AGG vs. XEM.TO
AGG (iShares Core U.S. Aggregate Bond ETF) and XEM.TO (iShares MSCI Emerging Markets Index ETF) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD. Both are passively managed. Over the past 10 years, AGG returned 1.52%/yr vs 8.89%/yr for XEM.TO. At a correlation of -0.06, they often move in opposite directions. AGG charges 0.03%/yr vs 0.81%/yr for XEM.TO.
Performance
AGG vs. XEM.TO - Performance Comparison
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Different Trading Currencies
AGG is traded in USD, while XEM.TO is traded in CAD. To make them comparable, the XEM.TO values have been converted to USD using the latest available exchange rates.
Returns By Period
In the year-to-date period, AGG achieves a -0.08% return, which is significantly lower than XEM.TO's 19.92% return. Over the past 10 years, AGG has underperformed XEM.TO with an annualized return of 1.52%, while XEM.TO has yielded a comparatively higher 8.89% annualized return.
AGG
- 1D
- 0.00%
- 1M
- -0.69%
- YTD
- -0.08%
- 6M
- 0.26%
- 1Y
- 4.97%
- 3Y*
- 3.88%
- 5Y*
- -0.03%
- 10Y*
- 1.52%
XEM.TO
- 1D
- 1.59%
- 1M
- -3.18%
- YTD
- 19.92%
- 6M
- 21.66%
- 1Y
- 42.54%
- 3Y*
- 20.35%
- 5Y*
- 5.53%
- 10Y*
- 8.89%
AGG vs. XEM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | -0.08% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 19.92% | 33.34% | 6.00% | 9.08% | -20.76% | -4.04% | 16.90% | 16.26% | -15.19% | 37.07% |
Correlation
The correlation between AGG and XEM.TO is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.16 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Jun 24, 2009 | -0.06 |
The correlation between AGG and XEM.TO shifts across timeframes, from -0.06 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
AGG vs. XEM.TO — Risk / Return Rank
AGG
XEM.TO
AGG vs. XEM.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and iShares MSCI Emerging Markets Index ETF (XEM.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.
| AGG | XEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.72 | ||
| Sortino ratioReturn per unit of downside risk | -0.71 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.38 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.81 | 3.16 | -1.35 |
| Martin ratioReturn relative to average drawdown | 5.44 | 12.05 | -6.62 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AGG | XEM.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.32 | 2.04 | -0.72 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.00 | 0.31 | -0.31 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.47 | -0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.31 | +0.28 |
Drawdowns
AGG vs. XEM.TO - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum XEM.TO drawdown of -40.11%. Use the drawdown chart below to compare losses from any high point for AGG and XEM.TO.
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Drawdown Indicators
| AGG | XEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -40.11% | +21.68% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -13.53% | +10.77% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -17.54% | +11.43% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -37.84% | +20.02% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -40.11% | +21.68% |
Current DrawdownCurrent decline from peak | -2.47% | -7.03% | +4.56% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -15.33% | +12.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 3.54% | -2.62% |
Volatility
AGG vs. XEM.TO - Volatility Comparison
The current volatility for iShares Core U.S. Aggregate Bond ETF (AGG) is 1.29%, while iShares MSCI Emerging Markets Index ETF (XEM.TO) has a volatility of 10.22%. This indicates that AGG experiences smaller price fluctuations and is considered to be less risky than XEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGG | XEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.29% | 10.22% | -8.93% |
Volatility (6M)Calculated over the trailing 6-month period | 2.77% | 18.40% | -15.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.80% | 21.04% | -17.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 17.97% | -11.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 19.16% | -13.75% |
AGG vs. XEM.TO - Expense Ratio Comparison
AGG has a 0.03% expense ratio, which is lower than XEM.TO's 0.81% expense ratio.
Dividends
AGG vs. XEM.TO - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 4.00%, more than XEM.TO's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 4.00% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 1.56% | 1.90% | 2.08% | 2.39% | 2.10% | 1.91% | 1.28% | 2.56% | 1.95% | 1.78% | 1.97% | 2.24% |
Frequently Asked Questions
AGG and XEM.TO have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, AGG is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.
AGG is cheaper with a 0.03% expense ratio, compared with 0.81% for XEM.TO.
AGG is categorized as Total Bond Market, while XEM.TO is Emerging Markets Equities. AGG tracks Bloomberg U.S. Aggregate Bond Index, while XEM.TO tracks Morningstar EM GR CAD. Their fees differ too: 0.03% for AGG and 0.81% for XEM.TO.
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