ZEQ.TO vs. POW.TO

Last updated Jun 4, 2026

ZEQ.TO (BMO MSCI Europe High Quality Hedged to CAD Index ETF) is Europe Equities fund tracking the MSCI Europe Quality 100% Hedged to CAD Index, while POW.TO (Power Corporation of Canada) is a stock. Over the past 10 years, ZEQ.TO returned 8.55%/yr vs 17.18%/yr for POW.TO. At a 0.33 correlation, their price movements are largely independent.

Performance

ZEQ.TO vs. POW.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO) and Power Corporation of Canada (POW.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZEQ.TO achieves a 1.89% return, which is significantly lower than POW.TO's 14.49% return. Over the past 10 years, ZEQ.TO has underperformed POW.TO with an annualized return of 8.55%, while POW.TO has yielded a comparatively higher 17.18% annualized return.

ZEQ.TO

• 1D: -0.83%
• 1M: 2.57%
• YTD: 1.89%
• 6M: 2.82%
• 1Y: 4.15%
• 3Y*: 5.01%
• 5Y*: 4.74%
• 10Y*: 8.55%

POW.TO

• 1D: -1.45%
• 1M: 9.18%
• YTD: 14.49%
• 6M: 20.06%
• 1Y: 66.43%
• 3Y*: 39.60%
• 5Y*: 21.72%
• 10Y*: 17.18%

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

ZEQ.TO vs. POW.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZEQ.TO BMO MSCI Europe High Quality Hedged to CAD Index ETF	1.89%	7.89%	2.54%	15.35%	-12.26%	25.16%	6.22%	33.21%	-7.10%	15.45%
POW.TO Power Corporation of Canada	14.49%	69.74%	25.05%	26.19%	-19.21%	49.93%	-4.77%	44.07%	-20.08%	12.80%

Correlation

The correlation between ZEQ.TO and POW.TO is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.33

The correlation between ZEQ.TO and POW.TO shifts across timeframes, from 0.18 (1 year) to 0.34 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

ZEQ.TO vs. POW.TO — Risk / Return Rank

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

ZEQ.TO

ZEQ.TO Risk / Return Rank: 13
ZEQ.TO Sharpe Ratio Rank: 14
ZEQ.TO Sortino Ratio Rank: 13
ZEQ.TO Omega Ratio Rank: 13
ZEQ.TO Calmar Ratio Rank: 13
ZEQ.TO Martin Ratio Rank: 14

POW.TO

POW.TO Risk / Return Rank: 94
POW.TO Sharpe Ratio Rank: 96
POW.TO Sortino Ratio Rank: 95
POW.TO Omega Ratio Rank: 95
POW.TO Calmar Ratio Rank: 90
POW.TO Martin Ratio Rank: 92

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.

ZEQ.TO vs. POW.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO) and Power Corporation of Canada (POW.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.

	ZEQ.TO	POW.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.32	3.61	-3.29
Sortino ratio: Return per unit of downside risk	0.55	4.26	-3.70
Omega ratio: Gain probability vs. loss probability	1.07	1.58	-0.51
Calmar ratio: Return relative to maximum drawdown	0.38	4.66	-4.28
Martin ratio: Return relative to average drawdown	1.11	14.18	-13.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZEQ.TO vs. POW.TO - Sharpe Ratio Comparison

The current ZEQ.TO Sharpe Ratio is 0.32, which is lower than the POW.TO Sharpe Ratio of 3.61. The chart below compares the historical Sharpe Ratios of ZEQ.TO and POW.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

	ZEQ.TO	POW.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.32	3.61	-3.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.34	1.28	-0.95
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.74	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.52	+0.03

Drawdowns

ZEQ.TO vs. POW.TO - Drawdown Comparison

The maximum ZEQ.TO drawdown since its inception was -29.13%, smaller than the maximum POW.TO drawdown of -62.40%. Use the drawdown chart below to compare losses from any high point for ZEQ.TO and POW.TO.

Drawdown Indicators

	ZEQ.TO	POW.TO	Difference
Max Drawdown Largest peak-to-trough decline	-29.13%	-62.40%	+33.27%
Max Drawdown (1Y) Largest decline over 1 year	-10.97%	-14.33%	+3.36%
Max Drawdown (3Y) Largest decline over 3 years	-14.47%	-15.10%	+0.63%
Max Drawdown (5Y) Largest decline over 5 years	-20.54%	-26.09%	+5.55%
Max Drawdown (10Y) Largest decline over 10 years	-29.13%	-49.16%	+20.03%
Current Drawdown Current decline from peak	-4.20%	-1.45%	-2.75%
Average Drawdown Average peak-to-trough decline	-4.31%	-11.60%	+7.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.76%	4.70%	-0.94%

Volatility

ZEQ.TO vs. POW.TO - Volatility Comparison

The current volatility for BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO) is 4.59%, while Power Corporation of Canada (POW.TO) has a volatility of 6.02%. This indicates that ZEQ.TO experiences smaller price fluctuations and is considered to be less risky than POW.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEQ.TO	POW.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.59%	6.02%	-1.43%
Volatility (6M) Calculated over the trailing 6-month period	10.60%	15.24%	-4.64%
Volatility (1Y) Calculated over the trailing 1-year period	13.15%	18.53%	-5.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.18%	17.04%	-2.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.51%	23.20%	-7.69%

Dividends

ZEQ.TO vs. POW.TO - Dividend Comparison

ZEQ.TO's dividend yield for the trailing twelve months is around 3.02%, which matches POW.TO's 3.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
POW.TO Power Corporation of Canada	3.03%	3.36%	5.02%	5.54%	6.22%	4.40%	7.51%	4.77%	6.13%	4.36%	4.38%	4.23%
ZEQ.TO BMO MSCI Europe High Quality Hedged to CAD Index ETF	3.02%	3.10%	2.04%	2.50%	2.62%	1.78%	1.94%	2.04%	3.21%	2.07%	2.01%	2.06%

Frequently Asked Questions

Can I hold both ZEQ.TO and POW.TO in my portfolio?

ZEQ.TO and POW.TO have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.