IEMG vs. DGS

Last updated Jun 4, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both Emerging Markets Diversified funds - IEMG tracks the MSCI Emerging Markets Investable Market Index while DGS tracks the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, IEMG returned 10.41%/yr vs 9.93%/yr for DGS. Their correlation of 0.92 suggests significant overlap in exposure. IEMG charges 0.09%/yr vs 0.58%/yr for DGS.

Performance

IEMG vs. DGS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Emerging Markets ETF (IEMG) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEMG achieves a 26.21% return, which is significantly higher than DGS's 14.53% return. Both investments have delivered pretty close results over the past 10 years, with IEMG having a 10.41% annualized return and DGS not far behind at 9.93%.

IEMG

• 1D: -1.34%
• 1M: 7.97%
• YTD: 26.21%
• 6M: 28.63%
• 1Y: 52.58%
• 3Y*: 23.55%
• 5Y*: 7.58%
• 10Y*: 10.41%

DGS

• 1D: -1.37%
• 1M: 2.58%
• YTD: 14.53%
• 6M: 15.57%
• 1Y: 27.26%
• 3Y*: 16.17%
• 5Y*: 7.85%
• 10Y*: 9.93%

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

IEMG vs. DGS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEMG iShares Core MSCI Emerging Markets ETF	26.21%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	14.53%	21.18%	1.13%	19.08%	-12.35%	15.33%	4.06%	18.90%	-16.52%	37.47%

Correlation

The correlation between IEMG and DGS 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 (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.92

The correlation between IEMG and DGS has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.

Return for Risk

IEMG vs. DGS — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 79
IEMG Sharpe Ratio Rank: 82
IEMG Sortino Ratio Rank: 77
IEMG Omega Ratio Rank: 81
IEMG Calmar Ratio Rank: 77
IEMG Martin Ratio Rank: 78

DGS

DGS Risk / Return Rank: 51
DGS Sharpe Ratio Rank: 50
DGS Sortino Ratio Rank: 49
DGS Omega Ratio Rank: 50
DGS Calmar Ratio Rank: 54
DGS Martin Ratio Rank: 53

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.

IEMG vs. DGS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) 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.

	IEMG	DGS	Difference
Sharpe ratio Return per unit of total volatility	2.72	1.76	+0.96
Sortino ratio Return per unit of downside risk	3.53	2.43	+1.10
Omega ratio Gain probability vs. loss probability	1.50	1.32	+0.18
Calmar ratio Return relative to maximum drawdown	4.00	2.72	+1.28
Martin ratio Return relative to average drawdown	15.38	9.16	+6.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEMG vs. DGS - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 2.72, which is higher than the DGS Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of IEMG and DGS, 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

	IEMG	DGS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	1.76	+0.96
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.53	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.58	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.23	+0.13

Drawdowns

IEMG vs. DGS - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for IEMG and DGS.

Drawdown Indicators

	IEMG	DGS	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-61.83%	+23.12%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-10.06%	-3.15%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-19.31%	+2.10%
Max Drawdown (5Y) Largest decline over 5 years	-35.83%	-24.86%	-10.97%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	-44.08%	+5.37%
Current Drawdown Current decline from peak	-1.34%	-1.40%	+0.06%
Average Drawdown Average peak-to-trough decline	-12.97%	-12.59%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	2.98%	+0.45%

Volatility

IEMG vs. DGS - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 8.31% compared to WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) at 5.24%. This indicates that IEMG'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.

Volatility by Period

	IEMG	DGS	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.31%	5.24%	+3.07%
Volatility (6M) Calculated over the trailing 6-month period	16.93%	13.03%	+3.90%
Volatility (1Y) Calculated over the trailing 1-year period	19.43%	15.56%	+3.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	14.87%	+3.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.03%	17.32%	+2.71%

IEMG vs. DGS - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than DGS's 0.58% expense ratio.

Dividends

IEMG vs. DGS - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.18%, less than DGS's 3.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	3.21%	3.45%	3.36%	4.55%	5.34%	3.98%	3.69%	3.95%	4.24%	2.81%	3.42%	3.28%
IEMG iShares Core MSCI Emerging Markets ETF	2.18%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both IEMG and DGS in my portfolio?

IEMG and DGS 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, IEMG or DGS?

IEMG has higher volatility (8.31%) compared to DGS (5.24%). In terms of maximum drawdown, IEMG dropped -38.71% vs DGS's -61.83%.

Which ETF is better, IEMG or DGS?

On 10-year performance, IEMG leads with 10.41% vs 9.93% for DGS. On fees, IEMG is cheaper at 0.09% per year. On volatility, DGS has been the lower-risk option at 5.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or DGS?

Over the 10-year period, IEMG has performed better with a 10.41% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or DGS?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.58% for DGS.

Which ETF pays a higher dividend yield, IEMG or DGS?

DGS has the higher dividend yield at 3.21%, compared with 2.18% for IEMG.

What is the main difference between IEMG and DGS?

IEMG tracks MSCI Emerging Markets Investable Market Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.09% for IEMG and 0.58% for DGS.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.72 vs 1.76), 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.