ESGE vs. IEMG

Last updated Aug 3, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Equities funds from iShares - ESGE tracks the MSCI Emerging Markets Extended ESG Focus Index while IEMG tracks the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, ESGE returned 8.88%/yr vs 8.84%/yr for IEMG. Their 0.96 correlation means they have historically moved very closely together. ESGE charges 0.25%/yr vs 0.09%/yr for IEMG.

Performance

ESGE vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EM ETF (ESGE) and iShares Core MSCI Emerging Markets ETF (IEMG). 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 higher than IEMG's 16.38% return. Both investments have delivered pretty close results over the past 10 years, with ESGE having a 8.88% annualized return and IEMG not far behind at 8.84%.

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%

IEMG

• 1D: 0.73%
• 1M: -2.79%
• 6M: 7.82%
• YTD: 16.38%
• 1Y: 32.88%
• 3Y*: 18.00%
• 5Y*: 7.26%
• 10Y*: 8.84%
• ALL TIME*: 6.11%

*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)
ESGE iShares ESG Aware MSCI EM ETF	$53.52M	$39.94M	$58.74M
IEMG iShares Core MSCI Emerging Markets ETF	$833.06M	$972.69M	$1.09B

ESGE vs. IEMG - 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%
IEMG iShares Core MSCI Emerging Markets ETF	16.38%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between ESGE and IEMG is 0.99 - 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.	0.99
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 IEMG has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

ESGE vs. IEMG - Sectors Allocation Comparison

Sectors	ESGE	IEMG
Technology	45.4%	43.6%
Financial Services	23.0%	17.3%
Communication Services	7.2%	5.6%
Consumer Cyclical	6.8%	7.7%
Industrials	4.9%	7.7%
Basic Materials	4.2%	5.8%
Healthcare	2.5%	3.2%
Consumer Defensive	2.1%	2.8%
Energy	1.7%	3.0%
Utilities	1.3%	1.9%
Real Estate	1.0%	1.5%

Return for Risk

ESGE vs. IEMG — 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

IEMG

IEMG Risk / Return Rank: 60
IEMG Sharpe Ratio Rank: 57
IEMG Sortino Ratio Rank: 53
IEMG Omega Ratio Rank: 61
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 60

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. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) and iShares Core MSCI Emerging Markets ETF (IEMG). 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	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.39	1.35	+0.03
Sortino ratio: Return per unit of downside risk	1.90	1.85	+0.05
Omega ratio: Gain probability vs. loss probability	1.27	1.26	+0.01
Calmar ratio: Return relative to maximum drawdown	2.44	2.33	+0.11
Martin ratio: Return relative to average drawdown	7.40	7.16	+0.24

ESGE vs. IEMG - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 1.39, which is comparable to the IEMG Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of ESGE and IEMG, 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. IEMG - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for ESGE and IEMG.

Drawdown Indicators

	ESGE	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-38.71%	-2.36%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-13.78%	-0.12%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-17.21%	+0.50%
Max Drawdown (5Y) Largest decline over 5 years	-37.07%	-33.61%	-3.46%
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	-38.71%	-2.36%
Current Drawdown Current decline from peak	-9.30%	-9.76%	+0.46%
Average Drawdown Average peak-to-trough decline	-14.34%	-12.89%	-1.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	4.47%	+0.11%

Volatility

ESGE vs. IEMG - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 9.09% and 8.73%, 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	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.09%	8.73%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	22.33%	21.74%	+0.59%
Volatility (1Y) Calculated over the trailing 1-year period	24.45%	23.71%	+0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.98%	19.27%	+0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.35%	20.32%	+0.03%

ESGE vs. IEMG - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is higher than IEMG's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESGE vs. IEMG - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 2.20%, less than IEMG's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
IEMG iShares Core MSCI Emerging Markets ETF	2.32%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both ESGE and IEMG in my portfolio?

With a correlation of 0.99, ESGE and IEMG 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 IEMG?

ESGE has higher volatility (9.09%) compared to IEMG (8.73%). In terms of maximum drawdown, ESGE dropped -41.07% vs IEMG's -38.71%.

Which ETF is better, ESGE or IEMG?

On 10-year performance, ESGE leads with 8.88% vs 8.84% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or IEMG?

Over the 10-year period, ESGE has performed better with a 8.88% return vs 8.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.25% for ESGE.

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

IEMG has the higher dividend yield at 2.32%, compared with 2.20% for ESGE.

What is the main difference between ESGE and IEMG?

ESGE tracks MSCI Emerging Markets Extended ESG Focus Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). Their fees differ too: 0.25% for ESGE and 0.09% for IEMG.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (1.39 vs 1.35), 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.