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

XEM.TO vs. ZEM.TO

Last updated Jun 4, 2026

XEM.TO (iShares MSCI Emerging Markets Index ETF) and ZEM.TO (BMO MSCI Emerging Markets Index ETF) are both Emerging Markets Equities funds - XEM.TO tracks the Morningstar EM GR CAD while ZEM.TO tracks the MSCI Emerging Markets Index. Both are passively managed. Over the past 10 years, XEM.TO returned 10.27%/yr vs 11.09%/yr for ZEM.TO. Their correlation of 0.90 suggests significant overlap in exposure. XEM.TO charges 0.81%/yr vs 0.27%/yr for ZEM.TO.

Performance

XEM.TO vs. ZEM.TO - 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 BMO MSCI Emerging Markets Index ETF (ZEM.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 stocks are quite close, with XEM.TO having a 29.23% return and ZEM.TO slightly lower at 29.19%. Over the past 10 years, XEM.TO has underperformed ZEM.TO with an annualized return of 10.27%, while ZEM.TO has yielded a comparatively higher 11.09% 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%

ZEM.TO

1D
-0.57%
1M
10.97%
YTD
29.19%
6M
29.85%
1Y
58.51%
3Y*
25.35%
5Y*
10.01%
10Y*
11.09%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEM.TO vs. ZEM.TO - 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%
ZEM.TO
BMO MSCI Emerging Markets Index ETF		29.19%27.66%15.21%7.38%-15.80%-2.64%16.41%13.20%-8.06%30.19%

Correlation

The correlation between XEM.TO and ZEM.TO 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

0.90

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

0.90

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

0.92

Correlation (All Time)
Calculated using the full available price history since Oct 27, 2009

0.90

The correlation between XEM.TO and ZEM.TO has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

XEM.TO vs. ZEM.TO - Sectors Allocation Comparison

Sectors
XEM.TO
ZEM.TO

Technology

37.0%
37.0%

Financial Services

19.4%
20.1%

Consumer Cyclical

9.6%
9.7%

Industrials

7.5%
7.6%

Communication Services

6.9%
6.8%

Basic Materials

6.5%
6.4%

Energy

4.0%
4.0%

Consumer Defensive

3.0%
3.0%

Healthcare

2.9%
2.7%

Utilities

2.1%
2.0%

Real Estate

1.1%
0.8%

Technology

XEM.TO
37.0%
ZEM.TO
37.0%

Financial Services

XEM.TO
19.4%
ZEM.TO
20.1%

Consumer Cyclical

XEM.TO
9.6%
ZEM.TO
9.7%

Industrials

XEM.TO
7.5%
ZEM.TO
7.6%

Communication Services

XEM.TO
6.9%
ZEM.TO
6.8%

Basic Materials

XEM.TO
6.5%
ZEM.TO
6.4%

Energy

XEM.TO
4.0%
ZEM.TO
4.0%

Consumer Defensive

XEM.TO
3.0%
ZEM.TO
3.0%

Healthcare

XEM.TO
2.9%
ZEM.TO
2.7%

Utilities

XEM.TO
2.1%
ZEM.TO
2.0%

Real Estate

XEM.TO
1.1%
ZEM.TO
0.8%

Compare stocks, funds, or ETFs

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iShares MSCI Emerging Markets Index ETF

BMO MSCI Emerging Markets Index 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 ZEM.TO:
ZEM.TO vs. XEC.TOZEM.TO vs. VEE.TOZEM.TO vs. XEF.TOZEM.TO vs. VIU.TOZEM.TO vs. XSEM.TOZEM.TO vs. xec.TOZEM.TO vs. ZCN.TO

Return for Risk

XEM.TO vs. ZEM.TO — 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
ZEM.TO
ZEM.TO Risk / Return Rank: 8585
Overall Rank
ZEM.TO Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
ZEM.TO Sortino Ratio Rank: 8181
Sortino Ratio Rank
ZEM.TO Omega Ratio Rank: 8686
Omega Ratio Rank
ZEM.TO Calmar Ratio Rank: 8787
Calmar Ratio Rank
ZEM.TO Martin Ratio Rank: 8686
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. ZEM.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Index ETF (XEM.TO) and BMO MSCI Emerging Markets Index ETF (ZEM.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.

XEM.TOZEM.TODifference
Sharpe ratioReturn per unit of total volatility
2.97
2.79

+0.18

Sortino ratioReturn per unit of downside risk
3.85
3.70

+0.15

Omega ratioGain probability vs. loss probability

1.55

1.54

0.00

Calmar ratioReturn relative to maximum drawdown

4.67

5.05

-0.38

Martin ratioReturn relative to average drawdown

17.00

18.35

-1.35

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. ZEM.TO - Sharpe Ratio Comparison

The current XEM.TO Sharpe Ratio is 2.97, which is comparable to the ZEM.TO Sharpe Ratio of 2.79. The chart below compares the historical Sharpe Ratios of XEM.TO and ZEM.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

XEM.TOZEM.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.97

2.79

+0.18

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

0.59

0.00

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.57

0.60

-0.03

Sharpe Ratio (All Time)

Calculated using the full available price history

0.43

0.42

+0.02

Drawdowns

XEM.TO vs. ZEM.TO - Drawdown Comparison

The maximum XEM.TO drawdown since its inception was -35.29%, roughly equal to the maximum ZEM.TO drawdown of -34.79%. Use the drawdown chart below to compare losses from any high point for XEM.TO and ZEM.TO.

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Drawdown Indicators

XEM.TOZEM.TODifference

Max Drawdown

Largest peak-to-trough decline

-35.29%

-34.79%

-0.50%

Max Drawdown (1Y)

Largest decline over 1 year

-12.27%

-11.64%

-0.63%

Max Drawdown (3Y)

Largest decline over 3 years

-15.30%

-13.59%

-1.71%

Max Drawdown (5Y)

Largest decline over 5 years

-31.08%

-30.69%

-0.39%

Max Drawdown (10Y)

Largest decline over 10 years

-35.29%

-34.79%

-0.50%

Current Drawdown

Current decline from peak

-0.85%

-0.57%

-0.28%

Average Drawdown

Average peak-to-trough decline

-10.45%

-10.00%

-0.45%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.36%

3.20%

+0.16%

Volatility

XEM.TO vs. ZEM.TO - Volatility Comparison

The current volatility for iShares MSCI Emerging Markets Index ETF (XEM.TO) is 8.30%, while BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a volatility of 8.78%. This indicates that XEM.TO experiences smaller price fluctuations and is considered to be less risky than ZEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEM.TOZEM.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

8.30%

8.78%

-0.48%

Volatility (6M)

Calculated over the trailing 6-month period

16.79%

18.99%

-2.20%

Volatility (1Y)

Calculated over the trailing 1-year period

19.28%

21.06%

-1.78%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.84%

17.21%

-0.37%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.12%

18.56%

-0.44%

XEM.TO vs. ZEM.TO - Expense Ratio Comparison

XEM.TO has a 0.81% expense ratio, which is higher than ZEM.TO's 0.27% expense ratio.

Dividends

XEM.TO vs. ZEM.TO - Dividend Comparison

XEM.TO's dividend yield for the trailing twelve months is around 1.47%, less than ZEM.TO's 1.73% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
ZEM.TO
BMO MSCI Emerging Markets Index ETF		1.73%2.23%2.56%2.87%2.89%2.50%1.69%2.42%2.20%1.76%4.19%2.45%

Frequently Asked Questions

With a correlation of 0.91, XEM.TO and ZEM.TO 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, ZEM.TO is cheaper at 0.27% per year. The better choice depends on whether you care most about return, fees, risk, or income.

ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.81% for XEM.TO.

XEM.TO tracks Morningstar EM GR CAD, while ZEM.TO tracks MSCI Emerging Markets Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.81% for XEM.TO and 0.27% for ZEM.TO.

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