HEEM vs. DFEM

Last updated Apr 1, 2026

Compare and contrast key facts about iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM).

HEEM and DFEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HEEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets 100% USD Hedged Index. It was launched on Sep 23, 2014. DFEM is an actively managed fund by Dimensional. It was launched on Apr 26, 2022.

Performance

HEEM vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

HEEM vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	6.21%	34.02%	12.59%	10.14%	-5.49%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	4.58%	29.51%	7.53%	13.91%	-8.69%

Returns By Period

In the year-to-date period, HEEM achieves a 6.21% return, which is significantly higher than DFEM's 4.58% return.

HEEM

• 1D: 3.58%
• 1M: -6.72%
• YTD: 6.21%
• 6M: 13.27%
• 1Y: 37.01%
• 3Y*: 18.98%
• 5Y*: 6.31%
• 10Y*: 9.13%

DFEM

• 1D: 3.38%
• 1M: -8.36%
• YTD: 4.58%
• 6M: 8.55%
• 1Y: 33.76%
• 3Y*: 16.41%
• 5Y*: —
• 10Y*: —

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

HEEM vs. DFEM - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than DFEM's 0.39% expense ratio.

HEEM

iShares Currency Hedged MSCI Emerging Markets ETF

DFEM

Dimensional Emerging Markets Core Equity 2 ETF

Return for Risk

HEEM vs. DFEM — Risk / Return Rank

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

HEEM

HEEM Risk / Return Rank: 92
HEEM Sharpe Ratio Rank: 92
HEEM Sortino Ratio Rank: 93
HEEM Omega Ratio Rank: 93
HEEM Calmar Ratio Rank: 91
HEEM Martin Ratio Rank: 92

DFEM

DFEM Risk / Return Rank: 88
DFEM Sharpe Ratio Rank: 87
DFEM Sortino Ratio Rank: 88
DFEM Omega Ratio Rank: 88
DFEM Calmar Ratio Rank: 88
DFEM Martin Ratio Rank: 88

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.

HEEM vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	HEEM	DFEM	Difference
Sharpe ratio Return per unit of total volatility	2.12	1.78	+0.34
Sortino ratio Return per unit of downside risk	2.78	2.36	+0.42
Omega ratio Gain probability vs. loss probability	1.41	1.35	+0.06
Calmar ratio Return relative to maximum drawdown	3.22	2.69	+0.53
Martin ratio Return relative to average drawdown	12.72	10.49	+2.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEEM vs. DFEM - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.12, which is comparable to the DFEM Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of HEEM and DFEM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	HEEM	DFEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	1.78	+0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.38	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.67	-0.27

Correlation

The correlation between HEEM and DFEM is 0.93, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

HEEM vs. DFEM - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.74%, more than DFEM's 2.18% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.74%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	2.18%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Drawdowns

HEEM vs. DFEM - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for HEEM and DFEM.

Drawdown Indicators

	HEEM	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-20.82%	-12.71%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-12.29%	+0.87%
Max Drawdown (5Y) Largest decline over 5 years	-30.64%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	—	—
Current Drawdown Current decline from peak	-7.64%	-9.15%	+1.51%
Average Drawdown Average peak-to-trough decline	-11.28%	-5.16%	-6.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	3.16%	-0.27%

Volatility

HEEM vs. DFEM - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is 8.92%, while Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a volatility of 10.03%. This indicates that HEEM experiences smaller price fluctuations and is considered to be less risky than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEEM	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.92%	10.03%	-1.11%
Volatility (6M) Calculated over the trailing 6-month period	13.25%	13.86%	-0.61%
Volatility (1Y) Calculated over the trailing 1-year period	17.52%	19.09%	-1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.55%	16.80%	-0.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.75%	16.80%	+0.95%