ZWB.TO vs. VDY.TO
Compare and contrast key facts about BMO Covered Call Canadian Banks ETF (ZWB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO).
ZWB.TO and VDY.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZWB.TO is an actively managed fund by BMO. It was launched on Jan 9, 2024. VDY.TO is a passively managed fund by Vanguard that tracks the performance of the FTSE Canada High Dividend Yield Index. It was launched on Nov 2, 2012.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ZWB.TO or VDY.TO.
Key characteristics
| ZWB.TO | VDY.TO | |
|---|---|---|
| YTD Return | 17.57% | 21.60% |
| 1Y Return | 31.39% | 32.53% |
| 3Y Return (Ann) | 4.13% | 10.11% |
| 5Y Return (Ann) | 7.82% | 12.17% |
| 10Y Return (Ann) | 7.49% | 8.99% |
| Sharpe Ratio | 3.40 | 3.43 |
| Sortino Ratio | 4.76 | 4.77 |
| Omega Ratio | 1.67 | 1.63 |
| Calmar Ratio | 1.48 | 2.88 |
| Martin Ratio | 17.43 | 18.53 |
| Ulcer Index | 1.80% | 1.72% |
| Daily Std Dev | 9.24% | 9.30% |
| Max Drawdown | -39.36% | -39.21% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between ZWB.TO and VDY.TO is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ZWB.TO vs. VDY.TO - Performance Comparison
In the year-to-date period, ZWB.TO achieves a 17.57% return, which is significantly lower than VDY.TO's 21.60% return. Over the past 10 years, ZWB.TO has underperformed VDY.TO with an annualized return of 7.49%, while VDY.TO has yielded a comparatively higher 8.99% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ZWB.TO vs. VDY.TO - Expense Ratio Comparison
ZWB.TO has a 0.71% expense ratio, which is higher than VDY.TO's 0.22% expense ratio.
Risk-Adjusted Performance
ZWB.TO vs. VDY.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Covered Call Canadian Banks ETF (ZWB.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.
Dividends
ZWB.TO vs. VDY.TO - Dividend Comparison
ZWB.TO's dividend yield for the trailing twelve months is around 6.69%, more than VDY.TO's 4.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZWB.TO BMO Covered Call Canadian Banks ETF | 6.69% | 7.62% | 7.30% | 5.46% | 5.80% | 5.53% | 5.59% | 4.80% | 5.04% | 5.64% | 4.77% | 5.23% |
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF | 4.30% | 4.64% | 4.42% | 3.58% | 4.59% | 4.25% | 4.43% | 3.82% | 3.25% | 4.11% | 3.25% | 2.50% |
Drawdowns
ZWB.TO vs. VDY.TO - Drawdown Comparison
The maximum ZWB.TO drawdown since its inception was -39.36%, roughly equal to the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for ZWB.TO and VDY.TO. For additional features, visit the drawdowns tool.
Volatility
ZWB.TO vs. VDY.TO - Volatility Comparison
The current volatility for BMO Covered Call Canadian Banks ETF (ZWB.TO) is 2.45%, while Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a volatility of 2.59%. This indicates that ZWB.TO experiences smaller price fluctuations and is considered to be less risky than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.