EEM vs. EDC
Compare and contrast key facts about iShares MSCI Emerging Markets ETF (EEM) and Direxion Daily Emerging Markets Bull 3X Shares (EDC).
EEM and EDC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both EEM and EDC 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: EEM or EDC.
Key characteristics
| EEM | EDC | |
|---|---|---|
| YTD Return | 10.96% | 13.18% |
| 1Y Return | 18.54% | 35.56% |
| 3Y Return (Ann) | -2.91% | -25.57% |
| 5Y Return (Ann) | 3.03% | -13.15% |
| 10Y Return (Ann) | 2.90% | -9.92% |
| Sharpe Ratio | 1.24 | 0.80 |
| Sortino Ratio | 1.81 | 1.36 |
| Omega Ratio | 1.22 | 1.17 |
| Calmar Ratio | 0.64 | 0.42 |
| Martin Ratio | 6.42 | 3.92 |
| Ulcer Index | 3.02% | 9.72% |
| Daily Std Dev | 15.68% | 47.64% |
| Max Drawdown | -66.44% | -92.54% |
| Current Drawdown | -17.50% | -87.40% |
Correlation
The correlation between EEM and EDC 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
EEM vs. EDC - Performance Comparison
In the year-to-date period, EEM achieves a 10.96% return, which is significantly lower than EDC's 13.18% return. Over the past 10 years, EEM has outperformed EDC with an annualized return of 2.90%, while EDC has yielded a comparatively lower -9.92% 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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EEM vs. EDC - Expense Ratio Comparison
EEM has a 0.68% expense ratio, which is lower than EDC's 1.33% expense ratio.
Risk-Adjusted Performance
EEM vs. EDC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Direxion Daily Emerging Markets Bull 3X Shares (EDC). 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
EEM vs. EDC - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 2.34%, less than EDC's 3.45% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 2.34% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% | 2.23% | 2.06% |
EDC Direxion Daily Emerging Markets Bull 3X Shares | 3.45% | 3.54% | 0.00% | 0.18% | 0.44% | 0.97% | 0.78% | 0.25% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
EEM vs. EDC - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.44%, smaller than the maximum EDC drawdown of -92.54%. Use the drawdown chart below to compare losses from any high point for EEM and EDC. For additional features, visit the drawdowns tool.
Volatility
EEM vs. EDC - Volatility Comparison
The current volatility for iShares MSCI Emerging Markets ETF (EEM) is 4.95%, while Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a volatility of 15.07%. This indicates that EEM experiences smaller price fluctuations and is considered to be less risky than EDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.