HEEM vs. DEM

Last updated Aug 2, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - HEEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets 100% USD Hedged Index, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. Both are passively managed. Over the past 10 years, HEEM returned 9.86%/yr vs 9.26%/yr for DEM. Their correlation of 0.83 means they have usually moved in the same direction. HEEM charges 0.72%/yr vs 0.63%/yr for DEM.

Performance

HEEM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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 higher than DEM's 17.08% return. Over the past 10 years, HEEM has outperformed DEM with an annualized return of 9.86%, while DEM has yielded a comparatively lower 9.26% annualized 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%

DEM

• 1D: 0.19%
• 1M: 0.60%
• 6M: 10.28%
• YTD: 17.08%
• 1Y: 24.73%
• 3Y*: 15.88%
• 5Y*: 10.19%
• 10Y*: 9.26%
• ALL TIME*: 4.92%

*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)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.90M	$9.48M	$10.87M
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	$10.32M	$12.63M	$6.04M

HEEM vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	18.23%	34.02%	12.59%	10.14%	-16.85%	-1.82%	17.94%	18.53%	-11.09%	27.59%
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%

Correlation

The correlation between HEEM and DEM is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.78
Correlation (3Y) Balances recent behavior with more history.	0.80
Correlation (5Y) Shows whether the relationship held over a longer period.	0.80
Correlation (10Y) Provides a long-term view across more market conditions.	0.83
Correlation (All Time) Calculated using the full available price history since Sep 25, 2014	0.83

The correlation between HEEM and DEM has been stable across timeframes, ranging from 0.78 to 0.83 - a consistent structural relationship.

HEEM vs. DEM - Sectors Allocation Comparison

Sectors	HEEM	DEM
Technology	45.2%	17.5%
Financial Services	18.5%	21.9%
Consumer Cyclical	7.5%	5.4%
Industrials	6.3%	8.9%
Communication Services	6.0%	3.0%
Basic Materials	5.5%	3.7%
Energy	3.2%	6.2%
Consumer Defensive	2.6%	5.8%
Healthcare	2.5%	0.6%
Utilities	1.8%	3.0%
Real Estate	1.0%	2.9%

Return for Risk

HEEM vs. DEM — 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

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 73
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 76

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. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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	DEM	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.66	+0.06
Sortino ratio: Return per unit of downside risk	2.29	2.31	-0.02
Omega ratio: Gain probability vs. loss probability	1.33	1.30	+0.03
Calmar ratio: Return relative to maximum drawdown	2.60	3.15	-0.55
Martin ratio: Return relative to average drawdown	9.49	9.50	-0.01

HEEM vs. DEM - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 1.72, which is comparable to the DEM Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of HEEM and DEM, 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. DEM - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for HEEM and DEM.

Drawdown Indicators

	HEEM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-51.85%	+18.32%
Max Drawdown (1Y) Largest decline over 1 year	-15.01%	-7.89%	-7.12%
Max Drawdown (3Y) Largest decline over 3 years	-15.01%	-15.64%	+0.63%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-27.18%	-0.97%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	-37.79%	+4.26%
Current Drawdown Current decline from peak	-11.28%	-3.57%	-7.71%
Average Drawdown Average peak-to-trough decline	-11.08%	-12.82%	+1.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.10%	2.61%	+1.49%

Volatility

HEEM vs. DEM - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.41% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.12%. This indicates that HEEM's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEEM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.41%	5.12%	+4.29%
Volatility (6M) Calculated over the trailing 6-month period	20.67%	13.28%	+7.39%
Volatility (1Y) Calculated over the trailing 1-year period	22.65%	15.02%	+7.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.03%	15.60%	+2.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	17.85%	+0.55%

HEEM vs. DEM - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than DEM's 0.63% expense ratio.

Dividends

HEEM vs. DEM - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.25%, less than DEM's 4.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.18%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
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 DEM in my portfolio?

HEEM and DEM have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEEM or DEM?

HEEM has higher volatility (9.41%) compared to DEM (5.12%). In terms of maximum drawdown, HEEM dropped -33.53% vs DEM's -51.85%.

Which ETF is better, HEEM or DEM?

On 10-year performance, HEEM leads with 9.86% vs 9.26% for DEM. On fees, DEM is cheaper at 0.63% per year. On volatility, DEM has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or DEM?

Over the 10-year period, HEEM has performed better with a 9.86% return vs 9.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or DEM?

DEM is cheaper with a 0.63% expense ratio, compared with 0.72% for HEEM.

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

DEM has the higher dividend yield at 4.18%, compared with 3.25% for HEEM.

What is the main difference between HEEM and DEM?

HEEM is categorized as Emerging Markets Equities, while DEM is Dividend. HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while DEM tracks WisdomTree Emerging Markets Equity Income Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.72% for HEEM and 0.63% for DEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (1.72 vs 1.66), 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.