XCS.TO vs. XETM.TO

Last updated Jun 25, 2026

XCS.TO (iShares S&P/TSX SmallCap Index ETF) and XETM.TO (iShares S&P/TSX Energy Transition Materials Index ETF) are both exchange-traded funds - XCS.TO is a Canada Equities fund tracking the Morningstar Canada Sml GR CAD, while XETM.TO is a Materials fund tracking the S&P/TSX Energy Transition Materials Index. Both are passively managed. Their correlation of 0.85 suggests significant overlap in exposure. XCS.TO charges 0.60%/yr vs 0.59%/yr for XETM.TO.

Performance

XCS.TO vs. XETM.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 S&P/TSX Energy Transition Materials Index ETF (XETM.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

XCS.TO

• 1D: -2.05%
• 1M: -5.74%
• YTD: 13.79%
• 6M: 7.55%
• 1Y: 40.74%
• 3Y*: 26.09%
• 5Y*: 9.60%
• 10Y*: 8.70%

XETM.TO

• 1D: -3.81%
• 1M: -8.58%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

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

	2026 (YTD)
XCS.TO iShares S&P/TSX SmallCap Index ETF	2.75%
XETM.TO iShares S&P/TSX Energy Transition Materials Index ETF	-8.01%

Correlation

The correlation between XCS.TO and XETM.TO is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 20, 2026	0.85

Return for Risk

XCS.TO vs. XETM.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: 56
XCS.TO Sharpe Ratio Rank: 59
XCS.TO Sortino Ratio Rank: 48
XCS.TO Omega Ratio Rank: 57
XCS.TO Calmar Ratio Rank: 63
XCS.TO Martin Ratio Rank: 56

XETM.TO

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. XETM.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 S&P/TSX Energy Transition Materials Index ETF (XETM.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.TO	XETM.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.76	—	—
Sortino ratio: Return per unit of downside risk	2.13	—	—
Omega ratio: Gain probability vs. loss probability	1.31	—	—
Calmar ratio: Return relative to maximum drawdown	2.81	—	—
Martin ratio: Return relative to average drawdown	8.78	—	—

Drawdowns

XCS.TO vs. XETM.TO - Drawdown Comparison

The maximum XCS.TO drawdown since its inception was -62.43%, which is greater than XETM.TO's maximum drawdown of -25.13%. Use the drawdown chart below to compare losses from any high point for XCS.TO and XETM.TO.

Drawdown Indicators

	XCS.TO	XETM.TO	Difference
Max Drawdown Largest peak-to-trough decline	-62.43%	-25.13%	-37.30%
Max Drawdown (1Y) Largest decline over 1 year	-14.58%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-15.55%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.08%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-51.50%	—	—
Current Drawdown Current decline from peak	-9.08%	-17.75%	+8.67%
Average Drawdown Average peak-to-trough decline	-17.47%	-9.28%	-8.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.65%	—	—

Volatility

Volatility by Period

	XCS.TO	XETM.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.01%	—	—
Volatility (6M) Calculated over the trailing 6-month period	19.33%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	23.32%	50.21%	-26.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.81%	50.21%	-28.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.36%	50.21%	-25.85%

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

XCS.TO has a 0.60% expense ratio, which is higher than XETM.TO's 0.59% expense ratio.

Dividends

XCS.TO vs. XETM.TO - Dividend Comparison

XCS.TO's dividend yield for the trailing twelve months is around 1.15%, while XETM.TO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XCS.TO iShares S&P/TSX SmallCap Index ETF	1.15%	1.41%	1.73%	2.59%	2.05%	1.69%	1.98%	2.51%	2.07%	2.05%	1.60%	2.64%
XETM.TO iShares S&P/TSX Energy Transition Materials Index ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XCS.TO and XETM.TO in my portfolio?

XCS.TO and XETM.TO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XCS.TO or XETM.TO?

On fees, XETM.TO is cheaper at 0.59% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XCS.TO or XETM.TO?

XETM.TO is cheaper with a 0.59% expense ratio, compared with 0.60% for XCS.TO.

What is the main difference between XCS.TO and XETM.TO?

XCS.TO is categorized as Canada Equities, while XETM.TO is Materials. XCS.TO tracks Morningstar Canada Sml GR CAD, while XETM.TO tracks S&P/TSX Energy Transition Materials Index. Their fees differ too: 0.60% for XCS.TO and 0.59% for XETM.TO.