DEM vs. IHDG

Last updated Aug 2, 2026

DEM (WisdomTree Emerging Markets Equity Income Fund) and IHDG (WisdomTree International Hedged Dividend Growth Fund) are both exchange-traded funds - DEM is a Dividend 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 9.26%/yr vs 10.45%/yr for IHDG. Their 0.61 correlation means they have sometimes moved together and sometimes differently. 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 17.08% return, which is significantly higher than IHDG's 9.83% return. Over the past 10 years, DEM has underperformed IHDG with an annualized return of 9.26%, while IHDG has yielded a comparatively higher 10.45% annualized return.

DEM

• 1D: 0.19%
• 1M: 0.60%
• 6M: 10.28%
• YTD: 17.08%
• 1Y: 24.73%
• 3Y*: 15.88%
• 5Y*: 10.19%
• 10Y*: 9.26%
• ALL TIME*: 4.92%

IHDG

• 1D: -0.78%
• 1M: -0.24%
• 6M: 6.52%
• YTD: 9.83%
• 1Y: 22.57%
• 3Y*: 11.71%
• 5Y*: 7.63%
• 10Y*: 10.45%
• ALL TIME*: 9.62%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.90M	$9.48M	$10.87M
IHDG WisdomTree International Hedged Dividend Growth Fund	$6.12M	$5.27M	$6.91M

DEM vs. IHDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	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	9.83%	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 have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.65
Correlation (3Y) Balances recent behavior with more history.	0.60
Correlation (5Y) Shows whether the relationship held over a longer period.	0.60
Correlation (10Y) Provides a long-term view across more market conditions.	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 0.60 to 0.65 - a consistent structural relationship.

DEM vs. IHDG - Sectors Allocation Comparison

Sectors	DEM	IHDG
Financial Services	21.9%	15.2%
Technology	17.5%	8.3%
Industrials	8.9%	19.3%
Energy	6.2%	3.7%
Consumer Defensive	5.8%	4.3%
Consumer Cyclical	5.4%	19.6%
Basic Materials	3.7%	5.4%
Utilities	3.0%	0.8%
Communication Services	3.0%	4.2%
Real Estate	2.9%	0.3%
Healthcare	0.6%	9.4%

Return for Risk

DEM vs. IHDG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 73
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 76

IHDG

IHDG Risk / Return Rank: 61
IHDG Sharpe Ratio Rank: 62
IHDG Sortino Ratio Rank: 63
IHDG Omega Ratio Rank: 61
IHDG Calmar Ratio Rank: 55
IHDG Martin Ratio Rank: 62

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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	1.66	1.44	+0.21
Sortino ratio: Return per unit of downside risk	2.31	2.09	+0.22
Omega ratio: Gain probability vs. loss probability	1.30	1.26	+0.04
Calmar ratio: Return relative to maximum drawdown	3.15	1.96	+1.19
Martin ratio: Return relative to average drawdown	9.50	7.40	+2.10

DEM vs. IHDG - Sharpe Ratio Comparison

The current DEM Sharpe Ratio is 1.66, which is comparable to the IHDG Sharpe Ratio of 1.44. 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	-3.57%	-1.38%	-2.19%
Average Drawdown Average peak-to-trough decline	-12.82%	-4.00%	-8.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.61%	2.77%	-0.16%

Volatility

DEM vs. IHDG - Volatility Comparison

WisdomTree Emerging Markets Equity Income Fund (DEM) has a higher volatility of 5.12% compared to WisdomTree International Hedged Dividend Growth Fund (IHDG) at 4.09%. 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	5.12%	4.09%	+1.03%
Volatility (6M) Calculated over the trailing 6-month period	13.28%	11.88%	+1.40%
Volatility (1Y) Calculated over the trailing 1-year period	15.02%	14.30%	+0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.60%	14.95%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.85%	15.63%	+2.22%

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 4.18%, more than IHDG's 1.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.18%	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	1.81%	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 (5.12%) compared to IHDG (4.09%). 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 10.45% vs 9.26% for DEM. On fees, IHDG is cheaper at 0.58% per year. On volatility, IHDG has been the lower-risk option at 4.09%. 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 10.45% return vs 9.26%. 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 4.18%, compared with 1.81% for IHDG.

What is the main difference between DEM and IHDG?

DEM is categorized as Dividend, 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 (1.66 vs 1.44), 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.