PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
ZEM.TO vs. XEI.TO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ZEM.TO vs. XEI.TO

Last updated Jun 4, 2026

ZEM.TO (BMO MSCI Emerging Markets Index ETF) and XEI.TO (iShares S&P/TSX Composite High Dividend Index ETF) are both exchange-traded funds - ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index, while XEI.TO is a Canada Equities fund tracking the S&P/TSX Composite High Dividend Index. Both are passively managed. Over the past 10 years, ZEM.TO returned 11.09%/yr vs 12.32%/yr for XEI.TO. At a 0.44 correlation, their price movements are largely independent. ZEM.TO charges 0.27%/yr vs 0.22%/yr for XEI.TO.

Performance

ZEM.TO vs. XEI.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 iShares S&P/TSX Composite High Dividend Index ETF (XEI.TO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, ZEM.TO achieves a 29.19% return, which is significantly higher than XEI.TO's 22.21% return. Over the past 10 years, ZEM.TO has underperformed XEI.TO with an annualized return of 11.09%, while XEI.TO has yielded a comparatively higher 12.32% annualized return.

ZEM.TO

1D
-0.57%
1M
10.97%
YTD
29.19%
6M
29.85%
1Y
58.51%
3Y*
25.35%
5Y*
10.01%
10Y*
11.09%

XEI.TO

1D
0.00%
1M
3.33%
YTD
22.21%
6M
23.56%
1Y
43.59%
3Y*
22.26%
5Y*
15.55%
10Y*
12.32%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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

2026 (YTD)202520242023202220212020201920182017
ZEM.TO
BMO MSCI Emerging Markets Index ETF		29.19%27.66%15.21%7.38%-15.80%-2.64%16.41%13.20%-8.06%30.19%
XEI.TO
iShares S&P/TSX Composite High Dividend Index ETF		22.21%25.96%15.42%6.69%0.41%35.88%-7.53%25.44%-10.85%7.24%

Correlation

The correlation between ZEM.TO and XEI.TO is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.17

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

0.35

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

0.34

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

0.39

Correlation (All Time)
Calculated using the full available price history since Apr 19, 2011

0.44

Over the past year, the correlation between ZEM.TO and XEI.TO has dropped to 0.17 - well below their long-term average of 0.44, suggesting their price drivers have been diverging.

ZEM.TO vs. XEI.TO - Sectors Allocation Comparison

Sectors
ZEM.TO
XEI.TO

Technology

37.0%
0.7%

Financial Services

20.1%
31.4%

Consumer Cyclical

9.7%
6.2%

Industrials

7.6%
0.7%

Communication Services

6.8%
7.6%

Basic Materials

6.4%
4.6%

Energy

4.0%
32.1%

Consumer Defensive

3.0%
0.5%

Healthcare

2.7%
0.2%

Utilities

2.0%
11.2%

Real Estate

0.8%
4.8%

Technology

ZEM.TO
37.0%
XEI.TO
0.7%

Financial Services

ZEM.TO
20.1%
XEI.TO
31.4%

Consumer Cyclical

ZEM.TO
9.7%
XEI.TO
6.2%

Industrials

ZEM.TO
7.6%
XEI.TO
0.7%

Communication Services

ZEM.TO
6.8%
XEI.TO
7.6%

Basic Materials

ZEM.TO
6.4%
XEI.TO
4.6%

Energy

ZEM.TO
4.0%
XEI.TO
32.1%

Consumer Defensive

ZEM.TO
3.0%
XEI.TO
0.5%

Healthcare

ZEM.TO
2.7%
XEI.TO
0.2%

Utilities

ZEM.TO
2.0%
XEI.TO
11.2%

Real Estate

ZEM.TO
0.8%
XEI.TO
4.8%

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 Emerging Markets Index ETF

iShares S&P/TSX Composite High Dividend Index ETF

Often compared with ZEM.TO:
ZEM.TO vs. XEC.TOZEM.TO vs. VEE.TOZEM.TO vs. XEF.TOZEM.TO vs. VIU.TOZEM.TO vs. XSEM.TOZEM.TO vs. xec.TOZEM.TO vs. ZCN.TO
Often compared with XEI.TO:
XEI.TO vs. VDY.TOXEI.TO vs. XDIV.TOXEI.TO vs. XEQT.TOXEI.TO vs. VFV.TOXEI.TO vs. ZDV.TOXEI.TO vs. CDZ.TOXEI.TO vs. XDV.TO

Return for Risk

ZEM.TO vs. XEI.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: 8585
Overall Rank
ZEM.TO Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
ZEM.TO Sortino Ratio Rank: 8181
Sortino Ratio Rank
ZEM.TO Omega Ratio Rank: 8686
Omega Ratio Rank
ZEM.TO Calmar Ratio Rank: 8787
Calmar Ratio Rank
ZEM.TO Martin Ratio Rank: 8686
Martin Ratio Rank
XEI.TO
XEI.TO Risk / Return Rank: 9898
Overall Rank
XEI.TO Sharpe Ratio Rank: 9898
Sharpe Ratio Rank
XEI.TO Sortino Ratio Rank: 9898
Sortino Ratio Rank
XEI.TO Omega Ratio Rank: 9898
Omega Ratio Rank
XEI.TO Calmar Ratio Rank: 9898
Calmar Ratio Rank
XEI.TO Martin Ratio Rank: 9898
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.

ZEM.TO vs. XEI.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 iShares S&P/TSX Composite High Dividend Index ETF (XEI.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.TOXEI.TODifference
Sharpe ratioReturn per unit of total volatility
2.79
6.08

-3.28

Sortino ratioReturn per unit of downside risk
3.70
9.07

-5.37

Omega ratioGain probability vs. loss probability

1.54

2.27

-0.73

Calmar ratioReturn relative to maximum drawdown

5.05

19.53

-14.48

Martin ratioReturn relative to average drawdown

18.35

66.28

-47.94

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. XEI.TO - Sharpe Ratio Comparison

The current ZEM.TO Sharpe Ratio is 2.79, which is lower than the XEI.TO Sharpe Ratio of 6.08. The chart below compares the historical Sharpe Ratios of ZEM.TO and XEI.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.

Loading charts...

Sharpe Ratios by Period

ZEM.TOXEI.TODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.79

6.08

-3.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.59

1.39

-0.81

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.60

0.77

-0.17

Sharpe Ratio (All Time)

Calculated using the full available price history

0.42

0.67

-0.25

Drawdowns

ZEM.TO vs. XEI.TO - Drawdown Comparison

The maximum ZEM.TO drawdown since its inception was -34.79%, smaller than the maximum XEI.TO drawdown of -45.51%. Use the drawdown chart below to compare losses from any high point for ZEM.TO and XEI.TO.

Loading charts...

Drawdown Indicators

ZEM.TOXEI.TODifference

Max Drawdown

Largest peak-to-trough decline

-34.79%

-45.51%

+10.72%

Max Drawdown (1Y)

Largest decline over 1 year

-11.64%

-2.24%

-9.40%

Max Drawdown (3Y)

Largest decline over 3 years

-13.59%

-9.92%

-3.67%

Max Drawdown (5Y)

Largest decline over 5 years

-30.69%

-17.32%

-13.37%

Max Drawdown (10Y)

Largest decline over 10 years

-34.79%

-45.51%

+10.72%

Current Drawdown

Current decline from peak

-0.57%

-0.76%

+0.19%

Average Drawdown

Average peak-to-trough decline

-10.00%

-5.05%

-4.95%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.20%

0.66%

+2.54%

Volatility

ZEM.TO vs. XEI.TO - Volatility Comparison

BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a higher volatility of 8.78% compared to iShares S&P/TSX Composite High Dividend Index ETF (XEI.TO) at 2.87%. This indicates that ZEM.TO's price experiences larger fluctuations and is considered to be riskier than XEI.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

ZEM.TOXEI.TODifference

Volatility (1M)

Calculated over the trailing 1-month period

8.78%

2.87%

+5.91%

Volatility (6M)

Calculated over the trailing 6-month period

18.99%

6.01%

+12.98%

Volatility (1Y)

Calculated over the trailing 1-year period

21.06%

7.21%

+13.85%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.21%

11.24%

+5.97%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.56%

16.01%

+2.55%

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

ZEM.TO has a 0.27% expense ratio, which is higher than XEI.TO's 0.22% 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

ZEM.TO vs. XEI.TO - Dividend Comparison

ZEM.TO's dividend yield for the trailing twelve months is around 1.73%, less than XEI.TO's 3.56% yield.

PositionTTM20252024202320222021202020192018201720162015
XEI.TO
iShares S&P/TSX Composite High Dividend Index ETF		3.56%4.39%5.56%5.08%4.78%3.65%5.13%4.71%5.53%4.37%4.51%5.75%
ZEM.TO
BMO MSCI Emerging Markets Index ETF		1.73%2.23%2.56%2.87%2.89%2.50%1.69%2.42%2.20%1.76%4.19%2.45%

Frequently Asked Questions

ZEM.TO and XEI.TO have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XEI.TO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XEI.TO is cheaper with a 0.22% expense ratio, compared with 0.27% for ZEM.TO.

ZEM.TO is categorized as Emerging Markets Equities, while XEI.TO is Canada Equities. ZEM.TO tracks MSCI Emerging Markets Index, while XEI.TO tracks S&P/TSX Composite High Dividend Index. They also come from different issuers: BMO and iShares. Their fees differ too: 0.27% for ZEM.TO and 0.22% for XEI.TO.

Portfolio Optimizer

Find the right allocation for ZEM.TO and XEI.TO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer