ZEM.TO vs. ZLU.TO

Last updated Jul 14, 2026

ZEM.TO (BMO MSCI Emerging Markets Index ETF) and ZLU.TO (BMO Low Volatility US Equity ETF (CAD)) are both exchange-traded funds - ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index, while ZLU.TO is a Large Cap Blend Equities fund actively managed by BMO. ZEM.TO is passively managed, while ZLU.TO is actively managed. Over the past 10 years, ZEM.TO returned 9.86%/yr vs 9.47%/yr for ZLU.TO. At a 0.22 correlation, their price movements are largely independent. ZEM.TO charges 0.27%/yr vs 0.33%/yr for ZLU.TO.

Performance

ZEM.TO vs. ZLU.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 Low Volatility US Equity ETF (CAD) (ZLU.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 22.30% return, which is significantly higher than ZLU.TO's 15.49% return. Both investments have delivered pretty close results over the past 10 years, with ZEM.TO having a 9.86% annualized return and ZLU.TO not far behind at 9.47%.

ZEM.TO

• 1D: -3.44%
• 1M: -3.13%
• 6M: 14.02%
• YTD: 22.30%
• 1Y: 41.34%
• 3Y*: 22.00%
• 5Y*: 8.85%
• 10Y*: 9.86%

ZLU.TO

• 1D: 0.44%
• 1M: 3.09%
• 6M: 12.64%
• YTD: 15.49%
• 1Y: 16.78%
• 3Y*: 12.89%
• 5Y*: 10.67%
• 10Y*: 9.47%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZEM.TO BMO MSCI Emerging Markets Index ETF	22.30%	27.66%	15.21%	7.38%	-15.80%	-2.64%	16.38%	13.23%	-8.06%	30.19%
ZLU.TO BMO Low Volatility US Equity ETF (CAD)	15.49%	2.03%	21.63%	-3.26%	7.95%	20.72%	2.06%	20.48%	8.39%	5.06%

Correlation

The correlation between ZEM.TO and ZLU.TO is 0.09, 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	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (10Y) Calculated over the trailing 10-year period	0.18
Correlation (All Time) Calculated using the full available price history since Mar 28, 2013	0.22

The correlation between ZEM.TO and ZLU.TO shifts across timeframes, from 0.08 (5 years) to 0.22 (all time), reflecting how their relationship changes across market environments.

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

Sectors	ZEM.TO	ZLU.TO
Technology	43.4%	20.4%
Financial Services	18.3%	10.6%
Consumer Cyclical	8.8%	3.8%
Industrials	6.8%	7.9%
Communication Services	6.0%	4.3%
Basic Materials	5.6%	0.7%
Energy	3.5%	0.4%
Consumer Defensive	2.7%	11.3%
Healthcare	2.4%	17.3%
Utilities	1.7%	19.4%
Real Estate	0.7%	3.9%

Return for Risk

ZEM.TO vs. ZLU.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: 72
ZEM.TO Sharpe Ratio Rank: 65
ZEM.TO Sortino Ratio Rank: 62
ZEM.TO Omega Ratio Rank: 72
ZEM.TO Calmar Ratio Rank: 83
ZEM.TO Martin Ratio Rank: 76

ZLU.TO

ZLU.TO Risk / Return Rank: 53
ZLU.TO Sharpe Ratio Rank: 57
ZLU.TO Sortino Ratio Rank: 52
ZLU.TO Omega Ratio Rank: 55
ZLU.TO Calmar Ratio Rank: 57
ZLU.TO Martin Ratio Rank: 44

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. ZLU.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 Low Volatility US Equity ETF (CAD) (ZLU.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	ZLU.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.52	+0.17
Sortino ratio: Return per unit of downside risk	2.30	2.04	+0.26
Omega ratio: Gain probability vs. loss probability	1.34	1.27	+0.06
Calmar ratio: Return relative to maximum drawdown	3.57	2.24	+1.32
Martin ratio: Return relative to average drawdown	11.37	5.66	+5.72

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

The current ZEM.TO Sharpe Ratio is 1.70, which is comparable to the ZLU.TO Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of ZEM.TO and ZLU.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. ZLU.TO - Drawdown Comparison

The maximum ZEM.TO drawdown since its inception was -34.79%, which is greater than ZLU.TO's maximum drawdown of -25.49%. Use the drawdown chart below to compare losses from any high point for ZEM.TO and ZLU.TO.

Drawdown Indicators

	ZEM.TO	ZLU.TO	Difference
Max Drawdown Largest peak-to-trough decline	-34.79%	-25.49%	-9.30%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-7.52%	-4.12%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-9.15%	-4.44%
Max Drawdown (5Y) Largest decline over 5 years	-29.90%	-10.30%	-19.60%
Max Drawdown (10Y) Largest decline over 10 years	-34.79%	-25.49%	-9.30%
Current Drawdown Current decline from peak	-9.93%	-1.71%	-8.22%
Average Drawdown Average peak-to-trough decline	-10.13%	-3.08%	-7.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.65%	2.97%	+0.68%

Volatility

ZEM.TO vs. ZLU.TO - Volatility Comparison

BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a higher volatility of 11.03% compared to BMO Low Volatility US Equity ETF (CAD) (ZLU.TO) at 4.32%. This indicates that ZEM.TO's price experiences larger fluctuations and is considered to be riskier than ZLU.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZEM.TO	ZLU.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.03%	4.32%	+6.71%
Volatility (6M) Calculated over the trailing 6-month period	22.69%	8.14%	+14.55%
Volatility (1Y) Calculated over the trailing 1-year period	24.50%	11.08%	+13.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.09%	11.47%	+6.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.83%	13.94%	+4.89%

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

ZEM.TO has a 0.27% expense ratio, which is lower than ZLU.TO's 0.33% expense ratio.

Dividends

ZEM.TO vs. ZLU.TO - Dividend Comparison

ZEM.TO's dividend yield for the trailing twelve months is around 1.83%, more than ZLU.TO's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ZEM.TO BMO MSCI Emerging Markets Index ETF	1.83%	2.23%	2.56%	2.87%	2.89%	2.50%	1.69%	2.42%	2.20%	1.76%	1.85%	2.45%
ZLU.TO BMO Low Volatility US Equity ETF (CAD)	1.67%	1.95%	1.97%	2.39%	1.95%	1.76%	1.83%	1.57%	1.89%	2.00%	2.36%	1.80%

Frequently Asked Questions

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

ZEM.TO and ZLU.TO have a correlation of 0.09, 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 ZLU.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 ZLU.TO?

ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.33% for ZLU.TO.

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

ZEM.TO is categorized as Emerging Markets Equities, while ZLU.TO is Large Cap Blend Equities. Their fees differ too: 0.27% for ZEM.TO and 0.33% for ZLU.TO.