EDZ vs. GEM

Last updated Jul 17, 2026

EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and GEM (Goldman Sachs ActiveBeta Emerging Markets Equity ETF) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while GEM is a Emerging Markets Equities fund tracking the Goldman Sachs ActiveBeta Emerging Markets Equity Index. Both are passively managed. Over the past 10 years, EDZ returned -34.13%/yr vs 8.44%/yr for GEM. At a correlation of -0.98, they often move in opposite directions. EDZ charges 1.08%/yr vs 0.45%/yr for GEM.

Performance

EDZ vs. GEM - Performance Comparison

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

Returns By Period

In the year-to-date period, EDZ achieves a -50.67% return, which is significantly lower than GEM's 17.80% return. Over the past 10 years, EDZ has underperformed GEM with an annualized return of -34.13%, while GEM has yielded a comparatively higher 8.44% annualized return.

EDZ

• 1D: 6.39%
• 1M: 17.31%
• 6M: -40.86%
• YTD: -50.67%
• 1Y: -65.33%
• 3Y*: -43.45%
• 5Y*: -24.56%
• 10Y*: -34.13%

GEM

• 1D: -1.59%
• 1M: -6.27%
• 6M: 11.25%
• YTD: 17.80%
• 1Y: 32.95%
• 3Y*: 19.09%
• 5Y*: 6.96%
• 10Y*: 8.44%

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

EDZ vs. GEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDZ Direxion Daily Emerging Markets Bear 3X Shares	-50.67%	-59.30%	-12.71%	-20.28%	49.27%	-8.69%	-68.79%	-43.01%	32.87%	-64.12%
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	17.80%	33.43%	6.66%	11.82%	-21.33%	-0.19%	13.23%	17.79%	-14.25%	36.43%

Correlation

The correlation between EDZ and GEM 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	-0.98
Correlation (5Y) Calculated over the trailing 5-year period	-0.98
Correlation (10Y) Calculated over the trailing 10-year period	-0.98
Correlation (All Time) Calculated using the full available price history since Sep 29, 2015	-0.98

The correlation between EDZ and GEM has been stable across timeframes, ranging from -0.99 to -0.98 - a consistent structural relationship.

EDZ vs. GEM - Sectors Allocation Comparison

Sectors	EDZ	GEM
Financial Services	26.2%	18.6%
Industrials	19.7%	5.6%
Technology	14.6%	43.5%
Consumer Cyclical	8.0%	8.2%
Utilities	7.2%	1.8%
Consumer Defensive	6.0%	2.8%
Healthcare	5.9%	2.9%
Energy	3.9%	3.0%
Basic Materials	3.7%	6.4%
Communication Services	3.4%	6.4%
Real Estate	1.4%	0.8%

Return for Risk

EDZ vs. GEM — Risk / Return Rank

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

EDZ

EDZ Risk / Return Rank: 2
EDZ Sharpe Ratio Rank: 2
EDZ Sortino Ratio Rank: 1
EDZ Omega Ratio Rank: 1
EDZ Calmar Ratio Rank: 2
EDZ Martin Ratio Rank: 1

GEM

GEM Risk / Return Rank: 55
GEM Sharpe Ratio Rank: 51
GEM Sortino Ratio Rank: 48
GEM Omega Ratio Rank: 55
GEM Calmar Ratio Rank: 61
GEM Martin Ratio Rank: 60

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. GEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM). 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.

	EDZ	GEM	Difference
Sharpe ratio: Return per unit of total volatility	-0.93	1.44	-2.37
Sortino ratio: Return per unit of downside risk	-1.63	1.95	-3.58
Omega ratio: Gain probability vs. loss probability	0.81	1.27	-0.46
Calmar ratio: Return relative to maximum drawdown	-0.87	2.45	-3.33
Martin ratio: Return relative to average drawdown	-1.44	8.26	-9.70

EDZ vs. GEM - Sharpe Ratio Comparison

The current EDZ Sharpe Ratio is -0.93, which is lower than the GEM Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of EDZ and GEM, 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

EDZ vs. GEM - Drawdown Comparison

The maximum EDZ drawdown since its inception was -99.99%, which is greater than GEM's maximum drawdown of -37.02%. Use the drawdown chart below to compare losses from any high point for EDZ and GEM.

Drawdown Indicators

	EDZ	GEM	Difference
Max Drawdown Largest peak-to-trough decline	-99.99%	-37.02%	-62.97%
Max Drawdown (1Y) Largest decline over 1 year	-74.94%	-13.50%	-61.44%
Max Drawdown (3Y) Largest decline over 3 years	-90.46%	-16.54%	-73.92%
Max Drawdown (5Y) Largest decline over 5 years	-92.91%	-33.14%	-59.77%
Max Drawdown (10Y) Largest decline over 10 years	-98.90%	-37.02%	-61.88%
Current Drawdown Current decline from peak	-99.99%	-9.35%	-90.64%
Average Drawdown Average peak-to-trough decline	-97.73%	-11.93%	-85.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	45.52%	4.00%	+41.52%

Volatility

EDZ vs. GEM - Volatility Comparison

Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 28.73% compared to Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) at 9.48%. This indicates that EDZ's price experiences larger fluctuations and is considered to be riskier than GEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDZ	GEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	28.73%	9.48%	+19.25%
Volatility (6M) Calculated over the trailing 6-month period	64.01%	20.99%	+43.02%
Volatility (1Y) Calculated over the trailing 1-year period	70.63%	22.98%	+47.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	59.49%	18.53%	+40.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.64%	19.25%	+42.39%

EDZ vs. GEM - Expense Ratio Comparison

EDZ has a 1.08% expense ratio, which is higher than GEM's 0.45% expense ratio.

Dividends

EDZ vs. GEM - Dividend Comparison

EDZ's dividend yield for the trailing twelve months is around 6.78%, more than GEM's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDZ Direxion Daily Emerging Markets Bear 3X Shares	6.78%	6.58%	4.87%	4.34%	0.00%	0.00%	0.82%	1.67%	0.68%	0.00%	0.00%	0.00%
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	1.95%	2.30%	2.58%	2.97%	2.96%	3.00%	1.63%	3.13%	2.08%	1.81%	1.98%	0.25%

Frequently Asked Questions

Can I hold both EDZ and GEM in my portfolio?

EDZ and GEM 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.

Which is riskier, EDZ or GEM?

EDZ has higher volatility (28.73%) compared to GEM (9.48%). In terms of maximum drawdown, EDZ dropped -99.99% vs GEM's -37.02%.

Which ETF is better, EDZ or GEM?

On 10-year performance, GEM leads with 8.44% vs -34.13% for EDZ. On fees, GEM is cheaper at 0.45% per year. On volatility, GEM has been the lower-risk option at 9.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDZ or GEM?

Over the 10-year period, GEM has performed better with a 8.44% return vs -34.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDZ or GEM?

GEM is cheaper with a 0.45% expense ratio, compared with 1.08% for EDZ.

Which ETF pays a higher dividend yield, EDZ or GEM?

EDZ has the higher dividend yield at 6.78%, compared with 1.95% for GEM.

What is the main difference between EDZ and GEM?

EDZ is categorized as Leveraged Equities, while GEM is Emerging Markets Equities. EDZ tracks MSCI Emerging Markets Index (-300%), while GEM tracks Goldman Sachs ActiveBeta Emerging Markets Equity Index. They also come from different issuers: Direxion and Goldman Sachs. Their fees differ too: 1.08% for EDZ and 0.45% for GEM.

Which has better risk-adjusted returns?

GEM currently has the higher Sharpe Ratio (1.44 vs -0.93), 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.