ZVC.TO vs. ZEM.TO

Last updated Jul 14, 2026

ZVC.TO (BMO MSCI Canada Value Index ETF) and ZEM.TO (BMO MSCI Emerging Markets Index ETF) are both exchange-traded funds - ZVC.TO is a Large Cap Value Equities fund tracking the MSCI Canada Enhanced Value Capped Index, while ZEM.TO is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 5 years, ZVC.TO returned 17.33%/yr vs 8.85%/yr for ZEM.TO. At a 0.25 correlation, their price movements are largely independent. ZVC.TO charges 0.40%/yr vs 0.27%/yr for ZEM.TO.

Performance

ZVC.TO vs. ZEM.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in BMO MSCI Canada Value Index ETF (ZVC.TO) and BMO MSCI Emerging Markets Index ETF (ZEM.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZVC.TO achieves a 17.72% return, which is significantly lower than ZEM.TO's 22.30% return.

ZVC.TO

• 1D: 0.41%
• 1M: 1.07%
• 6M: 14.32%
• YTD: 17.72%
• 1Y: 41.55%
• 3Y*: 23.53%
• 5Y*: 17.33%
• 10Y*: —

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%

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZVC.TO BMO MSCI Canada Value Index ETF	17.72%	31.10%	15.40%	11.10%	2.25%	31.48%	-3.92%	10.04%	-3.84%	3.32%
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%	4.69%

Correlation

The correlation between ZVC.TO and ZEM.TO is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Oct 20, 2017	0.25

The correlation between ZVC.TO and ZEM.TO shifts across timeframes, from 0.25 (all time) to 0.41 (3 years), reflecting how their relationship changes across market environments.

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

Sectors	ZVC.TO	ZEM.TO
Financial Services	38.0%	18.3%
Energy	19.2%	3.5%
Basic Materials	15.5%	5.6%
Industrials	10.0%	6.8%
Technology	7.9%	43.4%
Consumer Cyclical	4.2%	8.8%
Consumer Defensive	2.4%	2.7%
Utilities	1.9%	1.7%
Communication Services	0.7%	6.0%
Real Estate	0.2%	0.7%
Healthcare	-	2.4%

Return for Risk

ZVC.TO vs. ZEM.TO — Risk / Return Rank

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

ZVC.TO

ZVC.TO Risk / Return Rank: 97
ZVC.TO Sharpe Ratio Rank: 97
ZVC.TO Sortino Ratio Rank: 97
ZVC.TO Omega Ratio Rank: 96
ZVC.TO Calmar Ratio Rank: 96
ZVC.TO Martin Ratio Rank: 97

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

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.

ZVC.TO vs. ZEM.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BMO MSCI Canada Value Index ETF (ZVC.TO) and BMO MSCI Emerging Markets Index ETF (ZEM.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.

	ZVC.TO	ZEM.TO	Difference
Sharpe ratio: Return per unit of total volatility	3.83	1.70	+2.13
Sortino ratio: Return per unit of downside risk	5.08	2.30	+2.78
Omega ratio: Gain probability vs. loss probability	1.70	1.34	+0.36
Calmar ratio: Return relative to maximum drawdown	6.83	3.57	+3.27
Martin ratio: Return relative to average drawdown	31.89	11.37	+20.52

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

The current ZVC.TO Sharpe Ratio is 3.83, which is higher than the ZEM.TO Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of ZVC.TO and ZEM.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

ZVC.TO vs. ZEM.TO - Drawdown Comparison

The maximum ZVC.TO drawdown since its inception was -41.00%, which is greater than ZEM.TO's maximum drawdown of -34.79%. Use the drawdown chart below to compare losses from any high point for ZVC.TO and ZEM.TO.

Drawdown Indicators

	ZVC.TO	ZEM.TO	Difference
Max Drawdown Largest peak-to-trough decline	-41.00%	-34.79%	-6.21%
Max Drawdown (1Y) Largest decline over 1 year	-6.11%	-11.64%	+5.53%
Max Drawdown (3Y) Largest decline over 3 years	-13.34%	-13.59%	+0.25%
Max Drawdown (5Y) Largest decline over 5 years	-16.16%	-29.90%	+13.74%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.79%	—
Current Drawdown Current decline from peak	0.00%	-9.93%	+9.93%
Average Drawdown Average peak-to-trough decline	-4.84%	-10.13%	+5.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	3.65%	-2.34%

Volatility

ZVC.TO vs. ZEM.TO - Volatility Comparison

The current volatility for BMO MSCI Canada Value Index ETF (ZVC.TO) is 2.59%, while BMO MSCI Emerging Markets Index ETF (ZEM.TO) has a volatility of 11.03%. This indicates that ZVC.TO experiences smaller price fluctuations and is considered to be less risky than ZEM.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZVC.TO	ZEM.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.59%	11.03%	-8.44%
Volatility (6M) Calculated over the trailing 6-month period	8.62%	22.69%	-14.07%
Volatility (1Y) Calculated over the trailing 1-year period	10.92%	24.50%	-13.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.69%	18.09%	-4.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.29%	18.83%	-1.54%

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

ZVC.TO has a 0.40% expense ratio, which is higher than ZEM.TO's 0.27% expense ratio.

Dividends

ZVC.TO vs. ZEM.TO - Dividend Comparison

ZVC.TO's dividend yield for the trailing twelve months is around 1.94%, more than ZEM.TO's 1.83% 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%
ZVC.TO BMO MSCI Canada Value Index ETF	1.94%	2.23%	2.88%	3.34%	2.98%	2.43%	3.32%	2.68%	2.69%	0.00%	0.00%	0.00%

Frequently Asked Questions

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

ZVC.TO and ZEM.TO have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

ZEM.TO is cheaper with a 0.27% expense ratio, compared with 0.40% for ZVC.TO.

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

ZVC.TO is categorized as Large Cap Value Equities, while ZEM.TO is Emerging Markets Equities. ZVC.TO tracks MSCI Canada Enhanced Value Capped Index, while ZEM.TO tracks MSCI Emerging Markets Index. Their fees differ too: 0.40% for ZVC.TO and 0.27% for ZEM.TO.