DEEF vs. EEM

Last updated Jun 7, 2026

DEEF (Xtrackers FTSE Developed ex US Multifactor ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - DEEF is a Foreign Large Cap Equities fund tracking the FTSE Developed ex US Comprehensive Factor Net Tax (US RIC) 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, DEEF returned 7.90%/yr vs 8.84%/yr for EEM. A 0.69 correlation means they provide meaningful diversification when combined. DEEF charges 0.24%/yr vs 0.72%/yr for EEM.

Performance

DEEF vs. EEM - Performance Comparison

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

Returns By Period

In the year-to-date period, DEEF achieves a 8.14% return, which is significantly lower than EEM's 18.06% return. Over the past 10 years, DEEF has underperformed EEM with an annualized return of 7.90%, while EEM has yielded a comparatively higher 8.84% annualized return.

DEEF

• 1D: -0.78%
• 1M: -3.20%
• YTD: 8.14%
• 6M: 10.63%
• 1Y: 20.95%
• 3Y*: 16.69%
• 5Y*: 7.10%
• 10Y*: 7.90%

EEM

• 1D: -6.53%
• 1M: -4.93%
• YTD: 18.06%
• 6M: 19.68%
• 1Y: 40.98%
• 3Y*: 20.37%
• 5Y*: 5.33%
• 10Y*: 8.84%

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

DEEF vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEEF Xtrackers FTSE Developed ex US Multifactor ETF	8.14%	32.36%	2.77%	16.99%	-16.94%	9.22%	7.90%	19.30%	-14.50%	29.23%
EEM iShares MSCI Emerging Markets ETF	18.06%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between DEEF and EEM is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Nov 25, 2015	0.69

The correlation between DEEF and EEM has been stable across timeframes, ranging from 0.69 to 0.72 - a consistent structural relationship.

DEEF vs. EEM - Sectors Allocation Comparison

Sectors	DEEF	EEM
Industrials	23.3%	6.2%
Financial Services	14.0%	17.5%
Consumer Cyclical	11.0%	8.1%
Basic Materials	9.7%	6.1%
Consumer Defensive	9.7%	2.7%
Utilities	6.7%	2.0%
Real Estate	5.4%	0.9%
Technology	5.0%	43.6%
Energy	4.8%	3.3%
Healthcare	4.4%	2.5%
Communication Services	4.2%	5.7%

Return for Risk

DEEF vs. EEM — Risk / Return Rank

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

DEEF

DEEF Risk / Return Rank: 46
DEEF Sharpe Ratio Rank: 48
DEEF Sortino Ratio Rank: 47
DEEF Omega Ratio Rank: 48
DEEF Calmar Ratio Rank: 43
DEEF Martin Ratio Rank: 45

EEM

EEM Risk / Return Rank: 61
EEM Sharpe Ratio Rank: 60
EEM Sortino Ratio Rank: 54
EEM Omega Ratio Rank: 63
EEM Calmar Ratio Rank: 63
EEM Martin Ratio Rank: 65

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.

DEEF vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) 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.

	DEEF	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.97	-0.40
Sortino ratio: Return per unit of downside risk	2.18	2.56	-0.38
Omega ratio: Gain probability vs. loss probability	1.29	1.38	-0.09
Calmar ratio: Return relative to maximum drawdown	2.01	3.08	-1.07
Martin ratio: Return relative to average drawdown	6.90	11.71	-4.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DEEF vs. EEM - Sharpe Ratio Comparison

The current DEEF Sharpe Ratio is 1.57, which is comparable to the EEM Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of DEEF 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.

Sharpe Ratios by Period

	DEEF	EEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.57	1.97	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.28	+0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.43	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.37	+0.12

Drawdowns

DEEF vs. EEM - Drawdown Comparison

The maximum DEEF drawdown since its inception was -36.48%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for DEEF and EEM.

Drawdown Indicators

	DEEF	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.48%	-66.43%	+29.95%
Max Drawdown (1Y) Largest decline over 1 year	-10.64%	-13.52%	+2.88%
Max Drawdown (3Y) Largest decline over 3 years	-11.07%	-17.29%	+6.22%
Max Drawdown (5Y) Largest decline over 5 years	-31.08%	-37.49%	+6.41%
Max Drawdown (10Y) Largest decline over 10 years	-36.48%	-39.82%	+3.34%
Current Drawdown Current decline from peak	-5.47%	-8.77%	+3.30%
Average Drawdown Average peak-to-trough decline	-7.09%	-16.02%	+8.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	3.55%	-0.46%

Volatility

DEEF vs. EEM - Volatility Comparison

The current volatility for Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) is 3.25%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.49%. This indicates that DEEF 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.

Volatility by Period

	DEEF	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.25%	10.49%	-7.24%
Volatility (6M) Calculated over the trailing 6-month period	11.71%	18.80%	-7.09%
Volatility (1Y) Calculated over the trailing 1-year period	13.58%	21.09%	-7.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.93%	19.14%	-4.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.29%	20.61%	-4.32%

DEEF vs. EEM - Expense Ratio Comparison

DEEF has a 0.24% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

DEEF vs. EEM - Dividend Comparison

DEEF's dividend yield for the trailing twelve months is around 3.44%, more than EEM's 1.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEEF Xtrackers FTSE Developed ex US Multifactor ETF	3.44%	3.63%	4.04%	3.96%	3.31%	3.84%	2.71%	3.74%	2.80%	2.61%	4.35%	0.00%
EEM iShares MSCI Emerging Markets ETF	1.88%	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

Can I hold both DEEF and EEM in my portfolio?

DEEF and EEM have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEEF or EEM?

EEM has higher volatility (10.49%) compared to DEEF (3.25%). In terms of maximum drawdown, DEEF dropped -36.48% vs EEM's -66.43%.

Which ETF is better, DEEF or EEM?

On 10-year performance, EEM leads with 8.84% vs 7.90% for DEEF. On fees, DEEF is cheaper at 0.24% per year. On volatility, DEEF has been the lower-risk option at 3.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEEF or EEM?

Over the 10-year period, EEM has performed better with a 8.84% return vs 7.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEEF or EEM?

DEEF is cheaper with a 0.24% expense ratio, compared with 0.72% for EEM.

Which ETF pays a higher dividend yield, DEEF or EEM?

DEEF has the higher dividend yield at 3.44%, compared with 1.88% for EEM.

What is the main difference between DEEF and EEM?

DEEF is categorized as Foreign Large Cap Equities, while EEM is Emerging Markets Diversified. DEEF tracks FTSE Developed ex US Comprehensive Factor Net Tax (US RIC) Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Deutsche Bank and iShares. Their fees differ too: 0.24% for DEEF and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (1.97 vs 1.57), 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.