ZTIP.TO vs. AVEM

Last updated Jun 4, 2026

ZTIP.TO (BMO Short-Term US TIPS Index ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - ZTIP.TO is a Inflation-Protected Bonds fund tracking the Bloomberg Barclays U.S. Government Inflation-Linked 0-5 Year Bond Index, while AVEM is a Foreign Large Cap Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 5 years, ZTIP.TO returned 6.29%/yr vs 13.07%/yr for AVEM. At a correlation of -0.11, they often move in opposite directions. ZTIP.TO charges 0.17%/yr vs 0.33%/yr for AVEM.

Performance

ZTIP.TO vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO Short-Term US TIPS Index ETF (ZTIP.TO) and Avantis Emerging Markets Equity ETF (AVEM). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ZTIP.TO is traded in CAD, while AVEM is traded in USD. To make them comparable, the AVEM values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, ZTIP.TO achieves a 3.34% return, which is significantly lower than AVEM's 29.21% return.

ZTIP.TO

• 1D: 0.39%
• 1M: 2.04%
• YTD: 3.34%
• 6M: 1.60%
• 1Y: 5.97%
• 3Y*: 6.13%
• 5Y*: 6.29%
• 10Y*: —

AVEM

• 1D: -0.98%
• 1M: 10.82%
• YTD: 29.21%
• 6M: 29.25%
• 1Y: 57.00%
• 3Y*: 27.53%
• 5Y*: 13.07%
• 10Y*: —

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

ZTIP.TO vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ZTIP.TO BMO Short-Term US TIPS Index ETF	3.34%	1.12%	13.84%	1.93%	3.96%	4.47%
AVEM Avantis Emerging Markets Equity ETF	29.21%	28.32%	16.73%	12.76%	-12.32%	-2.66%

Correlation

The correlation between ZTIP.TO and AVEM is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.11
Correlation (3Y) Calculated over the trailing 3-year period	-0.14
Correlation (5Y) Calculated over the trailing 5-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Jan 27, 2021	-0.11

Return for Risk

ZTIP.TO vs. AVEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZTIP.TO

ZTIP.TO Risk / Return Rank: 36
ZTIP.TO Sharpe Ratio Rank: 37
ZTIP.TO Sortino Ratio Rank: 36
ZTIP.TO Omega Ratio Rank: 47
ZTIP.TO Calmar Ratio Rank: 33
ZTIP.TO Martin Ratio Rank: 30

AVEM

AVEM Risk / Return Rank: 82
AVEM Sharpe Ratio Rank: 85
AVEM Sortino Ratio Rank: 80
AVEM Omega Ratio Rank: 83
AVEM Calmar Ratio Rank: 80
AVEM Martin Ratio Rank: 82

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.

ZTIP.TO vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO Short-Term US TIPS Index ETF (ZTIP.TO) and Avantis Emerging Markets Equity ETF (AVEM). 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.

	ZTIP.TO	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	1.30	3.07	-1.77
Sortino ratio: Return per unit of downside risk	1.84	3.98	-2.13
Omega ratio: Gain probability vs. loss probability	1.30	1.57	-0.28
Calmar ratio: Return relative to maximum drawdown	1.59	4.96	-3.37
Martin ratio: Return relative to average drawdown	4.26	18.11	-13.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZTIP.TO vs. AVEM - Sharpe Ratio Comparison

The current ZTIP.TO Sharpe Ratio is 1.30, which is lower than the AVEM Sharpe Ratio of 3.07. The chart below compares the historical Sharpe Ratios of ZTIP.TO and AVEM, 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

	ZTIP.TO	AVEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.30	3.07	-1.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.99	0.83	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.80	+0.04

Drawdowns

ZTIP.TO vs. AVEM - Drawdown Comparison

The maximum ZTIP.TO drawdown since its inception was -5.60%, smaller than the maximum AVEM drawdown of -29.08%. Use the drawdown chart below to compare losses from any high point for ZTIP.TO and AVEM.

Drawdown Indicators

	ZTIP.TO	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-5.60%	-29.08%	+23.48%
Max Drawdown (1Y) Largest decline over 1 year	-3.78%	-11.55%	+7.77%
Max Drawdown (3Y) Largest decline over 3 years	-5.60%	-15.30%	+9.70%
Max Drawdown (5Y) Largest decline over 5 years	-5.60%	-26.73%	+21.13%
Current Drawdown Current decline from peak	0.00%	-0.98%	+0.98%
Average Drawdown Average peak-to-trough decline	-1.53%	-7.56%	+6.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.41%	3.16%	-1.75%

Volatility

ZTIP.TO vs. AVEM - Volatility Comparison

The current volatility for BMO Short-Term US TIPS Index ETF (ZTIP.TO) is 0.77%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 8.19%. This indicates that ZTIP.TO experiences smaller price fluctuations and is considered to be less risky than AVEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTIP.TO	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.77%	8.19%	-7.42%
Volatility (6M) Calculated over the trailing 6-month period	3.13%	16.05%	-12.92%
Volatility (1Y) Calculated over the trailing 1-year period	4.67%	18.64%	-13.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.36%	15.90%	-9.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.28%	17.79%	-11.51%

ZTIP.TO vs. AVEM - Expense Ratio Comparison

ZTIP.TO has a 0.17% expense ratio, which is lower than AVEM's 0.33% expense ratio.

Dividends

ZTIP.TO vs. AVEM - Dividend Comparison

ZTIP.TO's dividend yield for the trailing twelve months is around 3.43%, more than AVEM's 1.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	1.98%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%
ZTIP.TO BMO Short-Term US TIPS Index ETF	3.43%	3.63%	3.63%	4.91%	4.93%	0.38%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZTIP.TO and AVEM in my portfolio?

ZTIP.TO and AVEM have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZTIP.TO or AVEM?

On fees, ZTIP.TO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZTIP.TO or AVEM?

ZTIP.TO is cheaper with a 0.17% expense ratio, compared with 0.33% for AVEM.

What is the main difference between ZTIP.TO and AVEM?

ZTIP.TO is categorized as Inflation-Protected Bonds, while AVEM is Foreign Large Cap Equities. ZTIP.TO tracks Bloomberg Barclays U.S. Government Inflation-Linked 0-5 Year Bond Index, while AVEM tracks MSCI Emerging Markets Index. They also come from different issuers: BMO and American Century. Their fees differ too: 0.17% for ZTIP.TO and 0.33% for AVEM.