PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IEV vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEV vs. EEM

Last updated Jun 14, 2026

IEV (iShares Europe ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - IEV is a Europe Equities fund tracking the S&P Europe 350 Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, IEV returned 10.08%/yr vs 9.91%/yr for EEM. A 0.75 correlation means they provide meaningful diversification when combined. IEV charges 0.59%/yr vs 0.72%/yr for EEM.

Performance

IEV vs. EEM - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, IEV achieves a 7.67% return, which is significantly lower than EEM's 24.07% return. Both investments have delivered pretty close results over the past 10 years, with IEV having a 10.08% annualized return and EEM not far behind at 9.91%.

IEV

1D
0.24%
1M
4.78%
YTD
7.67%
6M
9.80%
1Y
19.81%
3Y*
16.38%
5Y*
8.81%
10Y*
10.08%

EEM

1D
0.56%
1M
4.32%
YTD
24.07%
6M
26.94%
1Y
47.57%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEV vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEV
iShares Europe ETF		7.67%35.63%1.36%20.14%-14.24%16.73%4.07%24.03%-14.68%24.84%
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between IEV and EEM is 0.72, 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

0.72

Correlation (3Y)
Calculated over the trailing 3-year period

0.70

Correlation (5Y)
Calculated over the trailing 5-year period

0.72

Correlation (10Y)
Calculated over the trailing 10-year period

0.73

Correlation (All Time)
Calculated using the full available price history since Apr 14, 2003

0.75

The correlation between IEV and EEM has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

IEV vs. EEM - Sectors Allocation Comparison

Sectors
IEV
EEM

Financial Services

23.6%
17.7%

Industrials

18.7%
6.6%

Healthcare

12.4%
2.5%

Technology

9.9%
44.3%

Consumer Defensive

8.5%
2.5%

Consumer Cyclical

6.7%
8.3%

Basic Materials

5.7%
5.9%

Energy

5.2%
3.4%

Utilities

4.6%
1.8%

Communication Services

3.4%
6.0%

Real Estate

0.6%
1.0%

Financial Services

IEV
23.6%
EEM
17.7%

Industrials

IEV
18.7%
EEM
6.6%

Healthcare

IEV
12.4%
EEM
2.5%

Technology

IEV
9.9%
EEM
44.3%

Consumer Defensive

IEV
8.5%
EEM
2.5%

Consumer Cyclical

IEV
6.7%
EEM
8.3%

Basic Materials

IEV
5.7%
EEM
5.9%

Energy

IEV
5.2%
EEM
3.4%

Utilities

IEV
4.6%
EEM
1.8%

Communication Services

IEV
3.4%
EEM
6.0%

Real Estate

IEV
0.6%
EEM
1.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Europe ETF

iShares MSCI Emerging Markets ETF

Often compared with IEV:
IEV vs. VGKIEV vs. IEURIEV vs. SPYIEV vs. FEZIEV vs. EZUIEV vs. VOOIEV vs. SPEU
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

IEV vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEV
IEV Risk / Return Rank: 3535
Overall Rank
IEV Sharpe Ratio Rank: 3535
Sharpe Ratio Rank
IEV Sortino Ratio Rank: 3535
Sortino Ratio Rank
IEV Omega Ratio Rank: 3333
Omega Ratio Rank
IEV Calmar Ratio Rank: 3333
Calmar Ratio Rank
IEV Martin Ratio Rank: 3838
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
Martin Ratio Rank
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.

IEV vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Europe ETF (IEV) 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.

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.

IEVEEMDifference
Sharpe ratioReturn per unit of total volatility
1.10
2.10

-1.00

Sortino ratioReturn per unit of downside risk
1.64
2.73

-1.09

Omega ratioGain probability vs. loss probability

1.20

1.40

-0.20

Calmar ratioReturn relative to maximum drawdown

1.44

3.36

-1.92

Martin ratioReturn relative to average drawdown

5.27

12.38

-7.11

IEV vs. EEM - Sharpe Ratio Comparison

The current IEV Sharpe Ratio is 1.10, which is lower than the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of IEV 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.

Loading charts...

Drawdowns

IEV vs. EEM - Drawdown Comparison

The maximum IEV drawdown since its inception was -63.27%, roughly equal to the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for IEV and EEM.

Loading charts...

Drawdown Indicators

IEVEEMDifference

Max Drawdown

Largest peak-to-trough decline

-63.27%

-66.43%

+3.16%

Max Drawdown (1Y)

Largest decline over 1 year

-12.31%

-13.52%

+1.21%

Max Drawdown (3Y)

Largest decline over 3 years

-14.63%

-17.29%

+2.66%

Max Drawdown (5Y)

Largest decline over 5 years

-30.60%

-37.49%

+6.89%

Max Drawdown (10Y)

Largest decline over 10 years

-36.62%

-39.82%

+3.20%

Current Drawdown

Current decline from peak

-0.66%

-4.12%

+3.46%

Average Drawdown

Average peak-to-trough decline

-15.03%

-16.00%

+0.97%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.39%

3.67%

-0.28%

Volatility

IEV vs. EEM - Volatility Comparison

The current volatility for iShares Europe ETF (IEV) is 5.78%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that IEV 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.

Loading charts...

Volatility by Period

IEVEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.78%

10.80%

-5.02%

Volatility (6M)

Calculated over the trailing 6-month period

13.54%

19.39%

-5.85%

Volatility (1Y)

Calculated over the trailing 1-year period

16.13%

21.64%

-5.51%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.66%

19.26%

-1.60%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.66%

20.64%

-1.98%

IEV vs. EEM - Expense Ratio Comparison

IEV has a 0.59% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

IEV vs. EEM - Dividend Comparison

IEV's dividend yield for the trailing twelve months is around 2.54%, more than EEM's 1.79% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
IEV
iShares Europe ETF		2.54%2.73%3.10%2.77%3.06%2.81%1.76%3.06%3.43%2.39%3.08%2.81%

Frequently Asked Questions

IEV and EEM have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to IEV (5.78%). In terms of maximum drawdown, IEV dropped -63.27% vs EEM's -66.43%.

On 10-year performance, IEV leads with 10.08% vs 9.91% for EEM. On fees, IEV is cheaper at 0.59% per year. On volatility, IEV has been the lower-risk option at 5.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IEV has performed better with a 10.08% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEV is cheaper with a 0.59% expense ratio, compared with 0.72% for EEM.

IEV has the higher dividend yield at 2.54%, compared with 1.79% for EEM.

IEV is categorized as Europe Equities, while EEM is Emerging Markets Diversified. IEV tracks S&P Europe 350 Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.59% for IEV and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.10), 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.

Portfolio Optimizer

Find the right allocation for IEV and EEM

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer