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ZMU.TO vs. VCB.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZMU.TO vs. VCB.TO

Last updated Jul 1, 2026
See Documentation

ZMU.TO (BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF) and VCB.TO (Vanguard Canadian Corporate Bond Index ETF) are both Corporate Bonds funds. Over the past 5 years, ZMU.TO returned -0.16%/yr vs 2.36%/yr for VCB.TO. At a 0.38 correlation, their price movements are largely independent.

Performance

ZMU.TO vs. VCB.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) and Vanguard Canadian Corporate Bond Index ETF (VCB.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZMU.TO achieves a -0.41% return, which is significantly lower than VCB.TO's 1.83% return.

ZMU.TO

1D
-0.48%
1M
-0.10%
YTD
-0.41%
6M
-0.72%
1Y
2.28%
3Y*
4.49%
5Y*
-0.16%
10Y*
1.75%

VCB.TO

1D
-0.12%
1M
0.32%
YTD
1.83%
6M
1.79%
1Y
3.97%
3Y*
6.14%
5Y*
2.36%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZMU.TO vs. VCB.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZMU.TO
BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF		-0.41%7.47%1.42%7.89%-14.71%-1.75%8.27%12.98%-2.77%3.52%
VCB.TO
Vanguard Canadian Corporate Bond Index ETF		1.83%4.46%6.63%7.98%-8.96%-1.55%8.33%4.76%0.29%3.19%

Correlation

The correlation between ZMU.TO and VCB.TO is 0.63, 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

0.67

Correlation (5Y)
Calculated over the trailing 5-year period

0.67

Correlation (All Time)
Calculated using the full available price history since Feb 9, 2017

0.38

Over the past year, ZMU.TO and VCB.TO have become more correlated (0.63) than their long-term average of 0.38, meaning their price movements have been converging.

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BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF

Vanguard Canadian Corporate Bond Index ETF

Often compared with VCB.TO:
VCB.TO vs. XCB.TOVCB.TO vs. ZMMK.TOVCB.TO vs. VAB.TOVCB.TO vs. ZAG.TOVCB.TO vs. ZCS.TOVCB.TO vs. BND.TOVCB.TO vs. VTIP

Return for Risk

ZMU.TO vs. VCB.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZMU.TO
ZMU.TO Risk / Return Rank: 1717
Overall Rank
ZMU.TO Sharpe Ratio Rank: 1717
Sharpe Ratio Rank
ZMU.TO Sortino Ratio Rank: 1515
Sortino Ratio Rank
ZMU.TO Omega Ratio Rank: 1515
Omega Ratio Rank
ZMU.TO Calmar Ratio Rank: 1919
Calmar Ratio Rank
ZMU.TO Martin Ratio Rank: 1818
Martin Ratio Rank
VCB.TO
VCB.TO Risk / Return Rank: 3535
Overall Rank
VCB.TO Sharpe Ratio Rank: 3636
Sharpe Ratio Rank
VCB.TO Sortino Ratio Rank: 3333
Sortino Ratio Rank
VCB.TO Omega Ratio Rank: 3434
Omega Ratio Rank
VCB.TO Calmar Ratio Rank: 3636
Calmar Ratio Rank
VCB.TO Martin Ratio Rank: 3838
Martin Ratio Rank
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.

ZMU.TO vs. VCB.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) and Vanguard Canadian Corporate Bond Index ETF (VCB.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

ZMU.TOVCB.TODifference
Sharpe ratioReturn per unit of total volatility
0.49
1.16

-0.67

Sortino ratioReturn per unit of downside risk
0.71
1.62

-0.90

Omega ratioGain probability vs. loss probability

1.09

1.21

-0.12

Calmar ratioReturn relative to maximum drawdown

0.74

1.63

-0.89

Martin ratioReturn relative to average drawdown

1.76

5.22

-3.46

ZMU.TO vs. VCB.TO - Sharpe Ratio Comparison

The current ZMU.TO Sharpe Ratio is 0.49, which is lower than the VCB.TO Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of ZMU.TO and VCB.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.

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Drawdowns

ZMU.TO vs. VCB.TO - Drawdown Comparison

The maximum ZMU.TO drawdown since its inception was -21.30%, which is greater than VCB.TO's maximum drawdown of -14.00%. Use the drawdown chart below to compare losses from any high point for ZMU.TO and VCB.TO.

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Drawdown Indicators

ZMU.TOVCB.TODifference

Max Drawdown

Largest peak-to-trough decline

-21.30%

-14.00%

-7.30%

Max Drawdown (1Y)

Largest decline over 1 year

-3.11%

-2.45%

-0.66%

Max Drawdown (3Y)

Largest decline over 3 years

-6.05%

-3.21%

-2.84%

Max Drawdown (5Y)

Largest decline over 5 years

-21.30%

-13.17%

-8.13%

Max Drawdown (10Y)

Largest decline over 10 years

-21.30%

—

—

Current Drawdown

Current decline from peak

-2.24%

-0.12%

-2.12%

Average Drawdown

Average peak-to-trough decline

-4.54%

-3.05%

-1.49%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.30%

0.77%

+0.53%

Volatility

ZMU.TO vs. VCB.TO - Volatility Comparison

BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU.TO) has a higher volatility of 1.63% compared to Vanguard Canadian Corporate Bond Index ETF (VCB.TO) at 1.01%. This indicates that ZMU.TO's price experiences larger fluctuations and is considered to be riskier than VCB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZMU.TOVCB.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.63%

1.01%

+0.62%

Volatility (6M)

Calculated over the trailing 6-month period

3.40%

2.66%

+0.74%

Volatility (1Y)

Calculated over the trailing 1-year period

4.70%

3.46%

+1.24%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.90%

4.90%

+2.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.88%

9.62%

-1.74%

Dividends

ZMU.TO vs. VCB.TO - Dividend Comparison

ZMU.TO's dividend yield for the trailing twelve months is around 4.48%, more than VCB.TO's 3.86% yield.

PositionTTM20252024202320222021202020192018201720162015
VCB.TO
Vanguard Canadian Corporate Bond Index ETF		3.86%3.88%3.74%3.41%3.21%2.69%2.75%2.86%2.86%2.51%0.00%0.00%
ZMU.TO
BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF		4.48%4.10%4.15%4.22%4.35%3.56%3.51%3.66%3.70%3.28%3.37%3.53%

Frequently Asked Questions

ZMU.TO and VCB.TO have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

They also come from different issuers: BMO and Vanguard.

Portfolio Optimizer

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