HEEM vs. DGS
HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both Emerging Markets Diversified funds - HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index while DGS tracks the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, HEEM returned 10.40%/yr vs 9.35%/yr for DGS. Their correlation of 0.84 suggests significant overlap in exposure. HEEM charges 0.72%/yr vs 0.58%/yr for DGS.
Performance
HEEM vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, HEEM achieves a 20.85% return, which is significantly higher than DGS's 10.53% return. Over the past 10 years, HEEM has outperformed DGS with an annualized return of 10.40%, while DGS has yielded a comparatively lower 9.35% annualized return.
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%
DGS
- 1D
- -4.02%
- 1M
- -3.74%
- YTD
- 10.53%
- 6M
- 11.91%
- 1Y
- 21.54%
- 3Y*
- 14.60%
- 5Y*
- 7.08%
- 10Y*
- 9.35%
HEEM vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 20.85% | 34.02% | 12.59% | 10.14% | -16.85% | -1.82% | 17.94% | 18.53% | -11.09% | 27.59% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 10.53% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between HEEM and DGS is 0.78, 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 | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2014 | 0.84 |
The correlation between HEEM and DGS has been stable across timeframes, ranging from 0.78 to 0.84 - a consistent structural relationship.
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Return for Risk
HEEM vs. DGS — Risk / Return Rank
HEEM
DGS
HEEM vs. DGS - 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 SmallCap Dividend Fund (DGS). 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 | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.36 | ||
| Sortino ratioReturn per unit of downside risk | +1.58 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.25 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 4.67 | 2.15 | +2.52 |
| Martin ratioReturn relative to average drawdown | 18.40 | 7.20 | +11.20 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| HEEM | DGS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.71 | 1.34 | +1.36 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.51 | 0.48 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.58 | 0.54 | +0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.22 | +0.24 |
Drawdowns
HEEM vs. DGS - Drawdown Comparison
The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for HEEM and DGS.
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Drawdown Indicators
| HEEM | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.53% | -61.83% | +28.30% |
Max Drawdown (1Y)Largest decline over 1 year | -10.83% | -10.06% | -0.77% |
Max Drawdown (3Y)Largest decline over 3 years | -14.82% | -19.31% | +4.49% |
Max Drawdown (5Y)Largest decline over 5 years | -30.60% | -24.86% | -5.74% |
Max Drawdown (10Y)Largest decline over 10 years | -33.53% | -44.08% | +10.55% |
Current DrawdownCurrent decline from peak | -7.80% | -4.84% | -2.96% |
Average DrawdownAverage peak-to-trough decline | -11.13% | -12.58% | +1.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.75% | 3.00% | -0.25% |
Volatility
HEEM vs. DGS - Volatility Comparison
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.48% compared to WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) at 6.37%. This indicates that HEEM's price experiences larger fluctuations and is considered to be riskier than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HEEM | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.48% | 6.37% | +3.11% |
Volatility (6M)Calculated over the trailing 6-month period | 16.57% | 13.70% | +2.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.71% | 16.09% | +2.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.21% | 14.97% | +2.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.06% | 17.36% | +0.70% |
HEEM vs. DGS - Expense Ratio Comparison
HEEM has a 0.72% expense ratio, which is higher than DGS's 0.58% expense ratio.
Dividends
HEEM vs. DGS - Dividend Comparison
HEEM's dividend yield for the trailing twelve months is around 3.29%, less than DGS's 3.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.33% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
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
HEEM and DGS 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.
HEEM has higher volatility (9.48%) compared to DGS (6.37%). In terms of maximum drawdown, HEEM dropped -33.53% vs DGS's -61.83%.
On 10-year performance, HEEM leads with 10.40% vs 9.35% for DGS. On fees, DGS is cheaper at 0.58% per year. On volatility, DGS has been the lower-risk option at 6.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HEEM has performed better with a 10.40% return vs 9.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DGS is cheaper with a 0.58% expense ratio, compared with 0.72% for HEEM.
DGS has the higher dividend yield at 3.33%, compared with 3.29% for HEEM.
HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.72% for HEEM and 0.58% for DGS.
HEEM currently has the higher Sharpe Ratio (2.71 vs 1.34), 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.
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