ZEA.TO vs. IEFA

Last updated Jun 4, 2026

ZEA.TO (BMO MSCI EAFE Index ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - ZEA.TO is a Global Equities fund tracking the MSCI EAFE Index, while IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index. Both are passively managed. Over the past 10 years, ZEA.TO returned 9.78%/yr vs 10.01%/yr for IEFA. Their correlation of 0.83 suggests significant overlap in exposure. ZEA.TO charges 0.22%/yr vs 0.07%/yr for IEFA.

Performance

ZEA.TO vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO MSCI EAFE Index ETF (ZEA.TO) and iShares Core MSCI EAFE ETF (IEFA). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ZEA.TO is traded in CAD, while IEFA is traded in USD. To make them comparable, the IEFA values have been converted to CAD using the latest available exchange rates.

Returns By Period

The year-to-date returns for both investments are quite close, with ZEA.TO having a 10.01% return and IEFA slightly higher at 10.24%. Both investments have delivered pretty close results over the past 10 years, with ZEA.TO having a 9.78% annualized return and IEFA not far ahead at 10.01%.

ZEA.TO

• 1D: -0.45%
• 1M: 5.71%
• YTD: 10.01%
• 6M: 10.15%
• 1Y: 22.06%
• 3Y*: 17.46%
• 5Y*: 11.02%
• 10Y*: 9.78%

IEFA

• 1D: -0.38%
• 1M: 5.50%
• YTD: 10.24%
• 6M: 11.02%
• 1Y: 23.58%
• 3Y*: 18.08%
• 5Y*: 11.16%
• 10Y*: 10.01%

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

ZEA.TO vs. IEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZEA.TO BMO MSCI EAFE Index ETF	10.01%	24.28%	11.56%	16.02%	-8.51%	10.64%	5.13%	16.71%	-6.24%	16.77%
IEFA iShares Core MSCI EAFE ETF	10.24%	26.02%	12.13%	15.35%	-9.20%	10.63%	6.35%	16.62%	-6.86%	18.51%

Correlation

The correlation between ZEA.TO and IEFA is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 18, 2014	0.83

The correlation between ZEA.TO and IEFA has been stable across timeframes, ranging from 0.83 to 0.92 - a consistent structural relationship.

ZEA.TO vs. IEFA - Sectors Allocation Comparison

Sectors	ZEA.TO	IEFA
Financial Services	24.4%	22.5%
Industrials	20.0%	20.1%
Healthcare	10.5%	9.5%
Technology	10.5%	10.8%
Consumer Cyclical	7.6%	8.0%
Consumer Defensive	6.8%	6.6%
Basic Materials	6.0%	7.0%
Communication Services	4.6%	4.4%
Energy	3.9%	3.8%
Utilities	3.9%	3.6%
Real Estate	1.9%	3.0%

Return for Risk

ZEA.TO vs. IEFA — Risk / Return Rank

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

ZEA.TO

ZEA.TO Risk / Return Rank: 44
ZEA.TO Sharpe Ratio Rank: 45
ZEA.TO Sortino Ratio Rank: 45
ZEA.TO Omega Ratio Rank: 46
ZEA.TO Calmar Ratio Rank: 40
ZEA.TO Martin Ratio Rank: 47

IEFA

IEFA Risk / Return Rank: 41
IEFA Sharpe Ratio Rank: 41
IEFA Sortino Ratio Rank: 41
IEFA Omega Ratio Rank: 41
IEFA Calmar Ratio Rank: 38
IEFA Martin Ratio Rank: 44

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.

ZEA.TO vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO MSCI EAFE Index ETF (ZEA.TO) and iShares Core MSCI EAFE ETF (IEFA). 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.

	ZEA.TO	IEFA	Difference
Sharpe ratio Return per unit of total volatility	1.59	1.69	-0.10
Sortino ratio Return per unit of downside risk	2.28	2.42	-0.13
Omega ratio Gain probability vs. loss probability	1.30	1.31	-0.02
Calmar ratio Return relative to maximum drawdown	2.03	2.11	-0.08
Martin ratio Return relative to average drawdown	7.92	8.50	-0.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZEA.TO vs. IEFA - Sharpe Ratio Comparison

The current ZEA.TO Sharpe Ratio is 1.59, which is comparable to the IEFA Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of ZEA.TO and IEFA, 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

	ZEA.TO	IEFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.59	1.69	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.82	0.82	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.69	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.78	-0.19

Drawdowns

ZEA.TO vs. IEFA - Drawdown Comparison

The maximum ZEA.TO drawdown since its inception was -27.80%, roughly equal to the maximum IEFA drawdown of -28.60%. Use the drawdown chart below to compare losses from any high point for ZEA.TO and IEFA.

Drawdown Indicators

	ZEA.TO	IEFA	Difference
Max Drawdown Largest peak-to-trough decline	-27.80%	-28.60%	+0.80%
Max Drawdown (1Y) Largest decline over 1 year	-10.91%	-11.20%	+0.29%
Max Drawdown (3Y) Largest decline over 3 years	-14.11%	-14.12%	+0.01%
Max Drawdown (5Y) Largest decline over 5 years	-23.67%	-24.47%	+0.80%
Max Drawdown (10Y) Largest decline over 10 years	-27.80%	-28.60%	+0.80%
Current Drawdown Current decline from peak	-2.13%	-0.38%	-1.75%
Average Drawdown Average peak-to-trough decline	-4.63%	-4.37%	-0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	2.78%	+0.01%

Volatility

ZEA.TO vs. IEFA - Volatility Comparison

BMO MSCI EAFE Index ETF (ZEA.TO) has a higher volatility of 5.70% compared to iShares Core MSCI EAFE ETF (IEFA) at 4.71%. This indicates that ZEA.TO's price experiences larger fluctuations and is considered to be riskier than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEA.TO	IEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.70%	4.71%	+0.99%
Volatility (6M) Calculated over the trailing 6-month period	11.68%	11.78%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	13.94%	14.02%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.51%	13.66%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.92%	14.66%	+0.26%

ZEA.TO vs. IEFA - Expense Ratio Comparison

ZEA.TO has a 0.22% expense ratio, which is higher than IEFA's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZEA.TO vs. IEFA - Dividend Comparison

ZEA.TO's dividend yield for the trailing twelve months is around 1.94%, less than IEFA's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEFA iShares Core MSCI EAFE ETF	3.26%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%
ZEA.TO BMO MSCI EAFE Index ETF	1.94%	2.17%	2.77%	3.00%	3.06%	2.48%	2.72%	2.93%	3.03%	2.39%	2.78%	2.42%

Frequently Asked Questions

Can I hold both ZEA.TO and IEFA in my portfolio?

With a correlation of 0.91, ZEA.TO and IEFA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, ZEA.TO or IEFA?

On fees, IEFA is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZEA.TO or IEFA?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.22% for ZEA.TO.

What is the main difference between ZEA.TO and IEFA?

ZEA.TO is categorized as Global Equities, while IEFA is Foreign Large Cap Equities. ZEA.TO tracks MSCI EAFE Index, while IEFA tracks MSCI EAFE Investable Market Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.22% for ZEA.TO and 0.07% for IEFA.