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VEE.TO vs. XEM.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VEE.TO vs. XEM.TO

Last updated Jun 4, 2026

VEE.TO (Vanguard FTSE Emerging Markets All Cap Index ETF) and XEM.TO (iShares MSCI Emerging Markets Index ETF) are both Emerging Markets Equities funds - VEE.TO tracks the FTSE Emerging Markets All Cap China A Inclusion Index while XEM.TO tracks the Morningstar EM GR CAD. Both are passively managed. Over the past 10 years, VEE.TO returned 9.01%/yr vs 10.27%/yr for XEM.TO. Their correlation of 0.95 suggests significant overlap in exposure. VEE.TO charges 0.25%/yr vs 0.81%/yr for XEM.TO.

Performance

VEE.TO vs. XEM.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO) and iShares MSCI Emerging Markets Index ETF (XEM.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VEE.TO achieves a 13.54% return, which is significantly lower than XEM.TO's 29.23% return. Over the past 10 years, VEE.TO has underperformed XEM.TO with an annualized return of 9.01%, while XEM.TO has yielded a comparatively higher 10.27% annualized return.

VEE.TO

1D
-0.90%
1M
4.93%
YTD
13.54%
6M
12.96%
1Y
31.71%
3Y*
18.62%
5Y*
7.50%
10Y*
9.01%

XEM.TO

1D
-0.85%
1M
11.30%
YTD
29.23%
6M
29.57%
1Y
57.02%
3Y*
24.75%
5Y*
9.57%
10Y*
10.27%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VEE.TO vs. XEM.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VEE.TO
Vanguard FTSE Emerging Markets All Cap Index ETF		13.54%19.32%19.06%6.24%-12.78%0.05%12.32%14.33%-7.95%22.55%
XEM.TO
iShares MSCI Emerging Markets Index ETF		29.23%27.25%14.98%6.49%-15.74%-4.09%14.12%11.48%-8.05%27.78%

Correlation

The correlation between VEE.TO and XEM.TO is 0.92, 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

0.92

Correlation (3Y)
Calculated over the trailing 3-year period

0.93

Correlation (5Y)
Calculated over the trailing 5-year period

0.93

Correlation (10Y)
Calculated over the trailing 10-year period

0.94

Correlation (All Time)
Calculated using the full available price history since Dec 7, 2011

0.95

The correlation between VEE.TO and XEM.TO has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

VEE.TO vs. XEM.TO - Sectors Allocation Comparison

Sectors
VEE.TO
XEM.TO

Technology

26.3%
37.0%

Financial Services

20.5%
19.4%

Consumer Cyclical

11.2%
9.6%

Basic Materials

8.4%
6.5%

Industrials

7.9%
7.5%

Communication Services

7.8%
6.9%

Energy

4.7%
4.0%

Healthcare

4.1%
2.9%

Consumer Defensive

3.9%
3.0%

Utilities

3.0%
2.1%

Real Estate

2.3%
1.1%

Technology

VEE.TO
26.3%
XEM.TO
37.0%

Financial Services

VEE.TO
20.5%
XEM.TO
19.4%

Consumer Cyclical

VEE.TO
11.2%
XEM.TO
9.6%

Basic Materials

VEE.TO
8.4%
XEM.TO
6.5%

Industrials

VEE.TO
7.9%
XEM.TO
7.5%

Communication Services

VEE.TO
7.8%
XEM.TO
6.9%

Energy

VEE.TO
4.7%
XEM.TO
4.0%

Healthcare

VEE.TO
4.1%
XEM.TO
2.9%

Consumer Defensive

VEE.TO
3.9%
XEM.TO
3.0%

Utilities

VEE.TO
3.0%
XEM.TO
2.1%

Real Estate

VEE.TO
2.3%
XEM.TO
1.1%

Compare stocks, funds, or ETFs

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Vanguard FTSE Emerging Markets All Cap Index ETF

iShares MSCI Emerging Markets Index ETF

Often compared with VEE.TO:
VEE.TO vs. XEC.TOVEE.TO vs. ZEM.TOVEE.TO vs. VFV.TOVEE.TO vs. XEQT.TOVEE.TO vs. VIDY.TOVEE.TO vs. VOOVEE.TO vs. VXUS
Often compared with XEM.TO:
XEM.TO vs. XEC.TOXEM.TO vs. XEF.TOXEM.TO vs. XEQT.TOXEM.TO vs. ZEA.TOXEM.TO vs. VXC.TOXEM.TO vs. VOOXEM.TO vs. VFV.TO

Return for Risk

VEE.TO vs. XEM.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VEE.TO
VEE.TO Risk / Return Rank: 6060
Overall Rank
VEE.TO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
VEE.TO Sortino Ratio Rank: 6060
Sortino Ratio Rank
VEE.TO Omega Ratio Rank: 6363
Omega Ratio Rank
VEE.TO Calmar Ratio Rank: 5959
Calmar Ratio Rank
VEE.TO Martin Ratio Rank: 5959
Martin Ratio Rank
XEM.TO
XEM.TO Risk / Return Rank: 8585
Overall Rank
XEM.TO Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
XEM.TO Sortino Ratio Rank: 8484
Sortino Ratio Rank
XEM.TO Omega Ratio Rank: 8787
Omega Ratio Rank
XEM.TO Calmar Ratio Rank: 8585
Calmar Ratio Rank
XEM.TO Martin Ratio Rank: 8383
Martin Ratio Rank
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.

VEE.TO vs. XEM.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO) 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.

VEE.TOXEM.TODifference
Sharpe ratioReturn per unit of total volatility
2.08
2.97

-0.89

Sortino ratioReturn per unit of downside risk
2.90
3.85

-0.94

Omega ratioGain probability vs. loss probability

1.39

1.55

-0.16

Calmar ratioReturn relative to maximum drawdown

2.97

4.67

-1.70

Martin ratioReturn relative to average drawdown

10.74

17.00

-6.26

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEE.TO vs. XEM.TO - Sharpe Ratio Comparison

The current VEE.TO Sharpe Ratio is 2.08, which is lower than the XEM.TO Sharpe Ratio of 2.97. The chart below compares the historical Sharpe Ratios of VEE.TO and XEM.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.

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Sharpe Ratios by Period

VEE.TOXEM.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.08

2.97

-0.89

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.49

0.58

-0.09

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.53

0.57

-0.04

Sharpe Ratio (All Time)

Calculated using the full available price history

0.44

0.43

+0.01

Drawdowns

VEE.TO vs. XEM.TO - Drawdown Comparison

The maximum VEE.TO drawdown since its inception was -29.84%, smaller than the maximum XEM.TO drawdown of -35.29%. Use the drawdown chart below to compare losses from any high point for VEE.TO and XEM.TO.

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Drawdown Indicators

VEE.TOXEM.TODifference

Max Drawdown

Largest peak-to-trough decline

-29.84%

-35.29%

+5.45%

Max Drawdown (1Y)

Largest decline over 1 year

-10.74%

-12.27%

+1.53%

Max Drawdown (3Y)

Largest decline over 3 years

-14.97%

-15.30%

+0.33%

Max Drawdown (5Y)

Largest decline over 5 years

-26.10%

-31.08%

+4.98%

Max Drawdown (10Y)

Largest decline over 10 years

-29.84%

-35.29%

+5.45%

Current Drawdown

Current decline from peak

-0.90%

-0.85%

-0.05%

Average Drawdown

Average peak-to-trough decline

-8.73%

-10.45%

+1.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.96%

3.36%

-0.40%

Volatility

VEE.TO vs. XEM.TO - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO) is 6.04%, while iShares MSCI Emerging Markets Index ETF (XEM.TO) has a volatility of 8.30%. This indicates that VEE.TO 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

VEE.TOXEM.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.04%

8.30%

-2.26%

Volatility (6M)

Calculated over the trailing 6-month period

12.86%

16.79%

-3.93%

Volatility (1Y)

Calculated over the trailing 1-year period

15.31%

19.28%

-3.97%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.29%

16.84%

-1.55%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.97%

18.12%

-1.15%

VEE.TO vs. XEM.TO - Expense Ratio Comparison

VEE.TO has a 0.25% expense ratio, which is lower than XEM.TO's 0.81% expense ratio.

Dividends

VEE.TO vs. XEM.TO - Dividend Comparison

VEE.TO's dividend yield for the trailing twelve months is around 1.91%, more than XEM.TO's 1.47% yield.

PositionTTM20252024202320222021202020192018201720162015
VEE.TO
Vanguard FTSE Emerging Markets All Cap Index ETF		1.91%2.26%2.45%2.83%3.35%2.18%1.61%2.71%2.21%1.89%1.99%2.53%
XEM.TO
iShares MSCI Emerging Markets Index ETF		1.47%1.90%2.08%2.39%2.10%1.91%1.28%2.57%1.96%1.78%1.96%2.22%

Frequently Asked Questions

With a correlation of 0.92, VEE.TO and XEM.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

On fees, VEE.TO is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VEE.TO is cheaper with a 0.25% expense ratio, compared with 0.81% for XEM.TO.

VEE.TO tracks FTSE Emerging Markets All Cap China A Inclusion Index, while XEM.TO tracks Morningstar EM GR CAD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.25% for VEE.TO and 0.81% for XEM.TO.

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