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

XEH.TO vs. VE.TO

Last updated Jun 4, 2026

XEH.TO (iShares MSCI Europe IMI Index ETF (CAD-Hedged)) and VE.TO (Vanguard FTSE Developed Europe All Cap Index ETF) are both Europe Equities funds - XEH.TO tracks the Morningstar Eur GR CAD while VE.TO tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, XEH.TO returned 9.71%/yr vs 9.78%/yr for VE.TO. A 0.71 correlation means they provide meaningful diversification when combined. XEH.TO charges 0.28%/yr vs 0.22%/yr for VE.TO.

Performance

XEH.TO vs. VE.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 Developed Europe All Cap Index ETF (VE.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both investments are quite close, with XEH.TO having a 6.64% return and VE.TO slightly higher at 6.65%. Both investments have delivered pretty close results over the past 10 years, with XEH.TO having a 9.71% annualized return and VE.TO not far ahead at 9.78%.

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%

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)

XEH.TO vs. VE.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%
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 XEH.TO and VE.TO is 0.89, 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

0.89

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

0.81

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

0.80

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

0.78

Correlation (All Time)
Calculated using the full available price history since Jul 10, 2014

0.71

The correlation between XEH.TO and VE.TO shifts across timeframes, from 0.71 (all time) to 0.89 (1 year), reflecting how their relationship changes across market environments.

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

Sectors
XEH.TO
VE.TO

Financial Services

20.8%
23.6%

Industrials

16.1%
18.9%

Healthcare

10.9%
12.1%

Technology

8.7%
8.3%

Consumer Defensive

8.2%
8.5%

Consumer Cyclical

6.7%
6.8%

Basic Materials

5.4%
5.5%

Energy

4.1%
5.3%

Utilities

3.7%
4.8%

Communication Services

3.4%
3.5%

Real Estate

1.4%
1.5%

Financial Services

XEH.TO
20.8%
VE.TO
23.6%

Industrials

XEH.TO
16.1%
VE.TO
18.9%

Healthcare

XEH.TO
10.9%
VE.TO
12.1%

Technology

XEH.TO
8.7%
VE.TO
8.3%

Consumer Defensive

XEH.TO
8.2%
VE.TO
8.5%

Consumer Cyclical

XEH.TO
6.7%
VE.TO
6.8%

Basic Materials

XEH.TO
5.4%
VE.TO
5.5%

Energy

XEH.TO
4.1%
VE.TO
5.3%

Utilities

XEH.TO
3.7%
VE.TO
4.8%

Communication Services

XEH.TO
3.4%
VE.TO
3.5%

Real Estate

XEH.TO
1.4%
VE.TO
1.5%

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iShares MSCI Europe IMI Index ETF (CAD-Hedged)

Vanguard FTSE Developed Europe All Cap 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 VE.TO:
VE.TO vs. VIU.TOVE.TO vs. XEU.TOVE.TO vs. QQQVE.TO vs. VA.TOVE.TO vs. VEAVE.TO vs. XEF.TOVE.TO vs. VXC.TO

Return for Risk

XEH.TO vs. VE.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
VE.TO
VE.TO Risk / Return Rank: 3434
Overall Rank
VE.TO Sharpe Ratio Rank: 3535
Sharpe Ratio Rank
VE.TO Sortino Ratio Rank: 3535
Sortino Ratio Rank
VE.TO Omega Ratio Rank: 3434
Omega Ratio Rank
VE.TO Calmar Ratio Rank: 3030
Calmar Ratio Rank
VE.TO Martin Ratio Rank: 3737
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. VE.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 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.

XEH.TOVE.TODifference
Sharpe ratioReturn per unit of total volatility
1.24
1.28

-0.04

Sortino ratioReturn per unit of downside risk
1.80
1.88

-0.08

Omega ratioGain probability vs. loss probability

1.23

1.23

-0.01

Calmar ratioReturn relative to maximum drawdown

1.50

1.50

0.00

Martin ratioReturn relative to average drawdown

6.13

5.84

+0.28

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. VE.TO - Sharpe Ratio Comparison

The current XEH.TO Sharpe Ratio is 1.24, which is comparable to the VE.TO Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of XEH.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.

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Sharpe Ratios by Period

XEH.TOVE.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.24

1.28

-0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.66

0.74

-0.08

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.61

0.61

+0.01

Sharpe Ratio (All Time)

Calculated using the full available price history

0.54

0.54

0.00

Drawdowns

XEH.TO vs. VE.TO - Drawdown Comparison

The maximum XEH.TO drawdown since its inception was -35.81%, which is greater than VE.TO's maximum drawdown of -31.66%. Use the drawdown chart below to compare losses from any high point for XEH.TO and VE.TO.

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Drawdown Indicators

XEH.TOVE.TODifference

Max Drawdown

Largest peak-to-trough decline

-35.81%

-31.66%

-4.15%

Max Drawdown (1Y)

Largest decline over 1 year

-10.38%

-12.68%

+2.30%

Max Drawdown (3Y)

Largest decline over 3 years

-15.01%

-14.67%

-0.34%

Max Drawdown (5Y)

Largest decline over 5 years

-20.34%

-27.26%

+6.92%

Max Drawdown (10Y)

Largest decline over 10 years

-35.81%

-31.66%

-4.15%

Current Drawdown

Current decline from peak

-2.11%

-2.80%

+0.69%

Average Drawdown

Average peak-to-trough decline

-4.88%

-5.60%

+0.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.54%

3.26%

-0.72%

Volatility

XEH.TO vs. VE.TO - Volatility Comparison

The current volatility for iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH.TO) is 4.79%, while Vanguard FTSE Developed Europe All Cap Index ETF (VE.TO) has a volatility of 6.11%. This indicates that XEH.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.

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Volatility by Period

XEH.TOVE.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.79%

6.11%

-1.32%

Volatility (6M)

Calculated over the trailing 6-month period

10.44%

12.48%

-2.04%

Volatility (1Y)

Calculated over the trailing 1-year period

12.62%

14.90%

-2.28%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.07%

15.04%

-0.97%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.89%

16.20%

-0.31%

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

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

Dividends

XEH.TO vs. VE.TO - Dividend Comparison

XEH.TO's dividend yield for the trailing twelve months is around 2.35%, less than VE.TO's 2.42% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
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 VE.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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.

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

XEH.TO tracks Morningstar Eur GR CAD, while VE.TO tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.28% for XEH.TO and 0.22% for VE.TO.

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