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XEH.TO vs. VDY.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XEH.TO vs. VDY.TO

Last updated Jun 4, 2026

XEH.TO (iShares MSCI Europe IMI Index ETF (CAD-Hedged)) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - XEH.TO is a Europe Equities fund tracking the Morningstar Eur GR CAD, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, XEH.TO returned 9.71%/yr vs 14.02%/yr for VDY.TO. A 0.56 correlation means they provide meaningful diversification when combined. XEH.TO charges 0.28%/yr vs 0.22%/yr for VDY.TO.

Performance

XEH.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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, XEH.TO achieves a 6.64% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, XEH.TO has underperformed VDY.TO with an annualized return of 9.71%, while VDY.TO has yielded a comparatively higher 14.02% annualized return.

XEH.TO

1D
-0.65%
1M
3.95%
YTD
6.64%
6M
8.79%
1Y
15.55%
3Y*
13.05%
5Y*
9.17%
10Y*
9.71%

VDY.TO

1D
-0.07%
1M
4.52%
YTD
20.59%
6M
22.32%
1Y
46.18%
3Y*
26.00%
5Y*
17.21%
10Y*
14.02%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEH.TO vs. VDY.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XEH.TO
iShares MSCI Europe IMI Index ETF (CAD-Hedged)		6.64%20.43%7.72%15.86%-8.29%21.75%-2.39%26.24%-9.67%15.64%
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		20.59%29.20%20.71%8.40%-0.23%36.78%-1.37%21.43%-10.09%8.75%

Correlation

The correlation between XEH.TO and VDY.TO is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.45

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

0.56

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

0.60

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

0.61

Correlation (All Time)
Calculated using the full available price history since Apr 25, 2014

0.56

The correlation between XEH.TO and VDY.TO shifts across timeframes, from 0.45 (1 year) to 0.61 (10 years), reflecting how their relationship changes across market environments.

XEH.TO vs. VDY.TO - Sectors Allocation Comparison

Sectors
XEH.TO
VDY.TO

Financial Services

20.8%
56.0%

Industrials

16.1%
0.2%

Healthcare

10.9%
0.1%

Technology

8.7%
0.4%

Consumer Defensive

8.2%
0.4%

Consumer Cyclical

6.7%
3.0%

Basic Materials

5.4%
2.2%

Energy

4.1%
30.8%

Utilities

3.7%
4.1%

Communication Services

3.4%
2.8%

Real Estate

1.4%

-

Financial Services

XEH.TO
20.8%
VDY.TO
56.0%

Industrials

XEH.TO
16.1%
VDY.TO
0.2%

Healthcare

XEH.TO
10.9%
VDY.TO
0.1%

Technology

XEH.TO
8.7%
VDY.TO
0.4%

Consumer Defensive

XEH.TO
8.2%
VDY.TO
0.4%

Consumer Cyclical

XEH.TO
6.7%
VDY.TO
3.0%

Basic Materials

XEH.TO
5.4%
VDY.TO
2.2%

Energy

XEH.TO
4.1%
VDY.TO
30.8%

Utilities

XEH.TO
3.7%
VDY.TO
4.1%

Communication Services

XEH.TO
3.4%
VDY.TO
2.8%

Real Estate

XEH.TO
1.4%
VDY.TO

-

Compare stocks, funds, or ETFs

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iShares MSCI Europe IMI Index ETF (CAD-Hedged)

Vanguard FTSE Canadian High Dividend Yield Index ETF

Often compared with XEH.TO:
XEH.TO vs. XEU.TOXEH.TO vs. XEF.TOXEH.TO vs. VEF.TOXEH.TO vs. IWYXEH.TO vs. IEURXEH.TO vs. XEQT.TOXEH.TO vs. ZEA.TO
Often compared with VDY.TO:
VDY.TO vs. XEI.TOVDY.TO vs. XDIV.TOVDY.TO vs. VCN.TOVDY.TO vs. SCHDVDY.TO vs. XIC.TOVDY.TO vs. VCE.TOVDY.TO vs. ZDV.TO

Return for Risk

XEH.TO vs. VDY.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEH.TO
XEH.TO Risk / Return Rank: 3434
Overall Rank
XEH.TO Sharpe Ratio Rank: 3434
Sharpe Ratio Rank
XEH.TO Sortino Ratio Rank: 3333
Sortino Ratio Rank
XEH.TO Omega Ratio Rank: 3333
Omega Ratio Rank
XEH.TO Calmar Ratio Rank: 3030
Calmar Ratio Rank
XEH.TO Martin Ratio Rank: 3939
Martin Ratio Rank
VDY.TO
VDY.TO Risk / Return Rank: 9898
Overall Rank
VDY.TO Sharpe Ratio Rank: 9898
Sharpe Ratio Rank
VDY.TO Sortino Ratio Rank: 9898
Sortino Ratio Rank
VDY.TO Omega Ratio Rank: 9898
Omega Ratio Rank
VDY.TO Calmar Ratio Rank: 9898
Calmar Ratio Rank
VDY.TO Martin Ratio Rank: 9898
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.

XEH.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.

XEH.TOVDY.TODifference
Sharpe ratioReturn per unit of total volatility
1.24
5.65

-4.42

Sortino ratioReturn per unit of downside risk
1.80
8.14

-6.34

Omega ratioGain probability vs. loss probability

1.23

2.14

-0.91

Calmar ratioReturn relative to maximum drawdown

1.50

14.88

-13.38

Martin ratioReturn relative to average drawdown

6.13

60.75

-54.62

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XEH.TO vs. VDY.TO - Sharpe Ratio Comparison

The current XEH.TO Sharpe Ratio is 1.24, which is lower than the VDY.TO Sharpe Ratio of 5.65. The chart below compares the historical Sharpe Ratios of XEH.TO and VDY.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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Sharpe Ratios by Period

XEH.TOVDY.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.24

5.65

-4.42

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.66

1.50

-0.84

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.61

0.88

-0.27

Sharpe Ratio (All Time)

Calculated using the full available price history

0.54

0.84

-0.30

Drawdowns

XEH.TO vs. VDY.TO - Drawdown Comparison

The maximum XEH.TO drawdown since its inception was -35.81%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for XEH.TO and VDY.TO.

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Drawdown Indicators

XEH.TOVDY.TODifference

Max Drawdown

Largest peak-to-trough decline

-35.81%

-39.21%

+3.40%

Max Drawdown (1Y)

Largest decline over 1 year

-10.38%

-3.12%

-7.26%

Max Drawdown (3Y)

Largest decline over 3 years

-15.01%

-10.87%

-4.14%

Max Drawdown (5Y)

Largest decline over 5 years

-20.34%

-16.18%

-4.16%

Max Drawdown (10Y)

Largest decline over 10 years

-35.81%

-39.21%

+3.40%

Current Drawdown

Current decline from peak

-2.11%

-0.77%

-1.34%

Average Drawdown

Average peak-to-trough decline

-4.88%

-4.61%

-0.27%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.54%

0.76%

+1.78%

Volatility

XEH.TO vs. VDY.TO - Volatility Comparison

iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH.TO) has a higher volatility of 4.79% compared to Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) at 3.31%. This indicates that XEH.TO's price experiences larger fluctuations and is considered to be riskier than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEH.TOVDY.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.79%

3.31%

+1.48%

Volatility (6M)

Calculated over the trailing 6-month period

10.44%

6.87%

+3.57%

Volatility (1Y)

Calculated over the trailing 1-year period

12.62%

8.21%

+4.41%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.07%

11.56%

+2.51%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.89%

15.96%

-0.07%

XEH.TO vs. VDY.TO - Expense Ratio Comparison

XEH.TO has a 0.28% expense ratio, which is higher than VDY.TO's 0.22% expense ratio.

Dividends

XEH.TO vs. VDY.TO - Dividend Comparison

XEH.TO's dividend yield for the trailing twelve months is around 2.35%, less than VDY.TO's 2.90% yield.

PositionTTM20252024202320222021202020192018201720162015
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		2.90%3.59%4.40%4.64%4.42%3.58%4.59%4.25%4.43%3.82%3.25%4.11%
XEH.TO
iShares MSCI Europe IMI Index ETF (CAD-Hedged)		2.35%2.50%2.71%2.98%3.13%2.39%1.98%3.48%3.35%2.19%2.35%2.24%

Frequently Asked Questions

XEH.TO and VDY.TO have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.28% for XEH.TO.

XEH.TO is categorized as Europe Equities, while VDY.TO is Dividend. XEH.TO tracks Morningstar Eur GR CAD, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.28% for XEH.TO and 0.22% for VDY.TO.

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