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ACWI vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ACWI vs. EEM

Last updated Jun 13, 2026

ACWI (iShares MSCI ACWI ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - ACWI is a Global Equities fund tracking the MSCI All Country World Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, ACWI returned 13.02%/yr vs 9.91%/yr for EEM. Their correlation of 0.84 suggests significant overlap in exposure. ACWI charges 0.32%/yr vs 0.72%/yr for EEM.

Performance

ACWI vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ETF (ACWI) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ACWI achieves a 10.59% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, ACWI has outperformed EEM with an annualized return of 13.02%, while EEM has yielded a comparatively lower 9.91% annualized return.

ACWI

1D
0.41%
1M
-0.11%
YTD
10.59%
6M
11.34%
1Y
26.86%
3Y*
19.78%
5Y*
10.88%
10Y*
13.02%

EEM

1D
0.56%
1M
0.74%
YTD
24.07%
6M
26.94%
1Y
47.57%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ACWI vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ACWI
iShares MSCI ACWI ETF		10.59%22.41%17.45%22.27%-18.39%18.66%16.34%26.59%-9.19%24.33%
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between ACWI and EEM is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.85

Correlation (3Y)
Calculated over the trailing 3-year period

0.79

Correlation (5Y)
Calculated over the trailing 5-year period

0.78

Correlation (10Y)
Calculated over the trailing 10-year period

0.81

Correlation (All Time)
Calculated using the full available price history since Mar 28, 2008

0.84

The correlation between ACWI and EEM has been stable across timeframes, ranging from 0.78 to 0.85 - a consistent structural relationship.

ACWI vs. EEM - Sectors Allocation Comparison

Sectors
ACWI
EEM

Technology

29.4%
43.6%

Financial Services

16.1%
17.5%

Industrials

10.9%
6.2%

Consumer Cyclical

9.3%
8.1%

Communication Services

9.0%
5.7%

Healthcare

8.1%
2.5%

Consumer Defensive

5.0%
2.7%

Energy

4.2%
3.3%

Basic Materials

3.7%
6.1%

Utilities

2.6%
2.0%

Real Estate

1.8%
0.9%

Technology

ACWI
29.4%
EEM
43.6%

Financial Services

ACWI
16.1%
EEM
17.5%

Industrials

ACWI
10.9%
EEM
6.2%

Consumer Cyclical

ACWI
9.3%
EEM
8.1%

Communication Services

ACWI
9.0%
EEM
5.7%

Healthcare

ACWI
8.1%
EEM
2.5%

Consumer Defensive

ACWI
5.0%
EEM
2.7%

Energy

ACWI
4.2%
EEM
3.3%

Basic Materials

ACWI
3.7%
EEM
6.1%

Utilities

ACWI
2.6%
EEM
2.0%

Real Estate

ACWI
1.8%
EEM
0.9%

Compare stocks, funds, or ETFs

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iShares MSCI ACWI ETF

iShares MSCI Emerging Markets ETF

Often compared with ACWI:
ACWI vs. VTACWI vs. SPYACWI vs. VWRL.LACWI vs. ACWXACWI vs. ACWI.LACWI vs. VOOACWI vs. VTI
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

ACWI vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ACWI
ACWI Risk / Return Rank: 6767
Overall Rank
ACWI Sharpe Ratio Rank: 6767
Sharpe Ratio Rank
ACWI Sortino Ratio Rank: 6666
Sortino Ratio Rank
ACWI Omega Ratio Rank: 6767
Omega Ratio Rank
ACWI Calmar Ratio Rank: 6161
Calmar Ratio Rank
ACWI Martin Ratio Rank: 7171
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
Martin Ratio Rank
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.

ACWI vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ETF (ACWI) and iShares MSCI Emerging Markets ETF (EEM). 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.

ACWIEEMDifference
Sharpe ratioReturn per unit of total volatility
1.90
2.10

-0.20

Sortino ratioReturn per unit of downside risk
2.62
2.73

-0.11

Omega ratioGain probability vs. loss probability

1.35

1.40

-0.05

Calmar ratioReturn relative to maximum drawdown

2.62

3.36

-0.74

Martin ratioReturn relative to average drawdown

11.46

12.38

-0.92

ACWI vs. EEM - Sharpe Ratio Comparison

The current ACWI Sharpe Ratio is 1.90, which is comparable to the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of ACWI and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

ACWI vs. EEM - Drawdown Comparison

The maximum ACWI drawdown since its inception was -56.00%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for ACWI and EEM.

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Drawdown Indicators

ACWIEEMDifference

Max Drawdown

Largest peak-to-trough decline

-56.00%

-66.43%

+10.43%

Max Drawdown (1Y)

Largest decline over 1 year

-9.73%

-13.52%

+3.79%

Max Drawdown (3Y)

Largest decline over 3 years

-16.55%

-17.29%

+0.74%

Max Drawdown (5Y)

Largest decline over 5 years

-26.42%

-37.49%

+11.07%

Max Drawdown (10Y)

Largest decline over 10 years

-33.53%

-39.82%

+6.29%

Current Drawdown

Current decline from peak

-2.19%

-4.12%

+1.93%

Average Drawdown

Average peak-to-trough decline

-8.60%

-16.00%

+7.40%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.22%

3.67%

-1.45%

Volatility

ACWI vs. EEM - Volatility Comparison

The current volatility for iShares MSCI ACWI ETF (ACWI) is 5.17%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that ACWI experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ACWIEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.17%

10.80%

-5.63%

Volatility (6M)

Calculated over the trailing 6-month period

11.09%

19.39%

-8.30%

Volatility (1Y)

Calculated over the trailing 1-year period

13.42%

21.64%

-8.22%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.15%

19.26%

-3.11%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.14%

20.64%

-3.50%

ACWI vs. EEM - Expense Ratio Comparison

ACWI has a 0.32% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

ACWI vs. EEM - Dividend Comparison

ACWI's dividend yield for the trailing twelve months is around 1.40%, less than EEM's 1.79% yield.

PositionTTM20252024202320222021202020192018201720162015
ACWI
iShares MSCI ACWI ETF		1.40%1.55%1.70%1.88%1.79%1.71%1.43%2.33%2.18%1.94%2.19%2.56%
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%

Frequently Asked Questions

ACWI and EEM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to ACWI (5.17%). In terms of maximum drawdown, ACWI dropped -56.00% vs EEM's -66.43%.

On 10-year performance, ACWI leads with 13.02% vs 9.91% for EEM. On fees, ACWI is cheaper at 0.32% per year. On volatility, ACWI has been the lower-risk option at 5.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, ACWI has performed better with a 13.02% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

ACWI is cheaper with a 0.32% expense ratio, compared with 0.72% for EEM.

EEM has the higher dividend yield at 1.79%, compared with 1.40% for ACWI.

ACWI is categorized as Global Equities, while EEM is Emerging Markets Diversified. ACWI tracks MSCI All Country World Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.32% for ACWI and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.90), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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