Compare ETF to Main Indexes

Using morningstar.ca‘s chart, I added the following to the chart to get a better idea on how ZEB.to compares to the main indexes.  Under:

  • Enter Tickers: XSB
  • Enter Benchmarks: S&P TSX Composite
  • Enter Benchmarks: TX60
  • Enter Benchmarks: S&P 500

You will notice that the symbol ZEB.TO, when compared to the main indexes in Canada, did quite well price wise over a 5 year period.  If you compare ZEB.TO to the S&P top 500 companies in the USA, ZEB.TO did not do so well.  When you look at XSB.TO, iShares short-term bond index, it flatlined.  Therefore, minimum risk = minimum reward.

I cannot verify if the dividends or interest is factored into the indexes calculations.  Therefore, if you factor in how much dividends or interest is paid out quarterly or yearly, the return over the years can be quite different if the dividends or interest is not included into the calculations.

When it comes to comparing the return of an ETF to other ETFs or the various indexes, Morningstar.ca provides the chart tab that allows you to compare the ETF to other securities that you want to compare.  This gives you, an educated investor, a better idea on how this security performed historically compared to others.

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