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EDZ vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EDZ vs. EEM

Last updated Jun 5, 2026

EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, EDZ returned -36.41%/yr vs 9.68%/yr for EEM. At a correlation of -1.00, they often move in opposite directions. EDZ charges 1.08%/yr vs 0.72%/yr for EEM.

Performance

EDZ vs. EEM - Performance Comparison

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

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Returns By Period

In the year-to-date period, EDZ achieves a -56.25% return, which is significantly lower than EEM's 26.30% return. Over the past 10 years, EDZ has underperformed EEM with an annualized return of -36.41%, while EEM has yielded a comparatively higher 9.68% annualized return.

EDZ

1D
3.62%
1M
-18.11%
YTD
-56.25%
6M
-58.86%
1Y
-74.18%
3Y*
-48.04%
5Y*
-24.82%
10Y*
-36.41%

EEM

1D
-1.17%
1M
5.66%
YTD
26.30%
6M
29.01%
1Y
52.09%
3Y*
23.47%
5Y*
6.76%
10Y*
9.68%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EDZ vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EDZ
Direxion Daily Emerging Markets Bear 3X Shares		-56.25%-59.30%-12.71%-20.28%49.27%-8.69%-68.79%-43.01%32.87%-64.12%
EEM
iShares MSCI Emerging Markets ETF		26.30%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between EDZ and EEM is -0.99, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

-0.99

Correlation (3Y)
Calculated over the trailing 3-year period

-0.99

Correlation (5Y)
Calculated over the trailing 5-year period

-1.00

Correlation (10Y)
Calculated over the trailing 10-year period

-1.00

Correlation (All Time)
Calculated using the full available price history since Dec 31, 2008

-1.00

The correlation between EDZ and EEM has been stable across timeframes, ranging from -1.00 to -0.99 - a consistent structural relationship.

EDZ vs. EEM - Sectors Allocation Comparison

Sectors
EDZ
EEM

Financial Services

26.2%
17.5%

Industrials

19.7%
6.2%

Technology

14.6%
43.6%

Consumer Cyclical

8.0%
8.1%

Utilities

7.2%
2.0%

Consumer Defensive

6.0%
2.7%

Healthcare

5.9%
2.5%

Energy

3.9%
3.3%

Basic Materials

3.7%
6.1%

Communication Services

3.4%
5.7%

Real Estate

1.4%
0.9%

Financial Services

EDZ
26.2%
EEM
17.5%

Industrials

EDZ
19.7%
EEM
6.2%

Technology

EDZ
14.6%
EEM
43.6%

Consumer Cyclical

EDZ
8.0%
EEM
8.1%

Utilities

EDZ
7.2%
EEM
2.0%

Consumer Defensive

EDZ
6.0%
EEM
2.7%

Healthcare

EDZ
5.9%
EEM
2.5%

Energy

EDZ
3.9%
EEM
3.3%

Basic Materials

EDZ
3.7%
EEM
6.1%

Communication Services

EDZ
3.4%
EEM
5.7%

Real Estate

EDZ
1.4%
EEM
0.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Direxion Daily Emerging Markets Bear 3X Shares

iShares MSCI Emerging Markets ETF

Often compared with EDZ:
EDZ vs. EDCEDZ vs. BERZEDZ vs. YANGEDZ vs. AMATEDZ vs. TQQQEDZ vs. SHEDZ vs. SPY
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

EDZ vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EDZ
EDZ Risk / Return Rank: 00
Overall Rank
EDZ Sharpe Ratio Rank: 11
Sharpe Ratio Rank
EDZ Sortino Ratio Rank: 00
Sortino Ratio Rank
EDZ Omega Ratio Rank: 00
Omega Ratio Rank
EDZ Calmar Ratio Rank: 00
Calmar Ratio Rank
EDZ Martin Ratio Rank: 00
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 7979
Overall Rank
EEM Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7777
Sortino Ratio Rank
EEM Omega Ratio Rank: 8181
Omega Ratio Rank
EEM Calmar Ratio Rank: 7878
Calmar Ratio Rank
EEM Martin Ratio Rank: 7878
Martin Ratio Rank
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.

EDZ vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bear 3X Shares (EDZ) 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.

EDZEEMDifference
Sharpe ratioReturn per unit of total volatility
-1.25
2.62

-3.87

Sortino ratioReturn per unit of downside risk
-2.59
3.42

-6.01

Omega ratioGain probability vs. loss probability

0.70

1.48

-0.77

Calmar ratioReturn relative to maximum drawdown

-0.98

3.87

-4.85

Martin ratioReturn relative to average drawdown

-1.68

14.91

-16.59

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EDZ vs. EEM - Sharpe Ratio Comparison

The current EDZ Sharpe Ratio is -1.25, which is lower than the EEM Sharpe Ratio of 2.62. The chart below compares the historical Sharpe Ratios of EDZ and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

EDZEEMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-1.25

2.62

-3.87

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.44

0.36

-0.80

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.60

0.47

-1.07

Sharpe Ratio (All Time)

Calculated using the full available price history

-0.60

0.38

-0.98

Drawdowns

EDZ vs. EEM - Drawdown Comparison

The maximum EDZ drawdown since its inception was -99.99%, which is greater than EEM's maximum drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for EDZ and EEM.

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Drawdown Indicators

EDZEEMDifference

Max Drawdown

Largest peak-to-trough decline

-99.99%

-66.43%

-33.56%

Max Drawdown (1Y)

Largest decline over 1 year

-75.74%

-13.52%

-62.22%

Max Drawdown (3Y)

Largest decline over 3 years

-89.69%

-17.29%

-72.40%

Max Drawdown (5Y)

Largest decline over 5 years

-92.33%

-37.71%

-54.62%

Max Drawdown (10Y)

Largest decline over 10 years

-99.11%

-39.82%

-59.29%

Current Drawdown

Current decline from peak

-99.99%

-2.40%

-97.59%

Average Drawdown

Average peak-to-trough decline

-97.73%

-16.02%

-81.71%

Ulcer Index

Depth and duration of drawdowns from previous peaks

44.50%

3.50%

+41.00%

Volatility

EDZ vs. EEM - Volatility Comparison

Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 25.57% compared to iShares MSCI Emerging Markets ETF (EEM) at 8.49%. This indicates that EDZ'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.

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Volatility by Period

EDZEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

25.57%

8.49%

+17.08%

Volatility (6M)

Calculated over the trailing 6-month period

51.95%

17.47%

+34.48%

Volatility (1Y)

Calculated over the trailing 1-year period

59.51%

20.02%

+39.49%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

57.00%

18.92%

+38.08%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

60.97%

20.50%

+40.47%

EDZ vs. EEM - Expense Ratio Comparison

EDZ has a 1.08% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

EDZ vs. EEM - Dividend Comparison

EDZ's dividend yield for the trailing twelve months is around 10.10%, more than EEM's 1.76% yield.

PositionTTM20252024202320222021202020192018201720162015
EDZ
Direxion Daily Emerging Markets Bear 3X Shares		10.10%6.58%4.87%4.34%0.00%0.00%0.82%1.67%0.68%0.00%0.00%0.00%
EEM
iShares MSCI Emerging Markets ETF		1.76%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%

Frequently Asked Questions

EDZ and EEM have a correlation of -0.99, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EDZ has higher volatility (25.57%) compared to EEM (8.49%). In terms of maximum drawdown, EDZ dropped -99.99% vs EEM's -66.43%.

On 10-year performance, EEM leads with 9.68% vs -36.41% for EDZ. On fees, EEM is cheaper at 0.72% per year. On volatility, EEM has been the lower-risk option at 8.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, EEM has performed better with a 9.68% return vs -36.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

EEM is cheaper with a 0.72% expense ratio, compared with 1.08% for EDZ.

EDZ has the higher dividend yield at 10.10%, compared with 1.76% for EEM.

EDZ is categorized as Leveraged Equities, while EEM is Emerging Markets Diversified. EDZ tracks MSCI Emerging Markets Index (-300%), while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Direxion and iShares. Their fees differ too: 1.08% for EDZ and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.62 vs -1.25), 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.

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