on Nov 2, 2012. Both ZDB.TO and VDY.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

ZDB.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Discount Bond (ZDB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

ZDB.TO vs. VDY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZDB.TO BMO Discount Bond	0.17%	2.03%	4.26%	6.69%	-11.99%	-2.77%	9.50%	6.74%	1.33%	2.00%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	9.07%	29.20%	20.71%	8.40%	-0.23%	36.78%	-1.37%	21.43%	-10.09%	8.75%

Returns By Period

In the year-to-date period, ZDB.TO achieves a 0.17% return, which is significantly lower than VDY.TO's 9.07% return. Over the past 10 years, ZDB.TO has underperformed VDY.TO with an annualized return of 1.58%, while VDY.TO has yielded a comparatively higher 13.53% annualized return.

ZDB.TO

• 1D: 0.33%
• 1M: -1.94%
• YTD: 0.17%
• 6M: -0.46%
• 1Y: 0.41%
• 3Y*: 3.25%
• 5Y*: 0.50%
• 10Y*: 1.58%

VDY.TO

• 1D: 1.12%
• 1M: 0.19%
• YTD: 9.07%
• 6M: 16.25%
• 1Y: 39.26%
• 3Y*: 22.01%
• 5Y*: 16.73%
• 10Y*: 13.53%

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

ZDB.TO vs. VDY.TO - Expense Ratio Comparison

ZDB.TO has a 0.10% 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%.

VDY.TO

Vanguard FTSE Canadian High Dividend Yield Index ETF

ZDB.TO

BMO Discount Bond

Return for Risk

ZDB.TO vs. VDY.TO — Risk / Return Rank

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

ZDB.TO

ZDB.TO Risk / Return Rank: 14
ZDB.TO Sharpe Ratio Rank: 14
ZDB.TO Sortino Ratio Rank: 12
ZDB.TO Omega Ratio Rank: 12
ZDB.TO Calmar Ratio Rank: 17
ZDB.TO Martin Ratio Rank: 15

VDY.TO

VDY.TO Risk / Return Rank: 97
VDY.TO Sharpe Ratio Rank: 98
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 95
VDY.TO Martin Ratio Rank: 98

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.

ZDB.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Discount Bond (ZDB.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.

	ZDB.TO	VDY.TO	Difference
Sharpe ratio Return per unit of total volatility	0.09	3.58	-3.49
Sortino ratio Return per unit of downside risk	0.15	4.31	-4.17
Omega ratio Gain probability vs. loss probability	1.02	1.77	-0.75
Calmar ratio Return relative to maximum drawdown	0.23	4.00	-3.76
Martin ratio Return relative to average drawdown	0.47	22.92	-22.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZDB.TO vs. VDY.TO - Sharpe Ratio Comparison

The current ZDB.TO Sharpe Ratio is 0.09, which is lower than the VDY.TO Sharpe Ratio of 3.58. The chart below compares the historical Sharpe Ratios of ZDB.TO and VDY.TO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ZDB.TO	VDY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.09	3.58	-3.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	1.47	-1.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.85	-0.60
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.80	-0.43

Correlation

The correlation between ZDB.TO and VDY.TO is -0.06. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.

Dividends

ZDB.TO vs. VDY.TO - Dividend Comparison

ZDB.TO's dividend yield for the trailing twelve months is around 2.13%, less than VDY.TO's 3.51% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZDB.TO BMO Discount Bond	2.13%	2.28%	2.38%	2.42%	2.52%	2.16%	2.06%	2.20%	2.07%	2.06%	1.95%	1.99%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	3.51%	3.59%	4.40%	4.64%	4.42%	3.58%	4.59%	4.25%	4.43%	3.82%	3.25%	4.11%

Drawdowns

ZDB.TO vs. VDY.TO - Drawdown Comparison

The maximum ZDB.TO drawdown since its inception was -18.09%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for ZDB.TO and VDY.TO.

Drawdown Indicators

	ZDB.TO	VDY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-18.09%	-39.21%	+21.12%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-10.07%	+7.20%
Max Drawdown (5Y) Largest decline over 5 years	-16.25%	-16.18%	-0.07%
Max Drawdown (10Y) Largest decline over 10 years	-18.09%	-39.21%	+21.12%
Current Drawdown Current decline from peak	-2.76%	-0.55%	-2.21%
Average Drawdown Average peak-to-trough decline	-4.24%	-4.67%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.43%	1.76%	-0.33%

Volatility

ZDB.TO vs. VDY.TO - Volatility Comparison

The current volatility for BMO Discount Bond (ZDB.TO) is 1.95%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 3.37%. This indicates that ZDB.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.

Volatility by Period

	ZDB.TO	VDY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.95%	3.37%	-1.42%
Volatility (6M) Calculated over the trailing 6-month period	3.06%	6.43%	-3.37%
Volatility (1Y) Calculated over the trailing 1-year period	4.64%	11.03%	-6.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.50%	11.49%	-4.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.39%	15.96%	-9.57%