ZEQ.TO vs. VAB.TO
ZEQ.TO (BMO MSCI Europe High Quality Hedged to CAD Index ETF) and VAB.TO (Vanguard Canadian Aggregate Bond Index ETF) are both exchange-traded funds - ZEQ.TO is a Europe Equities fund tracking the MSCI Europe Quality 100% Hedged to CAD Index, while VAB.TO is a Canadian Government Bonds fund tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, ZEQ.TO returned 8.55%/yr vs 1.51%/yr for VAB.TO. At a 0.01 correlation, their price movements are largely independent. ZEQ.TO charges 0.45%/yr vs 0.09%/yr for VAB.TO.
Performance
ZEQ.TO vs. VAB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ZEQ.TO achieves a 1.89% return, which is significantly higher than VAB.TO's 1.62% return. Over the past 10 years, ZEQ.TO has outperformed VAB.TO with an annualized return of 8.55%, while VAB.TO has yielded a comparatively lower 1.51% 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%
VAB.TO
- 1D
- -0.07%
- 1M
- 1.70%
- YTD
- 1.62%
- 6M
- 0.78%
- 1Y
- 3.12%
- 3Y*
- 4.12%
- 5Y*
- 0.66%
- 10Y*
- 1.51%
ZEQ.TO vs. VAB.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% |
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 1.62% | 2.28% | 3.98% | 6.90% | -11.86% | -2.88% | 8.26% | 6.77% | 1.13% | 2.30% |
Correlation
The correlation between ZEQ.TO and VAB.TO is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014 | 0.01 |
Over the past year, ZEQ.TO and VAB.TO have become more correlated (0.33) than their long-term average of 0.01, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ZEQ.TO vs. VAB.TO — Risk / Return Rank
ZEQ.TO
VAB.TO
ZEQ.TO vs. VAB.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 Vanguard Canadian Aggregate Bond Index ETF (VAB.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 | VAB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.40 | ||
| Sortino ratioReturn per unit of downside risk | -0.43 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.12 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 1.10 | -0.72 |
| Martin ratioReturn relative to average drawdown | 1.11 | 2.61 | -1.51 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| ZEQ.TO | VAB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.32 | 0.72 | -0.40 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.34 | 0.10 | +0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.55 | 0.23 | +0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.39 | +0.15 |
Drawdowns
ZEQ.TO vs. VAB.TO - Drawdown Comparison
The maximum ZEQ.TO drawdown since its inception was -29.13%, which is greater than VAB.TO's maximum drawdown of -18.39%. Use the drawdown chart below to compare losses from any high point for ZEQ.TO and VAB.TO.
Loading charts...
Drawdown Indicators
| ZEQ.TO | VAB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.13% | -18.39% | -10.74% |
Max Drawdown (1Y)Largest decline over 1 year | -10.97% | -2.83% | -8.14% |
Max Drawdown (3Y)Largest decline over 3 years | -14.47% | -5.31% | -9.16% |
Max Drawdown (5Y)Largest decline over 5 years | -20.54% | -15.82% | -4.72% |
Max Drawdown (10Y)Largest decline over 10 years | -29.13% | -18.39% | -10.74% |
Current DrawdownCurrent decline from peak | -4.20% | -1.92% | -2.28% |
Average DrawdownAverage peak-to-trough decline | -4.31% | -4.11% | -0.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.76% | 1.20% | +2.56% |
Volatility
ZEQ.TO vs. VAB.TO - Volatility Comparison
BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO) has a higher volatility of 4.59% compared to Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) at 1.59%. This indicates that ZEQ.TO's price experiences larger fluctuations and is considered to be riskier than VAB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| ZEQ.TO | VAB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.59% | 1.59% | +3.00% |
Volatility (6M)Calculated over the trailing 6-month period | 10.60% | 3.45% | +7.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.15% | 4.38% | +8.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.18% | 6.58% | +7.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.51% | 6.48% | +9.03% |
ZEQ.TO vs. VAB.TO - Expense Ratio Comparison
ZEQ.TO has a 0.45% expense ratio, which is higher than VAB.TO's 0.09% expense ratio.
Dividends
ZEQ.TO vs. VAB.TO - Dividend Comparison
ZEQ.TO's dividend yield for the trailing twelve months is around 3.02%, less than VAB.TO's 3.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAB.TO Vanguard Canadian Aggregate Bond Index ETF | 3.32% | 3.33% | 3.19% | 2.95% | 2.87% | 2.48% | 2.50% | 2.65% | 2.79% | 2.77% | 2.75% | 2.78% |
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
ZEQ.TO and VAB.TO have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VAB.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VAB.TO is cheaper with a 0.09% expense ratio, compared with 0.45% for ZEQ.TO.
ZEQ.TO is categorized as Europe Equities, while VAB.TO is Canadian Government Bonds. ZEQ.TO tracks MSCI Europe Quality 100% Hedged to CAD Index, while VAB.TO tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.45% for ZEQ.TO and 0.09% for VAB.TO.
Find the right allocation for ZEQ.TO and VAB.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer