ZSML.TO vs. ZDV.TO

Last updated Jun 4, 2026

ZSML.TO (BMO S&P US Small Cap Index ETF) and ZDV.TO (BMO Canadian Dividend ETF) are both exchange-traded funds - ZSML.TO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600® Index, while ZDV.TO is a Canada Equities fund actively managed by BMO. ZSML.TO is passively managed, while ZDV.TO is actively managed. Over the past 5 years, ZSML.TO returned 8.17%/yr vs 13.72%/yr for ZDV.TO. At a 0.37 correlation, their price movements are largely independent. ZSML.TO charges 0.22%/yr vs 0.39%/yr for ZDV.TO.

Performance

ZSML.TO vs. ZDV.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 BMO Canadian Dividend ETF (ZDV.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 lower than ZDV.TO's 18.56% 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*: —

ZDV.TO

• 1D: -0.22%
• 1M: 4.61%
• YTD: 18.56%
• 6M: 13.14%
• 1Y: 31.08%
• 3Y*: 20.39%
• 5Y*: 13.72%
• 10Y*: 10.97%

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

ZSML.TO vs. ZDV.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%
ZDV.TO BMO Canadian Dividend ETF	18.56%	20.17%	16.52%	7.83%	-1.93%	28.40%	-8.34%

Correlation

The correlation between ZSML.TO and ZDV.TO is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (All Time) Calculated using the full available price history since Feb 21, 2020	0.37

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

Sectors	ZSML.TO	ZDV.TO
Financial Services	17.1%	35.2%
Industrials	15.5%	2.7%
Technology	15.1%	-
Consumer Cyclical	13.4%	1.4%
Healthcare	11.2%	0.9%
Real Estate	7.7%	4.1%
Energy	5.8%	27.2%
Basic Materials	5.2%	10.6%
Communication Services	3.6%	5.7%
Consumer Defensive	3.5%	2.2%
Utilities	2.0%	10.1%

Return for Risk

ZSML.TO vs. ZDV.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

ZDV.TO

ZDV.TO Risk / Return Rank: 85
ZDV.TO Sharpe Ratio Rank: 87
ZDV.TO Sortino Ratio Rank: 74
ZDV.TO Omega Ratio Rank: 93
ZDV.TO Calmar Ratio Rank: 85
ZDV.TO Martin Ratio Rank: 85

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. ZDV.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 BMO Canadian Dividend ETF (ZDV.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	ZDV.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.95	-1.12
Sortino ratio: Return per unit of downside risk	2.75	3.40	-0.65
Omega ratio: Gain probability vs. loss probability	1.33	1.66	-0.32
Calmar ratio: Return relative to maximum drawdown	3.96	4.69	-0.73
Martin ratio: Return relative to average drawdown	13.45	18.24	-4.79
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. ZDV.TO - Sharpe Ratio Comparison

The current ZSML.TO Sharpe Ratio is 1.83, which is lower than the ZDV.TO Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of ZSML.TO and ZDV.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	ZDV.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.83	2.95	-1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	1.26	-0.84
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.73	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.68	-0.16

Drawdowns

ZSML.TO vs. ZDV.TO - Drawdown Comparison

The maximum ZSML.TO drawdown since its inception was -35.32%, smaller than the maximum ZDV.TO drawdown of -43.21%. Use the drawdown chart below to compare losses from any high point for ZSML.TO and ZDV.TO.

Drawdown Indicators

	ZSML.TO	ZDV.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.32%	-43.21%	+7.89%
Max Drawdown (1Y) Largest decline over 1 year	-8.12%	-6.65%	-1.47%
Max Drawdown (3Y) Largest decline over 3 years	-26.87%	-9.04%	-17.83%
Max Drawdown (5Y) Largest decline over 5 years	-26.87%	-16.72%	-10.15%
Max Drawdown (10Y) Largest decline over 10 years	—	-43.21%	—
Current Drawdown Current decline from peak	-0.55%	-0.22%	-0.33%
Average Drawdown Average peak-to-trough decline	-8.85%	-5.12%	-3.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.39%	1.71%	+0.68%

Volatility

ZSML.TO vs. ZDV.TO - Volatility Comparison

BMO S&P US Small Cap Index ETF (ZSML.TO) has a higher volatility of 5.45% compared to BMO Canadian Dividend ETF (ZDV.TO) at 2.49%. This indicates that ZSML.TO's price experiences larger fluctuations and is considered to be riskier than ZDV.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZSML.TO	ZDV.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.45%	2.49%	+2.96%
Volatility (6M) Calculated over the trailing 6-month period	12.34%	9.69%	+2.65%
Volatility (1Y) Calculated over the trailing 1-year period	17.66%	10.57%	+7.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.58%	10.94%	+8.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.47%	15.11%	+7.36%

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

ZSML.TO has a 0.22% expense ratio, which is lower than ZDV.TO's 0.39% expense ratio.

Dividends

ZSML.TO vs. ZDV.TO - Dividend Comparison

ZSML.TO's dividend yield for the trailing twelve months is around 1.03%, less than ZDV.TO's 2.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZDV.TO BMO Canadian Dividend ETF	2.68%	3.07%	3.57%	4.10%	4.10%	3.63%	4.48%	4.11%	5.06%	3.96%	3.84%	4.63%
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 ZDV.TO in my portfolio?

ZSML.TO and ZDV.TO have a correlation of 0.39, 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 ZDV.TO?

On fees, ZSML.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, ZSML.TO or ZDV.TO?

ZSML.TO is cheaper with a 0.22% expense ratio, compared with 0.39% for ZDV.TO.

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

ZSML.TO is categorized as Small Cap Blend Equities, while ZDV.TO is Canada Equities. Their fees differ too: 0.22% for ZSML.TO and 0.39% for ZDV.TO.