XSEM.TO vs. CWO.NEO

Last updated Jun 4, 2026

XSEM.TO (iShares ESG Aware MSCI Emerging Markets Index ETF) and CWO.NEO (iShares Emerging Markets Fundamental Index ETF) are both Emerging Markets Equities funds from iShares - XSEM.TO tracks the Morningstar EM GR CAD while CWO.NEO tracks the FTSE RAFI Emerging Markets Index. Both are passively managed. Over the past 5 years, XSEM.TO returned 9.59%/yr vs 11.55%/yr for CWO.NEO. A 0.56 correlation means they provide meaningful diversification when combined. XSEM.TO charges 0.32%/yr vs 0.73%/yr for CWO.NEO.

Performance

XSEM.TO vs. CWO.NEO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares ESG Aware MSCI Emerging Markets Index ETF (XSEM.TO) and iShares Emerging Markets Fundamental Index ETF (CWO.NEO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSEM.TO achieves a 28.13% return, which is significantly higher than CWO.NEO's 13.80% return.

XSEM.TO

• 1D: -0.86%
• 1M: 12.07%
• YTD: 28.13%
• 6M: 29.29%
• 1Y: 57.34%
• 3Y*: 25.23%
• 5Y*: 9.59%
• 10Y*: —

CWO.NEO

• 1D: -1.42%
• 1M: 4.14%
• YTD: 13.80%
• 6M: 13.05%
• 1Y: 35.32%
• 3Y*: 23.05%
• 5Y*: 11.55%
• 10Y*: 11.43%

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

XSEM.TO vs. CWO.NEO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XSEM.TO iShares ESG Aware MSCI Emerging Markets Index ETF	28.13%	30.16%	14.82%	7.04%	-17.24%	-3.58%	15.66%	5.23%
CWO.NEO iShares Emerging Markets Fundamental Index ETF	13.80%	26.34%	22.33%	9.56%	-9.03%	7.13%	-3.12%	4.95%

Correlation

The correlation between XSEM.TO and CWO.NEO is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (All Time) Calculated using the full available price history since Mar 25, 2019	0.56

Over the past year, XSEM.TO and CWO.NEO have become more correlated (0.83) than their long-term average of 0.56, meaning their price movements have been converging.

Return for Risk

XSEM.TO vs. CWO.NEO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XSEM.TO

XSEM.TO Risk / Return Rank: 85
XSEM.TO Sharpe Ratio Rank: 88
XSEM.TO Sortino Ratio Rank: 83
XSEM.TO Omega Ratio Rank: 86
XSEM.TO Calmar Ratio Rank: 85
XSEM.TO Martin Ratio Rank: 83

CWO.NEO

CWO.NEO Risk / Return Rank: 68
CWO.NEO Sharpe Ratio Rank: 70
CWO.NEO Sortino Ratio Rank: 66
CWO.NEO Omega Ratio Rank: 72
CWO.NEO Calmar Ratio Rank: 66
CWO.NEO Martin Ratio Rank: 68

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.

XSEM.TO vs. CWO.NEO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI Emerging Markets Index ETF (XSEM.TO) and iShares Emerging Markets Fundamental Index ETF (CWO.NEO). 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.

	XSEM.TO	CWO.NEO	Difference
Sharpe ratio: Return per unit of total volatility	2.96	2.29	+0.67
Sortino ratio: Return per unit of downside risk	3.78	3.05	+0.72
Omega ratio: Gain probability vs. loss probability	1.54	1.43	+0.11
Calmar ratio: Return relative to maximum drawdown	4.69	3.26	+1.43
Martin ratio: Return relative to average drawdown	17.06	12.37	+4.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSEM.TO vs. CWO.NEO - Sharpe Ratio Comparison

The current XSEM.TO Sharpe Ratio is 2.96, which is comparable to the CWO.NEO Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of XSEM.TO and CWO.NEO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XSEM.TO	CWO.NEO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.96	2.29	+0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.70	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.45	+0.10

Drawdowns

XSEM.TO vs. CWO.NEO - Drawdown Comparison

The maximum XSEM.TO drawdown since its inception was -37.03%, which is greater than CWO.NEO's maximum drawdown of -31.99%. Use the drawdown chart below to compare losses from any high point for XSEM.TO and CWO.NEO.

Drawdown Indicators

	XSEM.TO	CWO.NEO	Difference
Max Drawdown Largest peak-to-trough decline	-37.03%	-31.99%	-5.04%
Max Drawdown (1Y) Largest decline over 1 year	-12.30%	-10.90%	-1.40%
Max Drawdown (3Y) Largest decline over 3 years	-15.17%	-17.12%	+1.95%
Max Drawdown (5Y) Largest decline over 5 years	-33.18%	-24.80%	-8.38%
Max Drawdown (10Y) Largest decline over 10 years	—	-31.97%	—
Current Drawdown Current decline from peak	-0.86%	-1.42%	+0.56%
Average Drawdown Average peak-to-trough decline	-13.17%	-10.29%	-2.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.37%	2.86%	+0.51%

Volatility

XSEM.TO vs. CWO.NEO - Volatility Comparison

iShares ESG Aware MSCI Emerging Markets Index ETF (XSEM.TO) has a higher volatility of 8.35% compared to iShares Emerging Markets Fundamental Index ETF (CWO.NEO) at 5.40%. This indicates that XSEM.TO's price experiences larger fluctuations and is considered to be riskier than CWO.NEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSEM.TO	CWO.NEO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.35%	5.40%	+2.95%
Volatility (6M) Calculated over the trailing 6-month period	17.02%	12.46%	+4.56%
Volatility (1Y) Calculated over the trailing 1-year period	19.47%	15.50%	+3.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.06%	16.65%	+0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.26%	17.52%	+0.74%

XSEM.TO vs. CWO.NEO - Expense Ratio Comparison

XSEM.TO has a 0.32% expense ratio, which is lower than CWO.NEO's 0.73% expense ratio.

Dividends

XSEM.TO vs. CWO.NEO - Dividend Comparison

XSEM.TO's dividend yield for the trailing twelve months is around 1.41%, less than CWO.NEO's 2.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CWO.NEO iShares Emerging Markets Fundamental Index ETF	2.45%	2.79%	3.50%	4.14%	5.03%	4.61%	2.64%	3.01%	3.22%	2.60%	2.57%	3.23%
XSEM.TO iShares ESG Aware MSCI Emerging Markets Index ETF	1.41%	1.80%	2.12%	1.12%	2.29%	2.50%	1.16%	2.46%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XSEM.TO and CWO.NEO in my portfolio?

XSEM.TO and CWO.NEO have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XSEM.TO or CWO.NEO?

On fees, XSEM.TO is cheaper at 0.32% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XSEM.TO or CWO.NEO?

XSEM.TO is cheaper with a 0.32% expense ratio, compared with 0.73% for CWO.NEO.

What is the main difference between XSEM.TO and CWO.NEO?

XSEM.TO tracks Morningstar EM GR CAD, while CWO.NEO tracks FTSE RAFI Emerging Markets Index. Their fees differ too: 0.32% for XSEM.TO and 0.73% for CWO.NEO.