ESGD vs. KEMX

Last updated Jun 24, 2026

ESGD (iShares ESG Aware MSCI EAFE ETF) and KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) are both Foreign Large Cap Equities funds - ESGD tracks the MSCI EAFE Extended ESG Focus Index while KEMX tracks the MSCI Emerging Markets ex China Index. Both are passively managed. Over the past 5 years, ESGD returned 8.11%/yr vs 13.33%/yr for KEMX. A 0.77 correlation means they provide meaningful diversification when combined. ESGD charges 0.20%/yr vs 0.25%/yr for KEMX.

Performance

ESGD vs. KEMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EAFE ETF (ESGD) and KraneShares MSCI Emerging Markets ex China Index ETF (KEMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESGD achieves a 8.26% return, which is significantly lower than KEMX's 38.57% return.

ESGD

• 1D: -2.14%
• 1M: 0.17%
• YTD: 8.26%
• 6M: 7.92%
• 1Y: 20.95%
• 3Y*: 16.09%
• 5Y*: 8.11%
• 10Y*: —

KEMX

• 1D: -5.69%
• 1M: 5.55%
• YTD: 38.57%
• 6M: 40.16%
• 1Y: 71.39%
• 3Y*: 28.36%
• 5Y*: 13.33%
• 10Y*: —

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

ESGD vs. KEMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
ESGD iShares ESG Aware MSCI EAFE ETF	8.26%	29.63%	3.95%	18.53%	-15.17%	11.79%	8.20%	9.78%
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	38.57%	38.28%	0.36%	20.57%	-19.35%	10.55%	12.84%	7.93%

Correlation

The correlation between ESGD and KEMX is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Apr 12, 2019	0.77

The correlation between ESGD and KEMX has been stable across timeframes, ranging from 0.75 to 0.78 - a consistent structural relationship.

ESGD vs. KEMX - Sectors Allocation Comparison

Sectors	ESGD	KEMX
Financial Services	26.6%	18.7%
Industrials	18.4%	7.6%
Technology	13.2%	46.8%
Healthcare	9.5%	1.5%
Consumer Defensive	6.8%	2.6%
Consumer Cyclical	6.6%	5.5%
Basic Materials	5.6%	7.6%
Communication Services	4.2%	2.9%
Utilities	3.6%	1.7%
Energy	3.4%	4.0%
Real Estate	1.6%	1.0%

Return for Risk

ESGD vs. KEMX — Risk / Return Rank

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

ESGD

ESGD Risk / Return Rank: 39
ESGD Sharpe Ratio Rank: 39
ESGD Sortino Ratio Rank: 39
ESGD Omega Ratio Rank: 39
ESGD Calmar Ratio Rank: 38
ESGD Martin Ratio Rank: 43

KEMX

KEMX Risk / Return Rank: 87
KEMX Sharpe Ratio Rank: 90
KEMX Sortino Ratio Rank: 82
KEMX Omega Ratio Rank: 87
KEMX Calmar Ratio Rank: 87
KEMX Martin Ratio Rank: 87

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.

ESGD vs. KEMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EAFE ETF (ESGD) and KraneShares MSCI Emerging Markets ex China Index ETF (KEMX). 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.

	ESGD	KEMX	Difference
Sharpe ratio: Return per unit of total volatility	1.33	2.84	-1.51
Sortino ratio: Return per unit of downside risk	1.93	3.38	-1.46
Omega ratio: Gain probability vs. loss probability	1.24	1.51	-0.26
Calmar ratio: Return relative to maximum drawdown	1.80	4.67	-2.87
Martin ratio: Return relative to average drawdown	6.72	17.76	-11.04

ESGD vs. KEMX - Sharpe Ratio Comparison

The current ESGD Sharpe Ratio is 1.33, which is lower than the KEMX Sharpe Ratio of 2.84. The chart below compares the historical Sharpe Ratios of ESGD and KEMX, 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

ESGD vs. KEMX - Drawdown Comparison

The maximum ESGD drawdown since its inception was -33.70%, smaller than the maximum KEMX drawdown of -38.80%. Use the drawdown chart below to compare losses from any high point for ESGD and KEMX.

Drawdown Indicators

	ESGD	KEMX	Difference
Max Drawdown Largest peak-to-trough decline	-33.70%	-38.80%	+5.10%
Max Drawdown (1Y) Largest decline over 1 year	-11.68%	-15.36%	+3.68%
Max Drawdown (3Y) Largest decline over 3 years	-13.86%	-19.62%	+5.76%
Max Drawdown (5Y) Largest decline over 5 years	-30.03%	-30.85%	+0.82%
Current Drawdown Current decline from peak	-2.14%	-5.69%	+3.55%
Average Drawdown Average peak-to-trough decline	-6.16%	-8.82%	+2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.12%	4.03%	-0.91%

Volatility

ESGD vs. KEMX - Volatility Comparison

The current volatility for iShares ESG Aware MSCI EAFE ETF (ESGD) is 5.48%, while KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) has a volatility of 13.52%. This indicates that ESGD experiences smaller price fluctuations and is considered to be less risky than KEMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGD	KEMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.48%	13.52%	-8.04%
Volatility (6M) Calculated over the trailing 6-month period	13.45%	23.20%	-9.75%
Volatility (1Y) Calculated over the trailing 1-year period	15.86%	25.26%	-9.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.72%	18.96%	-2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.00%	21.33%	-4.33%

ESGD vs. KEMX - Expense Ratio Comparison

ESGD has a 0.20% expense ratio, which is lower than KEMX's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESGD vs. KEMX - Dividend Comparison

ESGD's dividend yield for the trailing twelve months is around 3.38%, more than KEMX's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESGD iShares ESG Aware MSCI EAFE ETF	3.38%	3.60%	3.23%	3.02%	2.59%	2.75%	1.63%	2.57%	2.69%	2.65%	0.09%
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	2.37%	3.28%	3.39%	2.00%	4.10%	4.79%	1.69%	2.77%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ESGD and KEMX in my portfolio?

ESGD and KEMX have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESGD or KEMX?

KEMX has higher volatility (13.52%) compared to ESGD (5.48%). In terms of maximum drawdown, ESGD dropped -33.70% vs KEMX's -38.80%.

Which ETF is better, ESGD or KEMX?

On 5-year performance, KEMX leads with 13.33% vs 8.11% for ESGD. On fees, ESGD is cheaper at 0.20% per year. On volatility, ESGD has been the lower-risk option at 5.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGD or KEMX?

Over the 5-year period, KEMX has performed better with a 13.33% return vs 8.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGD or KEMX?

ESGD is cheaper with a 0.20% expense ratio, compared with 0.25% for KEMX.

Which ETF pays a higher dividend yield, ESGD or KEMX?

ESGD has the higher dividend yield at 3.38%, compared with 2.37% for KEMX.

What is the main difference between ESGD and KEMX?

ESGD tracks MSCI EAFE Extended ESG Focus Index, while KEMX tracks MSCI Emerging Markets ex China Index. They also come from different issuers: iShares and CICC. Their fees differ too: 0.20% for ESGD and 0.25% for KEMX.

Which has better risk-adjusted returns?

KEMX currently has the higher Sharpe Ratio (2.84 vs 1.33), 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.