EMSF vs. HEEM

Last updated Jun 4, 2026

EMSF (Matthews Emerging Markets Sustainable Future Active ETF) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds. EMSF is actively managed, while HEEM is passively managed. Over the past year, EMSF returned 63.33% vs 63.91% for HEEM. Their correlation of 0.86 suggests significant overlap in exposure. EMSF charges 0.79%/yr vs 0.72%/yr for HEEM.

Performance

EMSF vs. HEEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Emerging Markets Sustainable Future Active ETF (EMSF) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMSF achieves a 45.34% return, which is significantly higher than HEEM's 30.24% return.

EMSF

• 1D: -1.10%
• 1M: 8.61%
• YTD: 45.34%
• 6M: 40.08%
• 1Y: 63.33%
• 3Y*: —
• 5Y*: —
• 10Y*: —

HEEM

• 1D: -0.64%
• 1M: 10.04%
• YTD: 30.24%
• 6M: 32.57%
• 1Y: 63.91%
• 3Y*: 27.05%
• 5Y*: 10.42%
• 10Y*: 11.42%

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

EMSF vs. HEEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMSF Matthews Emerging Markets Sustainable Future Active ETF	45.34%	19.20%	-3.09%	1.88%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	30.24%	34.02%	12.59%	5.00%

Correlation

The correlation between EMSF and HEEM 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 25, 2023	0.86

The correlation between EMSF and HEEM has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

EMSF vs. HEEM - Sectors Allocation Comparison

Sectors	EMSF	HEEM
Technology	43.6%	37.0%
Financial Services	16.6%	19.4%
Industrials	15.0%	7.5%
Consumer Cyclical	7.7%	9.6%
Healthcare	6.8%	2.9%
Consumer Defensive	3.9%	3.0%
Utilities	2.8%	2.1%
Communication Services	2.0%	6.9%
Real Estate	1.6%	1.1%
Basic Materials	-	6.5%
Energy	-	4.0%

Return for Risk

EMSF vs. HEEM — Risk / Return Rank

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

EMSF

EMSF Risk / Return Rank: 76
EMSF Sharpe Ratio Rank: 77
EMSF Sortino Ratio Rank: 69
EMSF Omega Ratio Rank: 72
EMSF Calmar Ratio Rank: 83
EMSF Martin Ratio Rank: 76

HEEM

HEEM Risk / Return Rank: 93
HEEM Sharpe Ratio Rank: 94
HEEM Sortino Ratio Rank: 93
HEEM Omega Ratio Rank: 94
HEEM Calmar Ratio Rank: 91
HEEM 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.

EMSF vs. HEEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Emerging Markets Sustainable Future Active ETF (EMSF) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). 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.

	EMSF	HEEM	Difference
Sharpe ratio Return per unit of total volatility	2.51	3.64	-1.13
Sortino ratio Return per unit of downside risk	3.14	4.70	-1.56
Omega ratio Gain probability vs. loss probability	1.43	1.68	-0.25
Calmar ratio Return relative to maximum drawdown	4.37	5.93	-1.56
Martin ratio Return relative to average drawdown	14.61	23.76	-9.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMSF vs. HEEM - Sharpe Ratio Comparison

The current EMSF Sharpe Ratio is 2.51, which is lower than the HEEM Sharpe Ratio of 3.64. The chart below compares the historical Sharpe Ratios of EMSF and HEEM, 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

	EMSF	HEEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	3.64	-1.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.49	+0.48

Drawdowns

EMSF vs. HEEM - Drawdown Comparison

The maximum EMSF drawdown since its inception was -24.75%, smaller than the maximum HEEM drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for EMSF and HEEM.

Drawdown Indicators

	EMSF	HEEM	Difference
Max Drawdown Largest peak-to-trough decline	-24.75%	-33.53%	+8.78%
Max Drawdown (1Y) Largest decline over 1 year	-14.57%	-10.83%	-3.74%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.82%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-1.10%	-0.64%	-0.46%
Average Drawdown Average peak-to-trough decline	-5.72%	-11.14%	+5.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	2.70%	+1.65%

Volatility

EMSF vs. HEEM - Volatility Comparison

Matthews Emerging Markets Sustainable Future Active ETF (EMSF) has a higher volatility of 9.96% compared to iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) at 7.57%. This indicates that EMSF's price experiences larger fluctuations and is considered to be riskier than HEEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMSF	HEEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.96%	7.57%	+2.39%
Volatility (6M) Calculated over the trailing 6-month period	21.98%	15.37%	+6.61%
Volatility (1Y) Calculated over the trailing 1-year period	25.35%	17.67%	+7.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.75%	17.01%	+5.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.75%	17.97%	+4.78%

EMSF vs. HEEM - Expense Ratio Comparison

EMSF has a 0.79% expense ratio, which is higher than HEEM's 0.72% expense ratio.

Dividends

EMSF vs. HEEM - Dividend Comparison

EMSF's dividend yield for the trailing twelve months is around 1.30%, less than HEEM's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMSF Matthews Emerging Markets Sustainable Future Active ETF	1.30%	1.88%	3.29%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.05%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both EMSF and HEEM in my portfolio?

With a correlation of 0.91, EMSF and HEEM 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, EMSF or HEEM?

EMSF has higher volatility (9.96%) compared to HEEM (7.57%). In terms of maximum drawdown, EMSF dropped -24.75% vs HEEM's -33.53%.

Which ETF is better, EMSF or HEEM?

On 1-year performance, HEEM leads with 63.91% vs 63.33% for EMSF. On fees, HEEM is cheaper at 0.72% per year. On volatility, HEEM has been the lower-risk option at 7.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMSF or HEEM?

Over the 1-year period, HEEM has performed better with a 63.91% return vs 63.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMSF or HEEM?

HEEM is cheaper with a 0.72% expense ratio, compared with 0.79% for EMSF.

Which ETF pays a higher dividend yield, EMSF or HEEM?

HEEM has the higher dividend yield at 3.05%, compared with 1.30% for EMSF.

What is the main difference between EMSF and HEEM?

They also come from different issuers: Matthews and iShares. Their fees differ too: 0.79% for EMSF and 0.72% for HEEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (3.64 vs 2.51), 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.