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

XEM.TO vs. EEM

Last updated Jun 4, 2026

XEM.TO (iShares MSCI Emerging Markets Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XEM.TO returned 10.27%/yr vs 10.72%/yr for EEM. Their correlation of 0.93 suggests significant overlap in exposure. XEM.TO charges 0.81%/yr vs 0.72%/yr for EEM.

Performance

XEM.TO vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares MSCI Emerging Markets Index ETF (XEM.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

XEM.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

The year-to-date returns for both investments are quite close, with XEM.TO having a 29.23% return and EEM slightly higher at 29.43%. Both investments have delivered pretty close results over the past 10 years, with XEM.TO having a 10.27% annualized return and EEM not far ahead at 10.72%.

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%

EEM

1D
-0.84%
1M
11.26%
YTD
29.43%
6M
30.01%
1Y
57.81%
3Y*
25.39%
5Y*
10.07%
10Y*
10.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEM.TO vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
EEM
iShares MSCI Emerging Markets ETF		29.43%27.83%15.64%6.55%-14.90%-4.50%15.04%12.41%-8.13%28.52%

Correlation

The correlation between XEM.TO and EEM is 0.91, 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

0.91

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

0.92

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

0.92

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

0.93

Correlation (All Time)
Calculated using the full available price history since Jun 25, 2009

0.93

The correlation between XEM.TO and EEM has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

XEM.TO vs. EEM - Sectors Allocation Comparison

Sectors
XEM.TO
EEM

Technology

37.0%
43.6%

Financial Services

19.4%
17.5%

Consumer Cyclical

9.6%
8.1%

Industrials

7.5%
6.2%

Communication Services

6.9%
5.7%

Basic Materials

6.5%
6.1%

Energy

4.0%
3.3%

Consumer Defensive

3.0%
2.7%

Healthcare

2.9%
2.5%

Utilities

2.1%
2.0%

Real Estate

1.1%
0.9%

Technology

XEM.TO
37.0%
EEM
43.6%

Financial Services

XEM.TO
19.4%
EEM
17.5%

Consumer Cyclical

XEM.TO
9.6%
EEM
8.1%

Industrials

XEM.TO
7.5%
EEM
6.2%

Communication Services

XEM.TO
6.9%
EEM
5.7%

Basic Materials

XEM.TO
6.5%
EEM
6.1%

Energy

XEM.TO
4.0%
EEM
3.3%

Consumer Defensive

XEM.TO
3.0%
EEM
2.7%

Healthcare

XEM.TO
2.9%
EEM
2.5%

Utilities

XEM.TO
2.1%
EEM
2.0%

Real Estate

XEM.TO
1.1%
EEM
0.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI Emerging Markets Index ETF

iShares MSCI Emerging Markets ETF

Often compared with XEM.TO:
XEM.TO vs. XEC.TOXEM.TO vs. XEF.TOXEM.TO vs. XEQT.TOXEM.TO vs. ZEA.TOXEM.TO vs. VXC.TOXEM.TO vs. VOOXEM.TO vs. VFV.TO
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

XEM.TO vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEM.TO
XEM.TO Risk / Return Rank: 8585
Overall Rank
XEM.TO Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
XEM.TO Sortino Ratio Rank: 8484
Sortino Ratio Rank
XEM.TO Omega Ratio Rank: 8787
Omega Ratio Rank
XEM.TO Calmar Ratio Rank: 8585
Calmar Ratio Rank
XEM.TO Martin Ratio Rank: 8383
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 8181
Overall Rank
EEM Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7979
Sortino Ratio Rank
EEM Omega Ratio Rank: 8383
Omega Ratio Rank
EEM Calmar Ratio Rank: 7979
Calmar Ratio Rank
EEM Martin Ratio Rank: 8080
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.

XEM.TO vs. EEM - 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 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.

XEM.TOEEMDifference
Sharpe ratioReturn per unit of total volatility
2.97
3.04

-0.06

Sortino ratioReturn per unit of downside risk
3.85
3.95

-0.10

Omega ratioGain probability vs. loss probability

1.55

1.57

-0.02

Calmar ratioReturn relative to maximum drawdown

4.67

4.86

-0.19

Martin ratioReturn relative to average drawdown

17.00

17.45

-0.45

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

XEM.TO vs. EEM - Sharpe Ratio Comparison

The current XEM.TO Sharpe Ratio is 2.97, which is comparable to the EEM Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of XEM.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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Sharpe Ratios by Period

XEM.TOEEMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.97

3.04

-0.06

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

0.61

-0.03

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.57

0.60

-0.02

Sharpe Ratio (All Time)

Calculated using the full available price history

0.43

0.46

-0.03

Drawdowns

XEM.TO vs. EEM - Drawdown Comparison

The maximum XEM.TO drawdown since its inception was -35.29%, roughly equal to the maximum EEM drawdown of -35.06%. Use the drawdown chart below to compare losses from any high point for XEM.TO and EEM.

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Drawdown Indicators

XEM.TOEEMDifference

Max Drawdown

Largest peak-to-trough decline

-35.29%

-35.06%

-0.23%

Max Drawdown (1Y)

Largest decline over 1 year

-12.27%

-11.94%

-0.33%

Max Drawdown (3Y)

Largest decline over 3 years

-15.30%

-15.19%

-0.11%

Max Drawdown (5Y)

Largest decline over 5 years

-31.08%

-30.87%

-0.21%

Max Drawdown (10Y)

Largest decline over 10 years

-35.29%

-35.06%

-0.23%

Current Drawdown

Current decline from peak

-0.85%

-0.84%

-0.01%

Average Drawdown

Average peak-to-trough decline

-10.45%

-10.08%

-0.37%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.36%

3.32%

+0.04%

Volatility

XEM.TO vs. EEM - Volatility Comparison

iShares MSCI Emerging Markets Index ETF (XEM.TO) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 8.30% and 8.38%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEM.TOEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.30%

8.38%

-0.08%

Volatility (6M)

Calculated over the trailing 6-month period

16.79%

16.71%

+0.08%

Volatility (1Y)

Calculated over the trailing 1-year period

19.28%

19.13%

+0.15%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.84%

16.52%

+0.32%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.12%

17.97%

+0.15%

XEM.TO vs. EEM - Expense Ratio Comparison

XEM.TO has a 0.81% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

XEM.TO vs. EEM - Dividend Comparison

XEM.TO's dividend yield for the trailing twelve months is around 1.47%, less than EEM's 1.74% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.74%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
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

With a correlation of 0.91, XEM.TO and EEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

On fees, EEM is cheaper at 0.72% per year. The better choice depends on whether you care most about return, fees, risk, or income.

EEM is cheaper with a 0.72% expense ratio, compared with 0.81% for XEM.TO.

XEM.TO is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. XEM.TO tracks Morningstar EM GR CAD, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.81% for XEM.TO and 0.72% for EEM.

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