EEMS vs. EMDM

Last updated Jun 4, 2026

EEMS (iShares MSCI Emerging Markets Small-Cap ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Diversified funds - EEMS tracks the MSCI Emerging Markets Small Cap Index while EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, EEMS returned 16.81%/yr vs 32.95%/yr for EMDM. Their correlation of 0.83 suggests significant overlap in exposure. EEMS charges 0.73%/yr vs 0.75%/yr for EMDM.

Performance

EEMS vs. EMDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EEMS achieves a 14.63% return, which is significantly lower than EMDM's 39.03% return.

EEMS

• 1D: -1.36%
• 1M: 1.46%
• YTD: 14.63%
• 6M: 16.52%
• 1Y: 29.38%
• 3Y*: 16.81%
• 5Y*: 6.92%
• 10Y*: 9.29%

EMDM

• 1D: -1.32%
• 1M: 11.04%
• YTD: 39.03%
• 6M: 45.21%
• 1Y: 91.32%
• 3Y*: 32.95%
• 5Y*: —
• 10Y*: —

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

EEMS vs. EMDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EEMS iShares MSCI Emerging Markets Small-Cap ETF	14.63%	19.78%	3.13%	16.30%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	39.03%	59.68%	-4.93%	14.21%

Correlation

The correlation between EEMS and EMDM is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (All Time) Calculated using the full available price history since Mar 6, 2023	0.83

The correlation between EEMS and EMDM has been stable across timeframes, ranging from 0.82 to 0.83 - a consistent structural relationship.

EEMS vs. EMDM - Sectors Allocation Comparison

Sectors	EEMS	EMDM
Technology	22.7%	32.1%
Industrials	18.9%	3.3%
Financial Services	11.1%	27.2%
Consumer Cyclical	9.6%	6.0%
Healthcare	9.4%	0.5%
Basic Materials	9.3%	15.1%
Real Estate	5.9%	-
Consumer Defensive	5.2%	3.4%
Communication Services	2.9%	4.3%
Utilities	2.7%	1.9%
Energy	2.4%	6.3%

Return for Risk

EEMS vs. EMDM — Risk / Return Rank

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

EEMS

EEMS Risk / Return Rank: 51
EEMS Sharpe Ratio Rank: 49
EEMS Sortino Ratio Rank: 46
EEMS Omega Ratio Rank: 49
EEMS Calmar Ratio Rank: 54
EEMS Martin Ratio Rank: 55

EMDM

EMDM Risk / Return Rank: 93
EMDM Sharpe Ratio Rank: 95
EMDM Sortino Ratio Rank: 92
EMDM Omega Ratio Rank: 93
EMDM Calmar Ratio Rank: 91
EMDM Martin Ratio Rank: 93

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.

EEMS vs. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). 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.

	EEMS	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	1.71	3.92	-2.21
Sortino ratio: Return per unit of downside risk	2.31	4.56	-2.25
Omega ratio: Gain probability vs. loss probability	1.31	1.66	-0.35
Calmar ratio: Return relative to maximum drawdown	2.72	5.87	-3.15
Martin ratio: Return relative to average drawdown	9.56	24.30	-14.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EEMS vs. EMDM - Sharpe Ratio Comparison

The current EEMS Sharpe Ratio is 1.71, which is lower than the EMDM Sharpe Ratio of 3.92. The chart below compares the historical Sharpe Ratios of EEMS and EMDM, 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

	EEMS	EMDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.71	3.92	-2.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	1.58	-1.26

Drawdowns

EEMS vs. EMDM - Drawdown Comparison

The maximum EEMS drawdown since its inception was -48.89%, which is greater than EMDM's maximum drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for EEMS and EMDM.

Drawdown Indicators

	EEMS	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-48.89%	-18.81%	-30.08%
Max Drawdown (1Y) Largest decline over 1 year	-10.87%	-15.65%	+4.78%
Max Drawdown (3Y) Largest decline over 3 years	-19.71%	-18.81%	-0.90%
Max Drawdown (5Y) Largest decline over 5 years	-27.07%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-48.89%	—	—
Current Drawdown Current decline from peak	-2.41%	-1.32%	-1.09%
Average Drawdown Average peak-to-trough decline	-10.50%	-4.07%	-6.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	3.77%	-0.69%

Volatility

EEMS vs. EMDM - Volatility Comparison

The current volatility for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) is 7.07%, while First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a volatility of 9.61%. This indicates that EEMS experiences smaller price fluctuations and is considered to be less risky than EMDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EEMS	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	9.61%	-2.54%
Volatility (6M) Calculated over the trailing 6-month period	14.90%	20.78%	-5.88%
Volatility (1Y) Calculated over the trailing 1-year period	17.30%	23.42%	-6.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.06%	19.79%	-3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.99%	19.79%	-1.80%

EEMS vs. EMDM - Expense Ratio Comparison

EEMS has a 0.73% expense ratio, which is lower than EMDM's 0.75% expense ratio.

Dividends

EEMS vs. EMDM - Dividend Comparison

EEMS's dividend yield for the trailing twelve months is around 2.69%, more than EMDM's 2.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEMS iShares MSCI Emerging Markets Small-Cap ETF	2.69%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.57%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EEMS and EMDM in my portfolio?

EEMS and EMDM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EEMS or EMDM?

EMDM has higher volatility (9.61%) compared to EEMS (7.07%). In terms of maximum drawdown, EEMS dropped -48.89% vs EMDM's -18.81%.

Which ETF is better, EEMS or EMDM?

On 3-year performance, EMDM leads with 32.95% vs 16.81% for EEMS. On fees, EEMS is cheaper at 0.73% per year. On volatility, EEMS has been the lower-risk option at 7.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEMS or EMDM?

Over the 3-year period, EMDM has performed better with a 32.95% return vs 16.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEMS or EMDM?

EEMS is cheaper with a 0.73% expense ratio, compared with 0.75% for EMDM.

Which ETF pays a higher dividend yield, EEMS or EMDM?

EEMS has the higher dividend yield at 2.69%, compared with 2.57% for EMDM.

What is the main difference between EEMS and EMDM?

EEMS tracks MSCI Emerging Markets Small Cap Index, while EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.73% for EEMS and 0.75% for EMDM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.92 vs 1.71), 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.