XEU.TO vs. ZSP.TO

Last updated Jun 14, 2026

XEU.TO (iShares MSCI Europe IMI Index ETF) and ZSP.TO (BMO S&P 500 Index ETF) are both exchange-traded funds - XEU.TO is a Europe Equities fund tracking the Morningstar Eur GR CAD, while ZSP.TO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XEU.TO returned 10.87%/yr vs 16.12%/yr for ZSP.TO. A 0.62 correlation means they provide meaningful diversification when combined. XEU.TO charges 0.28%/yr vs 0.09%/yr for ZSP.TO.

Performance

XEU.TO vs. ZSP.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 BMO S&P 500 Index ETF (ZSP.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XEU.TO achieves a 9.50% return, which is significantly lower than ZSP.TO's 11.01% return. Over the past 10 years, XEU.TO has underperformed ZSP.TO with an annualized return of 10.87%, while ZSP.TO has yielded a comparatively higher 16.12% annualized return.

XEU.TO

• 1D: 0.56%
• 1M: 6.01%
• YTD: 9.50%
• 6M: 11.49%
• 1Y: 22.18%
• 3Y*: 18.05%
• 5Y*: 11.14%
• 10Y*: 10.87%

ZSP.TO

• 1D: 0.74%
• 1M: 2.05%
• YTD: 11.01%
• 6M: 11.06%
• 1Y: 29.16%
• 3Y*: 22.66%
• 5Y*: 16.33%
• 10Y*: 16.12%

*Multi-year figures are annualized to reflect compound growth (CAGR)

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XEU.TO iShares MSCI Europe IMI Index ETF	9.50%	29.40%	9.34%	17.38%	-10.49%	16.36%	3.16%	18.30%	-8.11%	18.47%
ZSP.TO BMO S&P 500 Index ETF	11.01%	12.36%	35.07%	23.30%	-12.68%	27.54%	15.61%	24.69%	3.28%	13.60%

Correlation

The correlation between XEU.TO and ZSP.TO is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Apr 22, 2014	0.62

The correlation between XEU.TO and ZSP.TO shifts across timeframes, from 0.57 (3 years) to 0.70 (1 year), reflecting how their relationship changes across market environments.

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

Sectors	XEU.TO	ZSP.TO
Financial Services	22.4%	11.9%
Industrials	15.6%	8.2%
Healthcare	10.7%	8.4%
Technology	8.8%	36.2%
Consumer Defensive	7.8%	4.8%
Consumer Cyclical	6.5%	10.1%
Basic Materials	5.2%	1.8%
Energy	4.1%	3.5%
Utilities	3.6%	2.3%
Communication Services	3.2%	10.9%
Real Estate	1.3%	1.9%

Return for Risk

XEU.TO vs. ZSP.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: 44
XEU.TO Sharpe Ratio Rank: 45
XEU.TO Sortino Ratio Rank: 45
XEU.TO Omega Ratio Rank: 44
XEU.TO Calmar Ratio Rank: 39
XEU.TO Martin Ratio Rank: 45

ZSP.TO

ZSP.TO Risk / Return Rank: 79
ZSP.TO Sharpe Ratio Rank: 84
ZSP.TO Sortino Ratio Rank: 81
ZSP.TO Omega Ratio Rank: 83
ZSP.TO Calmar Ratio Rank: 73
ZSP.TO Martin Ratio Rank: 74

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. ZSP.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 BMO S&P 500 Index ETF (ZSP.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.TO	ZSP.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.38	2.32	-0.94
Sortino ratio: Return per unit of downside risk	2.00	3.12	-1.12
Omega ratio: Gain probability vs. loss probability	1.25	1.43	-0.18
Calmar ratio: Return relative to maximum drawdown	1.70	3.22	-1.52
Martin ratio: Return relative to average drawdown	6.57	12.00	-5.43

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

The current XEU.TO Sharpe Ratio is 1.38, which is lower than the ZSP.TO Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of XEU.TO and ZSP.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.

Drawdowns

XEU.TO vs. ZSP.TO - Drawdown Comparison

The maximum XEU.TO drawdown since its inception was -32.02%, which is greater than ZSP.TO's maximum drawdown of -26.94%. Use the drawdown chart below to compare losses from any high point for XEU.TO and ZSP.TO.

Drawdown Indicators

	XEU.TO	ZSP.TO	Difference
Max Drawdown Largest peak-to-trough decline	-32.02%	-26.94%	-5.08%
Max Drawdown (1Y) Largest decline over 1 year	-11.94%	-8.61%	-3.33%
Max Drawdown (3Y) Largest decline over 3 years	-14.62%	-18.95%	+4.33%
Max Drawdown (5Y) Largest decline over 5 years	-26.96%	-22.25%	-4.71%
Max Drawdown (10Y) Largest decline over 10 years	-32.02%	-26.94%	-5.08%
Current Drawdown Current decline from peak	0.00%	-1.47%	+1.47%
Average Drawdown Average peak-to-trough decline	-5.45%	-3.34%	-2.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.31%	+0.79%

Volatility

XEU.TO vs. ZSP.TO - Volatility Comparison

iShares MSCI Europe IMI Index ETF (XEU.TO) has a higher volatility of 5.29% compared to BMO S&P 500 Index ETF (ZSP.TO) at 4.54%. This indicates that XEU.TO's price experiences larger fluctuations and is considered to be riskier than ZSP.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XEU.TO	ZSP.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.29%	4.54%	+0.75%
Volatility (6M) Calculated over the trailing 6-month period	12.40%	9.31%	+3.09%
Volatility (1Y) Calculated over the trailing 1-year period	14.72%	11.94%	+2.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.80%	15.03%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.09%	16.39%	-0.30%

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

XEU.TO has a 0.28% expense ratio, which is higher than ZSP.TO's 0.09% expense ratio.

Dividends

XEU.TO vs. ZSP.TO - Dividend Comparison

XEU.TO's dividend yield for the trailing twelve months is around 2.25%, more than ZSP.TO's 0.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XEU.TO iShares MSCI Europe IMI Index ETF	2.25%	2.47%	2.68%	2.96%	3.02%	2.42%	1.98%	3.56%	3.28%	2.26%	2.91%	2.33%
ZSP.TO BMO S&P 500 Index ETF	0.76%	0.82%	0.94%	1.33%	1.44%	1.15%	1.45%	1.48%	1.68%	1.68%	2.23%	1.60%

Frequently Asked Questions

Can I hold both XEU.TO and ZSP.TO in my portfolio?

XEU.TO and ZSP.TO have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XEU.TO or ZSP.TO?

On fees, ZSP.TO is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XEU.TO or ZSP.TO?

ZSP.TO is cheaper with a 0.09% expense ratio, compared with 0.28% for XEU.TO.

What is the main difference between XEU.TO and ZSP.TO?

XEU.TO is categorized as Europe Equities, while ZSP.TO is S&P 500. XEU.TO tracks Morningstar Eur GR CAD, while ZSP.TO tracks S&P 500 Index. They also come from different issuers: iShares and BMO. Their fees differ too: 0.28% for XEU.TO and 0.09% for ZSP.TO.