ZEQ.TO vs. VCE.TO

Last updated Jun 4, 2026

ZEQ.TO (BMO MSCI Europe High Quality Hedged to CAD Index ETF) and VCE.TO (Vanguard FTSE Canada 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 VCE.TO is a Canada Equities fund tracking the FTSE Canada Domestic Index. Both are passively managed. Over the past 10 years, ZEQ.TO returned 8.55%/yr vs 12.58%/yr for VCE.TO. A 0.54 correlation means they provide meaningful diversification when combined. ZEQ.TO charges 0.45%/yr vs 0.06%/yr for VCE.TO.

Performance

ZEQ.TO vs. VCE.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 Vanguard FTSE Canada Index ETF (VCE.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 VCE.TO's 10.03% return. Over the past 10 years, ZEQ.TO has underperformed VCE.TO with an annualized return of 8.55%, while VCE.TO has yielded a comparatively higher 12.58% 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%

VCE.TO

• 1D: -0.96%
• 1M: 3.36%
• YTD: 10.03%
• 6M: 10.19%
• 1Y: 28.98%
• 3Y*: 22.22%
• 5Y*: 14.43%
• 10Y*: 12.58%

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

ZEQ.TO vs. VCE.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%
VCE.TO Vanguard FTSE Canada Index ETF	10.03%	26.39%	21.43%	12.26%	-5.20%	28.59%	4.09%	22.99%	-7.86%	8.79%

Correlation

The correlation between ZEQ.TO and VCE.TO is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.54

The correlation between ZEQ.TO and VCE.TO has been stable across timeframes, ranging from 0.50 to 0.60 - a consistent structural relationship.

ZEQ.TO vs. VCE.TO - Sectors Allocation Comparison

Sectors	ZEQ.TO	VCE.TO
Healthcare	24.5%	-
Industrials	22.4%	10.6%
Consumer Defensive	15.3%	2.9%
Technology	10.2%	8.2%
Consumer Cyclical	9.8%	3.4%
Financial Services	9.7%	37.4%
Basic Materials	6.2%	15.4%
Communication Services	1.5%	1.5%
Utilities	0.3%	1.9%
Energy	-	18.4%
Real Estate	-	0.2%

Return for Risk

ZEQ.TO vs. VCE.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

VCE.TO

VCE.TO Risk / Return Rank: 72
VCE.TO Sharpe Ratio Rank: 70
VCE.TO Sortino Ratio Rank: 67
VCE.TO Omega Ratio Rank: 69
VCE.TO Calmar Ratio Rank: 71
VCE.TO Martin Ratio Rank: 82

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. VCE.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 FTSE Canada Index ETF (VCE.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	VCE.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.32	2.37	-2.05
Sortino ratio: Return per unit of downside risk	0.55	3.16	-2.60
Omega ratio: Gain probability vs. loss probability	1.07	1.42	-0.36
Calmar ratio: Return relative to maximum drawdown	0.38	3.60	-3.22
Martin ratio: Return relative to average drawdown	1.11	16.77	-15.66
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. VCE.TO - Sharpe Ratio Comparison

The current ZEQ.TO Sharpe Ratio is 0.32, which is lower than the VCE.TO Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of ZEQ.TO and VCE.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	VCE.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.32	2.37	-2.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.34	1.14	-0.80
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.84	-0.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.77	-0.23

Drawdowns

ZEQ.TO vs. VCE.TO - Drawdown Comparison

The maximum ZEQ.TO drawdown since its inception was -29.13%, smaller than the maximum VCE.TO drawdown of -35.92%. Use the drawdown chart below to compare losses from any high point for ZEQ.TO and VCE.TO.

Drawdown Indicators

	ZEQ.TO	VCE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-29.13%	-35.92%	+6.79%
Max Drawdown (1Y) Largest decline over 1 year	-10.97%	-8.09%	-2.88%
Max Drawdown (3Y) Largest decline over 3 years	-14.47%	-12.16%	-2.31%
Max Drawdown (5Y) Largest decline over 5 years	-20.54%	-15.90%	-4.64%
Max Drawdown (10Y) Largest decline over 10 years	-29.13%	-35.92%	+6.79%
Current Drawdown Current decline from peak	-4.20%	-0.96%	-3.24%
Average Drawdown Average peak-to-trough decline	-4.31%	-3.73%	-0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.76%	1.73%	+2.03%

Volatility

ZEQ.TO vs. VCE.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 FTSE Canada Index ETF (VCE.TO) at 3.47%. This indicates that ZEQ.TO's price experiences larger fluctuations and is considered to be riskier than VCE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEQ.TO	VCE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.59%	3.47%	+1.12%
Volatility (6M) Calculated over the trailing 6-month period	10.60%	10.00%	+0.60%
Volatility (1Y) Calculated over the trailing 1-year period	13.15%	12.30%	+0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.18%	12.78%	+1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.51%	14.99%	+0.52%

ZEQ.TO vs. VCE.TO - Expense Ratio Comparison

ZEQ.TO has a 0.45% expense ratio, which is higher than VCE.TO's 0.06% expense ratio.

Dividends

ZEQ.TO vs. VCE.TO - Dividend Comparison

ZEQ.TO's dividend yield for the trailing twelve months is around 3.02%, more than VCE.TO's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCE.TO Vanguard FTSE Canada Index ETF	2.17%	2.42%	2.84%	3.16%	3.21%	2.61%	2.93%	3.01%	3.21%	2.57%	2.64%	2.98%
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 VCE.TO in my portfolio?

ZEQ.TO and VCE.TO have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZEQ.TO or VCE.TO?

On fees, VCE.TO is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZEQ.TO or VCE.TO?

VCE.TO is cheaper with a 0.06% expense ratio, compared with 0.45% for ZEQ.TO.

What is the main difference between ZEQ.TO and VCE.TO?

ZEQ.TO is categorized as Europe Equities, while VCE.TO is Canada Equities. ZEQ.TO tracks MSCI Europe Quality 100% Hedged to CAD Index, while VCE.TO tracks FTSE Canada Domestic Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.45% for ZEQ.TO and 0.06% for VCE.TO.