ZDV.TO vs. XEG.TO

Last updated Jun 24, 2026

ZDV.TO (BMO Canadian Dividend ETF) and XEG.TO (iShares S&P/TSX Capped Energy Index ETF) are both exchange-traded funds - ZDV.TO is a Canada Equities fund actively managed by BMO, while XEG.TO is a Energy Equities fund tracking the S&P/TSX Capped Energy Index. ZDV.TO is actively managed, while XEG.TO is passively managed. Over the past 10 years, ZDV.TO returned 12.42%/yr vs 10.96%/yr for XEG.TO. A 0.62 correlation means they provide meaningful diversification when combined. ZDV.TO charges 0.39%/yr vs 0.60%/yr for XEG.TO.

Performance

ZDV.TO vs. XEG.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Canadian Dividend ETF (ZDV.TO) and iShares S&P/TSX Capped Energy Index ETF (XEG.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZDV.TO achieves a 20.55% return, which is significantly lower than XEG.TO's 30.47% return. Over the past 10 years, ZDV.TO has outperformed XEG.TO with an annualized return of 12.42%, while XEG.TO has yielded a comparatively lower 10.96% annualized return.

ZDV.TO

• 1D: 0.22%
• 1M: 1.64%
• YTD: 20.55%
• 6M: 20.38%
• 1Y: 42.49%
• 3Y*: 25.40%
• 5Y*: 16.04%
• 10Y*: 12.42%

XEG.TO

• 1D: 0.20%
• 1M: -11.00%
• YTD: 30.47%
• 6M: 33.01%
• 1Y: 46.85%
• 3Y*: 25.76%
• 5Y*: 26.37%
• 10Y*: 10.96%

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

ZDV.TO vs. XEG.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZDV.TO BMO Canadian Dividend ETF	20.55%	28.82%	16.83%	8.14%	-1.66%	28.75%	-3.51%	22.89%	-10.76%	7.46%
XEG.TO iShares S&P/TSX Capped Energy Index ETF	30.47%	16.72%	14.04%	3.55%	53.25%	83.71%	-34.44%	9.04%	-27.05%	-11.17%

Correlation

The correlation between ZDV.TO and XEG.TO is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Oct 27, 2011	0.62

Over the past year, the correlation between ZDV.TO and XEG.TO has dropped to 0.28 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

ZDV.TO vs. XEG.TO - Sectors Allocation Comparison

Sectors	ZDV.TO	XEG.TO
Financial Services	38.1%	-
Energy	24.0%	100.0%
Utilities	10.2%	-
Basic Materials	9.8%	-
Communication Services	5.2%	-
Real Estate	4.1%	-
Industrials	3.5%	-
Consumer Defensive	2.4%	-
Consumer Cyclical	1.3%	-
Healthcare	0.9%	-
Technology	-	-

Return for Risk

ZDV.TO vs. XEG.TO — Risk / Return Rank

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

ZDV.TO

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

XEG.TO

XEG.TO Risk / Return Rank: 62
XEG.TO Sharpe Ratio Rank: 65
XEG.TO Sortino Ratio Rank: 55
XEG.TO Omega Ratio Rank: 56
XEG.TO Calmar Ratio Rank: 66
XEG.TO Martin Ratio Rank: 66

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.

ZDV.TO vs. XEG.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Canadian Dividend ETF (ZDV.TO) and iShares S&P/TSX Capped Energy Index ETF (XEG.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.

	ZDV.TO	XEG.TO	Difference
Sharpe ratio: Return per unit of total volatility	4.97	2.03	+2.93
Sortino ratio: Return per unit of downside risk	6.73	2.54	+4.19
Omega ratio: Gain probability vs. loss probability	1.97	1.33	+0.64
Calmar ratio: Return relative to maximum drawdown	7.88	3.14	+4.73
Martin ratio: Return relative to average drawdown	40.67	11.48	+29.20

ZDV.TO vs. XEG.TO - Sharpe Ratio Comparison

The current ZDV.TO Sharpe Ratio is 4.97, which is higher than the XEG.TO Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of ZDV.TO and XEG.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

ZDV.TO vs. XEG.TO - Drawdown Comparison

The maximum ZDV.TO drawdown since its inception was -43.20%, smaller than the maximum XEG.TO drawdown of -87.51%. Use the drawdown chart below to compare losses from any high point for ZDV.TO and XEG.TO.

Drawdown Indicators

	ZDV.TO	XEG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-43.20%	-87.51%	+44.31%
Max Drawdown (1Y) Largest decline over 1 year	-5.42%	-14.97%	+9.55%
Max Drawdown (3Y) Largest decline over 3 years	-9.04%	-25.67%	+16.63%
Max Drawdown (5Y) Largest decline over 5 years	-16.61%	-28.42%	+11.81%
Max Drawdown (10Y) Largest decline over 10 years	-43.20%	-79.66%	+36.46%
Current Drawdown Current decline from peak	-0.09%	-13.23%	+13.14%
Average Drawdown Average peak-to-trough decline	-4.92%	-34.56%	+29.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	4.11%	-3.06%

Volatility

ZDV.TO vs. XEG.TO - Volatility Comparison

The current volatility for BMO Canadian Dividend ETF (ZDV.TO) is 2.73%, while iShares S&P/TSX Capped Energy Index ETF (XEG.TO) has a volatility of 8.45%. This indicates that ZDV.TO experiences smaller price fluctuations and is considered to be less risky than XEG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZDV.TO	XEG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.73%	8.45%	-5.72%
Volatility (6M) Calculated over the trailing 6-month period	7.21%	19.59%	-12.38%
Volatility (1Y) Calculated over the trailing 1-year period	8.60%	23.43%	-14.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.58%	28.65%	-18.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.95%	33.40%	-18.45%

ZDV.TO vs. XEG.TO - Expense Ratio Comparison

ZDV.TO has a 0.39% expense ratio, which is lower than XEG.TO's 0.60% expense ratio.

Dividends

ZDV.TO vs. XEG.TO - Dividend Comparison

ZDV.TO's dividend yield for the trailing twelve months is around 2.64%, less than XEG.TO's 2.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XEG.TO iShares S&P/TSX Capped Energy Index ETF	2.93%	3.63%	3.46%	4.26%	3.31%	1.64%	2.96%	2.70%	2.25%	1.41%	1.40%	3.58%
ZDV.TO BMO Canadian Dividend ETF	2.64%	3.07%	3.82%	4.39%	4.38%	3.88%	4.79%	4.53%	5.28%	4.04%	4.31%	4.95%

Frequently Asked Questions

Can I hold both ZDV.TO and XEG.TO in my portfolio?

ZDV.TO and XEG.TO have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZDV.TO or XEG.TO?

On fees, ZDV.TO is cheaper at 0.39% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZDV.TO or XEG.TO?

ZDV.TO is cheaper with a 0.39% expense ratio, compared with 0.60% for XEG.TO.

What is the main difference between ZDV.TO and XEG.TO?

ZDV.TO is categorized as Canada Equities, while XEG.TO is Energy Equities. They also come from different issuers: BMO and iShares. Their fees differ too: 0.39% for ZDV.TO and 0.60% for XEG.TO.