DSI vs. LDEM

Last updated Jun 16, 2026

DSI (iShares MSCI KLD 400 Social ETF) and LDEM (iShares ESG MSCI EM Leaders ETF) are both exchange-traded funds - DSI is a Large Cap Growth Equities fund tracking the MSCI KLD 400 Social Index, while LDEM is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Leaders 5% Issuer Capped Index. Both are passively managed. Over the past 5 years, DSI returned 13.33%/yr vs 2.60%/yr for LDEM. A 0.60 correlation means they provide meaningful diversification when combined. DSI charges 0.25%/yr vs 0.16%/yr for LDEM.

Performance

DSI vs. LDEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI KLD 400 Social ETF (DSI) and iShares ESG MSCI EM Leaders ETF (LDEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DSI achieves a 11.83% return, which is significantly higher than LDEM's 8.26% return.

DSI

• 1D: 1.78%
• 1M: 2.10%
• YTD: 11.83%
• 6M: 12.35%
• 1Y: 29.36%
• 3Y*: 20.81%
• 5Y*: 13.33%
• 10Y*: 15.60%

LDEM

• 1D: 2.52%
• 1M: 3.00%
• YTD: 8.26%
• 6M: 9.66%
• 1Y: 24.07%
• 3Y*: 13.85%
• 5Y*: 2.60%
• 10Y*: —

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

DSI vs. LDEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DSI iShares MSCI KLD 400 Social ETF	11.83%	18.03%	22.38%	28.51%	-21.71%	31.32%	14.96%
LDEM iShares ESG MSCI EM Leaders ETF	8.26%	32.49%	5.87%	6.49%	-22.46%	-2.03%	16.30%

Correlation

The correlation between DSI and LDEM 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	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (All Time) Calculated using the full available price history since Feb 12, 2020	0.60

The correlation between DSI and LDEM shifts across timeframes, from 0.59 (5 years) to 0.69 (1 year), reflecting how their relationship changes across market environments.

DSI vs. LDEM - Sectors Allocation Comparison

Sectors	DSI	LDEM
Technology	43.1%	25.9%
Communication Services	12.8%	10.6%
Financial Services	10.1%	24.7%
Industrials	8.0%	5.5%
Consumer Cyclical	8.0%	12.6%
Healthcare	7.0%	2.6%
Consumer Defensive	4.0%	2.9%
Real Estate	2.6%	1.4%
Basic Materials	2.2%	6.4%
Energy	1.5%	4.2%
Utilities	0.9%	1.9%

Return for Risk

DSI vs. LDEM — Risk / Return Rank

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

DSI

DSI Risk / Return Rank: 68
DSI Sharpe Ratio Rank: 74
DSI Sortino Ratio Rank: 72
DSI Omega Ratio Rank: 73
DSI Calmar Ratio Rank: 58
DSI Martin Ratio Rank: 66

LDEM

LDEM Risk / Return Rank: 39
LDEM Sharpe Ratio Rank: 38
LDEM Sortino Ratio Rank: 37
LDEM Omega Ratio Rank: 40
LDEM Calmar Ratio Rank: 39
LDEM Martin Ratio Rank: 39

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.

DSI vs. LDEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI KLD 400 Social ETF (DSI) and iShares ESG MSCI EM Leaders ETF (LDEM). 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.

	DSI	LDEM	Difference
Sharpe ratio: Return per unit of total volatility	2.17	1.28	+0.89
Sortino ratio: Return per unit of downside risk	2.93	1.81	+1.12
Omega ratio: Gain probability vs. loss probability	1.39	1.25	+0.14
Calmar ratio: Return relative to maximum drawdown	2.67	1.83	+0.84
Martin ratio: Return relative to average drawdown	11.05	5.76	+5.29

DSI vs. LDEM - Sharpe Ratio Comparison

The current DSI Sharpe Ratio is 2.17, which is higher than the LDEM Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of DSI and LDEM, 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

DSI vs. LDEM - Drawdown Comparison

The maximum DSI drawdown since its inception was -54.23%, which is greater than LDEM's maximum drawdown of -40.82%. Use the drawdown chart below to compare losses from any high point for DSI and LDEM.

Drawdown Indicators

	DSI	LDEM	Difference
Max Drawdown Largest peak-to-trough decline	-54.23%	-40.82%	-13.41%
Max Drawdown (1Y) Largest decline over 1 year	-11.05%	-13.21%	+2.16%
Max Drawdown (3Y) Largest decline over 3 years	-20.58%	-15.12%	-5.46%
Max Drawdown (5Y) Largest decline over 5 years	-28.36%	-39.17%	+10.81%
Max Drawdown (10Y) Largest decline over 10 years	-34.10%	—	—
Current Drawdown Current decline from peak	-0.51%	-2.72%	+2.21%
Average Drawdown Average peak-to-trough decline	-7.51%	-17.30%	+9.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	4.19%	-1.53%

Volatility

DSI vs. LDEM - Volatility Comparison

The current volatility for iShares MSCI KLD 400 Social ETF (DSI) is 5.40%, while iShares ESG MSCI EM Leaders ETF (LDEM) has a volatility of 8.65%. This indicates that DSI experiences smaller price fluctuations and is considered to be less risky than LDEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DSI	LDEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.40%	8.65%	-3.25%
Volatility (6M) Calculated over the trailing 6-month period	10.95%	15.64%	-4.69%
Volatility (1Y) Calculated over the trailing 1-year period	13.65%	18.96%	-5.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.02%	19.34%	-1.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.76%	20.87%	-2.11%

DSI vs. LDEM - Expense Ratio Comparison

DSI has a 0.25% expense ratio, which is higher than LDEM's 0.16% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DSI vs. LDEM - Dividend Comparison

DSI's dividend yield for the trailing twelve months is around 1.04%, less than LDEM's 3.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DSI iShares MSCI KLD 400 Social ETF	1.04%	0.92%	1.03%	1.19%	1.39%	0.99%	1.22%	1.40%	1.63%	1.28%	1.51%	1.46%
LDEM iShares ESG MSCI EM Leaders ETF	3.83%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DSI and LDEM in my portfolio?

DSI and LDEM 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, DSI or LDEM?

LDEM has higher volatility (8.65%) compared to DSI (5.40%). In terms of maximum drawdown, DSI dropped -54.23% vs LDEM's -40.82%.

Which ETF is better, DSI or LDEM?

On 5-year performance, DSI leads with 13.33% vs 2.60% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, DSI has been the lower-risk option at 5.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DSI or LDEM?

Over the 5-year period, DSI has performed better with a 13.33% return vs 2.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DSI or LDEM?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.25% for DSI.

Which ETF pays a higher dividend yield, DSI or LDEM?

LDEM has the higher dividend yield at 3.83%, compared with 1.04% for DSI.

What is the main difference between DSI and LDEM?

DSI is categorized as Large Cap Growth Equities, while LDEM is Emerging Markets Equities. DSI tracks MSCI KLD 400 Social Index, while LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index. Their fees differ too: 0.25% for DSI and 0.16% for LDEM.

Which has better risk-adjusted returns?

DSI currently has the higher Sharpe Ratio (2.17 vs 1.28), 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.