VS
BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF) and iShares Core S&P/TSX Capped Composite Index ETF (XIC) offer distinct profiles for Canadian ETF investors. A direct comparison shows that ZEF focuses its top 3 sector exposures on Sovereign and Municipal, while XIC leans towards Finance, Energy, and Non-Energy Materials. When evaluating costs, ZEF features a management fee (MER) of 0.5%, compared to 0.05% for XIC. Performance-wise, ZEF has returned 1.01% year-to-date with +$74 M in net flows, whereas XIC is at 14.22% with +$9 B. Use the comparison tool below to benchmark these funds across top 10 holdings, yield, sector weights and historical returns.
NAV Performance and Flows
Key Data
Compare
ZEF
XIC
| AuM | $772.86 M | $33,904.07 M |
| Management Fees | 0.50% | 0.05% |
| Exp. ratio | 0.55% | 0.06% |
| Tracking Difference | 0.04% | -0.09% |
Historical performance and flows
As of September 11, 2026
| 1M | 3M | YTD | 1Y | 3Y | ||
|---|---|---|---|---|---|---|
| Perf. | ZEF | -0.96% | -1.01% | -1.01% | +0.75% | +17.28% |
XIC | -1.93% | +3.51% | +14.22% | +24.11% | +91.80% | |
| Flows | ZEF | -$16 M | -$16 M | +$74 M | +$132 M | +$181 M |
XIC | +$1,611 M | +$3,063 M | +$8,684 M | +$9,268 M | +$14,741 M |
ZEF vs XIC exposure
Countries
ZEF
Republic of Korea
9.82%
China
9.82%
Mexico
9.75%
Brazil
9.73%
Indonesia
9.16%
Saudi Arabia
8.41%
Other
43.32%
XIC
Canada
96.46%
Sectors
ZEF
Sovereign
94.92%
XIC
Finance
41.74%
Energy
17.17%
Non-Energy Materials
15.75%
Industrials
8.14%
Other
17.19%
As of September 11, 2026
Top 10 Holdings
ZEF
China, 1.2% 21oct2030, USD
3.31%
Republic of Korea, 2.5% 19jun2029, USD
3.29%
Mexico, 5.5% 17aug2030, USD
3.27%
Republic of Korea, 3.875% 12feb2031, USD
3.27%
China, 3.625% 13nov2028, USD
3.27%
Brazil, 5.5% 6nov2030, USD
3.27%
Republic of Korea, 3.625% 12feb2029, USD
3.26%
Mexico, 5.375% 22mar2033, USD
3.25%
China, 3.75% 13nov2030, USD
3.24%
Brazil, 3.875% 12jun2030, USD
3.23%
XIC
Royal Bank of Canada
8.10%
The Toronto-Dominion Bank
5.52%
Shopify, Inc.
4.12%
Bank of Montreal
3.45%
Enbridge, Inc.
3.34%
Canadian Imperial Bank of Commerce
3.00%
The Bank of Nova Scotia
2.98%
Canadian Natural Resources Ltd.
2.72%
Brookfield Corp.
2.48%
Suncor Energy, Inc.
2.17%
Diversification
ZEF
Total weight of top 10 holdings out of 59 total
32.66%
XIC
Total weight of top 10 holdings out of 219 total
37.87%
Characteristics
Compare
ZEF
XIC
| Provider | BMO | iShares |
| Management | Passively managed | Passively managed |
| Benchmark | Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD | S&P/TSX Capped Composite Total Return Index - CAD |
| Replication Method | Direct (Physical) | Direct (Physical) |
| Asset Class | Fixed Income | Equity |
| Dividend Policy | Distributing | Distributing |
| Trailing 12m distribution yield | 4.24% | 1.97% |
| Meets ESG criteria | No | No |
| Inception Date | May 21, 2010 | February 16, 2001 |
Frequently asked questions about ZEF and XIC
Which ETF has performed better year to date: ZEF or XIC?
As of September 11, 2026, ZEF has returned -1.01% year to date, while XIC has returned 14.22%. XIC is ahead on YTD performance.
Which ETF is larger by assets under management: ZEF or XIC?
As of September 11, 2026, ZEF manages $772.86 M in assets, while XIC manages $33.90 B. XIC is the larger fund by AUM.
How are ZEF and XIC managed?
ZEF is passively managed by BMO. It tracks the Bloomberg Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped (CAD Hedged) Net Total Return Index - CAD benchmark. XIC is passively managed by iShares. It tracks the S&P/TSX Capped Composite Total Return Index - CAD benchmark.
What sectors do ZEF and XIC emphasize?
ZEF is most exposed to Sovereign and Municipal. XIC is most exposed to Finance, Energy, and Non-Energy Materials.
Which ETF is attracting more investor flows: ZEF or XIC?
Year to date, ZEF has seen +$74.04 M in net flows, compared with +$8,683.86 M for XIC. XIC has attracted more net investor money so far.
How do the fees of ZEF and XIC compare?
ZEF has an expense ratio of 0.55%, while XIC has an expense ratio of 0.06%.
What are the top holdings of ZEF and XIC?
ZEF's largest holdings include China, 1.2% 21oct2030, USD, Republic of Korea, 2.5% 19jun2029, USD, and Mexico, 5.5% 17aug2030, USD. XIC's top holdings include Royal Bank of Canada, The Toronto-Dominion Bank, and Shopify, Inc..
Which ETF is more diversified: ZEF or XIC?
ZEF holds 59 securities, while XIC holds 219. On holdings count, XIC is the more diversified portfolio.
Recent articles about ZEF and XIC
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All content on the ETF Market Canada is for your general information use only, Cboe is not responsible for any use of content by you outside this scope. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by Cboe and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions.