EMEQ vs. EEM

Last updated Jun 24, 2026

EMEQ (Nomura Focused Emerging Markets Equity ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds. EMEQ is actively managed, while EEM is passively managed. Over the past year, EMEQ returned 148.00% vs 46.62% for EEM. Their correlation of 0.91 suggests significant overlap in exposure. EMEQ charges 0.86%/yr vs 0.72%/yr for EEM.

Performance

EMEQ vs. EEM - Performance Comparison

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

Returns By Period

In the year-to-date period, EMEQ achieves a 77.86% return, which is significantly higher than EEM's 23.41% return.

EMEQ

• 1D: -8.46%
• 1M: 12.67%
• YTD: 77.86%
• 6M: 84.70%
• 1Y: 148.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —

EEM

• 1D: -5.67%
• 1M: 2.49%
• YTD: 23.41%
• 6M: 24.32%
• 1Y: 46.62%
• 3Y*: 22.58%
• 5Y*: 6.54%
• 10Y*: 9.87%

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

EMEQ vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EMEQ Nomura Focused Emerging Markets Equity ETF	77.86%	69.78%	-0.73%
EEM iShares MSCI Emerging Markets ETF	23.41%	33.98%	0.06%

Correlation

The correlation between EMEQ and EEM is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Sep 5, 2024	0.91

The correlation between EMEQ and EEM has been stable across timeframes, ranging from 0.91 to 0.91 - a consistent structural relationship.

EMEQ vs. EEM - Sectors Allocation Comparison

Sectors	EMEQ	EEM
Financial Services	6.8%	17.8%
Consumer Cyclical	6.2%	7.2%
Consumer Defensive	3.8%	2.4%
Communication Services	2.4%	5.6%
Healthcare	1.4%	2.3%
Basic Materials	1.3%	5.7%
Energy	1.3%	3.0%
Technology	1.1%	46.4%
Utilities	0.9%	1.8%
Industrials	0.3%	5.9%
Real Estate	-	0.9%

Return for Risk

EMEQ vs. EEM — Risk / Return Rank

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

EMEQ

EMEQ Risk / Return Rank: 94
EMEQ Sharpe Ratio Rank: 96
EMEQ Sortino Ratio Rank: 90
EMEQ Omega Ratio Rank: 93
EMEQ Calmar Ratio Rank: 96
EMEQ Martin Ratio Rank: 96

EEM

EEM Risk / Return Rank: 67
EEM Sharpe Ratio Rank: 65
EEM Sortino Ratio Rank: 57
EEM Omega Ratio Rank: 69
EEM Calmar Ratio Rank: 71
EEM Martin Ratio Rank: 70

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.

EMEQ vs. EEM - Risk-Adjusted Trends Comparison

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

	EMEQ	EEM	Difference
Sharpe ratio: Return per unit of total volatility	3.98	2.06	+1.93
Sortino ratio: Return per unit of downside risk	4.00	2.63	+1.36
Omega ratio: Gain probability vs. loss probability	1.61	1.39	+0.22
Calmar ratio: Return relative to maximum drawdown	8.31	3.46	+4.85
Martin ratio: Return relative to average drawdown	30.81	12.70	+18.12

EMEQ vs. EEM - Sharpe Ratio Comparison

The current EMEQ Sharpe Ratio is 3.98, which is higher than the EEM Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of EMEQ and EEM, 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

EMEQ vs. EEM - Drawdown Comparison

The maximum EMEQ drawdown since its inception was -19.99%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for EMEQ and EEM.

Drawdown Indicators

	EMEQ	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-19.99%	-66.43%	+46.44%
Max Drawdown (1Y) Largest decline over 1 year	-17.91%	-13.52%	-4.39%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.29%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-37.49%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-39.82%	—
Current Drawdown Current decline from peak	-8.46%	-5.67%	-2.79%
Average Drawdown Average peak-to-trough decline	-4.03%	-15.99%	+11.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.82%	3.68%	+1.14%

Volatility

EMEQ vs. EEM - Volatility Comparison

Nomura Focused Emerging Markets Equity ETF (EMEQ) has a higher volatility of 21.89% compared to iShares MSCI Emerging Markets ETF (EEM) at 12.59%. This indicates that EMEQ's price experiences larger fluctuations and is considered to be riskier than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMEQ	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.89%	12.59%	+9.30%
Volatility (6M) Calculated over the trailing 6-month period	34.54%	20.73%	+13.81%
Volatility (1Y) Calculated over the trailing 1-year period	37.38%	22.77%	+14.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.96%	19.55%	+13.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.96%	20.67%	+12.29%

EMEQ vs. EEM - Expense Ratio Comparison

EMEQ has a 0.86% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

EMEQ vs. EEM - Dividend Comparison

EMEQ's dividend yield for the trailing twelve months is around 1.55%, less than EEM's 1.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.66%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
EMEQ Nomura Focused Emerging Markets Equity ETF	1.55%	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 EMEQ and EEM in my portfolio?

With a correlation of 0.91, EMEQ and EEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, EMEQ or EEM?

EMEQ has higher volatility (21.89%) compared to EEM (12.59%). In terms of maximum drawdown, EMEQ dropped -19.99% vs EEM's -66.43%.

Which ETF is better, EMEQ or EEM?

On 1-year performance, EMEQ leads with 148.00% vs 46.62% for EEM. On fees, EEM is cheaper at 0.72% per year. On volatility, EEM has been the lower-risk option at 12.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMEQ or EEM?

Over the 1-year period, EMEQ has performed better with a 148.00% return vs 46.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMEQ or EEM?

EEM is cheaper with a 0.72% expense ratio, compared with 0.86% for EMEQ.

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

EEM has the higher dividend yield at 1.66%, compared with 1.55% for EMEQ.

What is the main difference between EMEQ and EEM?

They also come from different issuers: Nomura and iShares. Their fees differ too: 0.86% for EMEQ and 0.72% for EEM.

Which has better risk-adjusted returns?

EMEQ currently has the higher Sharpe Ratio (3.98 vs 2.06), 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.