ZEM.TO vs. VEE.TO

Last updated Apr 1, 2026

Compare and contrast key facts about BMO MSCI Emerging Markets Index ETF (ZEM.TO) and Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO).

ZEM.TO and VEE.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZEM.TO is a passively managed fund by BMO that tracks the performance of the MSCI Emerging Markets Index. It was launched on Oct 19, 2009. VEE.TO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. It was launched on Nov 30, 2011. Both ZEM.TO and VEE.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.

Performance

ZEM.TO vs. VEE.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 Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO). The values are adjusted to include any dividend payments, if applicable.

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZEM.TO BMO MSCI Emerging Markets Index ETF	5.85%	27.66%	15.21%	7.38%	-15.80%	-2.64%	16.41%	13.20%	-8.06%	30.19%
VEE.TO Vanguard FTSE Emerging Markets All Cap Index ETF	1.82%	19.32%	19.06%	6.24%	-12.78%	0.05%	12.32%	14.33%	-7.95%	22.55%

Returns By Period

In the year-to-date period, ZEM.TO achieves a 5.85% return, which is significantly higher than VEE.TO's 1.82% return. Over the past 10 years, ZEM.TO has outperformed VEE.TO with an annualized return of 8.75%, while VEE.TO has yielded a comparatively lower 7.75% annualized return.

ZEM.TO

• 1D: 3.49%
• 1M: -7.48%
• YTD: 5.85%
• 6M: 8.61%
• 1Y: 30.27%
• 3Y*: 17.10%
• 5Y*: 5.87%
• 10Y*: 8.75%

VEE.TO

• 1D: 3.01%
• 1M: -5.08%
• YTD: 1.82%
• 6M: 1.29%
• 1Y: 18.12%
• 3Y*: 14.09%
• 5Y*: 5.36%
• 10Y*: 7.75%

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

ZEM.TO vs. VEE.TO - Expense Ratio Comparison

ZEM.TO has a 0.27% expense ratio, which is higher than VEE.TO's 0.25% 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%.

ZEM.TO

BMO MSCI Emerging Markets Index ETF

VEE.TO

Vanguard FTSE Emerging Markets All Cap Index ETF

Return for Risk

ZEM.TO vs. VEE.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: 82
ZEM.TO Sharpe Ratio Rank: 80
ZEM.TO Sortino Ratio Rank: 81
ZEM.TO Omega Ratio Rank: 81
ZEM.TO Calmar Ratio Rank: 87
ZEM.TO Martin Ratio Rank: 82

VEE.TO

VEE.TO Risk / Return Rank: 61
VEE.TO Sharpe Ratio Rank: 63
VEE.TO Sortino Ratio Rank: 61
VEE.TO Omega Ratio Rank: 62
VEE.TO Calmar Ratio Rank: 61
VEE.TO Martin Ratio Rank: 59

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. VEE.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 Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.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.

	ZEM.TO	VEE.TO	Difference
Sharpe ratio Return per unit of total volatility	1.45	1.06	+0.39
Sortino ratio Return per unit of downside risk	2.02	1.50	+0.52
Omega ratio Gain probability vs. loss probability	1.30	1.22	+0.08
Calmar ratio Return relative to maximum drawdown	2.66	1.45	+1.21
Martin ratio Return relative to average drawdown	8.76	5.34	+3.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

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

The current ZEM.TO Sharpe Ratio is 1.45, which is higher than the VEE.TO Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of ZEM.TO and VEE.TO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ZEM.TO	VEE.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.45	1.06	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.36	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.46	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.40	-0.05

Correlation

The correlation between ZEM.TO and VEE.TO is 0.91, 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.

Dividends

ZEM.TO vs. VEE.TO - Dividend Comparison

ZEM.TO's dividend yield for the trailing twelve months is around 2.11%, which matches VEE.TO's 2.13% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZEM.TO BMO MSCI Emerging Markets Index ETF	2.11%	2.23%	2.56%	2.87%	2.89%	2.50%	1.69%	2.42%	2.20%	1.76%	4.19%	2.45%
VEE.TO Vanguard FTSE Emerging Markets All Cap Index ETF	2.13%	2.26%	2.45%	2.83%	3.35%	2.18%	1.61%	2.71%	2.21%	1.89%	1.99%	2.53%

Drawdowns

ZEM.TO vs. VEE.TO - Drawdown Comparison

The maximum ZEM.TO drawdown since its inception was -34.79%, which is greater than VEE.TO's maximum drawdown of -29.84%. Use the drawdown chart below to compare losses from any high point for ZEM.TO and VEE.TO.

Drawdown Indicators

	ZEM.TO	VEE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-34.79%	-29.84%	-4.95%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-12.77%	+1.13%
Max Drawdown (5Y) Largest decline over 5 years	-30.69%	-26.10%	-4.59%
Max Drawdown (10Y) Largest decline over 10 years	-34.79%	-29.84%	-4.95%
Current Drawdown Current decline from peak	-8.56%	-6.84%	-1.72%
Average Drawdown Average peak-to-trough decline	-10.09%	-8.82%	-1.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	3.46%	+0.07%

Volatility

ZEM.TO vs. VEE.TO - Volatility Comparison

BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a higher volatility of 13.62% compared to Vanguard FTSE Emerging Markets All Cap Index ETF (VEE.TO) at 8.09%. This indicates that ZEM.TO's price experiences larger fluctuations and is considered to be riskier than VEE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEM.TO	VEE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.62%	8.09%	+5.53%
Volatility (6M) Calculated over the trailing 6-month period	16.72%	11.79%	+4.93%
Volatility (1Y) Calculated over the trailing 1-year period	20.92%	17.18%	+3.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.71%	15.09%	+1.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.28%	16.87%	+1.41%