XEF.TO vs. VE.TO

Last updated Jun 4, 2026

XEF.TO (iShares Core MSCI EAFE IMI Index ETF) and VE.TO (Vanguard FTSE Developed Europe All Cap Index ETF) are both exchange-traded funds - XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD), while VE.TO is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, XEF.TO returned 9.77%/yr vs 9.78%/yr for VE.TO. Their correlation of 0.82 suggests significant overlap in exposure. XEF.TO charges 0.23%/yr vs 0.22%/yr for VE.TO.

Performance

XEF.TO vs. VE.TO - Performance Comparison

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

Returns By Period

In the year-to-date period, XEF.TO achieves a 9.95% return, which is significantly higher than VE.TO's 6.65% return. Both investments have delivered pretty close results over the past 10 years, with XEF.TO having a 9.77% annualized return and VE.TO not far ahead at 9.78%.

XEF.TO

• 1D: -0.41%
• 1M: 5.38%
• YTD: 9.95%
• 6M: 10.72%
• 1Y: 23.12%
• 3Y*: 17.83%
• 5Y*: 10.89%
• 10Y*: 9.77%

VE.TO

• 1D: -0.65%
• 1M: 4.95%
• YTD: 6.65%
• 6M: 8.13%
• 1Y: 18.98%
• 3Y*: 17.46%
• 5Y*: 11.07%
• 10Y*: 9.78%

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

XEF.TO vs. VE.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XEF.TO iShares Core MSCI EAFE IMI Index ETF	9.95%	25.69%	12.04%	15.21%	-9.53%	10.36%	6.13%	15.86%	-6.65%	18.19%
VE.TO Vanguard FTSE Developed Europe All Cap Index ETF	6.65%	29.58%	10.77%	16.67%	-10.07%	15.65%	3.00%	18.14%	-7.96%	18.82%

Correlation

The correlation between XEF.TO and VE.TO is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jul 10, 2014	0.82

The correlation between XEF.TO and VE.TO shifts across timeframes, from 0.82 (all time) to 0.93 (1 year), reflecting how their relationship changes across market environments.

XEF.TO vs. VE.TO - Sectors Allocation Comparison

Sectors	XEF.TO	VE.TO
Financial Services	22.9%	23.6%
Industrials	20.5%	18.9%
Technology	10.2%	8.3%
Healthcare	9.8%	12.1%
Consumer Cyclical	8.2%	6.8%
Basic Materials	6.6%	5.5%
Consumer Defensive	6.4%	8.5%
Communication Services	4.4%	3.5%
Energy	4.0%	5.3%
Utilities	3.8%	4.8%
Real Estate	3.1%	1.5%

Return for Risk

XEF.TO vs. VE.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XEF.TO

XEF.TO Risk / Return Rank: 47
XEF.TO Sharpe Ratio Rank: 48
XEF.TO Sortino Ratio Rank: 48
XEF.TO Omega Ratio Rank: 48
XEF.TO Calmar Ratio Rank: 41
XEF.TO Martin Ratio Rank: 48

VE.TO

VE.TO Risk / Return Rank: 34
VE.TO Sharpe Ratio Rank: 35
VE.TO Sortino Ratio Rank: 35
VE.TO Omega Ratio Rank: 34
VE.TO Calmar Ratio Rank: 30
VE.TO Martin Ratio Rank: 37

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.

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

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE IMI Index ETF (XEF.TO) and Vanguard FTSE Developed Europe All Cap Index ETF (VE.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.

	XEF.TO	VE.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.68	1.28	+0.40
Sortino ratio: Return per unit of downside risk	2.41	1.88	+0.53
Omega ratio: Gain probability vs. loss probability	1.31	1.23	+0.08
Calmar ratio: Return relative to maximum drawdown	2.06	1.50	+0.56
Martin ratio: Return relative to average drawdown	8.22	5.84	+2.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XEF.TO vs. VE.TO - Sharpe Ratio Comparison

The current XEF.TO Sharpe Ratio is 1.68, which is higher than the VE.TO Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of XEF.TO and VE.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

	XEF.TO	VE.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.68	1.28	+0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.74	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.61	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.54	+0.16

Drawdowns

XEF.TO vs. VE.TO - Drawdown Comparison

The maximum XEF.TO drawdown since its inception was -28.51%, smaller than the maximum VE.TO drawdown of -31.66%. Use the drawdown chart below to compare losses from any high point for XEF.TO and VE.TO.

Drawdown Indicators

	XEF.TO	VE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-28.51%	-31.66%	+3.15%
Max Drawdown (1Y) Largest decline over 1 year	-11.27%	-12.68%	+1.41%
Max Drawdown (3Y) Largest decline over 3 years	-14.32%	-14.67%	+0.35%
Max Drawdown (5Y) Largest decline over 5 years	-24.58%	-27.26%	+2.68%
Max Drawdown (10Y) Largest decline over 10 years	-28.51%	-31.66%	+3.15%
Current Drawdown Current decline from peak	-1.09%	-2.80%	+1.71%
Average Drawdown Average peak-to-trough decline	-4.62%	-5.60%	+0.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	3.26%	-0.44%

Volatility

XEF.TO vs. VE.TO - Volatility Comparison

The current volatility for iShares Core MSCI EAFE IMI Index ETF (XEF.TO) is 4.77%, while Vanguard FTSE Developed Europe All Cap Index ETF (VE.TO) has a volatility of 6.11%. This indicates that XEF.TO experiences smaller price fluctuations and is considered to be less risky than VE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XEF.TO	VE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.77%	6.11%	-1.34%
Volatility (6M) Calculated over the trailing 6-month period	11.56%	12.48%	-0.92%
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	14.90%	-1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.58%	15.04%	-1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.85%	16.20%	-1.35%

XEF.TO vs. VE.TO - Expense Ratio Comparison

XEF.TO has a 0.23% expense ratio, which is higher than VE.TO's 0.22% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XEF.TO vs. VE.TO - Dividend Comparison

XEF.TO's dividend yield for the trailing twelve months is around 2.21%, less than VE.TO's 2.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VE.TO Vanguard FTSE Developed Europe All Cap Index ETF	2.42%	2.58%	2.97%	2.97%	3.20%	2.97%	2.41%	3.79%	3.57%	2.22%	2.33%	2.47%
XEF.TO iShares Core MSCI EAFE IMI Index ETF	2.21%	2.43%	2.76%	2.75%	2.93%	2.42%	1.93%	2.72%	2.76%	2.10%	2.42%	2.42%

Frequently Asked Questions

Can I hold both XEF.TO and VE.TO in my portfolio?

With a correlation of 0.93, XEF.TO and VE.TO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, XEF.TO or VE.TO?

On fees, VE.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XEF.TO or VE.TO?

VE.TO is cheaper with a 0.22% expense ratio, compared with 0.23% for XEF.TO.

What is the main difference between XEF.TO and VE.TO?

XEF.TO is categorized as Foreign Large Cap Equities, while VE.TO is Europe Equities. XEF.TO tracks MSCI EAFE Investable Market Index (CAD), while VE.TO tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.23% for XEF.TO and 0.22% for VE.TO.