HEQT.TO vs. XEF.TO

Last updated Jun 13, 2026

HEQT.TO (Horizons All-Equity Asset Allocation ETF) and XEF.TO (iShares Core MSCI EAFE IMI Index ETF) are both exchange-traded funds - HEQT.TO is a Global Equities fund actively managed by Horizons, while XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD). HEQT.TO is actively managed, while XEF.TO is passively managed. Over the past 5 years, HEQT.TO returned 12.70%/yr vs 10.94%/yr for XEF.TO. A 0.74 correlation means they provide meaningful diversification when combined. HEQT.TO charges 0.20%/yr vs 0.23%/yr for XEF.TO.

Performance

HEQT.TO vs. XEF.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Horizons All-Equity Asset Allocation ETF (HEQT.TO) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEQT.TO achieves a 13.37% return, which is significantly higher than XEF.TO's 11.50% return.

HEQT.TO

• 1D: 0.59%
• 1M: 2.47%
• YTD: 13.37%
• 6M: 13.85%
• 1Y: 32.15%
• 3Y*: 21.39%
• 5Y*: 12.70%
• 10Y*: —

XEF.TO

• 1D: 0.56%
• 1M: 3.07%
• YTD: 11.50%
• 6M: 12.67%
• 1Y: 25.69%
• 3Y*: 18.06%
• 5Y*: 10.94%
• 10Y*: 10.64%

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

HEQT.TO vs. XEF.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
HEQT.TO Horizons All-Equity Asset Allocation ETF	13.37%	19.82%	23.83%	22.29%	-18.95%	22.54%	16.34%	7.44%
XEF.TO iShares Core MSCI EAFE IMI Index ETF	11.50%	25.69%	12.04%	15.21%	-9.53%	10.35%	6.13%	5.33%

Correlation

The correlation between HEQT.TO and XEF.TO is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Sep 18, 2019	0.74

The correlation between HEQT.TO and XEF.TO shifts across timeframes, from 0.74 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

HEQT.TO vs. XEF.TO — Risk / Return Rank

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

HEQT.TO

HEQT.TO Risk / Return Rank: 84
HEQT.TO Sharpe Ratio Rank: 86
HEQT.TO Sortino Ratio Rank: 85
HEQT.TO Omega Ratio Rank: 86
HEQT.TO Calmar Ratio Rank: 79
HEQT.TO Martin Ratio Rank: 86

XEF.TO

XEF.TO Risk / Return Rank: 55
XEF.TO Sharpe Ratio Rank: 56
XEF.TO Sortino Ratio Rank: 58
XEF.TO Omega Ratio Rank: 57
XEF.TO Calmar Ratio Rank: 48
XEF.TO Martin Ratio Rank: 55

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.

HEQT.TO vs. XEF.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Horizons All-Equity Asset Allocation ETF (HEQT.TO) and iShares Core MSCI EAFE IMI Index ETF (XEF.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HEQT.TO	XEF.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.43	1.67	+0.76
Sortino ratio: Return per unit of downside risk	3.34	2.41	+0.93
Omega ratio: Gain probability vs. loss probability	1.45	1.31	+0.14
Calmar ratio: Return relative to maximum drawdown	3.60	2.14	+1.46
Martin ratio: Return relative to average drawdown	15.68	8.51	+7.17

HEQT.TO vs. XEF.TO - Sharpe Ratio Comparison

The current HEQT.TO Sharpe Ratio is 2.43, which is higher than the XEF.TO Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of HEQT.TO and XEF.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.

Drawdowns

HEQT.TO vs. XEF.TO - Drawdown Comparison

The maximum HEQT.TO drawdown since its inception was -31.82%, which is greater than XEF.TO's maximum drawdown of -28.51%. Use the drawdown chart below to compare losses from any high point for HEQT.TO and XEF.TO.

Drawdown Indicators

	HEQT.TO	XEF.TO	Difference
Max Drawdown Largest peak-to-trough decline	-31.82%	-28.51%	-3.31%
Max Drawdown (1Y) Largest decline over 1 year	-8.49%	-11.27%	+2.78%
Max Drawdown (3Y) Largest decline over 3 years	-15.33%	-14.31%	-1.02%
Max Drawdown (5Y) Largest decline over 5 years	-24.89%	-24.58%	-0.31%
Max Drawdown (10Y) Largest decline over 10 years	—	-28.51%	—
Current Drawdown Current decline from peak	-0.75%	0.00%	-0.75%
Average Drawdown Average peak-to-trough decline	-5.17%	-4.61%	-0.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	2.83%	-0.88%

Volatility

HEQT.TO vs. XEF.TO - Volatility Comparison

The current volatility for Horizons All-Equity Asset Allocation ETF (HEQT.TO) is 4.92%, while iShares Core MSCI EAFE IMI Index ETF (XEF.TO) has a volatility of 5.29%. This indicates that HEQT.TO experiences smaller price fluctuations and is considered to be less risky than XEF.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEQT.TO	XEF.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.92%	5.29%	-0.37%
Volatility (6M) Calculated over the trailing 6-month period	10.45%	12.23%	-1.78%
Volatility (1Y) Calculated over the trailing 1-year period	12.59%	14.43%	-1.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.98%	13.69%	+1.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.90%	14.87%	+2.03%

HEQT.TO vs. XEF.TO - Expense Ratio Comparison

HEQT.TO has a 0.20% expense ratio, which is lower than XEF.TO's 0.23% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HEQT.TO vs. XEF.TO - Dividend Comparison

HEQT.TO's dividend yield for the trailing twelve months is around 1.62%, less than XEF.TO's 2.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEQT.TO Horizons All-Equity Asset Allocation ETF	1.62%	1.70%	1.67%	0.84%	0.03%	0.02%	1.40%	0.22%	0.00%	0.00%	0.00%	0.00%
XEF.TO iShares Core MSCI EAFE IMI Index ETF	2.18%	2.43%	2.76%	2.75%	2.93%	2.42%	1.93%	2.71%	2.75%	2.11%	2.45%	2.42%

Frequently Asked Questions

Can I hold both HEQT.TO and XEF.TO in my portfolio?

HEQT.TO and XEF.TO have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HEQT.TO or XEF.TO?

On fees, HEQT.TO is cheaper at 0.20% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HEQT.TO or XEF.TO?

HEQT.TO is cheaper with a 0.20% expense ratio, compared with 0.23% for XEF.TO.

What is the main difference between HEQT.TO and XEF.TO?

HEQT.TO is categorized as Global Equities, while XEF.TO is Foreign Large Cap Equities. They also come from different issuers: Horizons and iShares. Their fees differ too: 0.20% for HEQT.TO and 0.23% for XEF.TO.