VEE.TO vs. XEMC.TO

Last updated Jun 4, 2026

VEE.TO (Vanguard FTSE Emerging Markets All Cap Index ETF) and XEMC.TO (iShares MSCI Emerging Markets ex China Index ETF) are both Emerging Markets Equities funds - VEE.TO tracks the FTSE Emerging Markets All Cap China A Inclusion Index while XEMC.TO tracks the MSCI Emerging Markets ex China Index (Net). Both are passively managed. Over the past 3 years, VEE.TO returned 18.62%/yr vs 29.96%/yr for XEMC.TO. A 0.69 correlation means they provide meaningful diversification when combined. Both charge a 0.25% expense ratio.

Performance

VEE.TO vs. XEMC.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 ex China Index ETF (XEMC.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEE.TO achieves a 13.54% return, which is significantly lower than XEMC.TO's 43.62% 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%

XEMC.TO

• 1D: -0.54%
• 1M: 14.95%
• YTD: 43.62%
• 6M: 46.03%
• 1Y: 79.31%
• 3Y*: 29.96%
• 5Y*: —
• 10Y*: —

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

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

	2026 (YTD)	2025	2024	2023
VEE.TO Vanguard FTSE Emerging Markets All Cap Index ETF	13.54%	19.32%	19.06%	1.81%
XEMC.TO iShares MSCI Emerging Markets ex China Index ETF	43.62%	28.28%	10.87%	12.07%

Correlation

The correlation between VEE.TO and XEMC.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	0.72
Correlation (All Time) Calculated using the full available price history since Feb 16, 2023	0.69

The correlation between VEE.TO and XEMC.TO shifts across timeframes, from 0.69 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VEE.TO vs. XEMC.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: 60
VEE.TO Sharpe Ratio Rank: 60
VEE.TO Sortino Ratio Rank: 60
VEE.TO Omega Ratio Rank: 63
VEE.TO Calmar Ratio Rank: 59
VEE.TO Martin Ratio Rank: 59

XEMC.TO

XEMC.TO Risk / Return Rank: 93
XEMC.TO Sharpe Ratio Rank: 95
XEMC.TO Sortino Ratio Rank: 93
XEMC.TO Omega Ratio Rank: 94
XEMC.TO Calmar Ratio Rank: 92
XEMC.TO Martin Ratio Rank: 92

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. XEMC.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 ex China Index ETF (XEMC.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.TO	XEMC.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.08	3.85	-1.77
Sortino ratio: Return per unit of downside risk	2.90	4.72	-1.81
Omega ratio: Gain probability vs. loss probability	1.39	1.68	-0.29
Calmar ratio: Return relative to maximum drawdown	2.97	6.08	-3.11
Martin ratio: Return relative to average drawdown	10.74	23.21	-12.46
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. XEMC.TO - Sharpe Ratio Comparison

The current VEE.TO Sharpe Ratio is 2.08, which is lower than the XEMC.TO Sharpe Ratio of 3.85. The chart below compares the historical Sharpe Ratios of VEE.TO and XEMC.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.

Sharpe Ratios by Period

	VEE.TO	XEMC.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	3.85	-1.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	1.83	-1.38

Drawdowns

VEE.TO vs. XEMC.TO - Drawdown Comparison

The maximum VEE.TO drawdown since its inception was -29.84%, which is greater than XEMC.TO's maximum drawdown of -14.55%. Use the drawdown chart below to compare losses from any high point for VEE.TO and XEMC.TO.

Drawdown Indicators

	VEE.TO	XEMC.TO	Difference
Max Drawdown Largest peak-to-trough decline	-29.84%	-14.55%	-15.29%
Max Drawdown (1Y) Largest decline over 1 year	-10.74%	-13.12%	+2.38%
Max Drawdown (3Y) Largest decline over 3 years	-14.97%	-14.55%	-0.42%
Max Drawdown (5Y) Largest decline over 5 years	-26.10%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-29.84%	—	—
Current Drawdown Current decline from peak	-0.90%	-0.54%	-0.36%
Average Drawdown Average peak-to-trough decline	-8.73%	-2.19%	-6.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.96%	3.43%	-0.47%

Volatility

VEE.TO vs. XEMC.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 ex China Index ETF (XEMC.TO) has a volatility of 9.10%. This indicates that VEE.TO experiences smaller price fluctuations and is considered to be less risky than XEMC.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEE.TO	XEMC.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.04%	9.10%	-3.06%
Volatility (6M) Calculated over the trailing 6-month period	12.86%	18.42%	-5.56%
Volatility (1Y) Calculated over the trailing 1-year period	15.31%	20.69%	-5.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.29%	15.74%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	15.74%	+1.23%

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

Both VEE.TO and XEMC.TO have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VEE.TO vs. XEMC.TO - Dividend Comparison

VEE.TO's dividend yield for the trailing twelve months is around 1.91%, more than XEMC.TO's 1.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XEMC.TO iShares MSCI Emerging Markets ex China Index ETF	1.72%	2.48%	2.28%	1.67%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEE.TO and XEMC.TO in my portfolio?

VEE.TO and XEMC.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, VEE.TO or XEMC.TO?

Both ETFs have the same 0.25% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEE.TO or XEMC.TO?

VEE.TO and XEMC.TO have the same expense ratio: 0.25% per year.

What is the main difference between VEE.TO and XEMC.TO?

VEE.TO tracks FTSE Emerging Markets All Cap China A Inclusion Index, while XEMC.TO tracks MSCI Emerging Markets ex China Index (Net). They also come from different issuers: Vanguard and iShares.