ESGE vs. LDEM

Last updated Jun 4, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and LDEM (iShares ESG MSCI EM Leaders ETF) are both Emerging Markets Equities funds from iShares - ESGE tracks the MSCI EM Extended ESG Focus Index while LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index. Both are passively managed. Over the past 5 years, ESGE returned 6.83%/yr vs 1.89%/yr for LDEM. Their correlation of 0.92 suggests significant overlap in exposure. ESGE charges 0.25%/yr vs 0.16%/yr for LDEM.

Performance

ESGE vs. LDEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EM ETF (ESGE) and iShares ESG MSCI EM Leaders ETF (LDEM). 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 LDEM's 6.92% return.

ESGE

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

LDEM

• 1D: -1.61%
• 1M: 0.72%
• YTD: 6.92%
• 6M: 7.76%
• 1Y: 25.33%
• 3Y*: 15.06%
• 5Y*: 1.89%
• 10Y*: —

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

ESGE vs. LDEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ESGE iShares ESG Aware MSCI EM ETF	26.85%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.20%
LDEM iShares ESG MSCI EM Leaders ETF	6.92%	32.49%	5.87%	6.49%	-22.46%	-2.03%	15.59%

Correlation

The correlation between ESGE and LDEM is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Feb 13, 2020	0.92

The correlation between ESGE and LDEM has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

ESGE vs. LDEM - Sectors Allocation Comparison

Sectors	ESGE	LDEM
Technology	43.4%	13.0%
Financial Services	20.9%	28.2%
Consumer Cyclical	8.3%	14.0%
Communication Services	7.2%	11.2%
Industrials	4.7%	8.0%
Basic Materials	4.1%	7.8%
Healthcare	2.4%	4.3%
Energy	2.2%	5.3%
Consumer Defensive	2.1%	3.6%
Utilities	1.5%	2.9%
Real Estate	1.1%	1.7%

Return for Risk

ESGE vs. LDEM — 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

LDEM

LDEM Risk / Return Rank: 40
LDEM Sharpe Ratio Rank: 40
LDEM Sortino Ratio Rank: 39
LDEM Omega Ratio Rank: 42
LDEM Calmar Ratio Rank: 39
LDEM Martin Ratio Rank: 40

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. LDEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) and iShares ESG MSCI EM Leaders ETF (LDEM). 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	LDEM	Difference
Sharpe ratio: Return per unit of total volatility	2.75	1.44	+1.31
Sortino ratio: Return per unit of downside risk	3.56	2.03	+1.53
Omega ratio: Gain probability vs. loss probability	1.50	1.27	+0.24
Calmar ratio: Return relative to maximum drawdown	3.98	1.93	+2.05
Martin ratio: Return relative to average drawdown	15.51	6.33	+9.18
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. LDEM - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 2.75, which is higher than the LDEM Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of ESGE and LDEM, 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	LDEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.75	1.44	+1.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.10	+0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.27	+0.23

Drawdowns

ESGE vs. LDEM - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, roughly equal to the maximum LDEM drawdown of -40.82%. Use the drawdown chart below to compare losses from any high point for ESGE and LDEM.

Drawdown Indicators

	ESGE	LDEM	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-40.82%	-0.25%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-13.21%	-0.69%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-15.12%	-1.59%
Max Drawdown (5Y) Largest decline over 5 years	-39.23%	-39.17%	-0.06%
Current Drawdown Current decline from peak	-1.23%	-3.92%	+2.69%
Average Drawdown Average peak-to-trough decline	-14.47%	-17.36%	+2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.56%	4.01%	-0.45%

Volatility

ESGE vs. LDEM - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) has a higher volatility of 8.56% compared to iShares ESG MSCI EM Leaders ETF (LDEM) at 6.08%. This indicates that ESGE's price experiences larger fluctuations and is considered to be riskier than LDEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGE	LDEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.56%	6.08%	+2.48%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	13.90%	+3.56%
Volatility (1Y) Calculated over the trailing 1-year period	20.10%	17.68%	+2.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.11%	19.09%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.94%	20.73%	-0.79%

ESGE vs. LDEM - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is higher than LDEM's 0.16% 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. LDEM - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 1.97%, less than LDEM's 3.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
LDEM iShares ESG MSCI EM Leaders ETF	3.04%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ESGE and LDEM in my portfolio?

With a correlation of 0.94, ESGE and LDEM 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 LDEM?

ESGE has higher volatility (8.56%) compared to LDEM (6.08%). In terms of maximum drawdown, ESGE dropped -41.07% vs LDEM's -40.82%.

Which ETF is better, ESGE or LDEM?

On 5-year performance, ESGE leads with 6.83% vs 1.89% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, LDEM has been the lower-risk option at 6.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or LDEM?

Over the 5-year period, ESGE has performed better with a 6.83% return vs 1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or LDEM?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.25% for ESGE.

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

LDEM has the higher dividend yield at 3.04%, compared with 1.97% for ESGE.

What is the main difference between ESGE and LDEM?

ESGE tracks MSCI EM Extended ESG Focus Index, while LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index. Their fees differ too: 0.25% for ESGE and 0.16% for LDEM.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.75 vs 1.44), 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.