ZEM.TO vs. DRFE.TO

Last updated Jul 18, 2026

ZEM.TO (BMO MSCI Emerging Markets Index ETF) and DRFE.TO (Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF) are both Emerging Markets Equities funds. ZEM.TO is passively managed, while DRFE.TO is actively managed. Over the past 5 years, ZEM.TO returned 8.15%/yr vs 11.04%/yr for DRFE.TO. At a 0.37 correlation, their price movements are largely independent.

Performance

ZEM.TO vs. DRFE.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO MSCI Emerging Markets Index ETF (ZEM.TO) and Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF (DRFE.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZEM.TO achieves a 18.84% return, which is significantly higher than DRFE.TO's 17.85% return.

ZEM.TO

• 1D: -1.60%
• 1M: -8.59%
• 6M: 10.76%
• YTD: 18.84%
• 1Y: 34.34%
• 3Y*: 21.25%
• 5Y*: 8.15%
• 10Y*: 9.49%

DRFE.TO

• 1D: -1.72%
• 1M: -8.01%
• 6M: 10.15%
• YTD: 17.85%
• 1Y: 22.92%
• 3Y*: 20.19%
• 5Y*: 11.04%
• 10Y*: —

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

ZEM.TO vs. DRFE.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
ZEM.TO BMO MSCI Emerging Markets Index ETF	18.84%	27.66%	15.21%	7.38%	-15.80%	-2.64%	16.38%	5.17%
DRFE.TO Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF	17.85%	21.25%	18.51%	10.59%	-8.03%	4.88%	7.49%	0.47%

Correlation

The correlation between ZEM.TO and DRFE.TO is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (All Time) Calculated using the full available price history since Mar 7, 2019	0.37

Over the past year, ZEM.TO and DRFE.TO have become more correlated (0.89) than their long-term average of 0.37, meaning their price movements have been converging.

Return for Risk

ZEM.TO vs. DRFE.TO — Risk / Return Rank

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

ZEM.TO

ZEM.TO Risk / Return Rank: 58
ZEM.TO Sharpe Ratio Rank: 51
ZEM.TO Sortino Ratio Rank: 49
ZEM.TO Omega Ratio Rank: 57
ZEM.TO Calmar Ratio Rank: 70
ZEM.TO Martin Ratio Rank: 64

DRFE.TO

DRFE.TO Risk / Return Rank: 43
DRFE.TO Sharpe Ratio Rank: 40
DRFE.TO Sortino Ratio Rank: 37
DRFE.TO Omega Ratio Rank: 44
DRFE.TO Calmar Ratio Rank: 48
DRFE.TO Martin Ratio Rank: 47

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.

ZEM.TO vs. DRFE.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO MSCI Emerging Markets Index ETF (ZEM.TO) and Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF (DRFE.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.

	ZEM.TO	DRFE.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.40	1.09	+0.31
Sortino ratio: Return per unit of downside risk	1.97	1.52	+0.45
Omega ratio: Gain probability vs. loss probability	1.28	1.22	+0.06
Calmar ratio: Return relative to maximum drawdown	2.77	1.87	+0.90
Martin ratio: Return relative to average drawdown	8.87	5.81	+3.06

ZEM.TO vs. DRFE.TO - Sharpe Ratio Comparison

The current ZEM.TO Sharpe Ratio is 1.40, which is comparable to the DRFE.TO Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of ZEM.TO and DRFE.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.

Drawdowns

ZEM.TO vs. DRFE.TO - Drawdown Comparison

The maximum ZEM.TO drawdown since its inception was -34.79%, which is greater than DRFE.TO's maximum drawdown of -25.26%. Use the drawdown chart below to compare losses from any high point for ZEM.TO and DRFE.TO.

Drawdown Indicators

	ZEM.TO	DRFE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-34.79%	-25.26%	-9.53%
Max Drawdown (1Y) Largest decline over 1 year	-12.48%	-12.31%	-0.17%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-14.27%	+0.68%
Max Drawdown (5Y) Largest decline over 5 years	-29.50%	-21.05%	-8.45%
Max Drawdown (10Y) Largest decline over 10 years	-34.79%	—	—
Current Drawdown Current decline from peak	-12.48%	-11.00%	-1.48%
Average Drawdown Average peak-to-trough decline	-10.13%	-6.88%	-3.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.88%	3.96%	-0.08%

Volatility

ZEM.TO vs. DRFE.TO - Volatility Comparison

BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a higher volatility of 10.41% compared to Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF (DRFE.TO) at 9.91%. This indicates that ZEM.TO's price experiences larger fluctuations and is considered to be riskier than DRFE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEM.TO	DRFE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.41%	9.91%	+0.50%
Volatility (6M) Calculated over the trailing 6-month period	22.83%	19.43%	+3.40%
Volatility (1Y) Calculated over the trailing 1-year period	24.58%	21.09%	+3.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.11%	16.61%	+1.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	17.23%	+1.61%

Dividends

ZEM.TO vs. DRFE.TO - Dividend Comparison

ZEM.TO's dividend yield for the trailing twelve months is around 1.88%, more than DRFE.TO's 1.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DRFE.TO Desjardins RI Emerging Markets Multifactor - Net-Zero Emissions Pathway ETF	1.65%	2.10%	2.60%	3.04%	3.00%	2.49%	2.45%	2.05%	0.00%	0.00%	0.00%	0.00%
ZEM.TO BMO MSCI Emerging Markets Index ETF	1.88%	2.23%	2.56%	2.87%	2.89%	2.50%	1.69%	2.42%	2.20%	1.76%	1.85%	2.45%

Frequently Asked Questions

Can I hold both ZEM.TO and DRFE.TO in my portfolio?

ZEM.TO and DRFE.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between ZEM.TO and DRFE.TO?

They also come from different issuers: BMO and Desjardins.