EDZ vs. IEMG

Last updated Jun 5, 2026

EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, EDZ returned -36.41%/yr vs 10.22%/yr for IEMG. At a correlation of -0.99, they often move in opposite directions. EDZ charges 1.08%/yr vs 0.09%/yr for IEMG.

Performance

EDZ vs. IEMG - 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 Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDZ achieves a -56.25% return, which is significantly lower than IEMG's 24.98% return. Over the past 10 years, EDZ has underperformed IEMG with an annualized return of -36.41%, while IEMG has yielded a comparatively higher 10.22% 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%

IEMG

• 1D: -0.98%
• 1M: 4.82%
• YTD: 24.98%
• 6M: 27.43%
• 1Y: 49.24%
• 3Y*: 23.19%
• 5Y*: 7.36%
• 10Y*: 10.22%

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

EDZ vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
IEMG iShares Core MSCI Emerging Markets ETF	24.98%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between EDZ and IEMG 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	-0.99
Correlation (10Y) Calculated over the trailing 10-year period	-1.00
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	-0.99

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

EDZ vs. IEMG - Sectors Allocation Comparison

Sectors	EDZ	IEMG
Financial Services	26.2%	18.4%
Industrials	19.7%	9.0%
Technology	14.6%	35.0%
Consumer Cyclical	8.0%	9.5%
Utilities	7.2%	2.2%
Consumer Defensive	6.0%	3.3%
Healthcare	5.9%	3.7%
Energy	3.9%	3.8%
Basic Materials	3.7%	6.9%
Communication Services	3.4%	6.4%
Real Estate	1.4%	1.7%

Return for Risk

EDZ vs. IEMG — Risk / Return Rank

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

EDZ

EDZ Risk / Return Rank: 0
EDZ Sharpe Ratio Rank: 1
EDZ Sortino Ratio Rank: 0
EDZ Omega Ratio Rank: 0
EDZ Calmar Ratio Rank: 0
EDZ Martin Ratio Rank: 0

IEMG

IEMG Risk / Return Rank: 77
IEMG Sharpe Ratio Rank: 80
IEMG Sortino Ratio Rank: 75
IEMG Omega Ratio Rank: 79
IEMG Calmar Ratio Rank: 76
IEMG Martin Ratio Rank: 76

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. IEMG - 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 Core MSCI Emerging Markets ETF (IEMG). 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.

	EDZ	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	-1.25	2.55	-3.80
Sortino ratio: Return per unit of downside risk	-2.59	3.34	-5.93
Omega ratio: Gain probability vs. loss probability	0.70	1.47	-0.76
Calmar ratio: Return relative to maximum drawdown	-0.98	3.74	-4.73
Martin ratio: Return relative to average drawdown	-1.68	14.39	-16.07
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. IEMG - Sharpe Ratio Comparison

The current EDZ Sharpe Ratio is -1.25, which is lower than the IEMG Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of EDZ and IEMG, 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

	EDZ	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.25	2.55	-3.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.44	0.40	-0.84
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.60	0.51	-1.11
Sharpe Ratio (All Time) Calculated using the full available price history	-0.60	0.35	-0.95

Drawdowns

EDZ vs. IEMG - Drawdown Comparison

The maximum EDZ drawdown since its inception was -99.99%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for EDZ and IEMG.

Drawdown Indicators

	EDZ	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-99.99%	-38.71%	-61.28%
Max Drawdown (1Y) Largest decline over 1 year	-75.74%	-13.21%	-62.53%
Max Drawdown (3Y) Largest decline over 3 years	-89.69%	-17.21%	-72.48%
Max Drawdown (5Y) Largest decline over 5 years	-92.33%	-35.83%	-56.50%
Max Drawdown (10Y) Largest decline over 10 years	-99.11%	-38.71%	-60.40%
Current Drawdown Current decline from peak	-99.99%	-2.30%	-97.69%
Average Drawdown Average peak-to-trough decline	-97.73%	-12.97%	-84.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.50%	3.43%	+41.07%

Volatility

EDZ vs. IEMG - Volatility Comparison

Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 25.57% compared to iShares Core MSCI Emerging Markets ETF (IEMG) at 8.24%. This indicates that EDZ's price experiences larger fluctuations and is considered to be riskier than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDZ	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.57%	8.24%	+17.33%
Volatility (6M) Calculated over the trailing 6-month period	51.95%	16.97%	+34.98%
Volatility (1Y) Calculated over the trailing 1-year period	59.51%	19.47%	+40.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	57.00%	18.38%	+38.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	60.97%	20.03%	+40.94%

EDZ vs. IEMG - Expense Ratio Comparison

EDZ has a 1.08% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

EDZ vs. IEMG - Dividend Comparison

EDZ's dividend yield for the trailing twelve months is around 10.10%, more than IEMG's 2.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
IEMG iShares Core MSCI Emerging Markets ETF	2.20%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both EDZ and IEMG in my portfolio?

EDZ and IEMG 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 IEMG?

EDZ has higher volatility (25.57%) compared to IEMG (8.24%). In terms of maximum drawdown, EDZ dropped -99.99% vs IEMG's -38.71%.

Which ETF is better, EDZ or IEMG?

On 10-year performance, IEMG leads with 10.22% vs -36.41% for EDZ. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDZ or IEMG?

Over the 10-year period, IEMG has performed better with a 10.22% return vs -36.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDZ or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 1.08% for EDZ.

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

EDZ has the higher dividend yield at 10.10%, compared with 2.20% for IEMG.

What is the main difference between EDZ and IEMG?

EDZ is categorized as Leveraged Equities, while IEMG is Emerging Markets Diversified. EDZ tracks MSCI Emerging Markets Index (-300%), while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Direxion and iShares. Their fees differ too: 1.08% for EDZ and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.55 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.