DEM vs. EEM
Compare and contrast key facts about WisdomTree Emerging Markets Equity Income Fund (DEM) and iShares MSCI Emerging Markets ETF (EEM).
DEM and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DEM is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree Emerging Markets Equity income Index. It was launched on Jul 13, 2007. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. Both DEM and EEM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DEM or EEM.
Key characteristics
| DEM | EEM | |
|---|---|---|
| YTD Return | 7.32% | 10.96% |
| 1Y Return | 17.31% | 18.54% |
| 3Y Return (Ann) | 5.45% | -2.91% |
| 5Y Return (Ann) | 5.44% | 3.03% |
| 10Y Return (Ann) | 4.30% | 2.90% |
| Sharpe Ratio | 1.21 | 1.24 |
| Sortino Ratio | 1.73 | 1.81 |
| Omega Ratio | 1.22 | 1.22 |
| Calmar Ratio | 1.86 | 0.64 |
| Martin Ratio | 6.16 | 6.42 |
| Ulcer Index | 2.89% | 3.02% |
| Daily Std Dev | 14.76% | 15.68% |
| Max Drawdown | -51.85% | -66.44% |
| Current Drawdown | -7.36% | -17.50% |
Correlation
The correlation between DEM and EEM is 0.93, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
DEM vs. EEM - Performance Comparison
In the year-to-date period, DEM achieves a 7.32% return, which is significantly lower than EEM's 10.96% return. Over the past 10 years, DEM has outperformed EEM with an annualized return of 4.30%, while EEM has yielded a comparatively lower 2.90% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DEM vs. EEM - Expense Ratio Comparison
DEM has a 0.63% expense ratio, which is lower than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
DEM vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets Equity Income Fund (DEM) 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.
Dividends
DEM vs. EEM - Dividend Comparison
DEM's dividend yield for the trailing twelve months is around 5.35%, more than EEM's 2.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DEM WisdomTree Emerging Markets Equity Income Fund | 5.35% | 5.49% | 8.62% | 5.87% | 4.21% | 4.78% | 4.47% | 3.67% | 3.63% | 5.21% | 5.51% | 4.10% |
EEM iShares MSCI Emerging Markets ETF | 2.34% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% | 2.23% | 2.06% |
Drawdowns
DEM vs. EEM - Drawdown Comparison
The maximum DEM drawdown since its inception was -51.85%, smaller than the maximum EEM drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for DEM and EEM. For additional features, visit the drawdowns tool.
Volatility
DEM vs. EEM - Volatility Comparison
The current volatility for WisdomTree Emerging Markets Equity Income Fund (DEM) is 4.57%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 4.95%. This indicates that DEM 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.