ESGE vs. XJR

Last updated Jun 16, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and XJR (iShares ESG Screened S&P Small-Cap ETF) are both exchange-traded funds - ESGE is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Focus Index, while XJR is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Sustainability Screened Index. Both are passively managed. Over the past 5 years, ESGE returned 7.48%/yr vs 6.15%/yr for XJR. A 0.56 correlation means they provide meaningful diversification when combined. ESGE charges 0.25%/yr vs 0.12%/yr for XJR.

Performance

ESGE vs. XJR - 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 Screened S&P Small-Cap ETF (XJR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESGE achieves a 27.56% return, which is significantly higher than XJR's 19.59% return.

ESGE

• 1D: 2.95%
• 1M: 8.60%
• YTD: 27.56%
• 6M: 30.80%
• 1Y: 51.80%
• 3Y*: 22.81%
• 5Y*: 7.48%
• 10Y*: —

XJR

• 1D: -0.07%
• 1M: 8.05%
• YTD: 19.59%
• 6M: 16.55%
• 1Y: 34.56%
• 3Y*: 14.92%
• 5Y*: 6.15%
• 10Y*: —

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

ESGE vs. XJR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ESGE iShares ESG Aware MSCI EM ETF	27.56%	35.86%	6.63%	9.51%	-22.41%	-2.87%	21.46%
XJR iShares ESG Screened S&P Small-Cap ETF	19.59%	4.73%	9.59%	16.39%	-17.30%	24.96%	35.61%

Correlation

The correlation between ESGE and XJR is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020	0.56

The correlation between ESGE and XJR has been stable across timeframes, ranging from 0.54 to 0.57 - a consistent structural relationship.

ESGE vs. XJR - Sectors Allocation Comparison

Sectors	ESGE	XJR
Technology	43.9%	16.8%
Financial Services	22.0%	18.2%
Consumer Cyclical	7.5%	13.5%
Communication Services	7.4%	2.5%
Industrials	5.7%	15.5%
Basic Materials	5.0%	4.5%
Healthcare	2.2%	10.7%
Consumer Defensive	2.1%	2.7%
Energy	1.9%	4.7%
Utilities	1.3%	2.0%
Real Estate	1.0%	7.6%

Return for Risk

ESGE vs. XJR — 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: 82
ESGE Sortino Ratio Rank: 75
ESGE Omega Ratio Rank: 83
ESGE Calmar Ratio Rank: 79
ESGE Martin Ratio Rank: 79

XJR

XJR Risk / Return Rank: 66
XJR Sharpe Ratio Rank: 63
XJR Sortino Ratio Rank: 66
XJR Omega Ratio Rank: 58
XJR Calmar Ratio Rank: 77
XJR Martin Ratio Rank: 69

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. XJR - 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 Screened S&P Small-Cap ETF (XJR). 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	XJR	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.93	+0.45
Sortino ratio: Return per unit of downside risk	3.05	2.80	+0.25
Omega ratio: Gain probability vs. loss probability	1.45	1.33	+0.12
Calmar ratio: Return relative to maximum drawdown	3.75	3.68	+0.07
Martin ratio: Return relative to average drawdown	14.02	11.93	+2.10

ESGE vs. XJR - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 2.38, which is comparable to the XJR Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of ESGE and XJR, 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. XJR - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, which is greater than XJR's maximum drawdown of -27.14%. Use the drawdown chart below to compare losses from any high point for ESGE and XJR.

Drawdown Indicators

	ESGE	XJR	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-27.14%	-13.93%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-9.43%	-4.47%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-27.14%	+10.43%
Max Drawdown (5Y) Largest decline over 5 years	-39.18%	-27.14%	-12.04%
Current Drawdown Current decline from peak	-0.68%	-0.07%	-0.61%
Average Drawdown Average peak-to-trough decline	-14.43%	-9.42%	-5.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.70%	2.90%	+0.80%

Volatility

ESGE vs. XJR - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) has a higher volatility of 11.18% compared to iShares ESG Screened S&P Small-Cap ETF (XJR) at 5.39%. This indicates that ESGE's price experiences larger fluctuations and is considered to be riskier than XJR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGE	XJR	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.18%	5.39%	+5.79%
Volatility (6M) Calculated over the trailing 6-month period	19.61%	12.51%	+7.10%
Volatility (1Y) Calculated over the trailing 1-year period	21.89%	17.99%	+3.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.50%	21.47%	-1.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.10%	21.72%	-1.62%

ESGE vs. XJR - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is higher than XJR's 0.12% 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. XJR - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 2.69%, more than XJR's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESGE iShares ESG Aware MSCI EM ETF	2.69%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%
XJR iShares ESG Screened S&P Small-Cap ETF	1.24%	1.14%	1.96%	0.92%	1.29%	2.00%	0.58%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ESGE and XJR in my portfolio?

ESGE and XJR have a correlation of 0.56, 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 XJR?

ESGE has higher volatility (11.18%) compared to XJR (5.39%). In terms of maximum drawdown, ESGE dropped -41.07% vs XJR's -27.14%.

Which ETF is better, ESGE or XJR?

On 5-year performance, ESGE leads with 7.48% vs 6.15% for XJR. On fees, XJR is cheaper at 0.12% per year. On volatility, XJR has been the lower-risk option at 5.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or XJR?

Over the 5-year period, ESGE has performed better with a 7.48% return vs 6.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or XJR?

XJR is cheaper with a 0.12% expense ratio, compared with 0.25% for ESGE.

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

ESGE has the higher dividend yield at 2.69%, compared with 1.24% for XJR.

What is the main difference between ESGE and XJR?

ESGE is categorized as Emerging Markets Equities, while XJR is Small Cap Blend Equities. ESGE tracks MSCI EM Extended ESG Focus Index, while XJR tracks S&P SmallCap 600 Sustainability Screened Index. Their fees differ too: 0.25% for ESGE and 0.12% for XJR.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.38 vs 1.93), 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.