XEB.TO vs. ZEM.TO
XEB.TO (iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)) and ZEM.TO (BMO MSCI Emerging Markets Index ETF) are both exchange-traded funds - XEB.TO is a Emerging Markets Bonds fund tracking the J.P. Morgan EMBI Global Core Hedged in CAD Index, while ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 10 years, XEB.TO returned 1.44%/yr vs 10.94%/yr for ZEM.TO. At a 0.32 correlation, their price movements are largely independent. XEB.TO charges 0.53%/yr vs 0.27%/yr for ZEM.TO.
Performance
XEB.TO vs. ZEM.TO - Performance Comparison
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Returns By Period
In the year-to-date period, XEB.TO achieves a 0.81% return, which is significantly lower than ZEM.TO's 27.40% return. Over the past 10 years, XEB.TO has underperformed ZEM.TO with an annualized return of 1.44%, while ZEM.TO has yielded a comparatively higher 10.94% annualized return.
XEB.TO
- 1D
- 0.18%
- 1M
- 0.79%
- YTD
- 0.81%
- 6M
- 0.94%
- 1Y
- 8.75%
- 3Y*
- 7.28%
- 5Y*
- -0.04%
- 10Y*
- 1.44%
ZEM.TO
- 1D
- -1.38%
- 1M
- 7.54%
- YTD
- 27.40%
- 6M
- 27.72%
- 1Y
- 54.72%
- 3Y*
- 24.68%
- 5Y*
- 9.70%
- 10Y*
- 10.94%
XEB.TO vs. ZEM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XEB.TO iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) | 0.81% | 11.14% | 3.46% | 8.58% | -19.80% | -3.14% | 2.97% | 13.37% | -7.43% | 8.80% |
ZEM.TO BMO MSCI Emerging Markets Index ETF | 27.40% | 27.66% | 15.21% | 7.38% | -15.80% | -2.64% | 16.41% | 13.20% | -8.06% | 30.19% |
Correlation
The correlation between XEB.TO and ZEM.TO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.34 |
Correlation (All Time) Calculated using the full available price history since Apr 21, 2011 | 0.32 |
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Return for Risk
XEB.TO vs. ZEM.TO — Risk / Return Rank
XEB.TO
ZEM.TO
XEB.TO vs. ZEM.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (XEB.TO) and BMO MSCI Emerging Markets Index ETF (ZEM.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.
| XEB.TO | ZEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.18 | ||
| Sortino ratioReturn per unit of downside risk | -1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.51 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | 1.78 | 4.72 | -2.94 |
| Martin ratioReturn relative to average drawdown | 6.91 | 17.15 | -10.24 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XEB.TO | ZEM.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.42 | 2.61 | -1.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.00 | 0.57 | -0.57 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.14 | 0.59 | -0.45 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.30 | 0.41 | -0.11 |
Drawdowns
XEB.TO vs. ZEM.TO - Drawdown Comparison
The maximum XEB.TO drawdown since its inception was -29.53%, smaller than the maximum ZEM.TO drawdown of -34.79%. Use the drawdown chart below to compare losses from any high point for XEB.TO and ZEM.TO.
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Drawdown Indicators
| XEB.TO | ZEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.53% | -34.79% | +5.26% |
Max Drawdown (1Y)Largest decline over 1 year | -4.94% | -11.64% | +6.70% |
Max Drawdown (3Y)Largest decline over 3 years | -8.26% | -13.59% | +5.33% |
Max Drawdown (5Y)Largest decline over 5 years | -29.47% | -30.69% | +1.22% |
Max Drawdown (10Y)Largest decline over 10 years | -29.53% | -34.79% | +5.26% |
Current DrawdownCurrent decline from peak | -2.23% | -1.95% | -0.28% |
Average DrawdownAverage peak-to-trough decline | -6.46% | -10.00% | +3.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.27% | 3.20% | -1.93% |
Volatility
XEB.TO vs. ZEM.TO - Volatility Comparison
The current volatility for iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (XEB.TO) is 2.47%, while BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a volatility of 8.87%. This indicates that XEB.TO experiences smaller price fluctuations and is considered to be less risky than ZEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XEB.TO | ZEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.47% | 8.87% | -6.40% |
Volatility (6M)Calculated over the trailing 6-month period | 4.89% | 19.05% | -14.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.17% | 21.12% | -14.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.52% | 17.22% | -7.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.21% | 18.56% | -8.35% |
XEB.TO vs. ZEM.TO - Expense Ratio Comparison
XEB.TO has a 0.53% expense ratio, which is higher than ZEM.TO's 0.27% expense ratio.
Dividends
XEB.TO vs. ZEM.TO - Dividend Comparison
XEB.TO's dividend yield for the trailing twelve months is around 4.97%, more than ZEM.TO's 1.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEB.TO iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) | 4.97% | 4.98% | 4.68% | 4.00% | 4.26% | 3.23% | 3.45% | 3.65% | 4.95% | 3.81% | 4.31% | 4.60% |
ZEM.TO BMO MSCI Emerging Markets Index ETF | 1.75% | 2.23% | 2.56% | 2.87% | 2.89% | 2.50% | 1.69% | 2.42% | 2.20% | 1.76% | 4.19% | 2.45% |
Frequently Asked Questions
XEB.TO and ZEM.TO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZEM.TO is cheaper at 0.27% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.53% for XEB.TO.
XEB.TO is categorized as Emerging Markets Bonds, while ZEM.TO is Emerging Markets Equities. XEB.TO tracks J.P. Morgan EMBI Global Core Hedged in CAD Index, while ZEM.TO tracks MSCI Emerging Markets Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.53% for XEB.TO and 0.27% for ZEM.TO.
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