ESGE vs. DEM

Last updated Jun 4, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both Emerging Markets Equities funds - ESGE tracks the MSCI EM Extended ESG Focus Index while DEM tracks the WisdomTree Emerging Markets Equity income Index. Both are passively managed. Over the past 5 years, ESGE returned 6.83%/yr vs 9.57%/yr for DEM. Their correlation of 0.85 suggests significant overlap in exposure. ESGE charges 0.25%/yr vs 0.63%/yr for DEM.

Performance

ESGE vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EM ETF (ESGE) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESGE achieves a 26.85% return, which is significantly higher than DEM's 19.97% return.

ESGE

• 1D: -1.23%
• 1M: 9.37%
• YTD: 26.85%
• 6M: 29.21%
• 1Y: 55.02%
• 3Y*: 24.13%
• 5Y*: 6.83%
• 10Y*: —

DEM

• 1D: -1.19%
• 1M: 6.63%
• YTD: 19.97%
• 6M: 20.75%
• 1Y: 32.23%
• 3Y*: 19.32%
• 5Y*: 9.57%
• 10Y*: 10.45%

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

ESGE vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGE iShares ESG Aware MSCI EM ETF	26.85%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%
DEM WisdomTree Emerging Markets Equity Income Fund	19.97%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%

Correlation

The correlation between ESGE and DEM is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jul 21, 2016	0.85

The correlation between ESGE and DEM has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.

ESGE vs. DEM - Sectors Allocation Comparison

Sectors	ESGE	DEM
Technology	43.4%	17.4%
Financial Services	20.9%	21.9%
Consumer Cyclical	8.3%	5.0%
Communication Services	7.2%	3.0%
Industrials	4.7%	9.5%
Basic Materials	4.1%	3.5%
Healthcare	2.4%	0.6%
Energy	2.2%	6.1%
Consumer Defensive	2.1%	5.8%
Utilities	1.5%	3.0%
Real Estate	1.1%	3.0%

Return for Risk

ESGE vs. DEM — Risk / Return Rank

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

ESGE

ESGE Risk / Return Rank: 80
ESGE Sharpe Ratio Rank: 83
ESGE Sortino Ratio Rank: 78
ESGE Omega Ratio Rank: 82
ESGE Calmar Ratio Rank: 77
ESGE Martin Ratio Rank: 79

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

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.

ESGE vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	ESGE	DEM	Difference
Sharpe ratio: Return per unit of total volatility	2.75	2.38	+0.37
Sortino ratio: Return per unit of downside risk	3.56	3.28	+0.28
Omega ratio: Gain probability vs. loss probability	1.50	1.43	+0.07
Calmar ratio: Return relative to maximum drawdown	3.98	4.10	-0.12
Martin ratio: Return relative to average drawdown	15.51	14.52	+0.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESGE vs. DEM - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 2.75, which is comparable to the DEM Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of ESGE and DEM, 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

	ESGE	DEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.75	2.38	+0.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.63	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.22	+0.27

Drawdowns

ESGE vs. DEM - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for ESGE and DEM.

Drawdown Indicators

	ESGE	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-51.85%	+10.78%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-7.89%	-6.01%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-15.64%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-39.23%	-27.18%	-12.05%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-1.23%	-1.19%	-0.04%
Average Drawdown Average peak-to-trough decline	-14.47%	-12.90%	-1.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.56%	2.22%	+1.34%

Volatility

ESGE vs. DEM - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) has a higher volatility of 8.56% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.64%. This indicates that ESGE's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGE	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.56%	5.64%	+2.92%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	11.33%	+6.13%
Volatility (1Y) Calculated over the trailing 1-year period	20.10%	13.59%	+6.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.11%	15.33%	+3.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.94%	17.96%	+1.98%

ESGE vs. DEM - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

ESGE vs. DEM - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 1.97%, less than DEM's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.76%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
ESGE iShares ESG Aware MSCI EM ETF	1.97%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%	0.00%

Frequently Asked Questions

Can I hold both ESGE and DEM in my portfolio?

ESGE and DEM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESGE or DEM?

ESGE has higher volatility (8.56%) compared to DEM (5.64%). In terms of maximum drawdown, ESGE dropped -41.07% vs DEM's -51.85%.

Which ETF is better, ESGE or DEM?

On 5-year performance, DEM leads with 9.57% vs 6.83% for ESGE. On fees, ESGE is cheaper at 0.25% per year. On volatility, DEM has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or DEM?

Over the 5-year period, DEM has performed better with a 9.57% return vs 6.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or DEM?

ESGE is cheaper with a 0.25% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, ESGE or DEM?

DEM has the higher dividend yield at 3.76%, compared with 1.97% for ESGE.

What is the main difference between ESGE and DEM?

ESGE tracks MSCI EM Extended ESG Focus Index, while DEM tracks WisdomTree Emerging Markets Equity income Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.25% for ESGE and 0.63% for DEM.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.75 vs 2.38), 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.