ZPAY.TO vs. ZWU.TO

Last updated Jun 4, 2026

ZPAY.TO (BMO Premium Yield ETF) and ZWU.TO (BMO Covered Call Utilities ETF) are both exchange-traded funds - ZPAY.TO is a Large Cap Growth Equities fund actively managed by BMO, while ZWU.TO is a Utilities Equities fund actively managed by BMO. Both are actively managed. Over the past 5 years, ZPAY.TO returned 8.59%/yr vs 6.33%/yr for ZWU.TO. At a 0.24 correlation, their price movements are largely independent. ZPAY.TO charges 0.73%/yr vs 0.65%/yr for ZWU.TO.

Performance

ZPAY.TO vs. ZWU.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Premium Yield ETF (ZPAY.TO) and BMO Covered Call Utilities ETF (ZWU.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZPAY.TO achieves a 4.79% return, which is significantly lower than ZWU.TO's 10.15% return.

ZPAY.TO

• 1D: 0.37%
• 1M: 3.77%
• YTD: 4.79%
• 6M: 0.79%
• 1Y: 10.41%
• 3Y*: 9.74%
• 5Y*: 8.59%
• 10Y*: —

ZWU.TO

• 1D: -0.50%
• 1M: -0.34%
• YTD: 10.15%
• 6M: 9.37%
• 1Y: 15.17%
• 3Y*: 10.66%
• 5Y*: 6.33%
• 10Y*: 6.08%

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

ZPAY.TO vs. ZWU.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ZPAY.TO BMO Premium Yield ETF	4.79%	2.61%	16.94%	16.87%	-6.33%	9.54%	526.95%
ZWU.TO BMO Covered Call Utilities ETF	10.15%	13.18%	10.97%	-2.79%	-3.89%	15.80%	-9.55%

Correlation

The correlation between ZPAY.TO and ZWU.TO is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (All Time) Calculated using the full available price history since Jan 22, 2020	0.24

The correlation between ZPAY.TO and ZWU.TO shifts across timeframes, from -0.03 (1 year) to 0.24 (all time), reflecting how their relationship changes across market environments.

ZPAY.TO vs. ZWU.TO - Sectors Allocation Comparison

Sectors	ZPAY.TO	ZWU.TO
Technology	31.7%	-
Communication Services	17.5%	21.5%
Financial Services	16.3%	-
Healthcare	14.8%	-
Consumer Defensive	8.6%	-
Industrials	7.4%	-
Basic Materials	2.9%	-
Consumer Cyclical	0.8%	-
Energy	-	25.8%
Real Estate	-	-
Utilities	-	52.7%

Return for Risk

ZPAY.TO vs. ZWU.TO — Risk / Return Rank

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

ZPAY.TO

ZPAY.TO Risk / Return Rank: 31
ZPAY.TO Sharpe Ratio Rank: 35
ZPAY.TO Sortino Ratio Rank: 31
ZPAY.TO Omega Ratio Rank: 35
ZPAY.TO Calmar Ratio Rank: 28
ZPAY.TO Martin Ratio Rank: 26

ZWU.TO

ZWU.TO Risk / Return Rank: 58
ZWU.TO Sharpe Ratio Rank: 58
ZWU.TO Sortino Ratio Rank: 62
ZWU.TO Omega Ratio Rank: 57
ZWU.TO Calmar Ratio Rank: 63
ZWU.TO Martin Ratio Rank: 51

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.

ZPAY.TO vs. ZWU.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Premium Yield ETF (ZPAY.TO) and BMO Covered Call Utilities ETF (ZWU.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.

	ZPAY.TO	ZWU.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.27	2.01	-0.74
Sortino ratio: Return per unit of downside risk	1.73	2.94	-1.22
Omega ratio: Gain probability vs. loss probability	1.24	1.36	-0.12
Calmar ratio: Return relative to maximum drawdown	1.37	3.13	-1.76
Martin ratio: Return relative to average drawdown	3.57	8.85	-5.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZPAY.TO vs. ZWU.TO - Sharpe Ratio Comparison

The current ZPAY.TO Sharpe Ratio is 1.27, which is lower than the ZWU.TO Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of ZPAY.TO and ZWU.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

	ZPAY.TO	ZWU.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.27	2.01	-0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.82	0.61	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.43	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.42	-0.20

Drawdowns

ZPAY.TO vs. ZWU.TO - Drawdown Comparison

The maximum ZPAY.TO drawdown since its inception was -14.89%, smaller than the maximum ZWU.TO drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for ZPAY.TO and ZWU.TO.

Drawdown Indicators

	ZPAY.TO	ZWU.TO	Difference
Max Drawdown Largest peak-to-trough decline	-14.89%	-37.41%	+22.52%
Max Drawdown (1Y) Largest decline over 1 year	-7.64%	-4.86%	-2.78%
Max Drawdown (3Y) Largest decline over 3 years	-12.47%	-12.85%	+0.38%
Max Drawdown (5Y) Largest decline over 5 years	-14.76%	-23.36%	+8.60%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.41%	—
Current Drawdown Current decline from peak	-1.70%	-2.31%	+0.61%
Average Drawdown Average peak-to-trough decline	-2.66%	-5.38%	+2.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.92%	1.73%	+1.19%

Volatility

ZPAY.TO vs. ZWU.TO - Volatility Comparison

BMO Premium Yield ETF (ZPAY.TO) and BMO Covered Call Utilities ETF (ZWU.TO) have volatilities of 2.74% and 2.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZPAY.TO	ZWU.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.74%	2.81%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	6.70%	6.30%	+0.40%
Volatility (1Y) Calculated over the trailing 1-year period	8.24%	7.59%	+0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.53%	10.47%	+0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	196.01%	14.18%	+181.83%

ZPAY.TO vs. ZWU.TO - Expense Ratio Comparison

ZPAY.TO has a 0.73% expense ratio, which is higher than ZWU.TO's 0.65% expense ratio.

Dividends

ZPAY.TO vs. ZWU.TO - Dividend Comparison

ZPAY.TO's dividend yield for the trailing twelve months is around 7.40%, more than ZWU.TO's 7.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZPAY.TO BMO Premium Yield ETF	7.40%	7.46%	5.81%	6.40%	7.00%	6.10%	5.42%	0.00%	0.00%	0.00%	0.00%	0.00%
ZWU.TO BMO Covered Call Utilities ETF	7.09%	7.59%	7.96%	8.54%	8.35%	7.43%	7.94%	6.29%	6.84%	6.46%	6.77%	7.57%

Frequently Asked Questions

Can I hold both ZPAY.TO and ZWU.TO in my portfolio?

ZPAY.TO and ZWU.TO have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZPAY.TO or ZWU.TO?

On fees, ZWU.TO is cheaper at 0.65% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZPAY.TO or ZWU.TO?

ZWU.TO is cheaper with a 0.65% expense ratio, compared with 0.73% for ZPAY.TO.

What is the main difference between ZPAY.TO and ZWU.TO?

ZPAY.TO is categorized as Large Cap Growth Equities, while ZWU.TO is Utilities Equities. Their fees differ too: 0.73% for ZPAY.TO and 0.65% for ZWU.TO.