ZEA.TO vs. XEF.TO
Compare and contrast key facts about BMO MSCI EAFE Index ETF (ZEA.TO) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO).
ZEA.TO and XEF.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZEA.TO is a passively managed fund by BMO that tracks the performance of the MSCI EAFE Index. It was launched on Feb 10, 2014. XEF.TO is a passively managed fund by iShares that tracks the performance of the Morningstar DM xNA GR CAD. It was launched on Apr 10, 2013. Both ZEA.TO and XEF.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ZEA.TO or XEF.TO.
Key characteristics
| ZEA.TO | XEF.TO | |
|---|---|---|
| YTD Return | 9.61% | 10.02% |
| 1Y Return | 14.61% | 14.58% |
| 3Y Return (Ann) | 5.07% | 4.46% |
| 5Y Return (Ann) | 6.56% | 6.37% |
| 10Y Return (Ann) | 7.19% | 7.73% |
| Sharpe Ratio | 1.56 | 1.58 |
| Sortino Ratio | 2.20 | 2.23 |
| Omega Ratio | 1.27 | 1.28 |
| Calmar Ratio | 2.60 | 2.67 |
| Martin Ratio | 10.21 | 10.28 |
| Ulcer Index | 1.60% | 1.63% |
| Daily Std Dev | 10.49% | 10.59% |
| Max Drawdown | -27.80% | -28.50% |
| Current Drawdown | -4.57% | -4.87% |
Correlation
The correlation between ZEA.TO and XEF.TO is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ZEA.TO vs. XEF.TO - Performance Comparison
The year-to-date returns for both investments are quite close, with ZEA.TO having a 9.61% return and XEF.TO slightly higher at 10.02%. Over the past 10 years, ZEA.TO has underperformed XEF.TO with an annualized return of 7.19%, while XEF.TO has yielded a comparatively higher 7.73% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ZEA.TO vs. XEF.TO - Expense Ratio Comparison
Both ZEA.TO and XEF.TO have an expense ratio of 0.22%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
ZEA.TO vs. XEF.TO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO MSCI EAFE Index ETF (ZEA.TO) and iShares Core MSCI EAFE IMI Index ETF (XEF.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.
Dividends
ZEA.TO vs. XEF.TO - Dividend Comparison
ZEA.TO's dividend yield for the trailing twelve months is around 2.81%, more than XEF.TO's 2.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZEA.TO BMO MSCI EAFE Index ETF | 2.81% | 3.02% | 3.08% | 2.49% | 2.74% | 2.95% | 3.05% | 2.40% | 2.80% | 2.43% | 2.37% | 0.00% |
XEF.TO iShares Core MSCI EAFE IMI Index ETF | 2.61% | 2.75% | 2.93% | 2.42% | 1.93% | 2.72% | 2.76% | 2.10% | 2.42% | 2.42% | 5.21% | 1.72% |
Drawdowns
ZEA.TO vs. XEF.TO - Drawdown Comparison
The maximum ZEA.TO drawdown since its inception was -27.80%, roughly equal to the maximum XEF.TO drawdown of -28.50%. Use the drawdown chart below to compare losses from any high point for ZEA.TO and XEF.TO. For additional features, visit the drawdowns tool.
Volatility
ZEA.TO vs. XEF.TO - Volatility Comparison
BMO MSCI EAFE Index ETF (ZEA.TO) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO) have volatilities of 4.02% and 3.92%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.