ZSML.TO vs. VFV.TO

Last updated Jun 4, 2026

ZSML.TO (BMO S&P US Small Cap Index ETF) and VFV.TO (Vanguard S&P 500 Index ETF) are both exchange-traded funds - ZSML.TO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600® Index, while VFV.TO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, ZSML.TO returned 8.17%/yr vs 16.84%/yr for VFV.TO. At a 0.42 correlation, their price movements are largely independent. ZSML.TO charges 0.22%/yr vs 0.09%/yr for VFV.TO.

Performance

ZSML.TO vs. VFV.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO S&P US Small Cap Index ETF (ZSML.TO) and Vanguard S&P 500 Index ETF (VFV.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZSML.TO achieves a 16.56% return, which is significantly higher than VFV.TO's 12.30% return.

ZSML.TO

• 1D: -0.55%
• 1M: 3.50%
• YTD: 16.56%
• 6M: 13.03%
• 1Y: 32.00%
• 3Y*: 16.65%
• 5Y*: 8.17%
• 10Y*: —

VFV.TO

• 1D: -0.18%
• 1M: 7.30%
• YTD: 12.30%
• 6M: 10.47%
• 1Y: 29.48%
• 3Y*: 23.57%
• 5Y*: 16.84%
• 10Y*: 16.04%

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

ZSML.TO vs. VFV.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ZSML.TO BMO S&P US Small Cap Index ETF	16.56%	0.20%	17.47%	12.67%	-11.12%	28.32%	13.69%
VFV.TO Vanguard S&P 500 Index ETF	12.30%	12.18%	35.23%	23.23%	-12.58%	27.51%	8.16%

Correlation

The correlation between ZSML.TO and VFV.TO is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (All Time) Calculated using the full available price history since Feb 21, 2020	0.42

Over the past year, ZSML.TO and VFV.TO have become more correlated (0.66) than their long-term average of 0.42, meaning their price movements have been converging.

ZSML.TO vs. VFV.TO - Sectors Allocation Comparison

Sectors	ZSML.TO	VFV.TO
Financial Services	17.1%	11.6%
Industrials	15.5%	8.3%
Technology	15.1%	35.7%
Consumer Cyclical	13.4%	10.2%
Healthcare	11.2%	8.5%
Real Estate	7.7%	1.9%
Energy	5.8%	3.5%
Basic Materials	5.2%	1.8%
Communication Services	3.6%	11.3%
Consumer Defensive	3.5%	4.9%
Utilities	2.0%	2.4%

Return for Risk

ZSML.TO vs. VFV.TO — Risk / Return Rank

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

ZSML.TO

ZSML.TO Risk / Return Rank: 63
ZSML.TO Sharpe Ratio Rank: 54
ZSML.TO Sortino Ratio Rank: 58
ZSML.TO Omega Ratio Rank: 54
ZSML.TO Calmar Ratio Rank: 78
ZSML.TO Martin Ratio Rank: 72

VFV.TO

VFV.TO Risk / Return Rank: 74
VFV.TO Sharpe Ratio Rank: 78
VFV.TO Sortino Ratio Rank: 77
VFV.TO Omega Ratio Rank: 78
VFV.TO Calmar Ratio Rank: 68
VFV.TO Martin Ratio Rank: 69

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.

ZSML.TO vs. VFV.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO S&P US Small Cap Index ETF (ZSML.TO) and Vanguard S&P 500 Index ETF (VFV.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.

	ZSML.TO	VFV.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.59	-0.76
Sortino ratio: Return per unit of downside risk	2.75	3.53	-0.78
Omega ratio: Gain probability vs. loss probability	1.33	1.48	-0.14
Calmar ratio: Return relative to maximum drawdown	3.96	3.44	+0.52
Martin ratio: Return relative to average drawdown	13.45	13.10	+0.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZSML.TO vs. VFV.TO - Sharpe Ratio Comparison

The current ZSML.TO Sharpe Ratio is 1.83, which is comparable to the VFV.TO Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of ZSML.TO and VFV.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

	ZSML.TO	VFV.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.83	2.59	-0.76
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	1.14	-0.72
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.97	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	1.14	-0.62

Drawdowns

ZSML.TO vs. VFV.TO - Drawdown Comparison

The maximum ZSML.TO drawdown since its inception was -35.32%, which is greater than VFV.TO's maximum drawdown of -27.43%. Use the drawdown chart below to compare losses from any high point for ZSML.TO and VFV.TO.

Drawdown Indicators

	ZSML.TO	VFV.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.32%	-27.43%	-7.89%
Max Drawdown (1Y) Largest decline over 1 year	-8.12%	-8.62%	+0.50%
Max Drawdown (3Y) Largest decline over 3 years	-26.87%	-19.05%	-7.82%
Max Drawdown (5Y) Largest decline over 5 years	-26.87%	-22.19%	-4.68%
Max Drawdown (10Y) Largest decline over 10 years	—	-27.43%	—
Current Drawdown Current decline from peak	-0.55%	-0.18%	-0.37%
Average Drawdown Average peak-to-trough decline	-8.85%	-3.35%	-5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.39%	2.26%	+0.13%

Volatility

ZSML.TO vs. VFV.TO - Volatility Comparison

BMO S&P US Small Cap Index ETF (ZSML.TO) has a higher volatility of 5.45% compared to Vanguard S&P 500 Index ETF (VFV.TO) at 3.05%. This indicates that ZSML.TO's price experiences larger fluctuations and is considered to be riskier than VFV.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZSML.TO	VFV.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.45%	3.05%	+2.40%
Volatility (6M) Calculated over the trailing 6-month period	12.34%	8.55%	+3.79%
Volatility (1Y) Calculated over the trailing 1-year period	17.66%	11.46%	+6.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.58%	14.91%	+4.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.47%	16.57%	+5.90%

ZSML.TO vs. VFV.TO - Expense Ratio Comparison

ZSML.TO has a 0.22% expense ratio, which is higher than VFV.TO's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZSML.TO vs. VFV.TO - Dividend Comparison

ZSML.TO's dividend yield for the trailing twelve months is around 1.03%, more than VFV.TO's 0.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFV.TO Vanguard S&P 500 Index ETF	0.83%	0.92%	0.99%	1.20%	1.31%	1.06%	1.33%	1.55%	1.68%	1.50%	1.66%	1.63%
ZSML.TO BMO S&P US Small Cap Index ETF	1.03%	1.21%	1.22%	1.47%	1.72%	1.02%	1.29%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZSML.TO and VFV.TO in my portfolio?

ZSML.TO and VFV.TO have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZSML.TO or VFV.TO?

On fees, VFV.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZSML.TO or VFV.TO?

VFV.TO is cheaper with a 0.09% expense ratio, compared with 0.22% for ZSML.TO.

What is the main difference between ZSML.TO and VFV.TO?

ZSML.TO is categorized as Small Cap Blend Equities, while VFV.TO is S&P 500. ZSML.TO tracks S&P SmallCap 600® Index, while VFV.TO tracks S&P 500 Index. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.22% for ZSML.TO and 0.09% for VFV.TO.