ESMV vs. PABD

Last updated Jun 3, 2026

ESMV (iShares ESG MSCI USA Min Vol Factor ETF) and PABD (iShares Paris-Aligned Climate MSCI World Ex USA ETF) are both exchange-traded funds - ESMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while PABD is a Foreign Large Cap Equities fund tracking the MSCI World ex USA Climate Paris Aligned Benchmark Extended Select Index - Benchmark TR Net. Both are passively managed. Over the past year, ESMV returned 7.91% vs 18.78% for PABD. A 0.60 correlation means they provide meaningful diversification when combined. ESMV charges 0.18%/yr vs 0.12%/yr for PABD.

Performance

ESMV vs. PABD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and iShares Paris-Aligned Climate MSCI World Ex USA ETF (PABD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESMV achieves a 6.11% return, which is significantly lower than PABD's 7.38% return.

ESMV

• 1D: 0.28%
• 1M: 3.87%
• YTD: 6.11%
• 6M: 6.58%
• 1Y: 7.91%
• 3Y*: 11.56%
• 5Y*: —
• 10Y*: —

PABD

• 1D: 0.51%
• 1M: 2.76%
• YTD: 7.38%
• 6M: 10.72%
• 1Y: 18.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ESMV vs. PABD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ESMV iShares ESG MSCI USA Min Vol Factor ETF	6.11%	5.34%	11.98%
PABD iShares Paris-Aligned Climate MSCI World Ex USA ETF	7.38%	30.06%	5.32%

Correlation

The correlation between ESMV and PABD is 0.58, 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	0.58
Correlation (All Time) Calculated using the full available price history since Jan 22, 2024	0.60

The correlation between ESMV and PABD has been stable across timeframes, ranging from 0.58 to 0.60 - a consistent structural relationship.

Return for Risk

ESMV vs. PABD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESMV

ESMV Risk / Return Rank: 23
ESMV Sharpe Ratio Rank: 23
ESMV Sortino Ratio Rank: 22
ESMV Omega Ratio Rank: 23
ESMV Calmar Ratio Rank: 24
ESMV Martin Ratio Rank: 25

PABD

PABD Risk / Return Rank: 34
PABD Sharpe Ratio Rank: 33
PABD Sortino Ratio Rank: 33
PABD Omega Ratio Rank: 32
PABD Calmar Ratio Rank: 32
PABD Martin Ratio Rank: 37

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.

ESMV vs. PABD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and iShares Paris-Aligned Climate MSCI World Ex USA ETF (PABD). 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.

	ESMV	PABD	Difference
Sharpe ratio Return per unit of total volatility	0.79	1.22	-0.42
Sortino ratio Return per unit of downside risk	1.16	1.78	-0.62
Omega ratio Gain probability vs. loss probability	1.15	1.22	-0.07
Calmar ratio Return relative to maximum drawdown	1.14	1.59	-0.45
Martin ratio Return relative to average drawdown	3.51	5.98	-2.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESMV vs. PABD - Sharpe Ratio Comparison

The current ESMV Sharpe Ratio is 0.79, which is lower than the PABD Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of ESMV and PABD, 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

	ESMV	PABD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.79	1.22	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	1.15	-0.70

Drawdowns

ESMV vs. PABD - Drawdown Comparison

The maximum ESMV drawdown since its inception was -19.77%, which is greater than PABD's maximum drawdown of -13.37%. Use the drawdown chart below to compare losses from any high point for ESMV and PABD.

Drawdown Indicators

	ESMV	PABD	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-13.37%	-6.40%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-12.55%	+5.54%
Max Drawdown (3Y) Largest decline over 3 years	-12.16%	—	—
Current Drawdown Current decline from peak	0.00%	-0.94%	+0.94%
Average Drawdown Average peak-to-trough decline	-5.33%	-2.64%	-2.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	3.34%	-1.06%

Volatility

ESMV vs. PABD - Volatility Comparison

The current volatility for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) is 2.08%, while iShares Paris-Aligned Climate MSCI World Ex USA ETF (PABD) has a volatility of 5.13%. This indicates that ESMV experiences smaller price fluctuations and is considered to be less risky than PABD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESMV	PABD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.08%	5.13%	-3.05%
Volatility (6M) Calculated over the trailing 6-month period	6.27%	12.93%	-6.66%
Volatility (1Y) Calculated over the trailing 1-year period	10.03%	15.55%	-5.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.24%	15.53%	-2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.24%	15.53%	-2.29%

ESMV vs. PABD - Expense Ratio Comparison

ESMV has a 0.18% expense ratio, which is higher than PABD'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

ESMV vs. PABD - Dividend Comparison

ESMV's dividend yield for the trailing twelve months is around 1.57%, less than PABD's 2.55% yield.

Position	TTM	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	1.57%	1.56%	1.71%	1.75%	1.66%	0.24%
PABD iShares Paris-Aligned Climate MSCI World Ex USA ETF	2.55%	2.74%	2.87%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ESMV and PABD in my portfolio?

ESMV and PABD have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESMV or PABD?

PABD has higher volatility (5.13%) compared to ESMV (2.08%). In terms of maximum drawdown, ESMV dropped -19.77% vs PABD's -13.37%.

Which ETF is better, ESMV or PABD?

On 1-year performance, PABD leads with 18.78% vs 7.91% for ESMV. On fees, PABD is cheaper at 0.12% per year. On volatility, ESMV has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESMV or PABD?

Over the 1-year period, PABD has performed better with a 18.78% return vs 7.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESMV or PABD?

PABD is cheaper with a 0.12% expense ratio, compared with 0.18% for ESMV.

Which ETF pays a higher dividend yield, ESMV or PABD?

PABD has the higher dividend yield at 2.55%, compared with 1.57% for ESMV.

What is the main difference between ESMV and PABD?

ESMV is categorized as Large Cap Blend Equities, while PABD is Foreign Large Cap Equities. ESMV tracks MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while PABD tracks MSCI World ex USA Climate Paris Aligned Benchmark Extended Select Index - Benchmark TR Net. Their fees differ too: 0.18% for ESMV and 0.12% for PABD.

Which has better risk-adjusted returns?

PABD currently has the higher Sharpe Ratio (1.22 vs 0.79), 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.