IEMG vs. ESGE

Last updated Jun 4, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and ESGE (iShares ESG Aware MSCI EM ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index, while ESGE is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Focus Index. Both are passively managed. Over the past 5 years, IEMG returned 7.58%/yr vs 6.83%/yr for ESGE. With a 0.96 correlation, they move nearly in lockstep. IEMG charges 0.09%/yr vs 0.25%/yr for ESGE.

Performance

IEMG vs. ESGE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Emerging Markets ETF (IEMG) and iShares ESG Aware MSCI EM ETF (ESGE). 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 IEMG having a 26.21% return and ESGE slightly higher at 26.85%.

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%

ESGE

• 1D: -1.23%
• 1M: 9.37%
• YTD: 26.85%
• 6M: 29.21%
• 1Y: 55.02%
• 3Y*: 24.13%
• 5Y*: 6.83%
• 10Y*: —

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

IEMG vs. ESGE - 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%
ESGE iShares ESG Aware MSCI EM ETF	26.85%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%

Correlation

The correlation between IEMG and ESGE is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jul 21, 2016	0.96

The correlation between IEMG and ESGE has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

IEMG vs. ESGE - Sectors Allocation Comparison

Sectors	IEMG	ESGE
Technology	35.0%	43.4%
Financial Services	18.4%	20.9%
Consumer Cyclical	9.5%	8.3%
Industrials	9.0%	4.7%
Basic Materials	6.9%	4.1%
Communication Services	6.4%	7.2%
Energy	3.8%	2.2%
Healthcare	3.7%	2.4%
Consumer Defensive	3.3%	2.1%
Utilities	2.2%	1.5%
Real Estate	1.7%	1.1%

Return for Risk

IEMG vs. ESGE — 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

ESGE

ESGE Risk / Return Rank: 80
ESGE Sharpe Ratio Rank: 83
ESGE Sortino Ratio Rank: 78
ESGE Omega Ratio Rank: 82
ESGE Calmar Ratio Rank: 77
ESGE Martin Ratio Rank: 79

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. ESGE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) and iShares ESG Aware MSCI EM ETF (ESGE). 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	ESGE	Difference
Sharpe ratio Return per unit of total volatility	2.72	2.75	-0.03
Sortino ratio Return per unit of downside risk	3.53	3.56	-0.04
Omega ratio Gain probability vs. loss probability	1.50	1.50	-0.01
Calmar ratio Return relative to maximum drawdown	4.00	3.98	+0.02
Martin ratio Return relative to average drawdown	15.38	15.51	-0.13
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. ESGE - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 2.72, which is comparable to the ESGE Sharpe Ratio of 2.75. The chart below compares the historical Sharpe Ratios of IEMG and ESGE, 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	ESGE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	2.75	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.36	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.50	-0.14

Drawdowns

IEMG vs. ESGE - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for IEMG and ESGE.

Drawdown Indicators

	IEMG	ESGE	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-41.07%	+2.36%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-13.90%	+0.69%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-16.71%	-0.50%
Max Drawdown (5Y) Largest decline over 5 years	-35.83%	-39.23%	+3.40%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	—	—
Current Drawdown Current decline from peak	-1.34%	-1.23%	-0.11%
Average Drawdown Average peak-to-trough decline	-12.97%	-14.47%	+1.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	3.56%	-0.13%

Volatility

IEMG vs. ESGE - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) and iShares ESG Aware MSCI EM ETF (ESGE) have volatilities of 8.31% and 8.56%, 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

	IEMG	ESGE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.31%	8.56%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	16.93%	17.46%	-0.53%
Volatility (1Y) Calculated over the trailing 1-year period	19.43%	20.10%	-0.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	19.11%	-0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.03%	19.94%	+0.09%

IEMG vs. ESGE - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than ESGE's 0.25% 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

IEMG vs. ESGE - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.18%, more than ESGE's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGE iShares ESG Aware MSCI EM ETF	1.97%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%	0.00%
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 ESGE in my portfolio?

With a correlation of 0.99, IEMG and ESGE 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, IEMG or ESGE?

ESGE has higher volatility (8.56%) compared to IEMG (8.31%). In terms of maximum drawdown, IEMG dropped -38.71% vs ESGE's -41.07%.

Which ETF is better, IEMG or ESGE?

On 5-year performance, IEMG leads with 7.58% vs 6.83% for ESGE. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or ESGE?

Over the 5-year period, IEMG has performed better with a 7.58% return vs 6.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or ESGE?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.25% for ESGE.

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

IEMG has the higher dividend yield at 2.18%, compared with 1.97% for ESGE.

What is the main difference between IEMG and ESGE?

IEMG is categorized as Emerging Markets Diversified, while ESGE is Emerging Markets Equities. IEMG tracks MSCI Emerging Markets Investable Market Index, while ESGE tracks MSCI EM Extended ESG Focus Index. Their fees differ too: 0.09% for IEMG and 0.25% for ESGE.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.75 vs 2.72), 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.