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VWO vs. XEF.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. XEF.TO

Last updated Jun 13, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and XEF.TO (iShares Core MSCI EAFE IMI Index ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD). Both are passively managed. Over the past 10 years, VWO returned 9.00%/yr vs 9.69%/yr for XEF.TO. A 0.52 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.23%/yr for XEF.TO.

Performance

VWO vs. XEF.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

VWO is traded in USD, while XEF.TO is traded in CAD. To make them comparable, the XEF.TO values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VWO achieves a 10.77% return, which is significantly higher than XEF.TO's 9.29% return. Over the past 10 years, VWO has underperformed XEF.TO with an annualized return of 9.00%, while XEF.TO has yielded a comparatively higher 9.69% annualized return.

VWO

1D
0.76%
1M
-0.68%
YTD
10.77%
6M
12.57%
1Y
26.52%
3Y*
16.61%
5Y*
5.03%
10Y*
9.00%

XEF.TO

1D
0.38%
1M
1.10%
YTD
9.29%
6M
11.08%
1Y
22.31%
3Y*
16.32%
5Y*
7.78%
10Y*
9.69%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. XEF.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		10.77%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
XEF.TO
iShares Core MSCI EAFE IMI Index ETF		9.29%31.70%3.30%18.02%-14.92%10.41%8.71%20.83%-13.90%26.79%

Correlation

The correlation between VWO and XEF.TO is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.65

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

0.59

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

0.57

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

0.53

Correlation (All Time)
Calculated using the full available price history since Apr 15, 2013

0.52

The correlation between VWO and XEF.TO shifts across timeframes, from 0.52 (all time) to 0.65 (1 year), reflecting how their relationship changes across market environments.

VWO vs. XEF.TO - Sectors Allocation Comparison

Sectors
VWO
XEF.TO

Technology

29.6%
10.2%

Financial Services

19.5%
22.9%

Consumer Cyclical

10.7%
8.2%

Industrials

8.0%
20.5%

Basic Materials

8.0%
6.6%

Communication Services

7.1%
4.4%

Energy

4.6%
4.0%

Healthcare

3.9%
9.8%

Consumer Defensive

3.7%
6.4%

Utilities

2.9%
3.8%

Real Estate

2.2%
3.1%

Technology

VWO
29.6%
XEF.TO
10.2%

Financial Services

VWO
19.5%
XEF.TO
22.9%

Consumer Cyclical

VWO
10.7%
XEF.TO
8.2%

Industrials

VWO
8.0%
XEF.TO
20.5%

Basic Materials

VWO
8.0%
XEF.TO
6.6%

Communication Services

VWO
7.1%
XEF.TO
4.4%

Energy

VWO
4.6%
XEF.TO
4.0%

Healthcare

VWO
3.9%
XEF.TO
9.8%

Consumer Defensive

VWO
3.7%
XEF.TO
6.4%

Utilities

VWO
2.9%
XEF.TO
3.8%

Real Estate

VWO
2.2%
XEF.TO
3.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE Emerging Markets ETF

iShares Core MSCI EAFE IMI Index ETF

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX
Often compared with XEF.TO:
XEF.TO vs. XEC.TOXEF.TO vs. VIU.TOXEF.TO vs. ZEA.TOXEF.TO vs. XFH.TOXEF.TO vs. IEFAXEF.TO vs. XIC.TOXEF.TO vs. XEF-U.TO

Return for Risk

VWO vs. XEF.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5050
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4747
Sortino Ratio Rank
VWO Omega Ratio Rank: 5151
Omega Ratio Rank
VWO Calmar Ratio Rank: 5050
Calmar Ratio Rank
VWO Martin Ratio Rank: 5252
Martin Ratio Rank
XEF.TO
XEF.TO Risk / Return Rank: 5555
Overall Rank
XEF.TO Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
XEF.TO Sortino Ratio Rank: 5858
Sortino Ratio Rank
XEF.TO Omega Ratio Rank: 5757
Omega Ratio Rank
XEF.TO Calmar Ratio Rank: 4848
Calmar Ratio Rank
XEF.TO Martin Ratio Rank: 5555
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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.

VWOXEF.TODifference
Sharpe ratioReturn per unit of total volatility
1.49
1.41

+0.09

Sortino ratioReturn per unit of downside risk
2.10
2.07

+0.03

Omega ratioGain probability vs. loss probability

1.28

1.26

+0.02

Calmar ratioReturn relative to maximum drawdown

2.21

1.84

+0.37

Martin ratioReturn relative to average drawdown

7.80

7.14

+0.66

VWO vs. XEF.TO - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is comparable to the XEF.TO Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of VWO 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.

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Drawdowns

VWO vs. XEF.TO - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than XEF.TO's maximum drawdown of -34.33%. Use the drawdown chart below to compare losses from any high point for VWO and XEF.TO.

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Drawdown Indicators

VWOXEF.TODifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-34.33%

-33.35%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-11.58%

+0.41%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-13.93%

-3.44%

Max Drawdown (5Y)

Largest decline over 5 years

-32.60%

-31.05%

-1.55%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-34.33%

-2.06%

Current Drawdown

Current decline from peak

-2.68%

-0.91%

-1.77%

Average Drawdown

Average peak-to-trough decline

-15.80%

-7.13%

-8.67%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.17%

2.99%

+0.18%

Volatility

VWO vs. XEF.TO - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.64% compared to iShares Core MSCI EAFE IMI Index ETF (XEF.TO) at 5.32%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than XEF.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VWOXEF.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.64%

5.32%

+1.32%

Volatility (6M)

Calculated over the trailing 6-month period

14.04%

12.60%

+1.44%

Volatility (1Y)

Calculated over the trailing 1-year period

16.54%

15.18%

+1.36%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.48%

15.04%

+2.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.22%

16.23%

+2.99%

VWO vs. XEF.TO - Expense Ratio Comparison

VWO has a 0.08% 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

VWO vs. XEF.TO - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.44%, more than XEF.TO's 2.18% yield.

PositionTTM20252024202320222021202020192018201720162015
VWO
Vanguard FTSE Emerging Markets ETF		2.44%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%
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

VWO and XEF.TO have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, VWO is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VWO is cheaper with a 0.08% expense ratio, compared with 0.23% for XEF.TO.

VWO is categorized as Emerging Markets Equities, while XEF.TO is Foreign Large Cap Equities. VWO tracks FTSE Emerging Index, while XEF.TO tracks MSCI EAFE Investable Market Index (CAD). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.23% for XEF.TO.

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