DBEM vs. ESGE

Last updated Jun 23, 2026

DBEM (Xtrackers MSCI Emerging Markets Hedged Equity ETF) and ESGE (iShares ESG Aware MSCI EM ETF) are both Emerging Markets Equities funds - DBEM tracks the MSCI EM US Dollar Hedged Index while ESGE tracks the MSCI EM Extended ESG Focus Index. Both are passively managed. Over the past 5 years, DBEM returned 10.52%/yr vs 7.71%/yr for ESGE. Their correlation of 0.92 suggests significant overlap in exposure. DBEM charges 0.66%/yr vs 0.25%/yr for ESGE.

Performance

DBEM vs. ESGE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) and iShares ESG Aware MSCI EM ETF (ESGE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DBEM achieves a 34.95% return, which is significantly higher than ESGE's 29.55% return.

DBEM

• 1D: 0.66%
• 1M: 8.63%
• YTD: 34.95%
• 6M: 36.36%
• 1Y: 63.96%
• 3Y*: 27.03%
• 5Y*: 10.52%
• 10Y*: 11.28%

ESGE

• 1D: 0.41%
• 1M: 8.95%
• YTD: 29.55%
• 6M: 31.12%
• 1Y: 54.89%
• 3Y*: 25.08%
• 5Y*: 7.71%
• 10Y*: —

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

DBEM vs. ESGE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DBEM Xtrackers MSCI Emerging Markets Hedged Equity ETF	34.95%	30.42%	10.61%	10.53%	-17.00%	-2.26%	18.12%	16.77%	-10.81%	27.10%
ESGE iShares ESG Aware MSCI EM ETF	29.55%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%

Correlation

The correlation between DBEM and ESGE is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jul 20, 2016	0.92

The correlation between DBEM and ESGE has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

DBEM vs. ESGE - Sectors Allocation Comparison

Sectors	DBEM	ESGE
Technology	43.6%	43.9%
Financial Services	17.9%	22.0%
Consumer Cyclical	8.4%	7.5%
Industrials	6.7%	5.7%
Communication Services	6.1%	7.4%
Basic Materials	6.0%	5.0%
Energy	3.5%	1.9%
Consumer Defensive	2.5%	2.1%
Healthcare	2.5%	2.2%
Utilities	1.8%	1.3%
Real Estate	1.0%	1.0%

Return for Risk

DBEM vs. ESGE — Risk / Return Rank

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

DBEM

DBEM Risk / Return Rank: 92
DBEM Sharpe Ratio Rank: 93
DBEM Sortino Ratio Rank: 90
DBEM Omega Ratio Rank: 92
DBEM Calmar Ratio Rank: 93
DBEM Martin Ratio Rank: 93

ESGE

ESGE Risk / Return Rank: 79
ESGE Sharpe Ratio Rank: 82
ESGE Sortino Ratio Rank: 74
ESGE Omega Ratio Rank: 82
ESGE Calmar Ratio Rank: 79
ESGE Martin Ratio Rank: 79

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.

DBEM vs. ESGE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) and iShares ESG Aware MSCI EM ETF (ESGE). 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.

	DBEM	ESGE	Difference
Sharpe ratio: Return per unit of total volatility	3.22	2.51	+0.71
Sortino ratio: Return per unit of downside risk	3.98	3.19	+0.79
Omega ratio: Gain probability vs. loss probability	1.58	1.47	+0.12
Calmar ratio: Return relative to maximum drawdown	6.12	3.97	+2.15
Martin ratio: Return relative to average drawdown	22.57	14.85	+7.72

DBEM vs. ESGE - Sharpe Ratio Comparison

The current DBEM Sharpe Ratio is 3.22, which is comparable to the ESGE Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of DBEM and ESGE, 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

DBEM vs. ESGE - Drawdown Comparison

The maximum DBEM drawdown since its inception was -33.51%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for DBEM and ESGE.

Drawdown Indicators

	DBEM	ESGE	Difference
Max Drawdown Largest peak-to-trough decline	-33.51%	-41.07%	+7.56%
Max Drawdown (1Y) Largest decline over 1 year	-10.51%	-13.90%	+3.39%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-16.71%	+1.59%
Max Drawdown (5Y) Largest decline over 5 years	-30.48%	-39.18%	+8.70%
Max Drawdown (10Y) Largest decline over 10 years	-33.51%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-11.66%	-14.41%	+2.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	3.71%	-0.87%

Volatility

DBEM vs. ESGE - Volatility Comparison

The current volatility for Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) is 10.09%, while iShares ESG Aware MSCI EM ETF (ESGE) has a volatility of 10.79%. This indicates that DBEM experiences smaller price fluctuations and is considered to be less risky than ESGE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DBEM	ESGE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.09%	10.79%	-0.70%
Volatility (6M) Calculated over the trailing 6-month period	17.84%	19.79%	-1.95%
Volatility (1Y) Calculated over the trailing 1-year period	20.01%	22.06%	-2.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.54%	19.55%	-2.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.35%	20.11%	-2.76%

DBEM vs. ESGE - Expense Ratio Comparison

DBEM has a 0.66% expense ratio, which is higher than ESGE's 0.25% expense ratio.

Dividends

DBEM vs. ESGE - Dividend Comparison

DBEM's dividend yield for the trailing twelve months is around 1.96%, less than ESGE's 2.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DBEM Xtrackers MSCI Emerging Markets Hedged Equity ETF	1.96%	1.84%	2.48%	2.55%	2.65%	1.77%	1.74%	2.59%	2.85%	1.51%	1.59%	3.49%
ESGE iShares ESG Aware MSCI EM ETF	2.00%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%	0.00%

Frequently Asked Questions

Can I hold both DBEM and ESGE in my portfolio?

With a correlation of 0.94, DBEM and ESGE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DBEM or ESGE?

ESGE has higher volatility (10.79%) compared to DBEM (10.09%). In terms of maximum drawdown, DBEM dropped -33.51% vs ESGE's -41.07%.

Which ETF is better, DBEM or ESGE?

On 5-year performance, DBEM leads with 10.52% vs 7.71% for ESGE. On fees, ESGE is cheaper at 0.25% per year. On volatility, DBEM has been the lower-risk option at 10.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DBEM or ESGE?

Over the 5-year period, DBEM has performed better with a 10.52% return vs 7.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DBEM or ESGE?

ESGE is cheaper with a 0.25% expense ratio, compared with 0.66% for DBEM.

Which ETF pays a higher dividend yield, DBEM or ESGE?

ESGE has the higher dividend yield at 2.00%, compared with 1.96% for DBEM.

What is the main difference between DBEM and ESGE?

DBEM tracks MSCI EM US Dollar Hedged Index, while ESGE tracks MSCI EM Extended ESG Focus Index. They also come from different issuers: Deutsche Bank and iShares. Their fees differ too: 0.66% for DBEM and 0.25% for ESGE.

Which has better risk-adjusted returns?

DBEM currently has the higher Sharpe Ratio (3.22 vs 2.51), 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.