ZHY.TO vs. VDY.TO

Last updated Jun 5, 2026

ZHY.TO (BMO High Yield US Corporate Bond Hedged to CAD Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - ZHY.TO is a High Yield Bonds fund tracking the Bloomberg U.S. High Yield Very Liquid Index CAD Hedged, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. At a 0.24 correlation, their price movements are largely independent. ZHY.TO charges 0.61%/yr vs 0.22%/yr for VDY.TO.

Performance

ZHY.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZHY.TO achieves a 0.71% return, which is significantly lower than VDY.TO's 21.16% return.

ZHY.TO

• 1D: -0.09%
• 1M: -0.19%
• YTD: 0.71%
• 6M: 1.24%
• 1Y: 5.02%
• 3Y*: 7.06%
• 5Y*: 2.53%
• 10Y*: 3.77%

VDY.TO

• 1D: -0.68%
• 1M: 4.42%
• YTD: 21.16%
• 6M: 21.53%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZHY.TO vs. VDY.TO - Yearly Performance Comparison

	2026 (YTD)	2025
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	0.71%	4.24%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	21.16%	21.33%

Correlation

The correlation between ZHY.TO and VDY.TO is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 9, 2025	0.24

ZHY.TO vs. VDY.TO - Sectors Allocation Comparison

Sectors	ZHY.TO	VDY.TO
Industrials	60.5%	0.2%
Consumer Cyclical	37.1%	3.0%
Energy	2.4%	30.8%
Basic Materials	-	2.2%
Communication Services	-	2.8%
Consumer Defensive	-	0.4%
Financial Services	-	56.0%
Healthcare	-	0.1%
Real Estate	-	-
Technology	-	0.4%
Utilities	-	4.1%

Return for Risk

ZHY.TO vs. VDY.TO — Risk / Return Rank

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

ZHY.TO

ZHY.TO Risk / Return Rank: 29
ZHY.TO Sharpe Ratio Rank: 25
ZHY.TO Sortino Ratio Rank: 24
ZHY.TO Omega Ratio Rank: 24
ZHY.TO Calmar Ratio Rank: 33
ZHY.TO Martin Ratio Rank: 39

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.

ZHY.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.

	ZHY.TO	VDY.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.87	—	—
Sortino ratio: Return per unit of downside risk	1.28	—	—
Omega ratio: Gain probability vs. loss probability	1.16	—	—
Calmar ratio: Return relative to maximum drawdown	1.61	—	—
Martin ratio: Return relative to average drawdown	6.01	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	ZHY.TO	VDY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	5.72	-5.27

Drawdowns

ZHY.TO vs. VDY.TO - Drawdown Comparison

The maximum ZHY.TO drawdown since its inception was -28.44%, which is greater than VDY.TO's maximum drawdown of -3.12%. Use the drawdown chart below to compare losses from any high point for ZHY.TO and VDY.TO.

Drawdown Indicators

	ZHY.TO	VDY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-28.44%	-3.12%	-25.32%
Max Drawdown (1Y) Largest decline over 1 year	-2.96%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-5.70%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-28.44%	—	—
Current Drawdown Current decline from peak	-0.91%	-0.68%	-0.23%
Average Drawdown Average peak-to-trough decline	-2.86%	-0.43%	-2.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	—	—

Volatility

Volatility by Period

	ZHY.TO	VDY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.96%	—	—
Volatility (6M) Calculated over the trailing 6-month period	4.11%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	5.50%	8.31%	-2.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.51%	8.31%	+1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.92%	8.31%	+2.61%

ZHY.TO vs. VDY.TO - Expense Ratio Comparison

ZHY.TO has a 0.61% expense ratio, which is higher than VDY.TO's 0.22% expense ratio.

Dividends

ZHY.TO vs. VDY.TO - Dividend Comparison

ZHY.TO's dividend yield for the trailing twelve months is around 6.38%, more than VDY.TO's 2.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.89%	3.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ZHY.TO BMO High Yield US Corporate Bond Hedged to CAD Index ETF	6.38%	6.10%	6.13%	6.43%	6.71%	5.49%	6.09%	6.50%	6.25%	6.10%	5.84%	7.12%

Frequently Asked Questions

Can I hold both ZHY.TO and VDY.TO in my portfolio?

ZHY.TO and VDY.TO have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZHY.TO or VDY.TO?

On fees, VDY.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZHY.TO or VDY.TO?

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.61% for ZHY.TO.

What is the main difference between ZHY.TO and VDY.TO?

ZHY.TO is categorized as High Yield Bonds, while VDY.TO is Dividend. ZHY.TO tracks Bloomberg U.S. High Yield Very Liquid Index CAD Hedged, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.61% for ZHY.TO and 0.22% for VDY.TO.