ZWE.TO vs. VEE.TO

Last updated Jun 4, 2026

ZWE.TO (BMO Europe High Dividend Covered Call Hedged to CAD ETF) and VEE.TO (Vanguard FTSE Emerging Markets All Cap Index ETF) are both exchange-traded funds - ZWE.TO is a Foreign Large Cap Equities fund actively managed by BMO, while VEE.TO is a Emerging Markets Equities fund tracking the FTSE Emerging Markets All Cap China A Inclusion Index. ZWE.TO is actively managed, while VEE.TO is passively managed. Over the past 10 years, ZWE.TO returned 8.22%/yr vs 9.01%/yr for VEE.TO. At a 0.49 correlation, their price movements are largely independent. ZWE.TO charges 0.65%/yr vs 0.25%/yr for VEE.TO.

Performance

ZWE.TO vs. VEE.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE.TO) and Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZWE.TO achieves a 3.89% return, which is significantly lower than VEE.TO's 13.54% return. Over the past 10 years, ZWE.TO has underperformed VEE.TO with an annualized return of 8.22%, while VEE.TO has yielded a comparatively higher 9.01% annualized return.

ZWE.TO

• 1D: -0.28%
• 1M: 1.89%
• YTD: 3.89%
• 6M: 5.73%
• 1Y: 12.64%
• 3Y*: 10.05%
• 5Y*: 9.16%
• 10Y*: 8.22%

VEE.TO

• 1D: -0.90%
• 1M: 4.93%
• YTD: 13.54%
• 6M: 12.96%
• 1Y: 31.71%
• 3Y*: 18.62%
• 5Y*: 7.50%
• 10Y*: 9.01%

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

ZWE.TO vs. VEE.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZWE.TO BMO Europe High Dividend Covered Call Hedged to CAD ETF	3.89%	14.25%	7.16%	14.84%	0.29%	19.26%	-8.67%	22.06%	-10.78%	11.22%
VEE.TO Vanguard FTSE Emerging Markets All Cap Index ETF	13.54%	19.32%	19.06%	6.24%	-12.78%	0.05%	12.32%	14.33%	-7.95%	22.55%

Correlation

The correlation between ZWE.TO and VEE.TO is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Sep 14, 2015	0.49

The correlation between ZWE.TO and VEE.TO shifts across timeframes, from 0.41 (3 years) to 0.52 (1 year), reflecting how their relationship changes across market environments.

ZWE.TO vs. VEE.TO - Sectors Allocation Comparison

Sectors	ZWE.TO	VEE.TO
Financial Services	22.4%	20.5%
Consumer Cyclical	10.9%	11.2%
Healthcare	10.8%	4.1%
Industrials	10.6%	7.9%
Energy	10.3%	4.7%
Consumer Defensive	8.8%	3.9%
Basic Materials	8.5%	8.4%
Technology	6.2%	26.3%
Communication Services	5.8%	7.8%
Utilities	5.7%	3.0%
Real Estate	-	2.3%

Return for Risk

ZWE.TO vs. VEE.TO — Risk / Return Rank

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

ZWE.TO

ZWE.TO Risk / Return Rank: 30
ZWE.TO Sharpe Ratio Rank: 32
ZWE.TO Sortino Ratio Rank: 30
ZWE.TO Omega Ratio Rank: 31
ZWE.TO Calmar Ratio Rank: 28
ZWE.TO Martin Ratio Rank: 32

VEE.TO

VEE.TO Risk / Return Rank: 60
VEE.TO Sharpe Ratio Rank: 60
VEE.TO Sortino Ratio Rank: 60
VEE.TO Omega Ratio Rank: 63
VEE.TO Calmar Ratio Rank: 59
VEE.TO Martin Ratio Rank: 59

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.

ZWE.TO vs. VEE.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE.TO) and Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.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.

	ZWE.TO	VEE.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.15	2.08	-0.93
Sortino ratio: Return per unit of downside risk	1.61	2.90	-1.30
Omega ratio: Gain probability vs. loss probability	1.21	1.39	-0.18
Calmar ratio: Return relative to maximum drawdown	1.33	2.97	-1.64
Martin ratio: Return relative to average drawdown	4.81	10.74	-5.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZWE.TO vs. VEE.TO - Sharpe Ratio Comparison

The current ZWE.TO Sharpe Ratio is 1.15, which is lower than the VEE.TO Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of ZWE.TO and VEE.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

	ZWE.TO	VEE.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.15	2.08	-0.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.49	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.53	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.44	+0.05

Drawdowns

ZWE.TO vs. VEE.TO - Drawdown Comparison

The maximum ZWE.TO drawdown since its inception was -35.38%, which is greater than VEE.TO's maximum drawdown of -29.84%. Use the drawdown chart below to compare losses from any high point for ZWE.TO and VEE.TO.

Drawdown Indicators

	ZWE.TO	VEE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.38%	-29.84%	-5.54%
Max Drawdown (1Y) Largest decline over 1 year	-9.56%	-10.74%	+1.18%
Max Drawdown (3Y) Largest decline over 3 years	-13.60%	-14.97%	+1.37%
Max Drawdown (5Y) Largest decline over 5 years	-13.60%	-26.10%	+12.50%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-29.84%	-5.54%
Current Drawdown Current decline from peak	-1.97%	-0.90%	-1.07%
Average Drawdown Average peak-to-trough decline	-4.14%	-8.73%	+4.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.96%	-0.33%

Volatility

ZWE.TO vs. VEE.TO - Volatility Comparison

The current volatility for BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE.TO) is 2.98%, while Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO) has a volatility of 6.04%. This indicates that ZWE.TO experiences smaller price fluctuations and is considered to be less risky than VEE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZWE.TO	VEE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.98%	6.04%	-3.06%
Volatility (6M) Calculated over the trailing 6-month period	8.72%	12.86%	-4.14%
Volatility (1Y) Calculated over the trailing 1-year period	11.00%	15.31%	-4.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.55%	15.29%	-2.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.40%	16.97%	-1.57%

ZWE.TO vs. VEE.TO - Expense Ratio Comparison

ZWE.TO has a 0.65% expense ratio, which is higher than VEE.TO's 0.25% expense ratio.

Dividends

ZWE.TO vs. VEE.TO - Dividend Comparison

ZWE.TO's dividend yield for the trailing twelve months is around 6.74%, more than VEE.TO's 1.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEE.TO Vanguard FTSE Emerging Markets All Cap Index ETF	1.91%	2.26%	2.45%	2.83%	3.35%	2.18%	1.61%	2.71%	2.21%	1.89%	1.99%	2.53%
ZWE.TO BMO Europe High Dividend Covered Call Hedged to CAD ETF	6.74%	6.81%	7.25%	7.25%	6.98%	6.30%	7.74%	6.53%	7.59%	6.49%	6.76%	2.32%

Frequently Asked Questions

Can I hold both ZWE.TO and VEE.TO in my portfolio?

ZWE.TO and VEE.TO have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZWE.TO or VEE.TO?

On fees, VEE.TO is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZWE.TO or VEE.TO?

VEE.TO is cheaper with a 0.25% expense ratio, compared with 0.65% for ZWE.TO.

What is the main difference between ZWE.TO and VEE.TO?

ZWE.TO is categorized as Foreign Large Cap Equities, while VEE.TO is Emerging Markets Equities. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.65% for ZWE.TO and 0.25% for VEE.TO.