EDC vs. EEMS

Last updated Jun 4, 2026

EDC (Direxion Daily Emerging Markets Bull 3X Shares) and EEMS (iShares MSCI Emerging Markets Small-Cap ETF) are both exchange-traded funds - EDC is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (300%), while EEMS is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Small Cap Index. Both are passively managed. Over the past 10 years, EDC returned 8.70%/yr vs 9.29%/yr for EEMS. Their correlation of 0.84 suggests significant overlap in exposure. EDC charges 1.33%/yr vs 0.73%/yr for EEMS.

Performance

EDC vs. EEMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bull 3X Shares (EDC) and iShares MSCI Emerging Markets Small-Cap ETF (EEMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDC achieves a 82.36% return, which is significantly higher than EEMS's 14.63% return. Over the past 10 years, EDC has underperformed EEMS with an annualized return of 8.70%, while EEMS has yielded a comparatively higher 9.29% annualized return.

EDC

• 1D: -3.74%
• 1M: 26.16%
• YTD: 82.36%
• 6M: 92.21%
• 1Y: 200.25%
• 3Y*: 52.64%
• 5Y*: -0.27%
• 10Y*: 8.70%

EEMS

• 1D: -1.36%
• 1M: 1.46%
• YTD: 14.63%
• 6M: 16.52%
• 1Y: 29.38%
• 3Y*: 16.81%
• 5Y*: 6.92%
• 10Y*: 9.29%

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

EDC vs. EEMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	82.36%	94.58%	-2.00%	7.48%	-60.25%	-20.81%	6.49%	43.92%	-49.87%	138.61%
EEMS iShares MSCI Emerging Markets Small-Cap ETF	14.63%	19.78%	3.13%	23.09%	-19.12%	18.12%	19.47%	11.25%	-18.98%	34.80%

Correlation

The correlation between EDC and EEMS is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Aug 19, 2011	0.84

The correlation between EDC and EEMS has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

EDC vs. EEMS - Sectors Allocation Comparison

Sectors	EDC	EEMS
Technology	32.7%	22.7%
Financial Services	20.8%	11.1%
Consumer Cyclical	10.3%	9.6%
Communication Services	7.8%	2.9%
Industrials	7.3%	18.9%
Basic Materials	7.0%	9.3%
Energy	4.4%	2.4%
Consumer Defensive	3.2%	5.2%
Healthcare	3.2%	9.4%
Utilities	2.2%	2.7%
Real Estate	1.1%	5.9%

Return for Risk

EDC vs. EEMS — Risk / Return Rank

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

EDC

EDC Risk / Return Rank: 83
EDC Sharpe Ratio Rank: 92
EDC Sortino Ratio Rank: 73
EDC Omega Ratio Rank: 76
EDC Calmar Ratio Rank: 88
EDC Martin Ratio Rank: 87

EEMS

EEMS Risk / Return Rank: 51
EEMS Sharpe Ratio Rank: 49
EEMS Sortino Ratio Rank: 46
EEMS Omega Ratio Rank: 49
EEMS Calmar Ratio Rank: 54
EEMS Martin Ratio Rank: 55

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.

EDC vs. EEMS - Risk-Adjusted Trends 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 Small-Cap ETF (EEMS). 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.

	EDC	EEMS	Difference
Sharpe ratio: Return per unit of total volatility	3.38	1.71	+1.67
Sortino ratio: Return per unit of downside risk	3.33	2.31	+1.02
Omega ratio: Gain probability vs. loss probability	1.46	1.31	+0.15
Calmar ratio: Return relative to maximum drawdown	5.31	2.72	+2.59
Martin ratio: Return relative to average drawdown	18.68	9.56	+9.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EDC vs. EEMS - Sharpe Ratio Comparison

The current EDC Sharpe Ratio is 3.38, which is higher than the EEMS Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of EDC and EEMS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EDC	EEMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.38	1.71	+1.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	0.43	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.14	0.52	-0.37
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	0.32	-0.27

Drawdowns

EDC vs. EEMS - Drawdown Comparison

The maximum EDC drawdown since its inception was -92.54%, which is greater than EEMS's maximum drawdown of -48.89%. Use the drawdown chart below to compare losses from any high point for EDC and EEMS.

Drawdown Indicators

	EDC	EEMS	Difference
Max Drawdown Largest peak-to-trough decline	-92.54%	-48.89%	-43.65%
Max Drawdown (1Y) Largest decline over 1 year	-37.98%	-10.87%	-27.11%
Max Drawdown (3Y) Largest decline over 3 years	-49.48%	-19.71%	-29.77%
Max Drawdown (5Y) Largest decline over 5 years	-80.99%	-27.07%	-53.92%
Max Drawdown (10Y) Largest decline over 10 years	-87.01%	-48.89%	-38.12%
Current Drawdown Current decline from peak	-61.29%	-2.41%	-58.88%
Average Drawdown Average peak-to-trough decline	-65.36%	-10.50%	-54.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.77%	3.08%	+7.69%

Volatility

EDC vs. EEMS - Volatility Comparison

Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 25.80% compared to iShares MSCI Emerging Markets Small-Cap ETF (EEMS) at 7.07%. This indicates that EDC's price experiences larger fluctuations and is considered to be riskier than EEMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDC	EEMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.80%	7.07%	+18.73%
Volatility (6M) Calculated over the trailing 6-month period	51.94%	14.90%	+37.04%
Volatility (1Y) Calculated over the trailing 1-year period	59.67%	17.30%	+42.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.68%	16.06%	+40.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	60.69%	17.99%	+42.70%

EDC vs. EEMS - Expense Ratio Comparison

EDC has a 1.33% expense ratio, which is higher than EEMS's 0.73% expense ratio.

Dividends

EDC vs. EEMS - Dividend Comparison

EDC's dividend yield for the trailing twelve months is around 0.93%, less than EEMS's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDC Direxion Daily Emerging Markets Bull 3X Shares	0.93%	1.79%	3.94%	3.54%	0.00%	0.18%	0.44%	0.97%	0.78%	0.25%	0.00%	0.00%
EEMS iShares MSCI Emerging Markets Small-Cap ETF	2.69%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%

Frequently Asked Questions

Can I hold both EDC and EEMS in my portfolio?

EDC and EEMS have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDC or EEMS?

EDC has higher volatility (25.80%) compared to EEMS (7.07%). In terms of maximum drawdown, EDC dropped -92.54% vs EEMS's -48.89%.

Which ETF is better, EDC or EEMS?

On 10-year performance, EEMS leads with 9.29% vs 8.70% for EDC. On fees, EEMS is cheaper at 0.73% per year. On volatility, EEMS has been the lower-risk option at 7.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDC or EEMS?

Over the 10-year period, EEMS has performed better with a 9.29% return vs 8.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDC or EEMS?

EEMS is cheaper with a 0.73% expense ratio, compared with 1.33% for EDC.

Which ETF pays a higher dividend yield, EDC or EEMS?

EEMS has the higher dividend yield at 2.69%, compared with 0.93% for EDC.

What is the main difference between EDC and EEMS?

EDC is categorized as Leveraged Equities, while EEMS is Emerging Markets Diversified. EDC tracks MSCI Emerging Markets Index (300%), while EEMS tracks MSCI Emerging Markets Small Cap Index. They also come from different issuers: Direxion and iShares. Their fees differ too: 1.33% for EDC and 0.73% for EEMS.

Which has better risk-adjusted returns?

EDC currently has the higher Sharpe Ratio (3.38 vs 1.71), 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.