ZWH.TO vs. VDY.TO

Last updated Jun 4, 2026

ZWH.TO (BMO US High Dividend Covered Call ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - ZWH.TO is a Derivative Income fund actively managed by BMO, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. ZWH.TO is actively managed, while VDY.TO is passively managed. Over the past 10 years, ZWH.TO returned 9.87%/yr vs 14.02%/yr for VDY.TO. A 0.51 correlation means they provide meaningful diversification when combined. ZWH.TO charges 0.65%/yr vs 0.22%/yr for VDY.TO.

Performance

ZWH.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO US High Dividend Covered Call ETF (ZWH.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZWH.TO achieves a 13.86% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, ZWH.TO has underperformed VDY.TO with an annualized return of 9.87%, while VDY.TO has yielded a comparatively higher 14.02% annualized return.

ZWH.TO

• 1D: 0.66%
• 1M: 7.97%
• YTD: 13.86%
• 6M: 11.86%
• 1Y: 27.24%
• 3Y*: 14.93%
• 5Y*: 11.42%
• 10Y*: 9.87%

VDY.TO

• 1D: -0.07%
• 1M: 4.52%
• YTD: 20.59%
• 6M: 22.32%
• 1Y: 46.18%
• 3Y*: 26.00%
• 5Y*: 17.21%
• 10Y*: 14.02%

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

ZWH.TO vs. VDY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZWH.TO BMO US High Dividend Covered Call ETF	13.86%	6.40%	19.30%	5.04%	-0.57%	24.20%	0.19%	17.18%	0.10%	5.95%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	20.59%	29.20%	20.71%	8.40%	-0.23%	36.78%	-1.37%	21.43%	-10.09%	8.75%

Correlation

The correlation between ZWH.TO and VDY.TO is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.51

The correlation between ZWH.TO and VDY.TO has been stable across timeframes, ranging from 0.51 to 0.56 - a consistent structural relationship.

ZWH.TO vs. VDY.TO - Sectors Allocation Comparison

Sectors	ZWH.TO	VDY.TO
Technology	28.4%	0.4%
Healthcare	12.6%	0.1%
Financial Services	12.0%	56.0%
Consumer Defensive	9.4%	0.4%
Energy	9.0%	30.8%
Utilities	6.5%	4.1%
Communication Services	6.3%	2.8%
Consumer Cyclical	5.2%	3.0%
Industrials	4.7%	0.2%
Real Estate	4.2%	-
Basic Materials	1.7%	2.2%

Return for Risk

ZWH.TO vs. VDY.TO — Risk / Return Rank

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

ZWH.TO

ZWH.TO Risk / Return Rank: 85
ZWH.TO Sharpe Ratio Rank: 84
ZWH.TO Sortino Ratio Rank: 88
ZWH.TO Omega Ratio Rank: 83
ZWH.TO Calmar Ratio Rank: 86
ZWH.TO Martin Ratio Rank: 87

VDY.TO

VDY.TO Risk / Return Rank: 98
VDY.TO Sharpe Ratio Rank: 98
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 98
VDY.TO Martin Ratio Rank: 98

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.

ZWH.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO US High Dividend Covered Call ETF (ZWH.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.

	ZWH.TO	VDY.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.77	5.65	-2.89
Sortino ratio: Return per unit of downside risk	4.08	8.14	-4.07
Omega ratio: Gain probability vs. loss probability	1.51	2.14	-0.63
Calmar ratio: Return relative to maximum drawdown	4.81	14.88	-10.07
Martin ratio: Return relative to average drawdown	18.98	60.75	-41.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZWH.TO vs. VDY.TO - Sharpe Ratio Comparison

The current ZWH.TO Sharpe Ratio is 2.77, which is lower than the VDY.TO Sharpe Ratio of 5.65. The chart below compares the historical Sharpe Ratios of ZWH.TO and VDY.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

	ZWH.TO	VDY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.77	5.65	-2.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.99	1.50	-0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.67	0.88	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.80	0.84	-0.05

Drawdowns

ZWH.TO vs. VDY.TO - Drawdown Comparison

The maximum ZWH.TO drawdown since its inception was -34.01%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for ZWH.TO and VDY.TO.

Drawdown Indicators

	ZWH.TO	VDY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-34.01%	-39.21%	+5.20%
Max Drawdown (1Y) Largest decline over 1 year	-5.69%	-3.12%	-2.57%
Max Drawdown (3Y) Largest decline over 3 years	-15.59%	-10.87%	-4.72%
Max Drawdown (5Y) Largest decline over 5 years	-15.59%	-16.18%	+0.59%
Max Drawdown (10Y) Largest decline over 10 years	-34.01%	-39.21%	+5.20%
Current Drawdown Current decline from peak	0.00%	-0.77%	+0.77%
Average Drawdown Average peak-to-trough decline	-3.11%	-4.61%	+1.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.44%	0.76%	+0.68%

Volatility

ZWH.TO vs. VDY.TO - Volatility Comparison

BMO US High Dividend Covered Call ETF (ZWH.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) have volatilities of 3.46% and 3.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZWH.TO	VDY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.46%	3.31%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	7.66%	6.87%	+0.79%
Volatility (1Y) Calculated over the trailing 1-year period	9.91%	8.21%	+1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.65%	11.56%	+0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.84%	15.96%	-1.12%

ZWH.TO vs. VDY.TO - Expense Ratio Comparison

ZWH.TO has a 0.65% expense ratio, which is higher than VDY.TO's 0.22% expense ratio.

Dividends

ZWH.TO vs. VDY.TO - Dividend Comparison

ZWH.TO's dividend yield for the trailing twelve months is around 5.76%, more than VDY.TO's 2.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.90%	3.59%	4.40%	4.64%	4.42%	3.58%	4.59%	4.25%	4.43%	3.82%	3.25%	4.11%
ZWH.TO BMO US High Dividend Covered Call ETF	5.76%	6.22%	4.87%	5.71%	6.03%	5.64%	6.59%	5.97%	5.66%	5.46%	5.57%	5.31%

Frequently Asked Questions

Can I hold both ZWH.TO and VDY.TO in my portfolio?

ZWH.TO and VDY.TO have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZWH.TO or VDY.TO?

On fees, VDY.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, ZWH.TO or VDY.TO?

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.65% for ZWH.TO.

What is the main difference between ZWH.TO and VDY.TO?

ZWH.TO is categorized as Derivative Income, while VDY.TO is Dividend. They also come from different issuers: BMO and Vanguard. Their fees differ too: 0.65% for ZWH.TO and 0.22% for VDY.TO.