ZLE.TO vs. XEM.TO
ZLE.TO (BMO Low Volatility Emerging Markets Equity ETF) and XEM.TO (iShares MSCI Emerging Markets Index ETF) are both Emerging Markets Equities funds. Over the past 10 years, ZLE.TO returned 6.17%/yr vs 10.10%/yr for XEM.TO. At a 0.47 correlation, their price movements are largely independent. ZLE.TO charges 0.45%/yr vs 0.81%/yr for XEM.TO.
Performance
ZLE.TO vs. XEM.TO - Performance Comparison
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Returns By Period
In the year-to-date period, ZLE.TO achieves a 34.50% return, which is significantly higher than XEM.TO's 29.70% return. Over the past 10 years, ZLE.TO has underperformed XEM.TO with an annualized return of 6.17%, while XEM.TO has yielded a comparatively higher 10.10% annualized return.
ZLE.TO
- 1D
- 1.49%
- 1M
- 6.37%
- YTD
- 34.50%
- 6M
- 31.59%
- 1Y
- 47.27%
- 3Y*
- 24.48%
- 5Y*
- 10.16%
- 10Y*
- 6.17%
XEM.TO
- 1D
- 1.29%
- 1M
- 3.04%
- YTD
- 29.70%
- 6M
- 29.54%
- 1Y
- 50.11%
- 3Y*
- 25.16%
- 5Y*
- 9.32%
- 10Y*
- 10.10%
ZLE.TO vs. XEM.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZLE.TO BMO Low Volatility Emerging Markets Equity ETF | 34.50% | 18.71% | 15.26% | 6.15% | -11.98% | -6.43% | -1.08% | 11.00% | -7.15% | 14.79% |
XEM.TO iShares MSCI Emerging Markets Index ETF | 29.70% | 27.25% | 14.98% | 6.49% | -15.74% | -4.09% | 14.12% | 11.47% | -8.06% | 27.79% |
Correlation
The correlation between ZLE.TO and XEM.TO is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 17, 2016 | 0.47 |
Over the past year, ZLE.TO and XEM.TO have become more correlated (0.68) than their long-term average of 0.47, meaning their price movements have been converging.
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Return for Risk
ZLE.TO vs. XEM.TO — Risk / Return Rank
ZLE.TO
XEM.TO
ZLE.TO vs. XEM.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Low Volatility Emerging Markets Equity ETF (ZLE.TO) and iShares MSCI Emerging Markets Index ETF (XEM.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.
| ZLE.TO | XEM.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.58 | ||
| Sortino ratioReturn per unit of downside risk | +0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.44 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 5.83 | 4.10 | +1.72 |
| Martin ratioReturn relative to average drawdown | 18.60 | 14.08 | +4.52 |
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Drawdowns
ZLE.TO vs. XEM.TO - Drawdown Comparison
The maximum ZLE.TO drawdown since its inception was -31.71%, smaller than the maximum XEM.TO drawdown of -35.27%. Use the drawdown chart below to compare losses from any high point for ZLE.TO and XEM.TO.
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Drawdown Indicators
| ZLE.TO | XEM.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.71% | -35.27% | +3.56% |
Max Drawdown (1Y)Largest decline over 1 year | -8.15% | -12.27% | +4.12% |
Max Drawdown (3Y)Largest decline over 3 years | -10.91% | -15.30% | +4.39% |
Max Drawdown (5Y)Largest decline over 5 years | -25.74% | -30.29% | +4.55% |
Max Drawdown (10Y)Largest decline over 10 years | -31.71% | -35.27% | +3.56% |
Current DrawdownCurrent decline from peak | -2.34% | -3.69% | +1.35% |
Average DrawdownAverage peak-to-trough decline | -9.40% | -10.47% | +1.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.55% | 3.57% | -1.02% |
Volatility
ZLE.TO vs. XEM.TO - Volatility Comparison
The current volatility for BMO Low Volatility Emerging Markets Equity ETF (ZLE.TO) is 8.77%, while iShares MSCI Emerging Markets Index ETF (XEM.TO) has a volatility of 11.71%. This indicates that ZLE.TO experiences smaller price fluctuations and is considered to be less risky than XEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZLE.TO | XEM.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.77% | 11.71% | -2.94% |
Volatility (6M)Calculated over the trailing 6-month period | 14.43% | 20.13% | -5.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.54% | 21.95% | -5.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.52% | 17.42% | -3.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.42% | 18.28% | -3.86% |
ZLE.TO vs. XEM.TO - Expense Ratio Comparison
ZLE.TO has a 0.45% expense ratio, which is lower than XEM.TO's 0.81% expense ratio.
Dividends
ZLE.TO vs. XEM.TO - Dividend Comparison
ZLE.TO's dividend yield for the trailing twelve months is around 2.33%, more than XEM.TO's 1.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XEM.TO iShares MSCI Emerging Markets Index ETF | 1.39% | 1.90% | 2.08% | 2.39% | 2.10% | 1.91% | 1.28% | 2.56% | 1.95% | 1.78% | 1.97% | 2.24% |
ZLE.TO BMO Low Volatility Emerging Markets Equity ETF | 2.33% | 3.13% | 3.61% | 3.54% | 3.62% | 2.21% | 2.11% | 1.82% | 2.13% | 1.39% | 0.76% | 0.00% |
Frequently Asked Questions
ZLE.TO and XEM.TO have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ZLE.TO is cheaper at 0.45% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ZLE.TO is cheaper with a 0.45% expense ratio, compared with 0.81% for XEM.TO.
They also come from different issuers: BMO and iShares. Their fees differ too: 0.45% for ZLE.TO and 0.81% for XEM.TO.
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