EEMS vs. EMEQ

Last updated Jun 26, 2026

EEMS (iShares MSCI Emerging Markets Small-Cap ETF) and EMEQ (Nomura Focused Emerging Markets Equity ETF) are both Emerging Markets Diversified funds. EEMS is passively managed, while EMEQ is actively managed. Over the past year, EEMS returned 20.67% vs 145.47% for EMEQ. A 0.74 correlation means they provide meaningful diversification when combined. EEMS charges 0.73%/yr vs 0.86%/yr for EMEQ.

Performance

EEMS vs. EMEQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and Nomura Focused Emerging Markets Equity ETF (EMEQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EEMS achieves a 11.30% return, which is significantly lower than EMEQ's 84.24% return.

EEMS

• 1D: -0.43%
• 1M: -4.96%
• YTD: 11.30%
• 6M: 12.14%
• 1Y: 20.67%
• 3Y*: 15.22%
• 5Y*: 6.27%
• 10Y*: 9.50%

EMEQ

• 1D: 3.40%
• 1M: 10.31%
• YTD: 84.24%
• 6M: 89.77%
• 1Y: 145.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

EEMS vs. EMEQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EEMS iShares MSCI Emerging Markets Small-Cap ETF	11.30%	19.78%	-2.53%
EMEQ Nomura Focused Emerging Markets Equity ETF	84.24%	69.78%	-0.73%

Correlation

The correlation between EEMS and EMEQ is 0.74, 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	0.74
Correlation (All Time) Calculated using the full available price history since Sep 5, 2024	0.74

The correlation between EEMS and EMEQ has been stable across timeframes, ranging from 0.74 to 0.74 - a consistent structural relationship.

EEMS vs. EMEQ - Sectors Allocation Comparison

Sectors	EEMS	EMEQ
Technology	26.4%	1.1%
Industrials	18.2%	0.3%
Consumer Cyclical	9.9%	6.2%
Financial Services	9.9%	6.8%
Healthcare	8.7%	1.4%
Basic Materials	8.6%	1.3%
Real Estate	5.8%	-
Consumer Defensive	4.9%	3.8%
Communication Services	2.9%	2.4%
Utilities	2.6%	0.9%
Energy	2.1%	1.3%

Return for Risk

EEMS vs. EMEQ — Risk / Return Rank

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

EEMS

EEMS Risk / Return Rank: 37
EEMS Sharpe Ratio Rank: 33
EEMS Sortino Ratio Rank: 31
EEMS Omega Ratio Rank: 35
EEMS Calmar Ratio Rank: 43
EEMS Martin Ratio Rank: 44

EMEQ

EMEQ Risk / Return Rank: 95
EMEQ Sharpe Ratio Rank: 97
EMEQ Sortino Ratio Rank: 93
EMEQ Omega Ratio Rank: 94
EMEQ Calmar Ratio Rank: 96
EMEQ Martin Ratio Rank: 96

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. EMEQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and Nomura Focused Emerging Markets Equity ETF (EMEQ). 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.

	EEMS	EMEQ	Difference
Sharpe ratio: Return per unit of total volatility	1.09	3.92	-2.83
Sortino ratio: Return per unit of downside risk	1.53	3.95	-2.42
Omega ratio: Gain probability vs. loss probability	1.21	1.60	-0.39
Calmar ratio: Return relative to maximum drawdown	1.91	8.17	-6.26
Martin ratio: Return relative to average drawdown	6.34	30.04	-23.70

EEMS vs. EMEQ - Sharpe Ratio Comparison

The current EEMS Sharpe Ratio is 1.09, which is lower than the EMEQ Sharpe Ratio of 3.92. The chart below compares the historical Sharpe Ratios of EEMS and EMEQ, 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

EEMS vs. EMEQ - Drawdown Comparison

The maximum EEMS drawdown since its inception was -48.89%, which is greater than EMEQ's maximum drawdown of -19.99%. Use the drawdown chart below to compare losses from any high point for EEMS and EMEQ.

Drawdown Indicators

	EEMS	EMEQ	Difference
Max Drawdown Largest peak-to-trough decline	-48.89%	-19.99%	-28.90%
Max Drawdown (1Y) Largest decline over 1 year	-10.87%	-17.91%	+7.04%
Max Drawdown (3Y) Largest decline over 3 years	-19.71%	—	—
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	-5.24%	-5.17%	-0.07%
Average Drawdown Average peak-to-trough decline	-10.48%	-4.04%	-6.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	4.86%	-1.59%

Volatility

EEMS vs. EMEQ - Volatility Comparison

The current volatility for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) is 9.25%, while Nomura Focused Emerging Markets Equity ETF (EMEQ) has a volatility of 21.36%. This indicates that EEMS experiences smaller price fluctuations and is considered to be less risky than EMEQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EEMS	EMEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.25%	21.36%	-12.11%
Volatility (6M) Calculated over the trailing 6-month period	17.17%	34.65%	-17.48%
Volatility (1Y) Calculated over the trailing 1-year period	18.96%	37.32%	-18.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.50%	32.97%	-16.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.12%	32.97%	-14.85%

EEMS vs. EMEQ - Expense Ratio Comparison

EEMS has a 0.73% expense ratio, which is lower than EMEQ's 0.86% expense ratio.

Dividends

EEMS vs. EMEQ - Dividend Comparison

EEMS's dividend yield for the trailing twelve months is around 2.87%, more than EMEQ's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEMS iShares MSCI Emerging Markets Small-Cap ETF	2.87%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%
EMEQ Nomura Focused Emerging Markets Equity ETF	1.50%	2.76%	0.84%	0.00%	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 EMEQ in my portfolio?

EEMS and EMEQ have a correlation of 0.74, 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 EMEQ?

EMEQ has higher volatility (21.36%) compared to EEMS (9.25%). In terms of maximum drawdown, EEMS dropped -48.89% vs EMEQ's -19.99%.

Which ETF is better, EEMS or EMEQ?

On 1-year performance, EMEQ leads with 145.47% vs 20.67% for EEMS. On fees, EEMS is cheaper at 0.73% per year. On volatility, EEMS has been the lower-risk option at 9.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEMS or EMEQ?

Over the 1-year period, EMEQ has performed better with a 145.47% return vs 20.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEMS or EMEQ?

EEMS is cheaper with a 0.73% expense ratio, compared with 0.86% for EMEQ.

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

EEMS has the higher dividend yield at 2.87%, compared with 1.50% for EMEQ.

What is the main difference between EEMS and EMEQ?

They also come from different issuers: iShares and Nomura. Their fees differ too: 0.73% for EEMS and 0.86% for EMEQ.

Which has better risk-adjusted returns?

EMEQ currently has the higher Sharpe Ratio (3.92 vs 1.09), 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.