HMEF.L vs. ESIF.L

Last updated Jun 25, 2026

HMEF.L (HSBC MSCI Emerging Markets UCITS ETF USD) and ESIF.L (iShares MSCI Europe Financials Sector UCITS ETF) are both exchange-traded funds - HMEF.L is a Emerging Markets Equities fund tracking the MSCI EM NR USD, while ESIF.L is a Financials Equities fund tracking the MSCI World/Financials NR USD. Both are passively managed. Over the past 5 years, HMEF.L returned 8.07%/yr vs 21.21%/yr for ESIF.L. At a 0.45 correlation, their price movements are largely independent. HMEF.L charges 0.15%/yr vs 0.18%/yr for ESIF.L.

Performance

HMEF.L vs. ESIF.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) and iShares MSCI Europe Financials Sector UCITS ETF (ESIF.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HMEF.L is traded in GBp, while ESIF.L is traded in GBP. To make them comparable, the ESIF.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, HMEF.L achieves a 26.72% return, which is significantly higher than ESIF.L's 8.90% return.

HMEF.L

• 1D: 0.27%
• 1M: 4.34%
• YTD: 26.72%
• 6M: 28.35%
• 1Y: 49.65%
• 3Y*: 21.65%
• 5Y*: 8.07%
• 10Y*: 47.23%

ESIF.L

• 1D: -0.72%
• 1M: 5.33%
• YTD: 8.90%
• 6M: 9.24%
• 1Y: 33.75%
• 3Y*: 32.54%
• 5Y*: 21.21%
• 10Y*: —

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

HMEF.L vs. ESIF.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HMEF.L HSBC MSCI Emerging Markets UCITS ETF USD	26.72%	24.56%	9.08%	2.44%	-10.01%	-2.27%	4.45%
ESIF.L iShares MSCI Europe Financials Sector UCITS ETF	8.90%	54.50%	20.18%	18.73%	3.59%	20.48%	-8.68%

Correlation

The correlation between HMEF.L and ESIF.L is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020	0.45

HMEF.L vs. ESIF.L - Sectors Allocation Comparison

Sectors	HMEF.L	ESIF.L
Technology	44.9%	1.0%
Financial Services	18.2%	97.8%
Consumer Cyclical	7.8%	0.2%
Industrials	6.5%	0.4%
Communication Services	6.0%	-
Basic Materials	5.7%	-
Energy	3.2%	-
Consumer Defensive	2.5%	-
Healthcare	2.3%	-
Utilities	1.8%	-
Real Estate	1.0%	-

Return for Risk

HMEF.L vs. ESIF.L — Risk / Return Rank

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

HMEF.L

HMEF.L Risk / Return Rank: 87
HMEF.L Sharpe Ratio Rank: 90
HMEF.L Sortino Ratio Rank: 86
HMEF.L Omega Ratio Rank: 90
HMEF.L Calmar Ratio Rank: 87
HMEF.L Martin Ratio Rank: 83

ESIF.L

ESIF.L Risk / Return Rank: 65
ESIF.L Sharpe Ratio Rank: 67
ESIF.L Sortino Ratio Rank: 67
ESIF.L Omega Ratio Rank: 64
ESIF.L Calmar Ratio Rank: 65
ESIF.L Martin Ratio Rank: 62

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.

HMEF.L vs. ESIF.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) and iShares MSCI Europe Financials Sector UCITS ETF (ESIF.L). 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.

	HMEF.L	ESIF.L	Difference
Sharpe ratio: Return per unit of total volatility	2.68	1.95	+0.73
Sortino ratio: Return per unit of downside risk	3.39	2.72	+0.67
Omega ratio: Gain probability vs. loss probability	1.50	1.34	+0.16
Calmar ratio: Return relative to maximum drawdown	4.46	2.87	+1.60
Martin ratio: Return relative to average drawdown	15.16	10.00	+5.17

HMEF.L vs. ESIF.L - Sharpe Ratio Comparison

The current HMEF.L Sharpe Ratio is 2.68, which is higher than the ESIF.L Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of HMEF.L and ESIF.L, 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

HMEF.L vs. ESIF.L - Drawdown Comparison

The maximum HMEF.L drawdown since its inception was -27.33%, which is greater than ESIF.L's maximum drawdown of -23.55%. Use the drawdown chart below to compare losses from any high point for HMEF.L and ESIF.L.

Drawdown Indicators

	HMEF.L	ESIF.L	Difference
Max Drawdown Largest peak-to-trough decline	-27.33%	-23.55%	-3.78%
Max Drawdown (1Y) Largest decline over 1 year	-11.07%	-11.72%	+0.65%
Max Drawdown (3Y) Largest decline over 3 years	-15.16%	-14.30%	-0.86%
Max Drawdown (5Y) Largest decline over 5 years	-23.78%	-23.55%	-0.23%
Max Drawdown (10Y) Largest decline over 10 years	-27.33%	—	—
Current Drawdown Current decline from peak	-4.38%	-1.50%	-2.88%
Average Drawdown Average peak-to-trough decline	-7.69%	-4.75%	-2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	3.37%	-0.10%

Volatility

HMEF.L vs. ESIF.L - Volatility Comparison

HSBC MSCI Emerging Markets UCITS ETF USD (HMEF.L) has a higher volatility of 8.76% compared to iShares MSCI Europe Financials Sector UCITS ETF (ESIF.L) at 5.06%. This indicates that HMEF.L's price experiences larger fluctuations and is considered to be riskier than ESIF.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMEF.L	ESIF.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.76%	5.06%	+3.70%
Volatility (6M) Calculated over the trailing 6-month period	16.38%	14.48%	+1.90%
Volatility (1Y) Calculated over the trailing 1-year period	18.56%	17.31%	+1.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.57%	20.10%	-3.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	142.56%	20.25%	+122.31%

HMEF.L vs. ESIF.L - Expense Ratio Comparison

HMEF.L has a 0.15% expense ratio, which is lower than ESIF.L's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HMEF.L vs. ESIF.L - Dividend Comparison

HMEF.L's dividend yield for the trailing twelve months is around 1.61%, while ESIF.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESIF.L iShares MSCI Europe Financials Sector UCITS ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HMEF.L HSBC MSCI Emerging Markets UCITS ETF USD	1.61%	1.98%	2.43%	2.58%	2.99%	2.01%	1.66%	2.11%	2.14%	37.43%	168.62%	225.12%

Frequently Asked Questions

Can I hold both HMEF.L and ESIF.L in my portfolio?

HMEF.L and ESIF.L have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HMEF.L or ESIF.L?

On fees, HMEF.L is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HMEF.L or ESIF.L?

HMEF.L is cheaper with a 0.15% expense ratio, compared with 0.18% for ESIF.L.

What is the main difference between HMEF.L and ESIF.L?

HMEF.L is categorized as Emerging Markets Equities, while ESIF.L is Financials Equities. HMEF.L tracks MSCI EM NR USD, while ESIF.L tracks MSCI World/Financials NR USD. They also come from different issuers: HSBC and iShares. Their fees differ too: 0.15% for HMEF.L and 0.18% for ESIF.L.