XEM.TO vs. CWO.NEO
XEM.TO (iShares MSCI Emerging Markets Index ETF) and CWO.NEO (iShares Emerging Markets Fundamental Index ETF) are both Emerging Markets Equities funds from iShares - XEM.TO tracks the Morningstar EM GR CAD while CWO.NEO tracks the FTSE RAFI Emerging Markets Index. Both are passively managed. Over the past 10 years, XEM.TO returned 10.27%/yr vs 11.43%/yr for CWO.NEO. A 0.74 correlation means they provide meaningful diversification when combined. XEM.TO charges 0.81%/yr vs 0.73%/yr for CWO.NEO.
Performance
XEM.TO vs. CWO.NEO - Performance Comparison
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Returns By Period
In the year-to-date period, XEM.TO achieves a 29.23% return, which is significantly higher than CWO.NEO's 13.80% return. Over the past 10 years, XEM.TO has underperformed CWO.NEO with an annualized return of 10.27%, while CWO.NEO has yielded a comparatively higher 11.43% annualized return.
XEM.TO
- 1D
- -0.85%
- 1M
- 11.30%
- YTD
- 29.23%
- 6M
- 29.57%
- 1Y
- 57.02%
- 3Y*
- 24.75%
- 5Y*
- 9.57%
- 10Y*
- 10.27%
CWO.NEO
- 1D
- -1.42%
- 1M
- 4.14%
- YTD
- 13.80%
- 6M
- 13.05%
- 1Y
- 35.32%
- 3Y*
- 23.05%
- 5Y*
- 11.55%
- 10Y*
- 11.43%
XEM.TO vs. CWO.NEO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XEM.TO iShares MSCI Emerging Markets Index ETF | 29.23% | 27.25% | 14.98% | 6.49% | -15.74% | -4.09% | 14.12% | 11.48% | -8.05% | 27.78% |
CWO.NEO iShares Emerging Markets Fundamental Index ETF | 13.80% | 26.34% | 22.33% | 9.56% | -9.03% | 7.13% | -3.12% | 10.86% | -0.29% | 17.16% |
Correlation
The correlation between XEM.TO and CWO.NEO is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.73 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2009 | 0.74 |
The correlation between XEM.TO and CWO.NEO shifts across timeframes, from 0.64 (5 years) to 0.83 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XEM.TO vs. CWO.NEO — Risk / Return Rank
XEM.TO
CWO.NEO
XEM.TO vs. CWO.NEO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Index ETF (XEM.TO) and iShares Emerging Markets Fundamental Index ETF (CWO.NEO). 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.
| XEM.TO | CWO.NEO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.68 | ||
| Sortino ratioReturn per unit of downside risk | +0.79 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.43 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 4.67 | 3.26 | +1.41 |
| Martin ratioReturn relative to average drawdown | 17.00 | 12.37 | +4.63 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XEM.TO | CWO.NEO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.97 | 2.29 | +0.68 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.70 | -0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.57 | 0.66 | -0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.45 | -0.02 |
Drawdowns
XEM.TO vs. CWO.NEO - Drawdown Comparison
The maximum XEM.TO drawdown since its inception was -35.29%, which is greater than CWO.NEO's maximum drawdown of -31.99%. Use the drawdown chart below to compare losses from any high point for XEM.TO and CWO.NEO.
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Drawdown Indicators
| XEM.TO | CWO.NEO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.29% | -31.99% | -3.30% |
Max Drawdown (1Y)Largest decline over 1 year | -12.27% | -10.90% | -1.37% |
Max Drawdown (3Y)Largest decline over 3 years | -15.30% | -17.12% | +1.82% |
Max Drawdown (5Y)Largest decline over 5 years | -31.08% | -24.80% | -6.28% |
Max Drawdown (10Y)Largest decline over 10 years | -35.29% | -31.97% | -3.32% |
Current DrawdownCurrent decline from peak | -0.85% | -1.42% | +0.57% |
Average DrawdownAverage peak-to-trough decline | -10.45% | -10.29% | -0.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.36% | 2.86% | +0.50% |
Volatility
XEM.TO vs. CWO.NEO - Volatility Comparison
iShares MSCI Emerging Markets Index ETF (XEM.TO) has a higher volatility of 8.30% compared to iShares Emerging Markets Fundamental Index ETF (CWO.NEO) at 5.40%. This indicates that XEM.TO's price experiences larger fluctuations and is considered to be riskier than CWO.NEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XEM.TO | CWO.NEO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.30% | 5.40% | +2.90% |
Volatility (6M)Calculated over the trailing 6-month period | 16.79% | 12.46% | +4.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.28% | 15.50% | +3.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.84% | 16.65% | +0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.12% | 17.52% | +0.60% |
XEM.TO vs. CWO.NEO - Expense Ratio Comparison
XEM.TO has a 0.81% expense ratio, which is higher than CWO.NEO's 0.73% expense ratio.
Dividends
XEM.TO vs. CWO.NEO - Dividend Comparison
XEM.TO's dividend yield for the trailing twelve months is around 1.47%, less than CWO.NEO's 2.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CWO.NEO iShares Emerging Markets Fundamental Index ETF | 2.45% | 2.79% | 3.50% | 4.14% | 5.03% | 4.61% | 2.64% | 3.01% | 3.22% | 2.60% | 2.57% | 3.23% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 1.47% | 1.90% | 2.08% | 2.39% | 2.10% | 1.91% | 1.28% | 2.57% | 1.96% | 1.78% | 1.96% | 2.22% |
Frequently Asked Questions
XEM.TO and CWO.NEO have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, CWO.NEO is cheaper at 0.73% per year. The better choice depends on whether you care most about return, fees, risk, or income.
CWO.NEO is cheaper with a 0.73% expense ratio, compared with 0.81% for XEM.TO.
XEM.TO tracks Morningstar EM GR CAD, while CWO.NEO tracks FTSE RAFI Emerging Markets Index. Their fees differ too: 0.81% for XEM.TO and 0.73% for CWO.NEO.
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