ZUE.TO vs. ZEQ.TO

Last updated Jul 18, 2026

ZUE.TO (BMO S&P 500 (CAD Hedged)) and ZEQ.TO (BMO MSCI Europe High Quality Hedged to CAD Index ETF) are both exchange-traded funds - ZUE.TO is a S&P 500 fund tracking the S&P 500 Index, while ZEQ.TO is a Europe Equities fund tracking the MSCI Europe Quality 100% Hedged to CAD Index. Both are passively managed. Over the past 10 years, ZUE.TO returned 13.26%/yr vs 8.57%/yr for ZEQ.TO. A 0.67 correlation means they provide meaningful diversification when combined. ZUE.TO charges 0.09%/yr vs 0.45%/yr for ZEQ.TO.

Performance

ZUE.TO vs. ZEQ.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO S&P 500 (CAD Hedged) (ZUE.TO) and BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZUE.TO achieves a 8.21% return, which is significantly higher than ZEQ.TO's 5.79% return. Over the past 10 years, ZUE.TO has outperformed ZEQ.TO with an annualized return of 13.26%, while ZEQ.TO has yielded a comparatively lower 8.57% annualized return.

ZUE.TO

• 1D: -0.61%
• 1M: 0.58%
• 6M: 6.78%
• YTD: 8.21%
• 1Y: 17.31%
• 3Y*: 17.25%
• 5Y*: 11.26%
• 10Y*: 13.26%

ZEQ.TO

• 1D: -0.34%
• 1M: 0.72%
• 6M: 1.24%
• YTD: 5.79%
• 1Y: 10.02%
• 3Y*: 6.66%
• 5Y*: 4.73%
• 10Y*: 8.57%

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

ZUE.TO vs. ZEQ.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZUE.TO BMO S&P 500 (CAD Hedged)	8.21%	15.57%	23.40%	24.35%	-19.43%	27.86%	15.42%	29.70%	-6.88%	21.02%
ZEQ.TO BMO MSCI Europe High Quality Hedged to CAD Index ETF	5.79%	7.89%	2.54%	15.35%	-12.26%	25.16%	6.22%	33.27%	-7.03%	15.45%

Correlation

The correlation between ZUE.TO and ZEQ.TO is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Feb 14, 2014	0.67

The correlation between ZUE.TO and ZEQ.TO has been stable across timeframes, ranging from 0.58 to 0.67 - a consistent structural relationship.

ZUE.TO vs. ZEQ.TO - Sectors Allocation Comparison

Sectors	ZUE.TO	ZEQ.TO
Technology	36.0%	12.6%
Financial Services	11.7%	10.0%
Communication Services	11.2%	1.0%
Consumer Cyclical	10.2%	10.1%
Healthcare	8.4%	22.2%
Industrials	8.2%	23.8%
Consumer Defensive	4.9%	14.8%
Energy	3.5%	-
Utilities	2.3%	0.4%
Real Estate	1.9%	0.1%
Basic Materials	1.8%	5.1%

Return for Risk

ZUE.TO vs. ZEQ.TO — Risk / Return Rank

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

ZUE.TO

ZUE.TO Risk / Return Rank: 50
ZUE.TO Sharpe Ratio Rank: 49
ZUE.TO Sortino Ratio Rank: 48
ZUE.TO Omega Ratio Rank: 48
ZUE.TO Calmar Ratio Rank: 45
ZUE.TO Martin Ratio Rank: 59

ZEQ.TO

ZEQ.TO Risk / Return Rank: 26
ZEQ.TO Sharpe Ratio Rank: 26
ZEQ.TO Sortino Ratio Rank: 27
ZEQ.TO Omega Ratio Rank: 25
ZEQ.TO Calmar Ratio Rank: 25
ZEQ.TO Martin Ratio Rank: 29

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.

ZUE.TO vs. ZEQ.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO S&P 500 (CAD Hedged) (ZUE.TO) and BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.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.

	ZUE.TO	ZEQ.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.37	0.76	+0.61
Sortino ratio: Return per unit of downside risk	1.93	1.21	+0.72
Omega ratio: Gain probability vs. loss probability	1.25	1.14	+0.10
Calmar ratio: Return relative to maximum drawdown	1.84	0.92	+0.93
Martin ratio: Return relative to average drawdown	7.97	3.06	+4.91

ZUE.TO vs. ZEQ.TO - Sharpe Ratio Comparison

The current ZUE.TO Sharpe Ratio is 1.37, which is higher than the ZEQ.TO Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of ZUE.TO and ZEQ.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.

Drawdowns

ZUE.TO vs. ZEQ.TO - Drawdown Comparison

The maximum ZUE.TO drawdown since its inception was -35.56%, which is greater than ZEQ.TO's maximum drawdown of -29.14%. Use the drawdown chart below to compare losses from any high point for ZUE.TO and ZEQ.TO.

Drawdown Indicators

	ZUE.TO	ZEQ.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.56%	-29.14%	-6.42%
Max Drawdown (1Y) Largest decline over 1 year	-9.43%	-10.97%	+1.54%
Max Drawdown (3Y) Largest decline over 3 years	-18.72%	-14.47%	-4.25%
Max Drawdown (5Y) Largest decline over 5 years	-25.34%	-20.54%	-4.80%
Max Drawdown (10Y) Largest decline over 10 years	-35.56%	-29.14%	-6.42%
Current Drawdown Current decline from peak	-1.97%	-2.84%	+0.87%
Average Drawdown Average peak-to-trough decline	-4.11%	-4.29%	+0.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.18%	3.28%	-1.10%

Volatility

ZUE.TO vs. ZEQ.TO - Volatility Comparison

BMO S&P 500 (CAD Hedged) (ZUE.TO) has a higher volatility of 3.26% compared to BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO) at 2.49%. This indicates that ZUE.TO's price experiences larger fluctuations and is considered to be riskier than ZEQ.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZUE.TO	ZEQ.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.26%	2.49%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	10.30%	11.07%	-0.77%
Volatility (1Y) Calculated over the trailing 1-year period	12.74%	13.32%	-0.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.96%	14.24%	+2.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.12%	15.37%	+2.75%

ZUE.TO vs. ZEQ.TO - Expense Ratio Comparison

ZUE.TO has a 0.09% expense ratio, which is lower than ZEQ.TO's 0.45% expense ratio.

Dividends

ZUE.TO vs. ZEQ.TO - Dividend Comparison

ZUE.TO's dividend yield for the trailing twelve months is around 0.82%, less than ZEQ.TO's 2.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZEQ.TO BMO MSCI Europe High Quality Hedged to CAD Index ETF	2.93%	3.10%	2.04%	2.50%	2.62%	1.78%	1.94%	2.08%	3.29%	2.07%	2.01%	2.06%
ZUE.TO BMO S&P 500 (CAD Hedged)	0.82%	0.86%	1.02%	1.33%	1.50%	1.13%	1.37%	1.47%	1.76%	1.61%	1.67%	1.72%

Frequently Asked Questions

Can I hold both ZUE.TO and ZEQ.TO in my portfolio?

ZUE.TO and ZEQ.TO have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZUE.TO or ZEQ.TO?

On fees, ZUE.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, ZUE.TO or ZEQ.TO?

ZUE.TO is cheaper with a 0.09% expense ratio, compared with 0.45% for ZEQ.TO.

What is the main difference between ZUE.TO and ZEQ.TO?

ZUE.TO is categorized as S&P 500, while ZEQ.TO is Europe Equities. ZUE.TO tracks S&P 500 Index, while ZEQ.TO tracks MSCI Europe Quality 100% Hedged to CAD Index. Their fees differ too: 0.09% for ZUE.TO and 0.45% for ZEQ.TO.