EEM vs. TNA

Last updated Jun 9, 2026

EEM (iShares MSCI Emerging Markets ETF) and TNA (Direxion Daily Small Cap Bull 3X Shares) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while TNA is a Leveraged Equities fund tracking the Russell 2000 Index (300%). Both are passively managed. Over the past 10 years, EEM returned 9.37%/yr vs 7.38%/yr for TNA. A 0.67 correlation means they provide meaningful diversification when combined. EEM charges 0.72%/yr vs 1.14%/yr for TNA.

Performance

EEM vs. TNA - Performance Comparison

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

Returns By Period

In the year-to-date period, EEM achieves a 20.18% return, which is significantly lower than TNA's 40.38% return. Over the past 10 years, EEM has outperformed TNA with an annualized return of 9.37%, while TNA has yielded a comparatively lower 7.38% annualized return.

EEM

• 1D: 1.80%
• 1M: -3.22%
• YTD: 20.18%
• 6M: 22.10%
• 1Y: 43.51%
• 3Y*: 20.79%
• 5Y*: 5.98%
• 10Y*: 9.37%

TNA

• 1D: 2.58%
• 1M: -1.87%
• YTD: 40.38%
• 6M: 32.71%
• 1Y: 101.66%
• 3Y*: 24.04%
• 5Y*: -7.95%
• 10Y*: 7.38%

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

EEM vs. TNA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EEM iShares MSCI Emerging Markets ETF	20.18%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%
TNA Direxion Daily Small Cap Bull 3X Shares	40.38%	9.82%	7.21%	26.24%	-62.48%	27.88%	-7.82%	71.88%	-39.89%	39.15%

Correlation

The correlation between EEM and TNA is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.67

The correlation between EEM and TNA has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.

EEM vs. TNA - Sectors Allocation Comparison

Sectors	EEM	TNA
Technology	43.6%	16.9%
Financial Services	17.5%	15.9%
Consumer Cyclical	8.1%	8.4%
Industrials	6.2%	17.5%
Basic Materials	6.1%	4.8%
Communication Services	5.7%	2.5%
Energy	3.3%	6.2%
Consumer Defensive	2.7%	2.4%
Healthcare	2.5%	16.5%
Utilities	2.0%	2.9%
Real Estate	0.9%	6.2%

Return for Risk

EEM vs. TNA — Risk / Return Rank

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

EEM

EEM Risk / Return Rank: 70
EEM Sharpe Ratio Rank: 70
EEM Sortino Ratio Rank: 64
EEM Omega Ratio Rank: 73
EEM Calmar Ratio Rank: 71
EEM Martin Ratio Rank: 72

TNA

TNA Risk / Return Rank: 58
TNA Sharpe Ratio Rank: 58
TNA Sortino Ratio Rank: 51
TNA Omega Ratio Rank: 47
TNA Calmar Ratio Rank: 69
TNA Martin Ratio Rank: 63

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.

EEM vs. TNA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Direxion Daily Small Cap Bull 3X Shares (TNA). 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	TNA	Difference
Sharpe ratio: Return per unit of total volatility	2.07	1.76	+0.30
Sortino ratio: Return per unit of downside risk	2.66	2.28	+0.39
Omega ratio: Gain probability vs. loss probability	1.39	1.27	+0.12
Calmar ratio: Return relative to maximum drawdown	3.23	3.14	+0.09
Martin ratio: Return relative to average drawdown	12.20	10.30	+1.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EEM vs. TNA - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.07, which is comparable to the TNA Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of EEM and TNA, 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

	EEM	TNA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.07	1.76	+0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	-0.12	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.11	+0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.22	+0.15

Drawdowns

EEM vs. TNA - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, smaller than the maximum TNA drawdown of -88.09%. Use the drawdown chart below to compare losses from any high point for EEM and TNA.

Drawdown Indicators

	EEM	TNA	Difference
Max Drawdown Largest peak-to-trough decline	-66.43%	-88.09%	+21.66%
Max Drawdown (1Y) Largest decline over 1 year	-13.52%	-32.53%	+19.01%
Max Drawdown (3Y) Largest decline over 3 years	-17.29%	-65.78%	+48.49%
Max Drawdown (5Y) Largest decline over 5 years	-37.49%	-82.36%	+44.87%
Max Drawdown (10Y) Largest decline over 10 years	-39.82%	-88.09%	+48.27%
Current Drawdown Current decline from peak	-7.13%	-40.63%	+33.50%
Average Drawdown Average peak-to-trough decline	-16.01%	-33.91%	+17.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.58%	9.90%	-6.32%

Volatility

EEM vs. TNA - Volatility Comparison

The current volatility for iShares MSCI Emerging Markets ETF (EEM) is 10.60%, while Direxion Daily Small Cap Bull 3X Shares (TNA) has a volatility of 19.70%. This indicates that EEM experiences smaller price fluctuations and is considered to be less risky than TNA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EEM	TNA	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.60%	19.70%	-9.10%
Volatility (6M) Calculated over the trailing 6-month period	18.87%	41.78%	-22.91%
Volatility (1Y) Calculated over the trailing 1-year period	21.19%	58.10%	-36.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.16%	67.48%	-48.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.62%	68.52%	-47.90%

EEM vs. TNA - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is lower than TNA's 1.14% expense ratio.

Dividends

EEM vs. TNA - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.85%, more than TNA's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.85%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
TNA Direxion Daily Small Cap Bull 3X Shares	0.43%	0.78%	0.93%	1.27%	0.31%	0.06%	0.03%	0.44%	0.36%	0.15%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EEM and TNA in my portfolio?

EEM and TNA have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EEM or TNA?

TNA has higher volatility (19.70%) compared to EEM (10.60%). In terms of maximum drawdown, EEM dropped -66.43% vs TNA's -88.09%.

Which ETF is better, EEM or TNA?

On 10-year performance, EEM leads with 9.37% vs 7.38% for TNA. On fees, EEM is cheaper at 0.72% per year. On volatility, EEM has been the lower-risk option at 10.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEM or TNA?

Over the 10-year period, EEM has performed better with a 9.37% return vs 7.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEM or TNA?

EEM is cheaper with a 0.72% expense ratio, compared with 1.14% for TNA.

Which ETF pays a higher dividend yield, EEM or TNA?

EEM has the higher dividend yield at 1.85%, compared with 0.43% for TNA.

What is the main difference between EEM and TNA?

EEM is categorized as Emerging Markets Diversified, while TNA is Leveraged Equities. EEM tracks MSCI Emerging Markets Index (Net), while TNA tracks Russell 2000 Index (300%). They also come from different issuers: iShares and Direxion. Their fees differ too: 0.72% for EEM and 1.14% for TNA.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.07 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.