EMGF vs. EEM

Last updated Jun 23, 2026

EMGF (iShares Edge MSCI Multifactor Emerging Markets ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - EMGF is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Diversified Multiple-Factor Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, EMGF returned 11.88%/yr vs 10.51%/yr for EEM. Their correlation of 0.91 suggests significant overlap in exposure. EMGF charges 0.45%/yr vs 0.72%/yr for EEM.

Performance

EMGF vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Edge MSCI Multifactor Emerging Markets ETF (EMGF) 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, EMGF achieves a 32.97% return, which is significantly higher than EEM's 30.84% return. Over the past 10 years, EMGF has outperformed EEM with an annualized return of 11.88%, while EEM has yielded a comparatively lower 10.51% annualized return.

EMGF

• 1D: 0.55%
• 1M: 8.68%
• YTD: 32.97%
• 6M: 34.74%
• 1Y: 55.99%
• 3Y*: 27.87%
• 5Y*: 11.39%
• 10Y*: 11.88%

EEM

• 1D: 0.59%
• 1M: 8.65%
• YTD: 30.84%
• 6M: 32.53%
• 1Y: 56.71%
• 3Y*: 24.99%
• 5Y*: 7.99%
• 10Y*: 10.51%

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

EMGF vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EMGF iShares Edge MSCI Multifactor Emerging Markets ETF	32.97%	31.41%	9.06%	10.86%	-16.55%	6.65%	10.27%	20.96%	-19.71%	42.37%
EEM iShares MSCI Emerging Markets ETF	30.84%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between EMGF and EEM is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 10, 2015	0.91

The correlation between EMGF and EEM has been stable across timeframes, ranging from 0.91 to 0.98 - a consistent structural relationship.

EMGF vs. EEM - Sectors Allocation Comparison

Sectors	EMGF	EEM
Technology	41.4%	46.4%
Financial Services	17.4%	17.8%
Consumer Cyclical	9.6%	7.2%
Industrials	7.2%	5.9%
Communication Services	6.5%	5.6%
Basic Materials	5.3%	5.7%
Energy	3.6%	3.0%
Consumer Defensive	3.4%	2.4%
Healthcare	2.4%	2.3%
Utilities	2.3%	1.8%
Real Estate	1.0%	0.9%

Return for Risk

EMGF vs. EEM — Risk / Return Rank

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

EMGF

EMGF Risk / Return Rank: 81
EMGF Sharpe Ratio Rank: 83
EMGF Sortino Ratio Rank: 77
EMGF Omega Ratio Rank: 83
EMGF Calmar Ratio Rank: 82
EMGF Martin Ratio Rank: 80

EEM

EEM Risk / Return Rank: 82
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 77
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 83
EEM Martin Ratio Rank: 81

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.

EMGF vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI Multifactor Emerging Markets ETF (EMGF) 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.

	EMGF	EEM	Difference
Sharpe ratio: Return per unit of total volatility	2.56	2.59	-0.03
Sortino ratio: Return per unit of downside risk	3.28	3.28	0.00
Omega ratio: Gain probability vs. loss probability	1.48	1.48	-0.01
Calmar ratio: Return relative to maximum drawdown	4.16	4.22	-0.06
Martin ratio: Return relative to average drawdown	15.36	15.52	-0.16

EMGF vs. EEM - Sharpe Ratio Comparison

The current EMGF Sharpe Ratio is 2.56, which is comparable to the EEM Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of EMGF 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

EMGF vs. EEM - Drawdown Comparison

The maximum EMGF drawdown since its inception was -40.23%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for EMGF and EEM.

Drawdown Indicators

	EMGF	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-40.23%	-66.43%	+26.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.54%	-13.52%	-0.02%
Max Drawdown (3Y) Largest decline over 3 years	-17.65%	-17.29%	-0.36%
Max Drawdown (5Y) Largest decline over 5 years	-28.20%	-37.49%	+9.29%
Max Drawdown (10Y) Largest decline over 10 years	-40.23%	-39.82%	-0.41%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.02%	-15.99%	+5.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.66%	3.66%	0.00%

Volatility

EMGF vs. EEM - Volatility Comparison

iShares Edge MSCI Multifactor Emerging Markets ETF (EMGF) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 11.17% and 10.95%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMGF	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.17%	10.95%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	19.89%	19.83%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	22.01%	22.04%	-0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.18%	19.39%	-1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.63%	20.69%	-1.06%

EMGF vs. EEM - Expense Ratio Comparison

EMGF has a 0.45% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

EMGF vs. EEM - Dividend Comparison

EMGF's dividend yield for the trailing twelve months is around 1.89%, more than EEM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.56%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
EMGF iShares Edge MSCI Multifactor Emerging Markets ETF	1.89%	2.52%	3.42%	5.94%	4.04%	2.48%	1.95%	2.63%	2.73%	1.94%	2.04%	0.00%

Frequently Asked Questions

Can I hold both EMGF and EEM in my portfolio?

With a correlation of 0.98, EMGF 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, EMGF or EEM?

EMGF has higher volatility (11.17%) compared to EEM (10.95%). In terms of maximum drawdown, EMGF dropped -40.23% vs EEM's -66.43%.

Which ETF is better, EMGF or EEM?

On 10-year performance, EMGF leads with 11.88% vs 10.51% for EEM. On fees, EMGF is cheaper at 0.45% per year. On volatility, EEM has been the lower-risk option at 10.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMGF or EEM?

Over the 10-year period, EMGF has performed better with a 11.88% return vs 10.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMGF or EEM?

EMGF is cheaper with a 0.45% expense ratio, compared with 0.72% for EEM.

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

EMGF has the higher dividend yield at 1.89%, compared with 1.56% for EEM.

What is the main difference between EMGF and EEM?

EMGF is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. EMGF tracks MSCI Emerging Markets Diversified Multiple-Factor Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.45% for EMGF and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.59 vs 2.56), 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.