VBG.NEO vs. ZEM.TO
VBG.NEO (Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged)) and ZEM.TO (BMO MSCI Emerging Markets Index ETF) are both exchange-traded funds - VBG.NEO is a Global Bonds fund tracking the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (CAD Hedged), while ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 10 years, VBG.NEO returned 0.33%/yr vs 10.94%/yr for ZEM.TO. At a 0.03 correlation, their price movements are largely independent. VBG.NEO charges 0.39%/yr vs 0.27%/yr for ZEM.TO.
Performance
VBG.NEO vs. ZEM.TO - Performance Comparison
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Returns By Period
In the year-to-date period, VBG.NEO achieves a -0.27% return, which is significantly lower than ZEM.TO's 27.40% return. Over the past 10 years, VBG.NEO has underperformed ZEM.TO with an annualized return of 0.33%, while ZEM.TO has yielded a comparatively higher 10.94% annualized return.
VBG.NEO
- 1D
- 0.09%
- 1M
- 0.02%
- YTD
- -0.27%
- 6M
- -0.75%
- 1Y
- -0.38%
- 3Y*
- 1.83%
- 5Y*
- -1.35%
- 10Y*
- 0.33%
ZEM.TO
- 1D
- -1.38%
- 1M
- 3.89%
- YTD
- 27.40%
- 6M
- 28.28%
- 1Y
- 54.18%
- 3Y*
- 24.68%
- 5Y*
- 9.70%
- 10Y*
- 10.94%
VBG.NEO vs. ZEM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBG.NEO Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | -0.27% | 0.14% | 1.68% | 6.85% | -13.38% | -3.03% | 3.87% | 6.33% | 1.34% | 1.78% |
ZEM.TO BMO MSCI Emerging Markets Index ETF | 27.40% | 27.66% | 15.21% | 7.38% | -15.80% | -2.64% | 16.41% | 13.20% | -8.06% | 30.19% |
Correlation
The correlation between VBG.NEO and ZEM.TO is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Jul 2, 2014 | 0.03 |
Over the past year, VBG.NEO and ZEM.TO have become more correlated (0.24) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
VBG.NEO vs. ZEM.TO — Risk / Return Rank
VBG.NEO
ZEM.TO
VBG.NEO vs. ZEM.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (VBG.NEO) and BMO MSCI Emerging Markets Index ETF (ZEM.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.
| VBG.NEO | ZEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.80 | ||
| Sortino ratioReturn per unit of downside risk | -3.74 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.51 | -0.54 |
| Calmar ratioReturn relative to maximum drawdown | -0.23 | 4.72 | -4.95 |
| Martin ratioReturn relative to average drawdown | -0.55 | 17.15 | -17.70 |
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
| VBG.NEO | ZEM.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.19 | 2.61 | -2.80 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.26 | 0.57 | -0.83 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.07 | 0.59 | -0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.23 | 0.41 | -0.18 |
Drawdowns
VBG.NEO vs. ZEM.TO - Drawdown Comparison
The maximum VBG.NEO drawdown since its inception was -17.31%, smaller than the maximum ZEM.TO drawdown of -34.79%. Use the drawdown chart below to compare losses from any high point for VBG.NEO and ZEM.TO.
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Drawdown Indicators
| VBG.NEO | ZEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.31% | -34.79% | +17.48% |
Max Drawdown (1Y)Largest decline over 1 year | -3.17% | -11.64% | +8.47% |
Max Drawdown (3Y)Largest decline over 3 years | -3.17% | -13.59% | +10.42% |
Max Drawdown (5Y)Largest decline over 5 years | -16.66% | -30.69% | +14.03% |
Max Drawdown (10Y)Largest decline over 10 years | -17.31% | -34.79% | +17.48% |
Current DrawdownCurrent decline from peak | -9.05% | -1.95% | -7.10% |
Average DrawdownAverage peak-to-trough decline | -4.86% | -10.00% | +5.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.31% | 3.20% | -1.89% |
Volatility
VBG.NEO vs. ZEM.TO - Volatility Comparison
The current volatility for Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (VBG.NEO) is 1.84%, while BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a volatility of 8.87%. This indicates that VBG.NEO experiences smaller price fluctuations and is considered to be less risky than ZEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBG.NEO | ZEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.84% | 8.87% | -7.03% |
Volatility (6M)Calculated over the trailing 6-month period | 3.13% | 19.05% | -15.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.77% | 21.12% | -17.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.20% | 17.22% | -12.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.62% | 18.56% | -13.94% |
VBG.NEO vs. ZEM.TO - Expense Ratio Comparison
VBG.NEO has a 0.39% expense ratio, which is higher than ZEM.TO's 0.27% expense ratio.
Dividends
VBG.NEO vs. ZEM.TO - Dividend Comparison
VBG.NEO's dividend yield for the trailing twelve months is around 3.61%, more than ZEM.TO's 1.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBG.NEO Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | 3.61% | 3.46% | 3.25% | 3.44% | 1.14% | 2.91% | 0.64% | 2.54% | 2.34% | 1.74% | 1.41% | 1.26% |
ZEM.TO BMO MSCI Emerging Markets Index ETF | 1.75% | 2.23% | 2.56% | 2.87% | 2.89% | 2.50% | 1.69% | 2.42% | 2.20% | 1.76% | 4.19% | 2.45% |
Frequently Asked Questions
VBG.NEO and ZEM.TO have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZEM.TO is cheaper at 0.27% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.39% for VBG.NEO.
VBG.NEO is categorized as Global Bonds, while ZEM.TO is Emerging Markets Equities. VBG.NEO tracks Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (CAD Hedged), while ZEM.TO tracks MSCI Emerging Markets Index. They also come from different issuers: Vanguard and BMO. Their fees differ too: 0.39% for VBG.NEO and 0.27% for ZEM.TO.
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