ERN1.L vs. EEM
ERN1.L (iShares € Ultrashort Bond UCITS ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - ERN1.L is a Ultrashort Bond fund tracking the Markit iBoxx EUR Liquid Investment Grade Ultrashort 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, ERN1.L returned 7.14%/yr vs 10.50%/yr for EEM. At a 0.11 correlation, their price movements are largely independent. ERN1.L charges 0.09%/yr vs 0.72%/yr for EEM.
Performance
ERN1.L vs. EEM - Performance Comparison
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Different Trading Currencies
ERN1.L is traded in GBP, while EEM is traded in USD. To make them comparable, the EEM values have been converted to GBP using the latest available exchange rates.
Returns By Period
In the year-to-date period, ERN1.L achieves a -0.66% return, which is significantly lower than EEM's 26.81% return. Over the past 10 years, ERN1.L has underperformed EEM with an annualized return of 7.14%, while EEM has yielded a comparatively higher 10.50% annualized return.
ERN1.L
- 1D
- 0.17%
- 1M
- 0.50%
- YTD
- -0.66%
- 6M
- -1.68%
- 1Y
- 1.60%
- 3Y*
- 20.59%
- 5Y*
- 12.09%
- 10Y*
- 7.14%
EEM
- 1D
- -1.17%
- 1M
- 6.63%
- YTD
- 26.81%
- 6M
- 28.11%
- 1Y
- 53.56%
- 3Y*
- 20.37%
- 5Y*
- 7.91%
- 10Y*
- 10.50%
ERN1.L vs. EEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ERN1.L iShares € Ultrashort Bond UCITS ETF | -0.66% | 5.12% | -4.27% | 72.37% | 5.26% | -6.83% | 5.64% | -4.76% | 0.45% | 3.37% |
EEM iShares MSCI Emerging Markets ETF | 26.81% | 24.43% | 8.35% | 3.50% | -11.12% | -2.72% | 13.58% | 13.73% | -10.29% | 25.39% |
Correlation
The correlation between ERN1.L and EEM is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 2013 | 0.11 |
The correlation between ERN1.L and EEM shifts across timeframes, from -0.08 (1 year) to 0.13 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
ERN1.L vs. EEM — Risk / Return Rank
ERN1.L
EEM
ERN1.L vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares € Ultrashort Bond UCITS ETF (ERN1.L) 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.
| ERN1.L | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.65 | ||
| Sortino ratioReturn per unit of downside risk | -3.31 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.57 | -0.50 |
| Calmar ratioReturn relative to maximum drawdown | 0.47 | 4.87 | -4.40 |
| Martin ratioReturn relative to average drawdown | 0.92 | 17.54 | -16.63 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ERN1.L | EEM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.37 | 3.02 | -2.65 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.36 | 0.48 | -0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.54 | -0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.40 | 0.26 | +0.14 |
Drawdowns
ERN1.L vs. EEM - Drawdown Comparison
The maximum ERN1.L drawdown since its inception was -11.79%, smaller than the maximum EEM drawdown of -52.83%. Use the drawdown chart below to compare losses from any high point for ERN1.L and EEM.
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Drawdown Indicators
| ERN1.L | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.79% | -52.83% | +41.04% |
Max Drawdown (1Y)Largest decline over 1 year | -3.41% | -11.06% | +7.65% |
Max Drawdown (3Y)Largest decline over 3 years | -6.78% | -15.27% | +8.49% |
Max Drawdown (5Y)Largest decline over 5 years | -6.78% | -24.66% | +17.88% |
Max Drawdown (10Y)Largest decline over 10 years | -11.79% | -27.70% | +15.91% |
Current DrawdownCurrent decline from peak | -2.62% | -2.05% | -0.57% |
Average DrawdownAverage peak-to-trough decline | -4.51% | -11.62% | +7.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.74% | 3.06% | -1.32% |
Volatility
ERN1.L vs. EEM - Volatility Comparison
The current volatility for iShares € Ultrashort Bond UCITS ETF (ERN1.L) is 1.20%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 7.68%. This indicates that ERN1.L experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ERN1.L | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 7.68% | -6.48% |
Volatility (6M)Calculated over the trailing 6-month period | 2.93% | 15.48% | -12.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.35% | 17.84% | -13.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 33.29% | 16.61% | +16.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.27% | 19.37% | +4.90% |
ERN1.L vs. EEM - Expense Ratio Comparison
ERN1.L has a 0.09% expense ratio, which is lower than EEM's 0.72% expense ratio.
Dividends
ERN1.L vs. EEM - Dividend Comparison
ERN1.L has not paid dividends to shareholders, while EEM's dividend yield for the trailing twelve months is around 1.76%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.76% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
ERN1.L iShares € Ultrashort Bond UCITS ETF | 0.00% | 0.00% | 0.00% | 41.69% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 3.00% | 13.08% |
Frequently Asked Questions
ERN1.L and EEM have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, ERN1.L is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.
ERN1.L is cheaper with a 0.09% expense ratio, compared with 0.72% for EEM.
ERN1.L is categorized as Ultrashort Bond, while EEM is Emerging Markets Diversified. ERN1.L tracks Markit iBoxx EUR Liquid Investment Grade Ultrashort Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.09% for ERN1.L and 0.72% for EEM.
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