EUAD vs. IEMG

Last updated Jun 9, 2026

EUAD (Select STOXX Europe Aerospace & Defense ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - EUAD is a Aerospace & Defense fund tracking the STOXX Europe Total Market Aerospace & Defense Index, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past year, EUAD returned -1.29% vs 40.80% for IEMG. At a 0.35 correlation, their price movements are largely independent. EUAD charges 0.50%/yr vs 0.09%/yr for IEMG.

Performance

EUAD vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Select STOXX Europe Aerospace & Defense ETF (EUAD) 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, EUAD achieves a -4.49% return, which is significantly lower than IEMG's 18.97% return.

EUAD

• 1D: 0.00%
• 1M: -1.88%
• YTD: -4.49%
• 6M: -3.71%
• 1Y: -1.29%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IEMG

• 1D: 1.70%
• 1M: -3.66%
• YTD: 18.97%
• 6M: 20.80%
• 1Y: 40.80%
• 3Y*: 20.51%
• 5Y*: 6.57%
• 10Y*: 9.88%

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

EUAD vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EUAD Select STOXX Europe Aerospace & Defense ETF	-4.49%	74.51%	-3.62%
IEMG iShares Core MSCI Emerging Markets ETF	18.97%	32.56%	-6.12%

Correlation

The correlation between EUAD and IEMG is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (All Time) Calculated using the full available price history since Oct 23, 2024	0.35

EUAD vs. IEMG - Sectors Allocation Comparison

Sectors	EUAD	IEMG
Industrials	99.4%	9.0%
Healthcare	0.1%	3.7%
Basic Materials	-	6.9%
Communication Services	-	6.4%
Consumer Cyclical	-	9.5%
Consumer Defensive	-	3.3%
Energy	-	3.8%
Financial Services	-	18.4%
Real Estate	-	1.7%
Technology	-	35.0%
Utilities	-	2.2%

Return for Risk

EUAD vs. IEMG — Risk / Return Rank

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

EUAD

EUAD Risk / Return Rank: 9
EUAD Sharpe Ratio Rank: 9
EUAD Sortino Ratio Rank: 9
EUAD Omega Ratio Rank: 9
EUAD Calmar Ratio Rank: 9
EUAD Martin Ratio Rank: 9

IEMG

IEMG Risk / Return Rank: 67
IEMG Sharpe Ratio Rank: 67
IEMG Sortino Ratio Rank: 61
IEMG Omega Ratio Rank: 71
IEMG Calmar Ratio Rank: 68
IEMG 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.

EUAD vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Select STOXX Europe Aerospace & Defense ETF (EUAD) 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.

	EUAD	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	1.99	-2.04
Sortino ratio: Return per unit of downside risk	0.15	2.58	-2.43
Omega ratio: Gain probability vs. loss probability	1.02	1.38	-0.36
Calmar ratio: Return relative to maximum drawdown	-0.06	3.10	-3.16
Martin ratio: Return relative to average drawdown	-0.14	11.68	-11.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EUAD vs. IEMG - Sharpe Ratio Comparison

The current EUAD Sharpe Ratio is -0.04, which is lower than the IEMG Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of EUAD 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.

Sharpe Ratios by Period

	EUAD	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.04	1.99	-2.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.35	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.15	0.33	+0.82

Drawdowns

EUAD vs. IEMG - Drawdown Comparison

The maximum EUAD drawdown since its inception was -22.04%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for EUAD and IEMG.

Drawdown Indicators

	EUAD	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-22.04%	-38.71%	+16.67%
Max Drawdown (1Y) Largest decline over 1 year	-22.04%	-13.21%	-8.83%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.21%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.75%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-16.65%	-7.00%	-9.65%
Average Drawdown Average peak-to-trough decline	-5.70%	-12.97%	+7.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.14%	3.50%	+5.64%

Volatility

EUAD vs. IEMG - Volatility Comparison

The current volatility for Select STOXX Europe Aerospace & Defense ETF (EUAD) is 9.32%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.33%. This indicates that EUAD experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EUAD	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.32%	10.33%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	24.23%	18.35%	+5.88%
Volatility (1Y) Calculated over the trailing 1-year period	29.23%	20.62%	+8.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.79%	18.62%	+11.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.79%	20.14%	+9.65%

EUAD vs. IEMG - Expense Ratio Comparison

EUAD has a 0.50% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

EUAD vs. IEMG - Dividend Comparison

EUAD's dividend yield for the trailing twelve months is around 0.42%, less than IEMG's 2.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EUAD Select STOXX Europe Aerospace & Defense ETF	0.42%	0.40%	0.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.31%	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 EUAD and IEMG in my portfolio?

EUAD and IEMG have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EUAD or IEMG?

IEMG has higher volatility (10.33%) compared to EUAD (9.32%). In terms of maximum drawdown, EUAD dropped -22.04% vs IEMG's -38.71%.

Which ETF is better, EUAD or IEMG?

On 1-year performance, IEMG leads with 40.80% vs -1.29% for EUAD. On fees, IEMG is cheaper at 0.09% per year. On volatility, EUAD has been the lower-risk option at 9.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EUAD or IEMG?

Over the 1-year period, IEMG has performed better with a 40.80% return vs -1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EUAD or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.50% for EUAD.

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

IEMG has the higher dividend yield at 2.31%, compared with 0.42% for EUAD.

What is the main difference between EUAD and IEMG?

EUAD is categorized as Aerospace & Defense, while IEMG is Emerging Markets Diversified. EUAD tracks STOXX Europe Total Market Aerospace & Defense Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Select Funds and iShares. Their fees differ too: 0.50% for EUAD and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (1.99 vs -0.04), 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.