ZCLN.TO vs. XETM.TO

Last updated Jun 4, 2026

ZCLN.TO (BMO Clean Energy Index ETF) and XETM.TO (iShares S&P/TSX Energy Transition Materials Index ETF) are both exchange-traded funds - ZCLN.TO is a Alternative Energy Equities fund tracking the S&P Global Clean Energy Index, while XETM.TO is a Materials fund tracking the S&P/TSX Energy Transition Materials Index. Both are passively managed. Over the past year, ZCLN.TO returned 83.05% vs 132.04% for XETM.TO. At a 0.28 correlation, their price movements are largely independent. ZCLN.TO charges 0.39%/yr vs 0.59%/yr for XETM.TO.

Performance

ZCLN.TO vs. XETM.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Clean Energy Index ETF (ZCLN.TO) and iShares S&P/TSX Energy Transition Materials Index ETF (XETM.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZCLN.TO achieves a 43.19% return, which is significantly higher than XETM.TO's 27.20% return.

ZCLN.TO

• 1D: -1.82%
• 1M: 14.50%
• YTD: 43.19%
• 6M: 37.47%
• 1Y: 83.05%
• 3Y*: 9.66%
• 5Y*: 4.92%
• 10Y*: —

XETM.TO

• 1D: -4.12%
• 1M: 14.61%
• YTD: 27.20%
• 6M: 37.88%
• 1Y: 132.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZCLN.TO vs. XETM.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ZCLN.TO BMO Clean Energy Index ETF	43.19%	37.90%	-20.23%	-0.95%
XETM.TO iShares S&P/TSX Energy Transition Materials Index ETF	27.20%	74.97%	5.16%	-2.24%

Correlation

The correlation between ZCLN.TO and XETM.TO is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.28

The correlation between ZCLN.TO and XETM.TO shifts across timeframes, from 0.28 (all time) to 0.47 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ZCLN.TO vs. XETM.TO — Risk / Return Rank

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

ZCLN.TO

ZCLN.TO Risk / Return Rank: 86
ZCLN.TO Sharpe Ratio Rank: 89
ZCLN.TO Sortino Ratio Rank: 84
ZCLN.TO Omega Ratio Rank: 76
ZCLN.TO Calmar Ratio Rank: 92
ZCLN.TO Martin Ratio Rank: 87

XETM.TO

XETM.TO Risk / Return Rank: 87
XETM.TO Sharpe Ratio Rank: 92
XETM.TO Sortino Ratio Rank: 80
XETM.TO Omega Ratio Rank: 87
XETM.TO Calmar Ratio Rank: 89
XETM.TO Martin Ratio Rank: 86

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.

ZCLN.TO vs. XETM.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Clean Energy Index ETF (ZCLN.TO) and iShares S&P/TSX Energy Transition Materials Index ETF (XETM.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.

	ZCLN.TO	XETM.TO	Difference
Sharpe ratio: Return per unit of total volatility	3.08	3.35	-0.27
Sortino ratio: Return per unit of downside risk	3.80	3.62	+0.18
Omega ratio: Gain probability vs. loss probability	1.46	1.54	-0.09
Calmar ratio: Return relative to maximum drawdown	6.45	5.29	+1.16
Martin ratio: Return relative to average drawdown	19.07	18.31	+0.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZCLN.TO vs. XETM.TO - Sharpe Ratio Comparison

The current ZCLN.TO Sharpe Ratio is 3.08, which is comparable to the XETM.TO Sharpe Ratio of 3.35. The chart below compares the historical Sharpe Ratios of ZCLN.TO and XETM.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.

Sharpe Ratios by Period

	ZCLN.TO	XETM.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.08	3.35	-0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.12	1.01	-1.13

Drawdowns

ZCLN.TO vs. XETM.TO - Drawdown Comparison

The maximum ZCLN.TO drawdown since its inception was -61.07%, which is greater than XETM.TO's maximum drawdown of -33.71%. Use the drawdown chart below to compare losses from any high point for ZCLN.TO and XETM.TO.

Drawdown Indicators

	ZCLN.TO	XETM.TO	Difference
Max Drawdown Largest peak-to-trough decline	-61.07%	-33.71%	-27.36%
Max Drawdown (1Y) Largest decline over 1 year	-12.95%	-25.13%	+12.18%
Max Drawdown (3Y) Largest decline over 3 years	-38.80%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-50.26%	—	—
Current Drawdown Current decline from peak	-16.13%	-4.12%	-12.01%
Average Drawdown Average peak-to-trough decline	-40.49%	-8.19%	-32.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	7.24%	-2.87%

Volatility

ZCLN.TO vs. XETM.TO - Volatility Comparison

The current volatility for BMO Clean Energy Index ETF (ZCLN.TO) is 9.92%, while iShares S&P/TSX Energy Transition Materials Index ETF (XETM.TO) has a volatility of 13.89%. This indicates that ZCLN.TO experiences smaller price fluctuations and is considered to be less risky than XETM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZCLN.TO	XETM.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.92%	13.89%	-3.97%
Volatility (6M) Calculated over the trailing 6-month period	20.45%	31.22%	-10.77%
Volatility (1Y) Calculated over the trailing 1-year period	27.21%	39.67%	-12.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.89%	35.24%	-9.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.06%	35.24%	-8.18%

ZCLN.TO vs. XETM.TO - Expense Ratio Comparison

ZCLN.TO has a 0.39% expense ratio, which is lower than XETM.TO's 0.59% expense ratio.

Dividends

ZCLN.TO vs. XETM.TO - Dividend Comparison

ZCLN.TO's dividend yield for the trailing twelve months is around 1.19%, more than XETM.TO's 0.52% yield.

Position	TTM	2025	2024	2023	2022	2021
XETM.TO iShares S&P/TSX Energy Transition Materials Index ETF	0.52%	0.66%	0.69%	0.48%	0.00%	0.00%
ZCLN.TO BMO Clean Energy Index ETF	1.19%	1.71%	2.13%	1.37%	0.93%	0.83%

Frequently Asked Questions

Can I hold both ZCLN.TO and XETM.TO in my portfolio?

ZCLN.TO and XETM.TO have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZCLN.TO or XETM.TO?

On fees, ZCLN.TO is cheaper at 0.39% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZCLN.TO or XETM.TO?

ZCLN.TO is cheaper with a 0.39% expense ratio, compared with 0.59% for XETM.TO.

What is the main difference between ZCLN.TO and XETM.TO?

ZCLN.TO is categorized as Alternative Energy Equities, while XETM.TO is Materials. ZCLN.TO tracks S&P Global Clean Energy Index, while XETM.TO tracks S&P/TSX Energy Transition Materials Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.39% for ZCLN.TO and 0.59% for XETM.TO.