HEEM vs. EEM

Last updated Jun 6, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds from iShares - HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index while EEM tracks the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, HEEM returned 10.40%/yr vs 8.84%/yr for EEM. Their correlation of 0.94 suggests significant overlap in exposure. Both charge a 0.72% expense ratio.

Performance

HEEM vs. EEM - Performance Comparison

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

Returns By Period

In the year-to-date period, HEEM achieves a 20.85% return, which is significantly higher than EEM's 18.06% return. Over the past 10 years, HEEM has outperformed EEM with an annualized return of 10.40%, while EEM has yielded a comparatively lower 8.84% 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%

EEM

• 1D: -6.53%
• 1M: -4.30%
• YTD: 18.06%
• 6M: 19.68%
• 1Y: 41.43%
• 3Y*: 20.37%
• 5Y*: 5.33%
• 10Y*: 8.84%

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

HEEM vs. EEM - 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%
EEM iShares MSCI Emerging Markets ETF	18.06%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between HEEM and EEM is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Sep 26, 2014	0.94

The correlation between HEEM and EEM has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

HEEM vs. EEM - Sectors Allocation Comparison

Sectors	HEEM	EEM
Technology	37.0%	43.6%
Financial Services	19.4%	17.5%
Consumer Cyclical	9.6%	8.1%
Industrials	7.5%	6.2%
Communication Services	6.9%	5.7%
Basic Materials	6.5%	6.1%
Energy	4.0%	3.3%
Consumer Defensive	3.0%	2.7%
Healthcare	2.9%	2.5%
Utilities	2.1%	2.0%
Real Estate	1.1%	0.9%

Return for Risk

HEEM vs. EEM — 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

EEM

EEM Risk / Return Rank: 61
EEM Sharpe Ratio Rank: 60
EEM Sortino Ratio Rank: 54
EEM Omega Ratio Rank: 63
EEM Calmar Ratio Rank: 63
EEM Martin Ratio Rank: 65

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. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and iShares MSCI Emerging Markets ETF (EEM). 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	EEM	Difference
Sharpe ratio: Return per unit of total volatility	2.71	1.97	+0.73
Sortino ratio: Return per unit of downside risk	3.44	2.56	+0.88
Omega ratio: Gain probability vs. loss probability	1.52	1.38	+0.14
Calmar ratio: Return relative to maximum drawdown	4.67	3.08	+1.59
Martin ratio: Return relative to average drawdown	18.40	11.71	+6.69
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. EEM - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.71, which is higher than the EEM Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of HEEM and EEM, 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	EEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	1.97	+0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.28	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.43	+0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.37	+0.09

Drawdowns

HEEM vs. EEM - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for HEEM and EEM.

Drawdown Indicators

	HEEM	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-66.43%	+32.90%
Max Drawdown (1Y) Largest decline over 1 year	-10.83%	-13.52%	+2.69%
Max Drawdown (3Y) Largest decline over 3 years	-14.82%	-17.29%	+2.47%
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	-37.49%	+6.89%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	-39.82%	+6.29%
Current Drawdown Current decline from peak	-7.80%	-8.77%	+0.97%
Average Drawdown Average peak-to-trough decline	-11.13%	-16.02%	+4.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	3.55%	-0.80%

Volatility

HEEM vs. EEM - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is 9.48%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.49%. This indicates that HEEM experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEEM	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.48%	10.49%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	16.57%	18.80%	-2.23%
Volatility (1Y) Calculated over the trailing 1-year period	18.71%	21.09%	-2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	19.14%	-1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	20.61%	-2.55%

HEEM vs. EEM - Expense Ratio Comparison

Both HEEM and EEM have an expense ratio of 0.72%.

Dividends

HEEM vs. EEM - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.29%, more than EEM's 1.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.88%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
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 EEM in my portfolio?

With a correlation of 0.95, HEEM and EEM 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 EEM?

EEM has higher volatility (10.49%) compared to HEEM (9.48%). In terms of maximum drawdown, HEEM dropped -33.53% vs EEM's -66.43%.

Which ETF is better, HEEM or EEM?

On 10-year performance, HEEM leads with 10.40% vs 8.84% for EEM. Both ETFs have the same 0.72% expense ratio. On volatility, HEEM has been the lower-risk option at 9.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or EEM?

Over the 10-year period, HEEM has performed better with a 10.40% return vs 8.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or EEM?

HEEM and EEM have the same expense ratio: 0.72% per year.

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

HEEM has the higher dividend yield at 3.29%, compared with 1.88% for EEM.

What is the main difference between HEEM and EEM?

HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while EEM tracks MSCI Emerging Markets Index (Net).

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (2.71 vs 1.97), 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.