ZLU.TO vs. VGG.TO

Last updated Jun 4, 2026

ZLU.TO (BMO Low Volatility US Equity ETF (CAD)) and VGG.TO (Vanguard U.S. Dividend Appreciation Index ETF) are both exchange-traded funds - ZLU.TO is a Large Cap Blend Equities fund actively managed by BMO, while VGG.TO is a Dividend fund tracking the S&P U.S. Dividend Growers Index. ZLU.TO is actively managed, while VGG.TO is passively managed. Over the past 10 years, ZLU.TO returned 9.43%/yr vs 13.46%/yr for VGG.TO. A 0.72 correlation means they provide meaningful diversification when combined. ZLU.TO charges 0.33%/yr vs 0.30%/yr for VGG.TO.

Performance

ZLU.TO vs. VGG.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Low Volatility US Equity ETF (CAD) (ZLU.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, ZLU.TO achieves a 9.40% return, which is significantly higher than VGG.TO's 8.57% return. Over the past 10 years, ZLU.TO has underperformed VGG.TO with an annualized return of 9.43%, while VGG.TO has yielded a comparatively higher 13.46% annualized return.

ZLU.TO

• 1D: -0.14%
• 1M: 4.18%
• YTD: 9.40%
• 6M: 3.31%
• 1Y: 9.98%
• 3Y*: 10.83%
• 5Y*: 10.19%
• 10Y*: 9.43%

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)

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZLU.TO BMO Low Volatility US Equity ETF (CAD)	9.40%	1.95%	21.52%	-3.36%	7.85%	20.62%	1.98%	20.39%	8.31%	4.98%
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 ZLU.TO and VGG.TO is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Aug 13, 2013	0.72

The correlation between ZLU.TO and VGG.TO shifts across timeframes, from 0.62 (3 years) to 0.73 (10 years), reflecting how their relationship changes across market environments.

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

Sectors	ZLU.TO	VGG.TO
Utilities	20.5%	3.2%
Technology	19.0%	26.2%
Healthcare	17.7%	16.5%
Consumer Defensive	12.5%	10.1%
Financial Services	11.4%	20.6%
Industrials	6.4%	11.8%
Real Estate	3.3%	-
Consumer Cyclical	3.2%	4.7%
Communication Services	2.9%	0.5%
Basic Materials	2.5%	3.5%
Energy	0.6%	3.5%

Return for Risk

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

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

ZLU.TO

ZLU.TO Risk / Return Rank: 26
ZLU.TO Sharpe Ratio Rank: 26
ZLU.TO Sortino Ratio Rank: 24
ZLU.TO Omega Ratio Rank: 25
ZLU.TO Calmar Ratio Rank: 27
ZLU.TO Martin Ratio Rank: 25

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.

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

This table presents a comparison of risk-adjusted performance metrics for BMO Low Volatility US Equity ETF (CAD) (ZLU.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.

	ZLU.TO	VGG.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.96	2.03	-1.07
Sortino ratio: Return per unit of downside risk	1.31	2.93	-1.62
Omega ratio: Gain probability vs. loss probability	1.17	1.36	-0.19
Calmar ratio: Return relative to maximum drawdown	1.33	2.94	-1.61
Martin ratio: Return relative to average drawdown	3.38	10.93	-7.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

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

The current ZLU.TO Sharpe Ratio is 0.96, which is lower than the VGG.TO Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of ZLU.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

	ZLU.TO	VGG.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.96	2.03	-1.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.90	1.05	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.90	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.97	0.98	-0.01

Drawdowns

ZLU.TO vs. VGG.TO - Drawdown Comparison

The maximum ZLU.TO drawdown since its inception was -25.49%, roughly equal to the maximum VGG.TO drawdown of -24.58%. Use the drawdown chart below to compare losses from any high point for ZLU.TO and VGG.TO.

Drawdown Indicators

	ZLU.TO	VGG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-25.49%	-24.58%	-0.91%
Max Drawdown (1Y) Largest decline over 1 year	-7.53%	-7.07%	-0.46%
Max Drawdown (3Y) Largest decline over 3 years	-9.17%	-15.56%	+6.39%
Max Drawdown (5Y) Largest decline over 5 years	-10.40%	-18.52%	+8.12%
Max Drawdown (10Y) Largest decline over 10 years	-25.49%	-24.58%	-0.91%
Current Drawdown Current decline from peak	-2.03%	0.00%	-2.03%
Average Drawdown Average peak-to-trough decline	-3.11%	-2.93%	-0.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	1.89%	+1.08%

Volatility

ZLU.TO vs. VGG.TO - Volatility Comparison

BMO Low Volatility US Equity ETF (CAD) (ZLU.TO) has a higher volatility of 2.85% compared to Vanguard U.S. Dividend Appreciation Index ETF (VGG.TO) at 2.59%. This indicates that ZLU.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

	ZLU.TO	VGG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.85%	2.59%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	8.51%	7.86%	+0.65%
Volatility (1Y) Calculated over the trailing 1-year period	10.46%	10.23%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.34%	12.63%	-1.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.91%	14.97%	-1.06%

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

ZLU.TO has a 0.33% expense ratio, which is higher than VGG.TO's 0.30% expense ratio.

Dividends

ZLU.TO vs. VGG.TO - Dividend Comparison

ZLU.TO's dividend yield for the trailing twelve months is around 1.73%, 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%
ZLU.TO BMO Low Volatility US Equity ETF (CAD)	1.73%	1.89%	1.89%	2.29%	1.87%	1.69%	1.75%	1.51%	1.81%	1.91%	2.26%	1.73%

Frequently Asked Questions

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

ZLU.TO and VGG.TO have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

On fees, VGG.TO is cheaper at 0.30% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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

VGG.TO is cheaper with a 0.30% expense ratio, compared with 0.33% for ZLU.TO.

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

ZLU.TO is categorized as Large Cap Blend Equities, while VGG.TO is Dividend. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.33% for ZLU.TO and 0.30% for VGG.TO.