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ZEA.TO vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZEA.TO vs. IEFA

Last updated Jun 24, 2026

ZEA.TO (BMO MSCI EAFE Index ETF) and IEFA (iShares Core MSCI EAFE ETF) are both Foreign Large Cap Equities funds - ZEA.TO tracks the MSCI EAFE Index while IEFA tracks the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, ZEA.TO returned 10.72%/yr vs 11.05%/yr for IEFA. A 0.71 correlation means they provide meaningful diversification when combined. 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.

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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 stocks are quite close, with ZEA.TO having a 12.33% return and IEFA slightly lower at 12.14%. Both investments have delivered pretty close results over the past 10 years, with ZEA.TO having a 10.72% annualized return and IEFA not far ahead at 11.05%.

ZEA.TO

1D
-1.44%
1M
2.99%
YTD
12.33%
6M
12.25%
1Y
25.57%
3Y*
19.30%
5Y*
11.46%
10Y*
10.72%

IEFA

1D
-2.08%
1M
2.58%
YTD
12.14%
6M
11.34%
1Y
25.81%
3Y*
19.76%
5Y*
11.33%
10Y*
11.05%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZEA.TO vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZEA.TO
BMO MSCI EAFE Index ETF		12.33%24.92%11.58%16.04%-8.50%10.66%5.15%16.72%-6.23%16.78%
IEFA
iShares Core MSCI EAFE ETF		12.14%26.05%12.01%15.15%-9.87%11.58%5.61%17.59%-6.93%18.00%

Correlation

The correlation between ZEA.TO and IEFA is 0.82, 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

0.82

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

0.80

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

0.78

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

0.74

Correlation (All Time)
Calculated using the full available price history since Feb 14, 2014

0.72

The correlation between ZEA.TO and IEFA shifts across timeframes, from 0.71 (all time) to 0.82 (1 year), reflecting how their relationship changes across market environments.

ZEA.TO vs. IEFA - Sectors Allocation Comparison

Sectors
ZEA.TO
IEFA

Financial Services

24.6%
22.6%

Industrials

19.5%
20.1%

Technology

10.8%
11.6%

Healthcare

10.4%
9.7%

Consumer Cyclical

7.6%
8.3%

Consumer Defensive

6.8%
6.2%

Basic Materials

5.9%
6.8%

Communication Services

4.8%
4.7%

Energy

4.0%
3.6%

Utilities

3.7%
3.5%

Real Estate

1.8%
2.9%

Financial Services

ZEA.TO
24.6%
IEFA
22.6%

Industrials

ZEA.TO
19.5%
IEFA
20.1%

Technology

ZEA.TO
10.8%
IEFA
11.6%

Healthcare

ZEA.TO
10.4%
IEFA
9.7%

Consumer Cyclical

ZEA.TO
7.6%
IEFA
8.3%

Consumer Defensive

ZEA.TO
6.8%
IEFA
6.2%

Basic Materials

ZEA.TO
5.9%
IEFA
6.8%

Communication Services

ZEA.TO
4.8%
IEFA
4.7%

Energy

ZEA.TO
4.0%
IEFA
3.6%

Utilities

ZEA.TO
3.7%
IEFA
3.5%

Real Estate

ZEA.TO
1.8%
IEFA
2.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

BMO MSCI EAFE Index ETF

iShares Core MSCI EAFE ETF

Often compared with ZEA.TO:
ZEA.TO vs. XEF.TOZEA.TO vs. XEQT.TOZEA.TO vs. VXC.TOZEA.TO vs. XAW.TOZEA.TO vs. VDU.TOZEA.TO vs. ZSP.TOZEA.TO vs. VFV.TO
Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS

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: 5454
Overall Rank
ZEA.TO Sharpe Ratio Rank: 5454
Sharpe Ratio Rank
ZEA.TO Sortino Ratio Rank: 5555
Sortino Ratio Rank
ZEA.TO Omega Ratio Rank: 5555
Omega Ratio Rank
ZEA.TO Calmar Ratio Rank: 4949
Calmar Ratio Rank
ZEA.TO Martin Ratio Rank: 5454
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4242
Overall Rank
IEFA Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4242
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4242
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4040
Calmar Ratio Rank
IEFA Martin Ratio Rank: 4646
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.

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.

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.

ZEA.TOIEFADifference
Sharpe ratioReturn per unit of total volatility
1.77
1.63

+0.14

Sortino ratioReturn per unit of downside risk
2.52
2.32

+0.20

Omega ratioGain probability vs. loss probability

1.33

1.29

+0.04

Calmar ratioReturn relative to maximum drawdown

2.36

2.30

+0.05

Martin ratioReturn relative to average drawdown

9.08

8.84

+0.24

ZEA.TO vs. IEFA - Sharpe Ratio Comparison

The current ZEA.TO Sharpe Ratio is 1.77, which is comparable to the IEFA Sharpe Ratio of 1.63. 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.

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Drawdowns

ZEA.TO vs. IEFA - Drawdown Comparison

The maximum ZEA.TO drawdown since its inception was -27.80%, smaller than the maximum IEFA drawdown of -29.92%. Use the drawdown chart below to compare losses from any high point for ZEA.TO and IEFA.

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Drawdown Indicators

ZEA.TOIEFADifference

Max Drawdown

Largest peak-to-trough decline

-27.80%

-29.92%

+2.12%

Max Drawdown (1Y)

Largest decline over 1 year

-10.91%

-11.27%

+0.36%

Max Drawdown (3Y)

Largest decline over 3 years

-14.11%

-14.32%

+0.21%

Max Drawdown (5Y)

Largest decline over 5 years

-23.66%

-24.68%

+1.02%

Max Drawdown (10Y)

Largest decline over 10 years

-27.80%

-29.92%

+2.12%

Current Drawdown

Current decline from peak

-1.91%

-2.08%

+0.17%

Average Drawdown

Average peak-to-trough decline

-4.61%

-4.51%

-0.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.82%

2.93%

-0.11%

Volatility

ZEA.TO vs. IEFA - Volatility Comparison

The current volatility for BMO MSCI EAFE Index ETF (ZEA.TO) is 5.26%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.58%. This indicates that ZEA.TO experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZEA.TOIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

5.26%

5.58%

-0.32%

Volatility (6M)

Calculated over the trailing 6-month period

12.41%

13.62%

-1.21%

Volatility (1Y)

Calculated over the trailing 1-year period

14.52%

15.96%

-1.44%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.63%

17.64%

-4.01%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.79%

18.19%

-3.40%

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 1.90%, less than IEFA's 3.44% yield.

PositionTTM20252024202320222021202020192018201720162015
IEFA
iShares Core MSCI EAFE ETF		3.44%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		1.90%2.17%2.78%3.02%3.08%2.49%2.74%2.95%3.05%2.40%2.80%2.43%

Frequently Asked Questions

ZEA.TO and IEFA have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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.

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

ZEA.TO tracks MSCI EAFE Index, while IEFA tracks MSCI EAFE IMI Index (Net). They also come from different issuers: BMO and iShares. Their fees differ too: 0.22% for ZEA.TO and 0.07% for IEFA.

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