HDEM.L vs. HSEF.L

Last updated Jun 5, 2026

HDEM.L (Invesco FTSE EM High Dividend Low Volatility UCITS ETF) and HSEF.L (HSBC Emerging Market Sustainable Equity UCITS ETF USD) are both Emerging Markets Equities funds tracking the MSCI EM NR USD, from Invesco and HSBC respectively. Both are passively managed. Over the past 5 years, HDEM.L returned 6.83%/yr vs 7.39%/yr for HSEF.L. A 0.69 correlation means they provide meaningful diversification when combined. HDEM.L charges 0.49%/yr vs 0.18%/yr for HSEF.L.

Performance

HDEM.L vs. HSEF.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Invesco FTSE EM High Dividend Low Volatility UCITS ETF (HDEM.L) and HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HDEM.L is traded in GBp, while HSEF.L is traded in GBP. To make them comparable, the HSEF.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, HDEM.L achieves a 8.36% return, which is significantly lower than HSEF.L's 15.11% return.

HDEM.L

• 1D: -0.50%
• 1M: -2.19%
• YTD: 8.36%
• 6M: 6.78%
• 1Y: 25.44%
• 3Y*: 12.01%
• 5Y*: 6.83%
• 10Y*: 8.19%

HSEF.L

• 1D: -0.64%
• 1M: 3.00%
• YTD: 15.11%
• 6M: 15.45%
• 1Y: 38.19%
• 3Y*: 17.57%
• 5Y*: 7.39%
• 10Y*: —

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

HDEM.L vs. HSEF.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HDEM.L Invesco FTSE EM High Dividend Low Volatility UCITS ETF	8.36%	18.32%	3.92%	3.74%	-6.39%	15.10%	11.74%
HSEF.L HSBC Emerging Market Sustainable Equity UCITS ETF USD	15.11%	20.85%	17.02%	-1.33%	-8.36%	1.82%	11.41%

Correlation

The correlation between HDEM.L and HSEF.L is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Sep 1, 2020	0.69

The correlation between HDEM.L and HSEF.L has been stable across timeframes, ranging from 0.62 to 0.70 - a consistent structural relationship.

HDEM.L vs. HSEF.L - Sectors Allocation Comparison

Sectors	HDEM.L	HSEF.L
Financial Services	24.3%	21.2%
Energy	18.3%	4.2%
Industrials	10.6%	4.8%
Utilities	9.9%	1.1%
Consumer Cyclical	7.6%	9.2%
Consumer Defensive	6.9%	2.9%
Communication Services	6.0%	2.7%
Basic Materials	5.8%	9.3%
Real Estate	4.6%	0.6%
Technology	4.3%	40.2%
Healthcare	1.6%	4.0%

Return for Risk

HDEM.L vs. HSEF.L — Risk / Return Rank

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

HDEM.L

HDEM.L Risk / Return Rank: 79
HDEM.L Sharpe Ratio Rank: 78
HDEM.L Sortino Ratio Rank: 81
HDEM.L Omega Ratio Rank: 74
HDEM.L Calmar Ratio Rank: 86
HDEM.L Martin Ratio Rank: 74

HSEF.L

HSEF.L Risk / Return Rank: 77
HSEF.L Sharpe Ratio Rank: 81
HSEF.L Sortino Ratio Rank: 76
HSEF.L Omega Ratio Rank: 78
HSEF.L Calmar Ratio Rank: 78
HSEF.L Martin Ratio Rank: 72

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.

HDEM.L vs. HSEF.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco FTSE EM High Dividend Low Volatility UCITS ETF (HDEM.L) and HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L). 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.

	HDEM.L	HSEF.L	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.58	-0.09
Sortino ratio: Return per unit of downside risk	3.58	3.35	+0.23
Omega ratio: Gain probability vs. loss probability	1.43	1.45	-0.02
Calmar ratio: Return relative to maximum drawdown	4.80	3.93	+0.86
Martin ratio: Return relative to average drawdown	13.83	13.29	+0.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDEM.L vs. HSEF.L - Sharpe Ratio Comparison

The current HDEM.L Sharpe Ratio is 2.49, which is comparable to the HSEF.L Sharpe Ratio of 2.58. The chart below compares the historical Sharpe Ratios of HDEM.L and HSEF.L, 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

	HDEM.L	HSEF.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.58	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.47	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.59	-0.05

Drawdowns

HDEM.L vs. HSEF.L - Drawdown Comparison

The maximum HDEM.L drawdown since its inception was -32.18%, which is greater than HSEF.L's maximum drawdown of -23.33%. Use the drawdown chart below to compare losses from any high point for HDEM.L and HSEF.L.

Drawdown Indicators

	HDEM.L	HSEF.L	Difference
Max Drawdown Largest peak-to-trough decline	-32.18%	-23.33%	-8.85%
Max Drawdown (1Y) Largest decline over 1 year	-5.28%	-9.67%	+4.39%
Max Drawdown (3Y) Largest decline over 3 years	-12.22%	-15.36%	+3.14%
Max Drawdown (5Y) Largest decline over 5 years	-18.05%	-19.36%	+1.31%
Max Drawdown (10Y) Largest decline over 10 years	-32.18%	—	—
Current Drawdown Current decline from peak	-3.70%	-1.81%	-1.89%
Average Drawdown Average peak-to-trough decline	-6.84%	-9.31%	+2.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.83%	2.87%	-1.04%

Volatility

HDEM.L vs. HSEF.L - Volatility Comparison

The current volatility for Invesco FTSE EM High Dividend Low Volatility UCITS ETF (HDEM.L) is 2.93%, while HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L) has a volatility of 5.49%. This indicates that HDEM.L experiences smaller price fluctuations and is considered to be less risky than HSEF.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDEM.L	HSEF.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.93%	5.49%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	7.52%	11.66%	-4.14%
Volatility (1Y) Calculated over the trailing 1-year period	10.18%	14.77%	-4.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.51%	15.64%	-2.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.82%	15.71%	+0.11%

HDEM.L vs. HSEF.L - Expense Ratio Comparison

HDEM.L has a 0.49% expense ratio, which is higher than HSEF.L's 0.18% expense ratio.

Dividends

HDEM.L vs. HSEF.L - Dividend Comparison

HDEM.L's dividend yield for the trailing twelve months is around 4.86%, while HSEF.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
HDEM.L Invesco FTSE EM High Dividend Low Volatility UCITS ETF	4.86%	5.17%	5.62%	6.08%	8.93%	5.96%	4.31%	5.23%	5.37%	6.81%	2.78%
HSEF.L HSBC Emerging Market Sustainable Equity UCITS ETF USD	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HDEM.L and HSEF.L in my portfolio?

HDEM.L and HSEF.L have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HDEM.L or HSEF.L?

On fees, HSEF.L is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HDEM.L or HSEF.L?

HSEF.L is cheaper with a 0.18% expense ratio, compared with 0.49% for HDEM.L.

What is the main difference between HDEM.L and HSEF.L?

Both ETFs track MSCI EM NR USD. They also come from different issuers: Invesco and HSBC. Their fees differ too: 0.49% for HDEM.L and 0.18% for HSEF.L.