EEM vs. ESGE
Compare and contrast key facts about iShares MSCI Emerging Markets ETF (EEM) and iShares ESG Aware MSCI EM ETF (ESGE).
EEM and ESGE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. ESGE is a passively managed fund by iShares that tracks the performance of the MSCI EM Extended ESG Focus Index. It was launched on Jun 28, 2016. Both EEM and ESGE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EEM or ESGE.
Key characteristics
| EEM | ESGE | |
|---|---|---|
| YTD Return | 11.41% | 11.09% |
| 1Y Return | 18.68% | 17.54% |
| 3Y Return (Ann) | -2.14% | -2.98% |
| 5Y Return (Ann) | 2.57% | 2.64% |
| Sharpe Ratio | 1.50 | 1.41 |
| Sortino Ratio | 2.18 | 2.07 |
| Omega Ratio | 1.27 | 1.25 |
| Calmar Ratio | 0.74 | 0.70 |
| Martin Ratio | 7.97 | 7.73 |
| Ulcer Index | 2.91% | 2.90% |
| Daily Std Dev | 15.45% | 15.82% |
| Max Drawdown | -66.44% | -41.07% |
| Current Drawdown | -17.17% | -18.43% |
Correlation
The correlation between EEM and ESGE is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
EEM vs. ESGE - Performance Comparison
The year-to-date returns for both stocks are quite close, with EEM having a 11.41% return and ESGE slightly lower at 11.09%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EEM vs. ESGE - Expense Ratio Comparison
EEM has a 0.68% expense ratio, which is higher than ESGE's 0.25% expense ratio.
Risk-Adjusted Performance
EEM vs. ESGE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and iShares ESG Aware MSCI EM ETF (ESGE). 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.
Dividends
EEM vs. ESGE - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 2.33%, less than ESGE's 2.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 2.33% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
ESGE iShares ESG Aware MSCI EM ETF | 2.46% | 2.64% | 2.68% | 2.66% | 1.31% | 2.59% | 2.19% | 1.86% | 0.27% | 0.00% | 0.00% | 0.00% |
Drawdowns
EEM vs. ESGE - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.44%, which is greater than ESGE's maximum drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for EEM and ESGE. For additional features, visit the drawdowns tool.
Volatility
EEM vs. ESGE - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) and iShares ESG Aware MSCI EM ETF (ESGE) have volatilities of 4.18% and 4.28%, 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.