EDC vs. EEM
Compare and contrast key facts about Direxion Daily Emerging Markets Bull 3X Shares (EDC) and iShares MSCI Emerging Markets ETF (EEM).
EDC and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EDC is a passively managed fund by Direxion that tracks the performance of the MSCI Emerging Markets Index (300%). It was launched on Dec 17, 2008. 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 EDC 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: EDC or EEM.
Key characteristics
| EDC | EEM | |
|---|---|---|
| YTD Return | 6.63% | 4.68% |
| 1Y Return | 15.53% | 12.09% |
| 3Y Return (Ann) | -30.59% | -5.82% |
| 5Y Return (Ann) | -16.79% | 1.30% |
| 10Y Return (Ann) | -10.58% | 2.39% |
| Sharpe Ratio | 0.34 | 0.80 |
| Daily Std Dev | 44.72% | 14.88% |
| Max Drawdown | -92.54% | -66.44% |
| Current Drawdown | -88.13% | -22.17% |
Correlation
The correlation between EDC and EEM is 1.00, 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
EDC vs. EEM - Performance Comparison
In the year-to-date period, EDC achieves a 6.63% return, which is significantly higher than EEM's 4.68% return. Over the past 10 years, EDC has underperformed EEM with an annualized return of -10.58%, while EEM has yielded a comparatively higher 2.39% 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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EDC vs. EEM - Expense Ratio Comparison
EDC has a 1.33% expense ratio, which is higher than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
EDC vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bull 3X Shares (EDC) 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
EDC vs. EEM - Dividend Comparison
EDC's dividend yield for the trailing twelve months is around 3.77%, more than EEM's 2.51% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EDC Direxion Daily Emerging Markets Bull 3X Shares | 3.77% | 3.54% | 0.00% | 0.18% | 0.44% | 0.97% | 0.78% | 0.25% | 0.00% | 0.00% | 0.00% | 0.00% |
EEM iShares MSCI Emerging Markets ETF | 2.51% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
Drawdowns
EDC vs. EEM - Drawdown Comparison
The maximum EDC drawdown since its inception was -92.54%, which is greater than EEM's maximum drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for EDC and EEM. For additional features, visit the drawdowns tool.
Volatility
EDC vs. EEM - Volatility Comparison
Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 15.16% compared to iShares MSCI Emerging Markets ETF (EEM) at 4.99%. This indicates that EDC's price experiences larger fluctuations and is considered to be riskier than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.