DEM vs. IHDG

Last updated Jun 23, 2026

DEM (WisdomTree Emerging Markets Equity Income Fund) and IHDG (WisdomTree International Hedged Dividend Growth Fund) are both exchange-traded funds - DEM is a Emerging Markets Equities fund tracking the WisdomTree Emerging Markets Equity income Index, while IHDG is a Foreign Large Cap Equities fund tracking the WisdomTree International Hedged Dividend Growth Index. Both are passively managed. Over the past 10 years, DEM returned 10.73%/yr vs 11.14%/yr for IHDG. A 0.61 correlation means they provide meaningful diversification when combined. DEM charges 0.63%/yr vs 0.58%/yr for IHDG.

Performance

DEM vs. IHDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets Equity Income Fund (DEM) and WisdomTree International Hedged Dividend Growth Fund (IHDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DEM achieves a 20.44% return, which is significantly higher than IHDG's 9.17% return. Both investments have delivered pretty close results over the past 10 years, with DEM having a 10.73% annualized return and IHDG not far ahead at 11.14%.

DEM

• 1D: 0.54%
• 1M: 3.59%
• YTD: 20.44%
• 6M: 21.22%
• 1Y: 31.41%
• 3Y*: 19.07%
• 5Y*: 10.23%
• 10Y*: 10.73%

IHDG

• 1D: -0.29%
• 1M: 4.86%
• YTD: 9.17%
• 6M: 9.32%
• 1Y: 20.72%
• 3Y*: 12.24%
• 5Y*: 8.33%
• 10Y*: 11.14%

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

DEM vs. IHDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEM WisdomTree Emerging Markets Equity Income Fund	20.44%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%
IHDG WisdomTree International Hedged Dividend Growth Fund	9.17%	14.17%	5.97%	20.00%	-11.53%	19.75%	10.51%	33.42%	-12.03%	21.93%

Correlation

The correlation between DEM and IHDG is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since May 7, 2014	0.61

The correlation between DEM and IHDG has been stable across timeframes, ranging from 0.58 to 0.65 - a consistent structural relationship.

DEM vs. IHDG - Sectors Allocation Comparison

Sectors	DEM	IHDG
Financial Services	21.9%	15.8%
Technology	17.4%	11.2%
Industrials	9.5%	24.5%
Energy	6.1%	3.7%
Consumer Defensive	5.8%	4.3%
Consumer Cyclical	5.0%	19.2%
Basic Materials	3.5%	5.1%
Real Estate	3.0%	0.3%
Utilities	3.0%	0.8%
Communication Services	3.0%	5.8%
Healthcare	0.6%	9.4%

Return for Risk

DEM vs. IHDG — Risk / Return Rank

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

DEM

DEM Risk / Return Rank: 73
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 70
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 80
DEM Martin Ratio Rank: 75

IHDG

IHDG Risk / Return Rank: 43
IHDG Sharpe Ratio Rank: 44
IHDG Sortino Ratio Rank: 44
IHDG Omega Ratio Rank: 43
IHDG Calmar Ratio Rank: 41
IHDG Martin Ratio Rank: 45

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.

DEM vs. IHDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets Equity Income Fund (DEM) and WisdomTree International Hedged Dividend Growth Fund (IHDG). 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.

	DEM	IHDG	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.49	+0.74
Sortino ratio: Return per unit of downside risk	3.03	2.15	+0.88
Omega ratio: Gain probability vs. loss probability	1.41	1.27	+0.13
Calmar ratio: Return relative to maximum drawdown	4.00	1.98	+2.01
Martin ratio: Return relative to average drawdown	13.71	7.35	+6.36

DEM vs. IHDG - Sharpe Ratio Comparison

The current DEM Sharpe Ratio is 2.22, which is higher than the IHDG Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of DEM and IHDG, 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

DEM vs. IHDG - Drawdown Comparison

The maximum DEM drawdown since its inception was -51.85%, which is greater than IHDG's maximum drawdown of -29.24%. Use the drawdown chart below to compare losses from any high point for DEM and IHDG.

Drawdown Indicators

	DEM	IHDG	Difference
Max Drawdown Largest peak-to-trough decline	-51.85%	-29.24%	-22.61%
Max Drawdown (1Y) Largest decline over 1 year	-7.89%	-10.49%	+2.60%
Max Drawdown (3Y) Largest decline over 3 years	-15.64%	-18.88%	+3.24%
Max Drawdown (5Y) Largest decline over 5 years	-27.18%	-19.52%	-7.66%
Max Drawdown (10Y) Largest decline over 10 years	-37.79%	-29.24%	-8.55%
Current Drawdown Current decline from peak	-0.80%	-0.29%	-0.51%
Average Drawdown Average peak-to-trough decline	-12.87%	-4.02%	-8.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.30%	2.83%	-0.53%

Volatility

DEM vs. IHDG - Volatility Comparison

WisdomTree Emerging Markets Equity Income Fund (DEM) has a higher volatility of 5.90% compared to WisdomTree International Hedged Dividend Growth Fund (IHDG) at 4.47%. This indicates that DEM's price experiences larger fluctuations and is considered to be riskier than IHDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DEM	IHDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.90%	4.47%	+1.43%
Volatility (6M) Calculated over the trailing 6-month period	12.23%	11.81%	+0.42%
Volatility (1Y) Calculated over the trailing 1-year period	14.21%	14.03%	+0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.46%	14.92%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.97%	15.76%	+2.21%

DEM vs. IHDG - Expense Ratio Comparison

DEM has a 0.63% expense ratio, which is higher than IHDG's 0.58% expense ratio.

Dividends

DEM vs. IHDG - Dividend Comparison

DEM's dividend yield for the trailing twelve months is around 3.74%, more than IHDG's 1.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.74%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
IHDG WisdomTree International Hedged Dividend Growth Fund	1.76%	1.84%	2.42%	1.70%	13.79%	2.77%	1.94%	1.99%	0.22%	1.28%	1.91%	3.04%

Frequently Asked Questions

Can I hold both DEM and IHDG in my portfolio?

DEM and IHDG have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEM or IHDG?

DEM has higher volatility (5.90%) compared to IHDG (4.47%). In terms of maximum drawdown, DEM dropped -51.85% vs IHDG's -29.24%.

Which ETF is better, DEM or IHDG?

On 10-year performance, IHDG leads with 11.14% vs 10.73% for DEM. On fees, IHDG is cheaper at 0.58% per year. On volatility, IHDG has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEM or IHDG?

Over the 10-year period, IHDG has performed better with a 11.14% return vs 10.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEM or IHDG?

IHDG is cheaper with a 0.58% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, DEM or IHDG?

DEM has the higher dividend yield at 3.74%, compared with 1.76% for IHDG.

What is the main difference between DEM and IHDG?

DEM is categorized as Emerging Markets Equities, while IHDG is Foreign Large Cap Equities. DEM tracks WisdomTree Emerging Markets Equity income Index, while IHDG tracks WisdomTree International Hedged Dividend Growth Index. Their fees differ too: 0.63% for DEM and 0.58% for IHDG.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (2.22 vs 1.49), 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.