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

XEF.TO vs. ZEM.TO

Last updated Jun 13, 2026

XEF.TO (iShares Core MSCI EAFE IMI Index ETF) and ZEM.TO (BMO MSCI Emerging Markets 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 ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 10 years, XEF.TO returned 10.64%/yr vs 11.29%/yr for ZEM.TO. A 0.65 correlation means they provide meaningful diversification when combined. XEF.TO charges 0.23%/yr vs 0.27%/yr for ZEM.TO.

Performance

XEF.TO vs. ZEM.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 BMO MSCI Emerging Markets Index ETF (ZEM.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, XEF.TO achieves a 11.50% return, which is significantly lower than ZEM.TO's 26.25% return. Over the past 10 years, XEF.TO has underperformed ZEM.TO with an annualized return of 10.64%, while ZEM.TO has yielded a comparatively higher 11.29% annualized return.

XEF.TO

1D
0.56%
1M
3.07%
YTD
11.50%
6M
12.67%
1Y
25.69%
3Y*
18.06%
5Y*
10.94%
10Y*
10.64%

ZEM.TO

1D
0.18%
1M
2.76%
YTD
26.25%
6M
28.54%
1Y
52.38%
3Y*
23.59%
5Y*
9.65%
10Y*
11.29%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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

2026 (YTD)202520242023202220212020201920182017
XEF.TO
iShares Core MSCI EAFE IMI Index ETF		11.50%25.69%12.04%15.21%-9.53%10.35%6.13%15.85%-6.66%18.20%
ZEM.TO
BMO MSCI Emerging Markets Index ETF		26.25%27.66%15.21%7.38%-15.80%-2.64%16.38%13.23%-8.06%30.19%

Correlation

The correlation between XEF.TO and ZEM.TO is 0.71, 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

0.71

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

0.65

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

0.63

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

0.65

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

0.65

The correlation between XEF.TO and ZEM.TO has been stable across timeframes, ranging from 0.63 to 0.71 - a consistent structural relationship.

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

Sectors
XEF.TO
ZEM.TO

Financial Services

22.9%
20.1%

Industrials

20.5%
7.7%

Technology

10.2%
36.7%

Healthcare

9.8%
2.8%

Consumer Cyclical

8.2%
9.7%

Basic Materials

6.6%
6.3%

Consumer Defensive

6.4%
3.1%

Communication Services

4.4%
6.8%

Energy

4.0%
4.1%

Utilities

3.8%
2.0%

Real Estate

3.1%
0.8%

Financial Services

XEF.TO
22.9%
ZEM.TO
20.1%

Industrials

XEF.TO
20.5%
ZEM.TO
7.7%

Technology

XEF.TO
10.2%
ZEM.TO
36.7%

Healthcare

XEF.TO
9.8%
ZEM.TO
2.8%

Consumer Cyclical

XEF.TO
8.2%
ZEM.TO
9.7%

Basic Materials

XEF.TO
6.6%
ZEM.TO
6.3%

Consumer Defensive

XEF.TO
6.4%
ZEM.TO
3.1%

Communication Services

XEF.TO
4.4%
ZEM.TO
6.8%

Energy

XEF.TO
4.0%
ZEM.TO
4.1%

Utilities

XEF.TO
3.8%
ZEM.TO
2.0%

Real Estate

XEF.TO
3.1%
ZEM.TO
0.8%

Compare stocks, funds, or ETFs

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iShares Core MSCI EAFE IMI Index ETF

BMO MSCI Emerging Markets Index ETF

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
Often compared with ZEM.TO:
ZEM.TO vs. XEC.TOZEM.TO vs. VEE.TOZEM.TO vs. VIU.TOZEM.TO vs. XSEM.TOZEM.TO vs. xec.TOZEM.TO vs. ZCN.TOZEM.TO vs. ZDI.TO

Return for Risk

XEF.TO vs. ZEM.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: 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
ZEM.TO
ZEM.TO Risk / Return Rank: 8383
Overall Rank
ZEM.TO Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
ZEM.TO Sortino Ratio Rank: 7878
Sortino Ratio Rank
ZEM.TO Omega Ratio Rank: 8484
Omega Ratio Rank
ZEM.TO Calmar Ratio Rank: 8686
Calmar Ratio Rank
ZEM.TO Martin Ratio Rank: 8484
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.

XEF.TO vs. ZEM.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 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.

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.

XEF.TOZEM.TODifference
Sharpe ratioReturn per unit of total volatility
1.67
2.24

-0.57

Sortino ratioReturn per unit of downside risk
2.41
3.01

-0.60

Omega ratioGain probability vs. loss probability

1.31

1.44

-0.13

Calmar ratioReturn relative to maximum drawdown

2.14

4.28

-2.14

Martin ratioReturn relative to average drawdown

8.51

15.06

-6.55

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

The current XEF.TO Sharpe Ratio is 1.67, which is comparable to the ZEM.TO Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of XEF.TO and ZEM.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

XEF.TO vs. ZEM.TO - Drawdown Comparison

The maximum XEF.TO drawdown since its inception was -28.51%, smaller than the maximum ZEM.TO drawdown of -34.79%. Use the drawdown chart below to compare losses from any high point for XEF.TO and ZEM.TO.

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Drawdown Indicators

XEF.TOZEM.TODifference

Max Drawdown

Largest peak-to-trough decline

-28.51%

-34.79%

+6.28%

Max Drawdown (1Y)

Largest decline over 1 year

-11.27%

-11.64%

+0.37%

Max Drawdown (3Y)

Largest decline over 3 years

-14.31%

-13.59%

-0.72%

Max Drawdown (5Y)

Largest decline over 5 years

-24.58%

-30.69%

+6.11%

Max Drawdown (10Y)

Largest decline over 10 years

-28.51%

-34.79%

+6.28%

Current Drawdown

Current decline from peak

0.00%

-2.84%

+2.84%

Average Drawdown

Average peak-to-trough decline

-4.61%

-10.16%

+5.55%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.83%

3.30%

-0.47%

Volatility

XEF.TO vs. ZEM.TO - Volatility Comparison

The current volatility for iShares Core MSCI EAFE IMI Index ETF (XEF.TO) is 5.29%, while BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a volatility of 10.20%. This indicates that XEF.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

XEF.TOZEM.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

5.29%

10.20%

-4.91%

Volatility (6M)

Calculated over the trailing 6-month period

12.23%

20.37%

-8.14%

Volatility (1Y)

Calculated over the trailing 1-year period

14.43%

22.28%

-7.85%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.69%

17.50%

-3.81%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.87%

18.67%

-3.80%

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

XEF.TO has a 0.23% expense ratio, which is lower than ZEM.TO's 0.27% 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

XEF.TO vs. ZEM.TO - Dividend Comparison

XEF.TO's dividend yield for the trailing twelve months is around 2.18%, more than ZEM.TO's 1.77% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
ZEM.TO
BMO MSCI Emerging Markets Index ETF		1.77%2.23%2.56%2.87%2.89%2.50%1.69%2.42%2.20%1.76%1.85%2.45%

Frequently Asked Questions

XEF.TO and ZEM.TO have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XEF.TO is cheaper at 0.23% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XEF.TO is cheaper with a 0.23% expense ratio, compared with 0.27% for ZEM.TO.

XEF.TO is categorized as Foreign Large Cap Equities, while ZEM.TO is Emerging Markets Equities. XEF.TO tracks MSCI EAFE Investable Market Index (CAD), while ZEM.TO tracks MSCI Emerging Markets Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.23% for XEF.TO and 0.27% for ZEM.TO.

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