ZEM.TO vs. ZEO.TO

Last updated Jun 4, 2026

ZEM.TO (BMO MSCI Emerging Markets Index ETF) and ZEO.TO (BMO Equal Weight Oil & Gas Index ETF) are both exchange-traded funds - ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index, while ZEO.TO is a Energy Equities fund tracking the Solactive Equal Weight Canada Oil & Gas Index. Both are passively managed. Over the past 10 years, ZEM.TO returned 11.09%/yr vs 10.67%/yr for ZEO.TO. At a 0.33 correlation, their price movements are largely independent. ZEM.TO charges 0.27%/yr vs 0.60%/yr for ZEO.TO.

Performance

ZEM.TO vs. ZEO.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 BMO Equal Weight Oil & Gas Index ETF (ZEO.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 29.19% return, which is significantly lower than ZEO.TO's 37.72% return. Both investments have delivered pretty close results over the past 10 years, with ZEM.TO having a 11.09% annualized return and ZEO.TO not far behind at 10.67%.

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%

ZEO.TO

• 1D: 0.65%
• 1M: 2.51%
• YTD: 37.72%
• 6M: 32.21%
• 1Y: 50.73%
• 3Y*: 27.08%
• 5Y*: 25.42%
• 10Y*: 10.67%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
ZEO.TO BMO Equal Weight Oil & Gas Index ETF	37.72%	12.35%	21.51%	5.98%	39.67%	63.65%	-28.56%	16.50%	-25.62%	-12.74%

Correlation

The correlation between ZEM.TO and ZEO.TO is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Oct 27, 2009	0.33

The correlation between ZEM.TO and ZEO.TO shifts across timeframes, from -0.08 (1 year) to 0.33 (all time), reflecting how their relationship changes across market environments.

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

Sectors	ZEM.TO	ZEO.TO
Technology	37.0%	-
Financial Services	20.1%	-
Consumer Cyclical	9.7%	-
Industrials	7.6%	-
Communication Services	6.8%	-
Basic Materials	6.4%	-
Energy	4.0%	100.0%
Consumer Defensive	3.0%	-
Healthcare	2.7%	-
Utilities	2.0%	-
Real Estate	0.8%	-

Return for Risk

ZEM.TO vs. ZEO.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: 85
ZEM.TO Sharpe Ratio Rank: 84
ZEM.TO Sortino Ratio Rank: 81
ZEM.TO Omega Ratio Rank: 86
ZEM.TO Calmar Ratio Rank: 87
ZEM.TO Martin Ratio Rank: 86

ZEO.TO

ZEO.TO Risk / Return Rank: 86
ZEO.TO Sharpe Ratio Rank: 89
ZEO.TO Sortino Ratio Rank: 85
ZEO.TO Omega Ratio Rank: 84
ZEO.TO Calmar Ratio Rank: 89
ZEO.TO Martin Ratio Rank: 84

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. ZEO.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 BMO Equal Weight Oil & Gas Index ETF (ZEO.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	ZEO.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.79	3.02	-0.23
Sortino ratio: Return per unit of downside risk	3.70	3.86	-0.16
Omega ratio: Gain probability vs. loss probability	1.54	1.52	+0.02
Calmar ratio: Return relative to maximum drawdown	5.05	5.34	-0.29
Martin ratio: Return relative to average drawdown	18.35	17.25	+1.10
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. ZEO.TO - Sharpe Ratio Comparison

The current ZEM.TO Sharpe Ratio is 2.79, which is comparable to the ZEO.TO Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of ZEM.TO and ZEO.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.

Sharpe Ratios by Period

	ZEM.TO	ZEO.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.79	3.02	-0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	1.21	-0.62
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.39	+0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.00	+0.42

Drawdowns

ZEM.TO vs. ZEO.TO - Drawdown Comparison

The maximum ZEM.TO drawdown since its inception was -34.79%, smaller than the maximum ZEO.TO drawdown of -77.71%. Use the drawdown chart below to compare losses from any high point for ZEM.TO and ZEO.TO.

Drawdown Indicators

	ZEM.TO	ZEO.TO	Difference
Max Drawdown Largest peak-to-trough decline	-34.79%	-77.71%	+42.92%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-9.54%	-2.10%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-17.62%	+4.03%
Max Drawdown (5Y) Largest decline over 5 years	-30.69%	-22.59%	-8.10%
Max Drawdown (10Y) Largest decline over 10 years	-34.79%	-72.03%	+37.24%
Current Drawdown Current decline from peak	-0.57%	-2.93%	+2.36%
Average Drawdown Average peak-to-trough decline	-10.00%	-21.98%	+11.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	2.95%	+0.25%

Volatility

ZEM.TO vs. ZEO.TO - Volatility Comparison

BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a higher volatility of 8.78% compared to BMO Equal Weight Oil & Gas Index ETF (ZEO.TO) at 6.99%. This indicates that ZEM.TO's price experiences larger fluctuations and is considered to be riskier than ZEO.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEM.TO	ZEO.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.78%	6.99%	+1.79%
Volatility (6M) Calculated over the trailing 6-month period	18.99%	14.57%	+4.42%
Volatility (1Y) Calculated over the trailing 1-year period	21.06%	16.92%	+4.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	21.17%	-3.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.56%	27.27%	-8.71%

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

ZEM.TO has a 0.27% expense ratio, which is lower than ZEO.TO's 0.60% expense ratio.

Dividends

ZEM.TO vs. ZEO.TO - Dividend Comparison

ZEM.TO's dividend yield for the trailing twelve months is around 1.73%, less than ZEO.TO's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZEO.TO BMO Equal Weight Oil & Gas Index ETF	2.59%	3.42%	3.86%	4.82%	4.69%	3.27%	5.54%	3.55%	3.57%	2.46%	2.50%	4.09%

Frequently Asked Questions

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

ZEM.TO and ZEO.TO have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZEM.TO or ZEO.TO?

On fees, ZEM.TO is cheaper at 0.27% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZEM.TO or ZEO.TO?

ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.60% for ZEO.TO.

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

ZEM.TO is categorized as Emerging Markets Equities, while ZEO.TO is Energy Equities. ZEM.TO tracks MSCI Emerging Markets Index, while ZEO.TO tracks Solactive Equal Weight Canada Oil & Gas Index. Their fees differ too: 0.27% for ZEM.TO and 0.60% for ZEO.TO.