EEM vs. DGS
EEM (iShares MSCI Emerging Markets ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both Emerging Markets Diversified funds - EEM tracks the MSCI Emerging Markets Index while DGS tracks the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, EEM returned 9.93%/yr vs 9.93%/yr for DGS. Their correlation of 0.91 suggests significant overlap in exposure. EEM charges 0.72%/yr vs 0.58%/yr for DGS.
Performance
EEM vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, EEM achieves a 27.80% return, which is significantly higher than DGS's 14.53% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: EEM at 9.93% and DGS at 9.93%.
EEM
- 1D
- -1.24%
- 1M
- 9.08%
- YTD
- 27.80%
- 6M
- 30.51%
- 1Y
- 55.80%
- 3Y*
- 23.95%
- 5Y*
- 7.01%
- 10Y*
- 9.93%
DGS
- 1D
- -1.37%
- 1M
- 2.58%
- YTD
- 14.53%
- 6M
- 15.57%
- 1Y
- 27.26%
- 3Y*
- 16.17%
- 5Y*
- 7.85%
- 10Y*
- 9.93%
EEM vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 27.80% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.53% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between EEM and DGS is 0.87, 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 | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Oct 31, 2007 | 0.91 |
The correlation between EEM and DGS has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.
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Return for Risk
EEM vs. DGS — Risk / Return Rank
EEM
DGS
EEM vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| EEM | DGS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.81 | 1.76 | +1.05 |
Sortino ratioReturn per unit of downside risk | 3.62 | 2.43 | +1.19 |
Omega ratioGain probability vs. loss probability | 1.51 | 1.32 | +0.19 |
Calmar ratioReturn relative to maximum drawdown | 4.15 | 2.72 | +1.43 |
Martin ratioReturn relative to average drawdown | 15.99 | 9.16 | +6.83 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| EEM | DGS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.81 | 1.76 | +1.05 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | 0.53 | -0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.49 | 0.58 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.38 | 0.23 | +0.15 |
Drawdowns
EEM vs. DGS - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, which is greater than DGS's maximum drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for EEM and DGS.
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Drawdown Indicators
| EEM | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -61.83% | -4.60% |
Max Drawdown (1Y)Largest decline over 1 year | -13.52% | -10.06% | -3.46% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -19.31% | +2.02% |
Max Drawdown (5Y)Largest decline over 5 years | -37.71% | -24.86% | -12.85% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -44.08% | +4.26% |
Current DrawdownCurrent decline from peak | -1.24% | -1.40% | +0.16% |
Average DrawdownAverage peak-to-trough decline | -16.02% | -12.59% | -3.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.50% | 2.98% | +0.52% |
Volatility
EEM vs. DGS - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 8.52% compared to WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) at 5.24%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EEM | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.52% | 5.24% | +3.28% |
Volatility (6M)Calculated over the trailing 6-month period | 17.42% | 13.03% | +4.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.97% | 15.56% | +4.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.91% | 14.87% | +4.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.50% | 17.32% | +3.18% |
EEM vs. DGS - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than DGS's 0.58% expense ratio.
Dividends
EEM vs. DGS - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.74%, less than DGS's 3.21% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.21% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
EEM iShares MSCI Emerging Markets ETF | 1.74% | 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
EEM and DGS have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (8.52%) compared to DGS (5.24%). In terms of maximum drawdown, EEM dropped -66.43% vs DGS's -61.83%.
On 10-year performance, DGS leads with 9.93% vs 9.93% for EEM. On fees, DGS is cheaper at 0.58% per year. On volatility, DGS has been the lower-risk option at 5.24%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DGS has performed better with a 9.93% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DGS is cheaper with a 0.58% expense ratio, compared with 0.72% for EEM.
DGS has the higher dividend yield at 3.21%, compared with 1.74% for EEM.
EEM tracks MSCI Emerging Markets Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.72% for EEM and 0.58% for DGS.
EEM currently has the higher Sharpe Ratio (2.81 vs 1.76), 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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