HEEM vs. BKEM

Last updated Aug 2, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Emerging Markets Equities funds - HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 5 years, HEEM returned 9.65%/yr vs 7.27%/yr for BKEM. Their correlation of 0.95 means they have usually moved in the same direction. HEEM charges 0.72%/yr vs 0.11%/yr for BKEM.

Performance

HEEM vs. BKEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and BNY Mellon Emerging Markets Equity ETF (BKEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEEM achieves a 18.23% return, which is significantly lower than BKEM's 19.49% return.

HEEM

• 1D: 0.85%
• 1M: -4.02%
• 6M: 9.21%
• YTD: 18.23%
• 1Y: 40.11%
• 3Y*: 20.86%
• 5Y*: 9.65%
• 10Y*: 9.86%
• ALL TIME*: 7.84%

BKEM

• 1D: 1.00%
• 1M: -2.28%
• 6M: 10.09%
• YTD: 19.49%
• 1Y: 36.07%
• 3Y*: 18.26%
• 5Y*: 7.27%
• 10Y*: —
• ALL TIME*: 12.53%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BKEM BNY Mellon Emerging Markets Equity ETF	$479.81K	$325.26K	$242.87K
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	$10.32M	$12.63M	$6.04M

HEEM vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	18.23%	34.02%	12.59%	10.14%	-16.85%	-1.82%	39.11%
BKEM BNY Mellon Emerging Markets Equity ETF	19.49%	30.55%	7.53%	8.68%	-19.43%	-3.91%	48.44%

Correlation

The correlation between HEEM and BKEM is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020	0.95

The correlation between HEEM and BKEM has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

HEEM vs. BKEM - Sectors Allocation Comparison

Sectors	HEEM	BKEM
Technology	45.2%	44.5%
Financial Services	18.5%	17.5%
Consumer Cyclical	7.5%	7.7%
Industrials	6.3%	7.6%
Communication Services	6.0%	5.8%
Basic Materials	5.5%	5.4%
Energy	3.2%	3.1%
Consumer Defensive	2.6%	2.6%
Healthcare	2.5%	2.7%
Utilities	1.8%	2.0%
Real Estate	1.0%	1.1%

Return for Risk

HEEM vs. BKEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

HEEM

HEEM Risk / Return Rank: 75
HEEM Sharpe Ratio Rank: 76
HEEM Sortino Ratio Rank: 71
HEEM Omega Ratio Rank: 78
HEEM Calmar Ratio Rank: 75
HEEM Martin Ratio Rank: 76

BKEM

BKEM Risk / Return Rank: 65
BKEM Sharpe Ratio Rank: 64
BKEM Sortino Ratio Rank: 59
BKEM Omega Ratio Rank: 65
BKEM Calmar Ratio Rank: 73
BKEM Martin Ratio Rank: 65

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

HEEM vs. BKEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and BNY Mellon Emerging Markets Equity ETF (BKEM). 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.

	HEEM	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.48	+0.24
Sortino ratio: Return per unit of downside risk	2.29	1.99	+0.29
Omega ratio: Gain probability vs. loss probability	1.33	1.27	+0.05
Calmar ratio: Return relative to maximum drawdown	2.60	2.54	+0.06
Martin ratio: Return relative to average drawdown	9.49	7.83	+1.65

HEEM vs. BKEM - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 1.72, which is comparable to the BKEM Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of HEEM and BKEM, 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

HEEM vs. BKEM - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum BKEM drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for HEEM and BKEM.

Drawdown Indicators

	HEEM	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-39.48%	+5.95%
Max Drawdown (1Y) Largest decline over 1 year	-15.01%	-13.91%	-1.10%
Max Drawdown (3Y) Largest decline over 3 years	-15.01%	-18.38%	+3.37%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-33.28%	+5.13%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	—	—
Current Drawdown Current decline from peak	-11.28%	-9.52%	-1.76%
Average Drawdown Average peak-to-trough decline	-11.08%	-15.76%	+4.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.10%	4.49%	-0.39%

Volatility

HEEM vs. BKEM - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and BNY Mellon Emerging Markets Equity ETF (BKEM) have volatilities of 9.41% and 9.22%, 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.

Volatility by Period

	HEEM	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.41%	9.22%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	20.67%	21.85%	-1.18%
Volatility (1Y) Calculated over the trailing 1-year period	22.65%	23.85%	-1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.03%	19.61%	-1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	19.76%	-1.36%

HEEM vs. BKEM - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than BKEM's 0.11% expense ratio.

Dividends

HEEM vs. BKEM - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.25%, more than BKEM's 1.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKEM BNY Mellon Emerging Markets Equity ETF	1.96%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.25%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both HEEM and BKEM in my portfolio?

With a correlation of 0.94, HEEM and BKEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HEEM or BKEM?

HEEM has higher volatility (9.41%) compared to BKEM (9.22%). In terms of maximum drawdown, HEEM dropped -33.53% vs BKEM's -39.48%.

Which ETF is better, HEEM or BKEM?

On 5-year performance, HEEM leads with 9.65% vs 7.27% for BKEM. On fees, BKEM is cheaper at 0.11% per year. On volatility, BKEM has been the lower-risk option at 9.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or BKEM?

Over the 5-year period, HEEM has performed better with a 9.65% return vs 7.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or BKEM?

BKEM is cheaper with a 0.11% expense ratio, compared with 0.72% for HEEM.

Which ETF pays a higher dividend yield, HEEM or BKEM?

HEEM has the higher dividend yield at 3.25%, compared with 1.96% for BKEM.

What is the main difference between HEEM and BKEM?

HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: iShares and BNY Mellon. Their fees differ too: 0.72% for HEEM and 0.11% for BKEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (1.72 vs 1.48), 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.