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ZEF.TO vs. XMC.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZEF.TO vs. XMC.TO

Last updated Jul 18, 2026
Documentation

ZEF.TO (BMO Emerging Markets Bond Hedged to CAD Index ETF) and XMC.TO (iShares S&P U.S. Mid-Cap Index ETF) are both exchange-traded funds - ZEF.TO is a Emerging Markets Bonds fund managed by BMO, while XMC.TO is a Mid Cap Blend Equities fund tracking the Morningstar US SMID TR CAD. Over the past 10 years, ZEF.TO returned 1.11%/yr vs 11.49%/yr for XMC.TO. At a 0.20 correlation, their price movements are largely independent.

Performance

ZEF.TO vs. XMC.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) and iShares S&P U.S. Mid-Cap Index ETF (XMC.TO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ZEF.TO achieves a 0.49% return, which is significantly lower than XMC.TO's 17.19% return. Over the past 10 years, ZEF.TO has underperformed XMC.TO with an annualized return of 1.11%, while XMC.TO has yielded a comparatively higher 11.49% annualized return.

ZEF.TO

1D
-0.08%
1M
-0.31%
6M
0.17%
YTD
0.49%
1Y
4.51%
3Y*
5.57%
5Y*
0.01%
10Y*
1.11%

XMC.TO

1D
-0.61%
1M
0.02%
6M
8.97%
YTD
17.19%
1Y
22.46%
3Y*
15.22%
5Y*
11.12%
10Y*
11.49%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ZEF.TO vs. XMC.TO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ZEF.TO
BMO Emerging Markets Bond Hedged to CAD Index ETF		0.49%7.70%4.06%8.98%-17.34%-1.38%4.96%7.57%-3.87%4.85%
XMC.TO
iShares S&P U.S. Mid-Cap Index ETF		17.19%2.37%22.99%13.65%-7.61%23.39%11.11%20.90%-4.83%8.76%

Correlation

The correlation between ZEF.TO and XMC.TO is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.25

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

0.28

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

0.26

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

0.20

Correlation (All Time)
Calculated using the full available price history since Aug 10, 2015

0.20

Compare stocks, funds, or ETFs

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BMO Emerging Markets Bond Hedged to CAD Index ETF

iShares S&P U.S. Mid-Cap Index ETF

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ZEF.TO vs. XEF.TOZEF.TO vs. XCS.TOZEF.TO vs. ZMU.TOZEF.TO vs. ZSP.TOZEF.TO vs. XRB.TOZEF.TO vs. ZEB.TOZEF.TO vs. ZQQ.TO
Often compared with XMC.TO:
XMC.TO vs. XSMC.TOXMC.TO vs. ZEB.TOXMC.TO vs. XSP.TOXMC.TO vs. XSMOXMC.TO vs. IMCGXMC.TO vs. FMDEXMC.TO vs. VOE

Return for Risk

ZEF.TO vs. XMC.TO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ZEF.TO
ZEF.TO Risk / Return Rank: 3030
Overall Rank
ZEF.TO Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
ZEF.TO Sortino Ratio Rank: 2626
Sortino Ratio Rank
ZEF.TO Omega Ratio Rank: 2525
Omega Ratio Rank
ZEF.TO Calmar Ratio Rank: 3535
Calmar Ratio Rank
ZEF.TO Martin Ratio Rank: 3737
Martin Ratio Rank
XMC.TO
XMC.TO Risk / Return Rank: 6161
Overall Rank
XMC.TO Sharpe Ratio Rank: 5454
Sharpe Ratio Rank
XMC.TO Sortino Ratio Rank: 5858
Sortino Ratio Rank
XMC.TO Omega Ratio Rank: 5151
Omega Ratio Rank
XMC.TO Calmar Ratio Rank: 7070
Calmar Ratio Rank
XMC.TO Martin Ratio Rank: 7171
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.

ZEF.TO vs. XMC.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) and iShares S&P U.S. Mid-Cap Index ETF (XMC.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.

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.

ZEF.TOXMC.TODifference
Sharpe ratioReturn per unit of total volatility
0.76
1.43

-0.68

Sortino ratioReturn per unit of downside risk
1.11
2.16

-1.05

Omega ratioGain probability vs. loss probability

1.14

1.26

-0.12

Calmar ratioReturn relative to maximum drawdown

1.37

2.72

-1.35

Martin ratioReturn relative to average drawdown

4.27

9.85

-5.58

ZEF.TO vs. XMC.TO - Sharpe Ratio Comparison

The current ZEF.TO Sharpe Ratio is 0.76, which is lower than the XMC.TO Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of ZEF.TO and XMC.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.

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Drawdowns

ZEF.TO vs. XMC.TO - Drawdown Comparison

The maximum ZEF.TO drawdown since its inception was -23.81%, smaller than the maximum XMC.TO drawdown of -36.38%. Use the drawdown chart below to compare losses from any high point for ZEF.TO and XMC.TO.

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Drawdown Indicators

ZEF.TOXMC.TODifference

Max Drawdown

Largest peak-to-trough decline

-23.81%

-36.38%

+12.57%

Max Drawdown (1Y)

Largest decline over 1 year

-3.30%

-8.28%

+4.98%

Max Drawdown (3Y)

Largest decline over 3 years

-4.04%

-22.70%

+18.66%

Max Drawdown (5Y)

Largest decline over 5 years

-23.81%

-22.70%

-1.11%

Max Drawdown (10Y)

Largest decline over 10 years

-23.81%

-36.38%

+12.57%

Current Drawdown

Current decline from peak

-1.18%

-3.24%

+2.06%

Average Drawdown

Average peak-to-trough decline

-4.59%

-5.00%

+0.41%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.06%

2.29%

-1.23%

Volatility

ZEF.TO vs. XMC.TO - Volatility Comparison

The current volatility for BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF.TO) is 1.71%, while iShares S&P U.S. Mid-Cap Index ETF (XMC.TO) has a volatility of 3.44%. This indicates that ZEF.TO experiences smaller price fluctuations and is considered to be less risky than XMC.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ZEF.TOXMC.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.71%

3.44%

-1.73%

Volatility (6M)

Calculated over the trailing 6-month period

4.14%

11.76%

-7.62%

Volatility (1Y)

Calculated over the trailing 1-year period

6.05%

15.81%

-9.76%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

8.66%

17.67%

-9.01%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

9.82%

18.58%

-8.76%

Dividends

ZEF.TO vs. XMC.TO - Dividend Comparison

ZEF.TO's dividend yield for the trailing twelve months is around 4.22%, more than XMC.TO's 0.91% yield.

PositionTTM20252024202320222021202020192018201720162015
XMC.TO
iShares S&P U.S. Mid-Cap Index ETF		0.91%1.10%0.94%1.17%1.27%0.99%1.07%1.43%1.57%0.98%1.06%0.54%
ZEF.TO
BMO Emerging Markets Bond Hedged to CAD Index ETF		4.22%4.31%4.44%4.43%4.91%4.21%4.45%4.75%4.88%4.56%4.66%4.63%

Frequently Asked Questions

ZEF.TO and XMC.TO have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

ZEF.TO is categorized as Emerging Markets Bonds, while XMC.TO is Mid Cap Blend Equities. They also come from different issuers: BMO and iShares.

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