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XEG.TO vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XEG.TO vs. EEM

Last updated Jun 16, 2026

XEG.TO (iShares S&P/TSX Capped Energy Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XEG.TO is a Energy Equities fund tracking the S&P/TSX Capped Energy Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XEG.TO returned 11.38%/yr vs 11.02%/yr for EEM. At a 0.43 correlation, their price movements are largely independent. XEG.TO charges 0.60%/yr vs 0.72%/yr for EEM.

Performance

XEG.TO vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares S&P/TSX Capped Energy Index ETF (XEG.TO) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

XEG.TO is traded in CAD, while EEM is traded in USD. To make them comparable, the EEM values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XEG.TO achieves a 34.92% return, which is significantly higher than EEM's 30.67% return. Both investments have delivered pretty close results over the past 10 years, with XEG.TO having a 11.38% annualized return and EEM not far behind at 11.02%.

XEG.TO

1D
-2.61%
1M
-8.19%
YTD
34.92%
6M
35.69%
1Y
47.18%
3Y*
25.66%
5Y*
27.13%
10Y*
11.38%

EEM

1D
3.22%
1M
9.63%
YTD
30.67%
6M
33.37%
1Y
56.53%
3Y*
24.62%
5Y*
10.60%
10Y*
11.02%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEG.TO vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XEG.TO
iShares S&P/TSX Capped Energy Index ETF		34.92%16.72%14.04%3.55%53.25%83.71%-34.44%9.04%-27.05%-11.17%
EEM
iShares MSCI Emerging Markets ETF		30.67%27.86%15.51%6.36%-15.53%-3.68%14.24%13.35%-8.19%27.97%

Correlation

The correlation between XEG.TO and EEM is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

-0.06

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

0.17

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

0.23

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

0.32

Correlation (All Time)
Calculated using the full available price history since Jul 13, 2006

0.43

The correlation between XEG.TO and EEM shifts across timeframes, from -0.06 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

XEG.TO vs. EEM - Sectors Allocation Comparison

Sectors
XEG.TO
EEM

Energy

100.0%
3.4%

Basic Materials

-

5.9%

Communication Services

-

6.0%

Consumer Cyclical

-

8.3%

Consumer Defensive

-

2.5%

Financial Services

-

17.7%

Healthcare

-

2.5%

Industrials

-

6.6%

Real Estate

-

1.0%

Technology

-

44.3%

Utilities

-

1.8%

Energy

XEG.TO
100.0%
EEM
3.4%

Basic Materials

XEG.TO

-

EEM
5.9%

Communication Services

XEG.TO

-

EEM
6.0%

Consumer Cyclical

XEG.TO

-

EEM
8.3%

Consumer Defensive

XEG.TO

-

EEM
2.5%

Financial Services

XEG.TO

-

EEM
17.7%

Healthcare

XEG.TO

-

EEM
2.5%

Industrials

XEG.TO

-

EEM
6.6%

Real Estate

XEG.TO

-

EEM
1.0%

Technology

XEG.TO

-

EEM
44.3%

Utilities

XEG.TO

-

EEM
1.8%

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 Capped Energy Index ETF

iShares MSCI Emerging Markets ETF

Often compared with XEG.TO:
XEG.TO vs. XLEXEG.TO vs. XEQT.TOXEG.TO vs. CNQ.TOXEG.TO vs. HXE.TOXEG.TO vs. ZEO.TOXEG.TO vs. XDIV.TOXEG.TO vs. XCG.TO
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

XEG.TO vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEG.TO
XEG.TO Risk / Return Rank: 6969
Overall Rank
XEG.TO Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
XEG.TO Sortino Ratio Rank: 5959
Sortino Ratio Rank
XEG.TO Omega Ratio Rank: 6161
Omega Ratio Rank
XEG.TO Calmar Ratio Rank: 8585
Calmar Ratio Rank
XEG.TO Martin Ratio Rank: 7171
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 8282
Overall Rank
EEM Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7878
Sortino Ratio Rank
EEM Omega Ratio Rank: 8484
Omega Ratio Rank
EEM Calmar Ratio Rank: 8282
Calmar Ratio Rank
EEM Martin Ratio Rank: 8181
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.

XEG.TO vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares S&P/TSX Capped Energy Index ETF (XEG.TO) and iShares MSCI Emerging Markets ETF (EEM). 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.

XEG.TOEEMDifference
Sharpe ratioReturn per unit of total volatility
2.04
2.59

-0.55

Sortino ratioReturn per unit of downside risk
2.54
3.28

-0.74

Omega ratioGain probability vs. loss probability

1.33

1.47

-0.14

Calmar ratioReturn relative to maximum drawdown

4.26

4.63

-0.37

Martin ratioReturn relative to average drawdown

11.99

16.10

-4.11

XEG.TO vs. EEM - Sharpe Ratio Comparison

The current XEG.TO Sharpe Ratio is 2.04, which is comparable to the EEM Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of XEG.TO and EEM, 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

XEG.TO vs. EEM - Drawdown Comparison

The maximum XEG.TO drawdown since its inception was -87.51%, which is greater than EEM's maximum drawdown of -55.52%. Use the drawdown chart below to compare losses from any high point for XEG.TO and EEM.

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Drawdown Indicators

XEG.TOEEMDifference

Max Drawdown

Largest peak-to-trough decline

-87.51%

-55.52%

-31.99%

Max Drawdown (1Y)

Largest decline over 1 year

-11.12%

-12.26%

+1.14%

Max Drawdown (3Y)

Largest decline over 3 years

-25.67%

-15.82%

-9.85%

Max Drawdown (5Y)

Largest decline over 5 years

-28.42%

-30.79%

+2.37%

Max Drawdown (10Y)

Largest decline over 10 years

-79.66%

-35.39%

-44.27%

Current Drawdown

Current decline from peak

-10.27%

-0.08%

-10.19%

Average Drawdown

Average peak-to-trough decline

-34.55%

-12.02%

-22.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.95%

3.52%

+0.43%

Volatility

XEG.TO vs. EEM - Volatility Comparison

The current volatility for iShares S&P/TSX Capped Energy Index ETF (XEG.TO) is 9.33%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 11.28%. This indicates that XEG.TO experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEG.TOEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.33%

11.28%

-1.95%

Volatility (6M)

Calculated over the trailing 6-month period

19.83%

19.84%

-0.01%

Volatility (1Y)

Calculated over the trailing 1-year period

23.32%

22.01%

+1.31%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

28.75%

20.22%

+8.53%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

33.42%

21.72%

+11.70%

XEG.TO vs. EEM - Expense Ratio Comparison

XEG.TO has a 0.60% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

XEG.TO vs. EEM - Dividend Comparison

XEG.TO's dividend yield for the trailing twelve months is around 2.84%, more than EEM's 2.24% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		2.24%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
XEG.TO
iShares S&P/TSX Capped Energy Index ETF		2.84%3.63%3.46%4.26%3.31%1.64%2.96%2.70%2.25%1.41%1.40%3.58%

Frequently Asked Questions

XEG.TO and EEM have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XEG.TO is cheaper at 0.60% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XEG.TO is cheaper with a 0.60% expense ratio, compared with 0.72% for EEM.

XEG.TO is categorized as Energy Equities, while EEM is Emerging Markets Diversified. XEG.TO tracks S&P/TSX Capped Energy Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.60% for XEG.TO and 0.72% for EEM.

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