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XEU.TO vs. VDY.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XEU.TO vs. VDY.TO

Last updated Jul 1, 2026
See Documentation

XEU.TO (iShares MSCI Europe IMI Index ETF) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - XEU.TO is a Europe Equities fund tracking the Morningstar Eur GR CAD, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, XEU.TO returned 10.72%/yr vs 14.62%/yr for VDY.TO. A 0.54 correlation means they provide meaningful diversification when combined. XEU.TO charges 0.28%/yr vs 0.22%/yr for VDY.TO.

Performance

XEU.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares MSCI Europe IMI Index ETF (XEU.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XEU.TO achieves a 11.48% return, which is significantly lower than VDY.TO's 24.67% return. Over the past 10 years, XEU.TO has underperformed VDY.TO with an annualized return of 10.72%, while VDY.TO has yielded a comparatively higher 14.62% annualized return.

XEU.TO

1D
0.61%
1M
3.83%
YTD
11.48%
6M
11.31%
1Y
22.04%
3Y*
18.66%
5Y*
11.78%
10Y*
10.72%

VDY.TO

1D
0.17%
1M
5.03%
YTD
24.67%
6M
24.35%
1Y
49.44%
3Y*
27.56%
5Y*
18.22%
10Y*
14.62%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEU.TO vs. VDY.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XEU.TO
iShares MSCI Europe IMI Index ETF		11.48%29.40%9.34%17.38%-10.49%16.36%3.16%18.30%-8.11%18.47%
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		24.67%29.21%21.44%8.41%-0.23%36.60%-1.37%21.42%-10.09%8.32%

Correlation

The correlation between XEU.TO and VDY.TO is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.46

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

0.51

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

0.52

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

0.54

Correlation (All Time)
Calculated using the full available price history since Apr 22, 2014

0.54

The correlation between XEU.TO and VDY.TO has been stable across timeframes, ranging from 0.46 to 0.54 - a consistent structural relationship.

XEU.TO vs. VDY.TO - Sectors Allocation Comparison

Sectors
XEU.TO
VDY.TO

Financial Services

23.5%
57.6%

Industrials

15.5%
0.2%

Healthcare

10.9%
0.1%

Technology

8.8%
0.4%

Consumer Defensive

7.8%
0.4%

Consumer Cyclical

6.3%
2.8%

Basic Materials

5.1%
2.0%

Energy

3.6%
29.5%

Utilities

3.6%
4.1%

Communication Services

3.1%
3.0%

Real Estate

1.3%

-

Financial Services

XEU.TO
23.5%
VDY.TO
57.6%

Industrials

XEU.TO
15.5%
VDY.TO
0.2%

Healthcare

XEU.TO
10.9%
VDY.TO
0.1%

Technology

XEU.TO
8.8%
VDY.TO
0.4%

Consumer Defensive

XEU.TO
7.8%
VDY.TO
0.4%

Consumer Cyclical

XEU.TO
6.3%
VDY.TO
2.8%

Basic Materials

XEU.TO
5.1%
VDY.TO
2.0%

Energy

XEU.TO
3.6%
VDY.TO
29.5%

Utilities

XEU.TO
3.6%
VDY.TO
4.1%

Communication Services

XEU.TO
3.1%
VDY.TO
3.0%

Real Estate

XEU.TO
1.3%
VDY.TO

-

Compare stocks, funds, or ETFs

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iShares MSCI Europe IMI Index ETF

Vanguard FTSE Canadian High Dividend Yield Index ETF

Often compared with XEU.TO:
XEU.TO vs. XEH.TOXEU.TO vs. XEF.TOXEU.TO vs. VE.TOXEU.TO vs. VEAXEU.TO vs. HXS.TOXEU.TO vs. XUS.TOXEU.TO vs. XDIV.TO
Often compared with VDY.TO:
VDY.TO vs. XEI.TOVDY.TO vs. XDIV.TOVDY.TO vs. VCN.TOVDY.TO vs. SCHDVDY.TO vs. XIC.TOVDY.TO vs. VCE.TOVDY.TO vs. ZDV.TO

Return for Risk

XEU.TO vs. VDY.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEU.TO
XEU.TO Risk / Return Rank: 4949
Overall Rank
XEU.TO Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
XEU.TO Sortino Ratio Rank: 5151
Sortino Ratio Rank
XEU.TO Omega Ratio Rank: 5151
Omega Ratio Rank
XEU.TO Calmar Ratio Rank: 4242
Calmar Ratio Rank
XEU.TO Martin Ratio Rank: 4949
Martin Ratio Rank
VDY.TO
VDY.TO Risk / Return Rank: 9898
Overall Rank
VDY.TO Sharpe Ratio Rank: 9999
Sharpe Ratio Rank
VDY.TO Sortino Ratio Rank: 9898
Sortino Ratio Rank
VDY.TO Omega Ratio Rank: 9898
Omega Ratio Rank
VDY.TO Calmar Ratio Rank: 9999
Calmar Ratio Rank
VDY.TO Martin Ratio Rank: 9898
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.

XEU.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe IMI Index ETF (XEU.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

XEU.TOVDY.TODifference
Sharpe ratioReturn per unit of total volatility
1.52
5.94

-4.42

Sortino ratioReturn per unit of downside risk
2.18
8.45

-6.27

Omega ratioGain probability vs. loss probability

1.28

2.19

-0.91

Calmar ratioReturn relative to maximum drawdown

1.85

15.93

-14.08

Martin ratioReturn relative to average drawdown

7.15

64.70

-57.54

XEU.TO vs. VDY.TO - Sharpe Ratio Comparison

The current XEU.TO Sharpe Ratio is 1.52, which is lower than the VDY.TO Sharpe Ratio of 5.94. The chart below compares the historical Sharpe Ratios of XEU.TO and VDY.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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Drawdowns

XEU.TO vs. VDY.TO - Drawdown Comparison

The maximum XEU.TO drawdown since its inception was -32.02%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for XEU.TO and VDY.TO.

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Drawdown Indicators

XEU.TOVDY.TODifference

Max Drawdown

Largest peak-to-trough decline

-32.02%

-39.21%

+7.19%

Max Drawdown (1Y)

Largest decline over 1 year

-11.94%

-3.12%

-8.82%

Max Drawdown (3Y)

Largest decline over 3 years

-14.62%

-10.38%

-4.24%

Max Drawdown (5Y)

Largest decline over 5 years

-26.96%

-16.17%

-10.79%

Max Drawdown (10Y)

Largest decline over 10 years

-32.02%

-39.21%

+7.19%

Current Drawdown

Current decline from peak

0.00%

-0.26%

+0.26%

Average Drawdown

Average peak-to-trough decline

-5.43%

-4.46%

-0.97%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.09%

0.77%

+2.32%

Volatility

XEU.TO vs. VDY.TO - Volatility Comparison

iShares MSCI Europe IMI Index ETF (XEU.TO) has a higher volatility of 4.51% compared to Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) at 2.72%. This indicates that XEU.TO's price experiences larger fluctuations and is considered to be riskier than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XEU.TOVDY.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.51%

2.72%

+1.79%

Volatility (6M)

Calculated over the trailing 6-month period

12.45%

6.84%

+5.61%

Volatility (1Y)

Calculated over the trailing 1-year period

14.55%

8.37%

+6.18%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.79%

11.56%

+3.23%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.75%

15.90%

-0.15%

XEU.TO vs. VDY.TO - Expense Ratio Comparison

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

Dividends

XEU.TO vs. VDY.TO - Dividend Comparison

XEU.TO's dividend yield for the trailing twelve months is around 2.64%, less than VDY.TO's 3.06% yield.

PositionTTM20252024202320222021202020192018201720162015
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		3.06%3.59%4.37%4.64%4.42%3.46%4.59%4.25%4.44%3.42%3.25%4.11%
XEU.TO
iShares MSCI Europe IMI Index ETF		2.64%2.47%2.68%2.96%3.02%2.42%1.98%3.56%3.28%2.26%2.91%2.33%

Frequently Asked Questions

XEU.TO and VDY.TO have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, VDY.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VDY.TO is cheaper with a 0.22% expense ratio, compared with 0.28% for XEU.TO.

XEU.TO is categorized as Europe Equities, while VDY.TO is Dividend. XEU.TO tracks Morningstar Eur GR CAD, while VDY.TO tracks FTSE Canada High Dividend Yield Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.28% for XEU.TO and 0.22% for VDY.TO.

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