HEEM vs. DFEV

Last updated Jun 6, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and DFEV (Dimensional Emerging Markets Value ETF) are both Emerging Markets Diversified funds. HEEM is passively managed, while DFEV is actively managed. Over the past 3 years, HEEM returned 23.65%/yr vs 22.58%/yr for DFEV. Their correlation of 0.89 suggests significant overlap in exposure. HEEM charges 0.72%/yr vs 0.43%/yr for DFEV.

Performance

HEEM vs. DFEV - 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 Value ETF (DFEV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with HEEM having a 20.85% return and DFEV slightly higher at 20.86%.

HEEM

• 1D: -5.76%
• 1M: -2.36%
• YTD: 20.85%
• 6M: 21.68%
• 1Y: 50.37%
• 3Y*: 23.65%
• 5Y*: 8.78%
• 10Y*: 10.40%

DFEV

• 1D: -5.83%
• 1M: -2.49%
• YTD: 20.86%
• 6M: 22.68%
• 1Y: 44.88%
• 3Y*: 22.58%
• 5Y*: —
• 10Y*: —

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

HEEM vs. DFEV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	20.85%	34.02%	12.59%	10.14%	-5.49%
DFEV Dimensional Emerging Markets Value ETF	20.86%	32.54%	7.26%	15.52%	-6.71%

Correlation

The correlation between HEEM and DFEV is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (All Time) Calculated using the full available price history since Apr 28, 2022	0.89

The correlation between HEEM and DFEV has been stable across timeframes, ranging from 0.88 to 0.89 - a consistent structural relationship.

HEEM vs. DFEV - Sectors Allocation Comparison

Sectors	HEEM	DFEV
Technology	37.0%	28.6%
Financial Services	19.4%	16.8%
Consumer Cyclical	9.6%	10.5%
Industrials	7.5%	9.8%
Communication Services	6.9%	3.5%
Basic Materials	6.5%	7.4%
Energy	4.0%	7.6%
Consumer Defensive	3.0%	3.4%
Healthcare	2.9%	3.3%
Utilities	2.1%	0.8%
Real Estate	1.1%	1.6%

Return for Risk

HEEM vs. DFEV — Risk / Return Rank

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

HEEM

HEEM Risk / Return Rank: 86
HEEM Sharpe Ratio Rank: 86
HEEM Sortino Ratio Rank: 81
HEEM Omega Ratio Rank: 87
HEEM Calmar Ratio Rank: 86
HEEM Martin Ratio Rank: 88

DFEV

DFEV Risk / Return Rank: 78
DFEV Sharpe Ratio Rank: 79
DFEV Sortino Ratio Rank: 72
DFEV Omega Ratio Rank: 81
DFEV Calmar Ratio Rank: 80
DFEV Martin Ratio Rank: 78

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. DFEV - 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 Value ETF (DFEV). 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	DFEV	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.46	+0.25
Sortino ratio: Return per unit of downside risk	3.44	3.13	+0.31
Omega ratio: Gain probability vs. loss probability	1.52	1.46	+0.05
Calmar ratio: Return relative to maximum drawdown	4.67	3.97	+0.70
Martin ratio: Return relative to average drawdown	18.40	14.75	+3.65
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. DFEV - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.71, which is comparable to the DFEV Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of HEEM and DFEV, 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

	HEEM	DFEV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.46	+0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.98	-0.52

Drawdowns

HEEM vs. DFEV - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, which is greater than DFEV's maximum drawdown of -18.49%. Use the drawdown chart below to compare losses from any high point for HEEM and DFEV.

Drawdown Indicators

	HEEM	DFEV	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-18.49%	-15.04%
Max Drawdown (1Y) Largest decline over 1 year	-10.83%	-11.35%	+0.52%
Max Drawdown (3Y) Largest decline over 3 years	-14.82%	-17.94%	+3.12%
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	—	—
Current Drawdown Current decline from peak	-7.80%	-7.91%	+0.11%
Average Drawdown Average peak-to-trough decline	-11.13%	-4.65%	-6.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	3.05%	-0.30%

Volatility

HEEM vs. DFEV - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and Dimensional Emerging Markets Value ETF (DFEV) have volatilities of 9.48% and 9.57%, 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	DFEV	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.48%	9.57%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	16.57%	16.14%	+0.43%
Volatility (1Y) Calculated over the trailing 1-year period	18.71%	18.33%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	16.67%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	16.67%	+1.39%

HEEM vs. DFEV - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than DFEV's 0.43% expense ratio.

Dividends

HEEM vs. DFEV - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.29%, more than DFEV's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEV Dimensional Emerging Markets Value ETF	2.17%	2.69%	3.17%	3.47%	3.35%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.29%	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 DFEV in my portfolio?

HEEM and DFEV have a correlation of 0.88, 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 DFEV?

DFEV has higher volatility (9.57%) compared to HEEM (9.48%). In terms of maximum drawdown, HEEM dropped -33.53% vs DFEV's -18.49%.

Which ETF is better, HEEM or DFEV?

On 3-year performance, HEEM leads with 23.65% vs 22.58% for DFEV. On fees, DFEV is cheaper at 0.43% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or DFEV?

Over the 3-year period, HEEM has performed better with a 23.65% return vs 22.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or DFEV?

DFEV is cheaper with a 0.43% expense ratio, compared with 0.72% for HEEM.

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

HEEM has the higher dividend yield at 3.29%, compared with 2.17% for DFEV.

What is the main difference between HEEM and DFEV?

They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.72% for HEEM and 0.43% for DFEV.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (2.71 vs 2.46), 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.