ZDY.TO vs. VGG.TO

Last updated Jun 4, 2026

ZDY.TO (BMO US Dividend ETF (CAD)) and VGG.TO (Vanguard U.S. Dividend Appreciation Index ETF) are both Dividend funds. ZDY.TO is actively managed, while VGG.TO is passively managed. Over the past 10 years, ZDY.TO returned 11.07%/yr vs 13.46%/yr for VGG.TO. Their correlation of 0.84 suggests significant overlap in exposure. Both charge a 0.30% expense ratio.

Performance

ZDY.TO vs. VGG.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO US Dividend ETF (CAD) (ZDY.TO) and Vanguard U.S. Dividend Appreciation Index ETF (VGG.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZDY.TO achieves a 18.13% return, which is significantly higher than VGG.TO's 8.57% return. Over the past 10 years, ZDY.TO has underperformed VGG.TO with an annualized return of 11.07%, while VGG.TO has yielded a comparatively higher 13.46% annualized return.

ZDY.TO

• 1D: -0.12%
• 1M: 9.13%
• YTD: 18.13%
• 6M: 10.45%
• 1Y: 26.90%
• 3Y*: 18.28%
• 5Y*: 13.55%
• 10Y*: 11.07%

VGG.TO

• 1D: 0.23%
• 1M: 6.00%
• YTD: 8.57%
• 6M: 6.30%
• 1Y: 20.66%
• 3Y*: 17.22%
• 5Y*: 13.16%
• 10Y*: 13.46%

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

ZDY.TO vs. VGG.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZDY.TO BMO US Dividend ETF (CAD)	18.13%	4.45%	26.22%	4.58%	1.64%	22.92%	-5.18%	16.96%	3.22%	6.74%
VGG.TO Vanguard U.S. Dividend Appreciation Index ETF	8.57%	8.61%	26.49%	11.58%	-4.21%	22.23%	12.67%	23.32%	5.20%	13.99%

Correlation

The correlation between ZDY.TO and VGG.TO is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Aug 13, 2013	0.84

The correlation between ZDY.TO and VGG.TO has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

ZDY.TO vs. VGG.TO - Sectors Allocation Comparison

Sectors	ZDY.TO	VGG.TO
Technology	29.0%	26.2%
Healthcare	11.9%	16.5%
Energy	9.8%	3.5%
Consumer Defensive	9.5%	10.1%
Financial Services	9.5%	20.6%
Communication Services	6.9%	0.5%
Utilities	6.4%	3.2%
Real Estate	5.6%	-
Consumer Cyclical	5.4%	4.7%
Industrials	4.4%	11.8%
Basic Materials	1.6%	3.5%

Return for Risk

ZDY.TO vs. VGG.TO — Risk / Return Rank

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

ZDY.TO

ZDY.TO Risk / Return Rank: 71
ZDY.TO Sharpe Ratio Rank: 68
ZDY.TO Sortino Ratio Rank: 62
ZDY.TO Omega Ratio Rank: 72
ZDY.TO Calmar Ratio Rank: 78
ZDY.TO Martin Ratio Rank: 73

VGG.TO

VGG.TO Risk / Return Rank: 59
VGG.TO Sharpe Ratio Rank: 59
VGG.TO Sortino Ratio Rank: 61
VGG.TO Omega Ratio Rank: 58
VGG.TO Calmar Ratio Rank: 58
VGG.TO Martin Ratio Rank: 60

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.

ZDY.TO vs. VGG.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO US Dividend ETF (CAD) (ZDY.TO) and Vanguard U.S. Dividend Appreciation Index ETF (VGG.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.

	ZDY.TO	VGG.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.28	2.03	+0.25
Sortino ratio: Return per unit of downside risk	2.97	2.93	+0.04
Omega ratio: Gain probability vs. loss probability	1.44	1.36	+0.08
Calmar ratio: Return relative to maximum drawdown	3.98	2.94	+1.05
Martin ratio: Return relative to average drawdown	13.78	10.93	+2.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZDY.TO vs. VGG.TO - Sharpe Ratio Comparison

The current ZDY.TO Sharpe Ratio is 2.28, which is comparable to the VGG.TO Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of ZDY.TO and VGG.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

	ZDY.TO	VGG.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.28	2.03	+0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.12	1.05	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.90	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.95	0.98	-0.03

Drawdowns

ZDY.TO vs. VGG.TO - Drawdown Comparison

The maximum ZDY.TO drawdown since its inception was -33.01%, which is greater than VGG.TO's maximum drawdown of -24.58%. Use the drawdown chart below to compare losses from any high point for ZDY.TO and VGG.TO.

Drawdown Indicators

	ZDY.TO	VGG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-33.01%	-24.58%	-8.43%
Max Drawdown (1Y) Largest decline over 1 year	-6.78%	-7.07%	+0.29%
Max Drawdown (3Y) Largest decline over 3 years	-15.32%	-15.56%	+0.24%
Max Drawdown (5Y) Largest decline over 5 years	-15.32%	-18.52%	+3.20%
Max Drawdown (10Y) Largest decline over 10 years	-33.01%	-24.58%	-8.43%
Current Drawdown Current decline from peak	-0.19%	0.00%	-0.19%
Average Drawdown Average peak-to-trough decline	-3.30%	-2.93%	-0.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	1.89%	+0.07%

Volatility

ZDY.TO vs. VGG.TO - Volatility Comparison

BMO US Dividend ETF (CAD) (ZDY.TO) has a higher volatility of 4.73% compared to Vanguard U.S. Dividend Appreciation Index ETF (VGG.TO) at 2.59%. This indicates that ZDY.TO's price experiences larger fluctuations and is considered to be riskier than VGG.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZDY.TO	VGG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.73%	2.59%	+2.14%
Volatility (6M) Calculated over the trailing 6-month period	9.85%	7.86%	+1.99%
Volatility (1Y) Calculated over the trailing 1-year period	11.85%	10.23%	+1.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.17%	12.63%	-0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.18%	14.97%	+0.21%

ZDY.TO vs. VGG.TO - Expense Ratio Comparison

Both ZDY.TO and VGG.TO have an expense ratio of 0.30%.

Dividends

ZDY.TO vs. VGG.TO - Dividend Comparison

ZDY.TO's dividend yield for the trailing twelve months is around 1.46%, more than VGG.TO's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGG.TO Vanguard U.S. Dividend Appreciation Index ETF	1.02%	1.16%	1.23%	1.37%	1.35%	1.21%	1.25%	1.24%	1.50%	1.46%	1.63%	1.70%
ZDY.TO BMO US Dividend ETF (CAD)	1.46%	1.72%	1.97%	2.43%	2.48%	2.33%	3.65%	3.02%	2.80%	2.63%	2.46%	2.54%

Frequently Asked Questions

Can I hold both ZDY.TO and VGG.TO in my portfolio?

ZDY.TO and VGG.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZDY.TO or VGG.TO?

Both ETFs have the same 0.30% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZDY.TO or VGG.TO?

ZDY.TO and VGG.TO have the same expense ratio: 0.30% per year.

What is the main difference between ZDY.TO and VGG.TO?

They also come from different issuers: BMO and Vanguard.