ESGE vs. EEM

Last updated Aug 2, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Equities funds from iShares - ESGE tracks the MSCI EM Extended ESG Focus Index while EEM tracks the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, ESGE returned 8.88%/yr vs 8.32%/yr for EEM. Their 0.97 correlation means they have historically moved very closely together. ESGE charges 0.25%/yr vs 0.72%/yr for EEM.

Performance

ESGE vs. EEM - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with ESGE having a 17.50% return and EEM slightly higher at 17.75%. Over the past 10 years, ESGE has outperformed EEM with an annualized return of 8.88%, while EEM has yielded a comparatively lower 8.32% annualized return.

ESGE

• 1D: 0.92%
• 1M: -1.79%
• 6M: 9.17%
• YTD: 17.50%
• 1Y: 34.75%
• 3Y*: 18.81%
• 5Y*: 6.80%
• 10Y*: 8.88%
• ALL TIME*: 8.86%

EEM

• 1D: 0.79%
• 1M: -2.45%
• 6M: 9.01%
• YTD: 17.75%
• 1Y: 35.57%
• 3Y*: 18.45%
• 5Y*: 6.91%
• 10Y*: 8.32%
• ALL TIME*: 9.87%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
EEM iShares MSCI Emerging Markets ETF	$1.56B	$1.60B	$1.90B
ESGE iShares ESG Aware MSCI EM ETF	$53.52M	$39.94M	$58.74M

ESGE vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGE iShares ESG Aware MSCI EM ETF	17.50%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%
EEM iShares MSCI Emerging Markets ETF	17.75%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between ESGE and EEM is 1.00 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	1.00
Correlation (3Y) Balances recent behavior with more history.	0.99
Correlation (5Y) Shows whether the relationship held over a longer period.	0.99
Correlation (10Y) Provides a long-term view across more market conditions.	0.97
Correlation (All Time) Calculated using the full available price history since Jul 20, 2016	0.97

The correlation between ESGE and EEM has been stable across timeframes, ranging from 0.97 to 1.00 - a consistent structural relationship.

ESGE vs. EEM - Sectors Allocation Comparison

Sectors	ESGE	EEM
Technology	45.4%	45.9%
Financial Services	23.0%	18.2%
Communication Services	7.2%	6.0%
Consumer Cyclical	6.8%	7.4%
Industrials	4.9%	6.2%
Basic Materials	4.2%	5.4%
Healthcare	2.5%	2.5%
Consumer Defensive	2.1%	2.5%
Energy	1.7%	3.2%
Utilities	1.3%	1.8%
Real Estate	1.0%	1.0%

Return for Risk

ESGE vs. EEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ESGE

ESGE Risk / Return Rank: 61
ESGE Sharpe Ratio Rank: 59
ESGE Sortino Ratio Rank: 55
ESGE Omega Ratio Rank: 62
ESGE Calmar Ratio Rank: 70
ESGE Martin Ratio Rank: 61

EEM

EEM Risk / Return Rank: 63
EEM Sharpe Ratio Rank: 61
EEM Sortino Ratio Rank: 56
EEM Omega Ratio Rank: 64
EEM Calmar Ratio Rank: 71
EEM Martin Ratio Rank: 63

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ESGE vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) 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.

	ESGE	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.39	1.42	-0.03
Sortino ratio: Return per unit of downside risk	1.90	1.93	-0.03
Omega ratio: Gain probability vs. loss probability	1.27	1.27	0.00
Calmar ratio: Return relative to maximum drawdown	2.44	2.44	0.00
Martin ratio: Return relative to average drawdown	7.40	7.49	-0.10

ESGE vs. EEM - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 1.39, which is comparable to the EEM Sharpe Ratio of 1.42. The chart below compares the historical Sharpe Ratios of ESGE 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

ESGE vs. EEM - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for ESGE and EEM.

Drawdown Indicators

	ESGE	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-66.43%	+25.36%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-14.24%	+0.34%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-17.29%	+0.58%
Max Drawdown (5Y) Largest decline over 5 years	-37.07%	-35.01%	-2.06%
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	-39.82%	-1.25%
Current Drawdown Current decline from peak	-9.30%	-10.00%	+0.70%
Average Drawdown Average peak-to-trough decline	-14.34%	-15.95%	+1.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	4.63%	-0.05%

Volatility

ESGE vs. EEM - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 9.09% and 9.09%, 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

	ESGE	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.09%	9.09%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	22.33%	22.40%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	24.45%	24.46%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.98%	19.83%	+0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.35%	20.80%	-0.45%

ESGE vs. EEM - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

ESGE vs. EEM - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 2.20%, more than EEM's 1.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.74%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
ESGE iShares ESG Aware MSCI EM ETF	2.20%	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 EEM in my portfolio?

With a correlation of 1.00, ESGE 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, ESGE or EEM?

EEM has higher volatility (9.09%) compared to ESGE (9.09%). In terms of maximum drawdown, ESGE dropped -41.07% vs EEM's -66.43%.

Which ETF is better, ESGE or EEM?

On 10-year performance, ESGE leads with 8.88% vs 8.32% for EEM. On fees, ESGE is cheaper at 0.25% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or EEM?

Over the 10-year period, ESGE has performed better with a 8.88% return vs 8.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or EEM?

ESGE is cheaper with a 0.25% expense ratio, compared with 0.72% for EEM.

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

ESGE has the higher dividend yield at 2.20%, compared with 1.74% for EEM.

What is the main difference between ESGE and EEM?

ESGE tracks MSCI EM Extended ESG Focus Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.25% for ESGE and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (1.42 vs 1.39), 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.