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XCS.TO vs. XEC.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XCS.TO vs. XEC.TO

Last updated Jul 17, 2026
Documentation

XCS.TO (iShares S&P/TSX SmallCap Index ETF) and XEC.TO (iShares Core MSCI Emerging Markets IMI Index ETF) are both exchange-traded funds - XCS.TO is a Canada Equities fund tracking the Morningstar Canada Sml GR CAD, while XEC.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets IMI Index. Both are passively managed. Over the past 10 years, XCS.TO returned 8.12%/yr vs 9.31%/yr for XEC.TO. At a 0.42 correlation, their price movements are largely independent. XCS.TO charges 0.60%/yr vs 0.28%/yr for XEC.TO.

Performance

XCS.TO vs. XEC.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares S&P/TSX SmallCap Index ETF (XCS.TO) and iShares Core MSCI Emerging Markets IMI Index ETF (XEC.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, XCS.TO achieves a 15.00% return, which is significantly lower than XEC.TO's 19.92% return. Over the past 10 years, XCS.TO has underperformed XEC.TO with an annualized return of 8.12%, while XEC.TO has yielded a comparatively higher 9.31% annualized return.

XCS.TO

1D
-1.71%
1M
-4.53%
6M
5.83%
YTD
15.00%
1Y
37.44%
3Y*
23.46%
5Y*
10.99%
10Y*
8.12%

XEC.TO

1D
-1.45%
1M
-5.70%
6M
11.87%
YTD
19.92%
1Y
35.05%
3Y*
20.80%
5Y*
8.59%
10Y*
9.31%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XCS.TO vs. XEC.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XCS.TO
iShares S&P/TSX SmallCap Index ETF		15.00%37.65%18.11%4.17%-8.97%7.71%13.37%6.12%-10.40%2.51%
XEC.TO
iShares Core MSCI Emerging Markets IMI Index ETF		19.92%25.78%16.14%7.92%-14.76%-1.75%15.08%11.54%-8.26%27.93%

Correlation

The correlation between XCS.TO and XEC.TO is 0.51, 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

0.51

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

0.47

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

0.48

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

0.43

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

0.42

The correlation between XCS.TO and XEC.TO has been stable across timeframes, ranging from 0.42 to 0.51 - a consistent structural relationship.

XCS.TO vs. XEC.TO - Sectors Allocation Comparison

Sectors
XCS.TO
XEC.TO

Basic Materials

31.7%
4.7%

Energy

22.2%
2.4%

Industrials

13.0%
4.7%

Real Estate

9.4%
1.1%

Technology

5.2%
27.5%

Financial Services

4.9%
14.3%

Healthcare

4.7%
2.3%

Consumer Cyclical

3.5%
5.6%

Consumer Defensive

2.7%
2.2%

Utilities

1.7%
1.6%

Communication Services

1.0%
4.5%

Basic Materials

XCS.TO
31.7%
XEC.TO
4.7%

Energy

XCS.TO
22.2%
XEC.TO
2.4%

Industrials

XCS.TO
13.0%
XEC.TO
4.7%

Real Estate

XCS.TO
9.4%
XEC.TO
1.1%

Technology

XCS.TO
5.2%
XEC.TO
27.5%

Financial Services

XCS.TO
4.9%
XEC.TO
14.3%

Healthcare

XCS.TO
4.7%
XEC.TO
2.3%

Consumer Cyclical

XCS.TO
3.5%
XEC.TO
5.6%

Consumer Defensive

XCS.TO
2.7%
XEC.TO
2.2%

Utilities

XCS.TO
1.7%
XEC.TO
1.6%

Communication Services

XCS.TO
1.0%
XEC.TO
4.5%

Compare stocks, funds, or ETFs

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

iShares S&P/TSX SmallCap Index ETF

iShares Core MSCI Emerging Markets IMI Index ETF

Often compared with XCS.TO:
XCS.TO vs. XCV.TOXCS.TO vs. XMD.TOXCS.TO vs. XCSR.TOXCS.TO vs. XEI.TOXCS.TO vs. VBRXCS.TO vs. XUS.TOXCS.TO vs. VEQT.TO
Often compared with XEC.TO:
XEC.TO vs. XEF.TOXEC.TO vs. VEE.TOXEC.TO vs. ZEM.TOXEC.TO vs. XEM.TOXEC.TO vs. XEQT.TOXEC.TO vs. VFV.TOXEC.TO vs. XIC.TO

Return for Risk

XCS.TO vs. XEC.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XCS.TO
XCS.TO Risk / Return Rank: 5757
Overall Rank
XCS.TO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
XCS.TO Sortino Ratio Rank: 4949
Sortino Ratio Rank
XCS.TO Omega Ratio Rank: 5858
Omega Ratio Rank
XCS.TO Calmar Ratio Rank: 6464
Calmar Ratio Rank
XCS.TO Martin Ratio Rank: 5555
Martin Ratio Rank
XEC.TO
XEC.TO Risk / Return Rank: 6464
Overall Rank
XEC.TO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
XEC.TO Sortino Ratio Rank: 5353
Sortino Ratio Rank
XEC.TO Omega Ratio Rank: 6464
Omega Ratio Rank
XEC.TO Calmar Ratio Rank: 7676
Calmar Ratio Rank
XEC.TO Martin Ratio Rank: 6666
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.

XCS.TO vs. XEC.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX SmallCap Index ETF (XCS.TO) and iShares Core MSCI Emerging Markets IMI Index ETF (XEC.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.

XCS.TOXEC.TODifference
Sharpe ratioReturn per unit of total volatility
1.60
1.60

0.00

Sortino ratioReturn per unit of downside risk
1.98
2.10

-0.12

Omega ratioGain probability vs. loss probability

1.29

1.31

-0.02

Calmar ratioReturn relative to maximum drawdown

2.58

3.13

-0.55

Martin ratioReturn relative to average drawdown

7.64

9.39

-1.75

XCS.TO vs. XEC.TO - Sharpe Ratio Comparison

The current XCS.TO Sharpe Ratio is 1.60, which is comparable to the XEC.TO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of XCS.TO and XEC.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

XCS.TO vs. XEC.TO - Drawdown Comparison

The maximum XCS.TO drawdown since its inception was -62.43%, which is greater than XEC.TO's maximum drawdown of -32.54%. Use the drawdown chart below to compare losses from any high point for XCS.TO and XEC.TO.

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Drawdown Indicators

XCS.TOXEC.TODifference

Max Drawdown

Largest peak-to-trough decline

-62.43%

-32.54%

-29.89%

Max Drawdown (1Y)

Largest decline over 1 year

-14.58%

-11.25%

-3.33%

Max Drawdown (3Y)

Largest decline over 3 years

-15.55%

-15.07%

-0.48%

Max Drawdown (5Y)

Largest decline over 5 years

-35.08%

-28.30%

-6.78%

Max Drawdown (10Y)

Largest decline over 10 years

-51.50%

-32.54%

-18.96%

Current Drawdown

Current decline from peak

-8.11%

-9.95%

+1.84%

Average Drawdown

Average peak-to-trough decline

-17.44%

-9.53%

-7.91%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.91%

3.74%

+1.17%

Volatility

XCS.TO vs. XEC.TO - Volatility Comparison

The current volatility for iShares S&P/TSX SmallCap Index ETF (XCS.TO) is 4.90%, while iShares Core MSCI Emerging Markets IMI Index ETF (XEC.TO) has a volatility of 9.66%. This indicates that XCS.TO experiences smaller price fluctuations and is considered to be less risky than XEC.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XCS.TOXEC.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.90%

9.66%

-4.76%

Volatility (6M)

Calculated over the trailing 6-month period

18.35%

20.20%

-1.85%

Volatility (1Y)

Calculated over the trailing 1-year period

23.48%

22.04%

+1.44%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.81%

16.86%

+4.95%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

24.34%

17.92%

+6.42%

XCS.TO vs. XEC.TO - Expense Ratio Comparison

XCS.TO has a 0.60% expense ratio, which is higher than XEC.TO's 0.28% expense ratio.

Dividends

XCS.TO vs. XEC.TO - Dividend Comparison

XCS.TO's dividend yield for the trailing twelve months is around 1.33%, less than XEC.TO's 1.64% yield.

PositionTTM20252024202320222021202020192018201720162015
XCS.TO
iShares S&P/TSX SmallCap Index ETF		1.33%1.41%1.73%2.59%2.05%1.69%1.98%2.51%2.07%2.05%1.60%2.64%
XEC.TO
iShares Core MSCI Emerging Markets IMI Index ETF		1.64%1.92%2.03%2.15%2.19%2.78%1.64%2.87%2.66%2.13%1.80%2.19%

Frequently Asked Questions

XCS.TO and XEC.TO have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XEC.TO is cheaper at 0.28% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XEC.TO is cheaper with a 0.28% expense ratio, compared with 0.60% for XCS.TO.

XCS.TO is categorized as Canada Equities, while XEC.TO is Emerging Markets Equities. XCS.TO tracks Morningstar Canada Sml GR CAD, while XEC.TO tracks MSCI Emerging Markets IMI Index. Their fees differ too: 0.60% for XCS.TO and 0.28% for XEC.TO.

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