ESGE vs. EMDM

Last updated Aug 2, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Equities funds - ESGE tracks the MSCI EM Extended ESG Focus Index while EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, ESGE returned 18.81%/yr vs 26.67%/yr for EMDM. Their correlation of 0.90 means they have usually moved in the same direction. ESGE charges 0.25%/yr vs 0.75%/yr for EMDM.

Performance

ESGE vs. EMDM - Performance Comparison

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

Returns By Period

In the year-to-date period, ESGE achieves a 17.50% return, which is significantly lower than EMDM's 27.86% 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%

EMDM

• 1D: 0.46%
• 1M: -3.52%
• 6M: 13.18%
• YTD: 27.86%
• 1Y: 66.00%
• 3Y*: 26.67%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 26.46%

*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)
EMDM First Trust Bloomberg Emerging Market Democracies ETF	$660.85K	$757.43K	$571.79K
ESGE iShares ESG Aware MSCI EM ETF	$53.52M	$39.94M	$58.74M

ESGE vs. EMDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ESGE iShares ESG Aware MSCI EM ETF	17.50%	35.86%	6.63%	5.61%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	27.86%	59.68%	-4.93%	14.75%

Correlation

The correlation between ESGE and EMDM is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.90
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.90

The correlation between ESGE and EMDM has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

ESGE vs. EMDM - Sectors Allocation Comparison

Sectors	ESGE	EMDM
Technology	45.4%	39.9%
Financial Services	23.0%	25.6%
Communication Services	7.2%	4.0%
Consumer Cyclical	6.8%	5.3%
Industrials	4.9%	2.6%
Basic Materials	4.2%	12.7%
Healthcare	2.5%	0.5%
Consumer Defensive	2.1%	3.1%
Energy	1.7%	4.8%
Utilities	1.3%	1.5%
Real Estate	1.0%	-

Return for Risk

ESGE vs. EMDM — 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

EMDM

EMDM Risk / Return Rank: 90
EMDM Sharpe Ratio Rank: 92
EMDM Sortino Ratio Rank: 87
EMDM Omega Ratio Rank: 89
EMDM Calmar Ratio Rank: 92
EMDM Martin Ratio Rank: 89

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. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). 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	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	1.39	2.38	-0.99
Sortino ratio: Return per unit of downside risk	1.90	2.91	-1.01
Omega ratio: Gain probability vs. loss probability	1.27	1.41	-0.15
Calmar ratio: Return relative to maximum drawdown	2.44	4.23	-1.79
Martin ratio: Return relative to average drawdown	7.40	13.54	-6.14

ESGE vs. EMDM - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 1.39, which is lower than the EMDM Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of ESGE and EMDM, 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. EMDM - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, which is greater than EMDM's maximum drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for ESGE and EMDM.

Drawdown Indicators

	ESGE	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-18.81%	-22.26%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-15.65%	+1.75%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-18.81%	+2.10%
Max Drawdown (5Y) Largest decline over 5 years	-37.07%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	—	—
Current Drawdown Current decline from peak	-9.30%	-10.88%	+1.58%
Average Drawdown Average peak-to-trough decline	-14.34%	-4.20%	-10.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	4.88%	-0.30%

Volatility

ESGE vs. EMDM - Volatility Comparison

The current volatility for iShares ESG Aware MSCI EM ETF (ESGE) is 9.09%, while First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a volatility of 9.95%. This indicates that ESGE experiences smaller price fluctuations and is considered to be less risky than EMDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGE	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.09%	9.95%	-0.86%
Volatility (6M) Calculated over the trailing 6-month period	22.33%	25.55%	-3.22%
Volatility (1Y) Calculated over the trailing 1-year period	24.45%	27.87%	-3.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.98%	21.16%	-1.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.35%	21.16%	-0.81%

ESGE vs. EMDM - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is lower than EMDM's 0.75% expense ratio.

Dividends

ESGE vs. EMDM - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 2.20%, less than EMDM's 2.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.96%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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%

Frequently Asked Questions

Can I hold both ESGE and EMDM in my portfolio?

With a correlation of 0.93, ESGE and EMDM 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 EMDM?

EMDM has higher volatility (9.95%) compared to ESGE (9.09%). In terms of maximum drawdown, ESGE dropped -41.07% vs EMDM's -18.81%.

Which ETF is better, ESGE or EMDM?

On 3-year performance, EMDM leads with 26.67% vs 18.81% for ESGE. On fees, ESGE is cheaper at 0.25% per year. On volatility, ESGE has been the lower-risk option at 9.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or EMDM?

Over the 3-year period, EMDM has performed better with a 26.67% return vs 18.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or EMDM?

ESGE is cheaper with a 0.25% expense ratio, compared with 0.75% for EMDM.

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

EMDM has the higher dividend yield at 2.96%, compared with 2.20% for ESGE.

What is the main difference between ESGE and EMDM?

ESGE tracks MSCI EM Extended ESG Focus Index, while EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.25% for ESGE and 0.75% for EMDM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.38 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.