ZWE.TO vs. ZDI.TO

Last updated Jun 4, 2026

ZWE.TO (BMO Europe High Dividend Covered Call Hedged to CAD ETF) and ZDI.TO (BMO International Dividend ETF) are both exchange-traded funds - ZWE.TO is a Foreign Large Cap Equities fund actively managed by BMO, while ZDI.TO is a International Equity fund actively managed by BMO. Both are actively managed. Over the past 10 years, ZWE.TO returned 8.22%/yr vs 9.28%/yr for ZDI.TO. A 0.62 correlation means they provide meaningful diversification when combined. ZWE.TO charges 0.65%/yr vs 0.44%/yr for ZDI.TO.

Performance

ZWE.TO vs. ZDI.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 BMO International Dividend ETF (ZDI.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 ZDI.TO's 10.68% return. Over the past 10 years, ZWE.TO has underperformed ZDI.TO with an annualized return of 8.22%, while ZDI.TO has yielded a comparatively higher 9.28% 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%

ZDI.TO

• 1D: -0.03%
• 1M: 4.16%
• YTD: 10.68%
• 6M: 9.50%
• 1Y: 21.55%
• 3Y*: 17.08%
• 5Y*: 12.72%
• 10Y*: 9.28%

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

ZWE.TO vs. ZDI.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%
ZDI.TO BMO International Dividend ETF	10.68%	22.48%	10.57%	17.05%	0.31%	12.87%	-6.21%	12.96%	-6.84%	15.07%

Correlation

The correlation between ZWE.TO and ZDI.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	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 14, 2015	0.62

The correlation between ZWE.TO and ZDI.TO has been stable across timeframes, ranging from 0.60 to 0.66 - a consistent structural relationship.

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

Sectors	ZWE.TO	ZDI.TO
Financial Services	22.4%	25.0%
Consumer Cyclical	10.9%	6.3%
Healthcare	10.8%	8.4%
Industrials	10.6%	19.3%
Energy	10.3%	7.1%
Consumer Defensive	8.8%	7.7%
Basic Materials	8.5%	4.9%
Technology	6.2%	4.9%
Communication Services	5.8%	7.0%
Utilities	5.7%	6.5%
Real Estate	-	2.9%

Return for Risk

ZWE.TO vs. ZDI.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

ZDI.TO

ZDI.TO Risk / Return Rank: 46
ZDI.TO Sharpe Ratio Rank: 45
ZDI.TO Sortino Ratio Rank: 45
ZDI.TO Omega Ratio Rank: 47
ZDI.TO Calmar Ratio Rank: 43
ZDI.TO Martin Ratio Rank: 49

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. ZDI.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 BMO International Dividend ETF (ZDI.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	ZDI.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.15	1.61	-0.46
Sortino ratio: Return per unit of downside risk	1.61	2.27	-0.66
Omega ratio: Gain probability vs. loss probability	1.21	1.30	-0.09
Calmar ratio: Return relative to maximum drawdown	1.33	2.12	-0.79
Martin ratio: Return relative to average drawdown	4.81	8.20	-3.38
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. ZDI.TO - Sharpe Ratio Comparison

The current ZWE.TO Sharpe Ratio is 1.15, which is comparable to the ZDI.TO Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of ZWE.TO and ZDI.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	ZDI.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.15	1.61	-0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.98	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.59	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.53	-0.04

Drawdowns

ZWE.TO vs. ZDI.TO - Drawdown Comparison

The maximum ZWE.TO drawdown since its inception was -35.38%, roughly equal to the maximum ZDI.TO drawdown of -33.89%. Use the drawdown chart below to compare losses from any high point for ZWE.TO and ZDI.TO.

Drawdown Indicators

	ZWE.TO	ZDI.TO	Difference
Max Drawdown Largest peak-to-trough decline	-35.38%	-33.89%	-1.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.56%	-10.23%	+0.67%
Max Drawdown (3Y) Largest decline over 3 years	-13.60%	-14.11%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-13.60%	-18.97%	+5.37%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-33.89%	-1.49%
Current Drawdown Current decline from peak	-1.97%	-2.23%	+0.26%
Average Drawdown Average peak-to-trough decline	-4.14%	-4.85%	+0.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.64%	-0.01%

Volatility

ZWE.TO vs. ZDI.TO - Volatility Comparison

The current volatility for BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE.TO) is 2.98%, while BMO International Dividend ETF (ZDI.TO) has a volatility of 4.92%. This indicates that ZWE.TO experiences smaller price fluctuations and is considered to be less risky than ZDI.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZWE.TO	ZDI.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.98%	4.92%	-1.94%
Volatility (6M) Calculated over the trailing 6-month period	8.72%	10.96%	-2.24%
Volatility (1Y) Calculated over the trailing 1-year period	11.00%	13.46%	-2.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.55%	13.11%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.40%	15.80%	-0.40%

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

ZWE.TO has a 0.65% expense ratio, which is higher than ZDI.TO's 0.44% expense ratio.

Dividends

ZWE.TO vs. ZDI.TO - Dividend Comparison

ZWE.TO's dividend yield for the trailing twelve months is around 6.74%, more than ZDI.TO's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZDI.TO BMO International Dividend ETF	3.05%	3.34%	3.94%	4.15%	3.99%	3.72%	4.96%	4.92%	5.23%	4.23%	4.62%	4.26%
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 ZDI.TO in my portfolio?

ZWE.TO and ZDI.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, ZWE.TO or ZDI.TO?

On fees, ZDI.TO is cheaper at 0.44% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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

ZDI.TO is cheaper with a 0.44% expense ratio, compared with 0.65% for ZWE.TO.

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

ZWE.TO is categorized as Foreign Large Cap Equities, while ZDI.TO is International Equity. Their fees differ too: 0.65% for ZWE.TO and 0.44% for ZDI.TO.