XEM.TO vs. ZWB.TO
XEM.TO (iShares MSCI Emerging Markets Index ETF) and ZWB.TO (BMO Covered Call Canadian Banks ETF) are both exchange-traded funds - XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD, while ZWB.TO is a Financials Equities fund actively managed by BMO. XEM.TO is passively managed, while ZWB.TO is actively managed. Over the past 10 years, XEM.TO returned 10.27%/yr vs 12.24%/yr for ZWB.TO. At a 0.44 correlation, their price movements are largely independent. XEM.TO charges 0.81%/yr vs 0.71%/yr for ZWB.TO.
Performance
XEM.TO vs. ZWB.TO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, XEM.TO achieves a 29.23% return, which is significantly higher than ZWB.TO's 16.23% return. Over the past 10 years, XEM.TO has underperformed ZWB.TO with an annualized return of 10.27%, while ZWB.TO has yielded a comparatively higher 12.24% 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%
ZWB.TO
- 1D
- -0.31%
- 1M
- 5.06%
- YTD
- 16.23%
- 6M
- 21.03%
- 1Y
- 49.97%
- 3Y*
- 25.69%
- 5Y*
- 13.82%
- 10Y*
- 12.24%
XEM.TO vs. ZWB.TO - 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% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 16.23% | 34.91% | 19.41% | 6.67% | -11.00% | 30.81% | 1.68% | 14.32% | -8.08% | 11.52% |
Correlation
The correlation between XEM.TO and ZWB.TO is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2011 | 0.44 |
XEM.TO vs. ZWB.TO - Sectors Allocation Comparison
Sectors
XEM.TO
ZWB.TO
Technology
-
Financial Services
Consumer Cyclical
-
Industrials
-
Communication Services
-
Basic Materials
-
Energy
-
Consumer Defensive
-
Healthcare
-
Utilities
-
Real Estate
-
Technology
XEM.TO
ZWB.TO
-
Financial Services
XEM.TO
ZWB.TO
Consumer Cyclical
XEM.TO
ZWB.TO
-
Industrials
XEM.TO
ZWB.TO
-
Communication Services
XEM.TO
ZWB.TO
-
Basic Materials
XEM.TO
ZWB.TO
-
Energy
XEM.TO
ZWB.TO
-
Consumer Defensive
XEM.TO
ZWB.TO
-
Healthcare
XEM.TO
ZWB.TO
-
Utilities
XEM.TO
ZWB.TO
-
Real Estate
XEM.TO
ZWB.TO
-
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
XEM.TO vs. ZWB.TO — Risk / Return Rank
XEM.TO
ZWB.TO
XEM.TO vs. ZWB.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 Covered Call Canadian Banks ETF (ZWB.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.TO | ZWB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.47 | ||
| Sortino ratioReturn per unit of downside risk | -2.31 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.86 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 4.67 | 6.42 | -1.75 |
| Martin ratioReturn relative to average drawdown | 17.00 | 28.83 | -11.83 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| XEM.TO | ZWB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.97 | 4.44 | -1.47 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 1.10 | -0.52 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.57 | 0.78 | -0.21 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.74 | -0.31 |
Drawdowns
XEM.TO vs. ZWB.TO - Drawdown Comparison
The maximum XEM.TO drawdown since its inception was -35.29%, smaller than the maximum ZWB.TO drawdown of -39.36%. Use the drawdown chart below to compare losses from any high point for XEM.TO and ZWB.TO.
Loading charts...
Drawdown Indicators
| XEM.TO | ZWB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.29% | -39.36% | +4.07% |
Max Drawdown (1Y)Largest decline over 1 year | -12.27% | -7.82% | -4.45% |
Max Drawdown (3Y)Largest decline over 3 years | -15.30% | -14.05% | -1.25% |
Max Drawdown (5Y)Largest decline over 5 years | -31.08% | -25.26% | -5.82% |
Max Drawdown (10Y)Largest decline over 10 years | -35.29% | -39.36% | +4.07% |
Current DrawdownCurrent decline from peak | -0.85% | -1.85% | +1.00% |
Average DrawdownAverage peak-to-trough decline | -10.45% | -5.56% | -4.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.36% | 1.74% | +1.62% |
Volatility
XEM.TO vs. ZWB.TO - Volatility Comparison
iShares MSCI Emerging Markets Index ETF (XEM.TO) has a higher volatility of 8.30% compared to BMO Covered Call Canadian Banks ETF (ZWB.TO) at 4.26%. This indicates that XEM.TO's price experiences larger fluctuations and is considered to be riskier than ZWB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| XEM.TO | ZWB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.30% | 4.26% | +4.04% |
Volatility (6M)Calculated over the trailing 6-month period | 16.79% | 10.03% | +6.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.28% | 11.31% | +7.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.84% | 12.63% | +4.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.12% | 15.68% | +2.44% |
XEM.TO vs. ZWB.TO - Expense Ratio Comparison
XEM.TO has a 0.81% expense ratio, which is higher than ZWB.TO's 0.71% expense ratio.
Dividends
XEM.TO vs. ZWB.TO - Dividend Comparison
XEM.TO's dividend yield for the trailing twelve months is around 1.47%, less than ZWB.TO's 5.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
ZWB.TO BMO Covered Call Canadian Banks ETF | 5.02% | 5.38% | 6.66% | 7.62% | 7.30% | 5.46% | 5.80% | 5.53% | 5.59% | 4.80% | 5.04% | 5.64% |
Frequently Asked Questions
XEM.TO and ZWB.TO have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZWB.TO is cheaper at 0.71% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZWB.TO is cheaper with a 0.71% expense ratio, compared with 0.81% for XEM.TO.
XEM.TO is categorized as Emerging Markets Equities, while ZWB.TO is Financials Equities. They also come from different issuers: iShares and BMO. Their fees differ too: 0.81% for XEM.TO and 0.71% for ZWB.TO.
Find the right allocation for XEM.TO and ZWB.TO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer