IQLT vs. ESGE

Last updated Jun 16, 2026

IQLT (iShares MSCI Intl Quality Factor ETF) and ESGE (iShares ESG Aware MSCI EM ETF) are both exchange-traded funds - IQLT is a Foreign Large Cap Equities fund tracking the MSCI World ex USA Sector Neutral Quality Index (Net), 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, IQLT returned 7.47%/yr vs 7.48%/yr for ESGE. A 0.73 correlation means they provide meaningful diversification when combined. IQLT charges 0.30%/yr vs 0.25%/yr for ESGE.

Performance

IQLT vs. ESGE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Intl Quality Factor ETF (IQLT) and iShares ESG Aware MSCI EM ETF (ESGE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQLT achieves a 10.27% return, which is significantly lower than ESGE's 27.56% return.

IQLT

• 1D: 0.42%
• 1M: 3.66%
• YTD: 10.27%
• 6M: 10.93%
• 1Y: 18.79%
• 3Y*: 13.94%
• 5Y*: 7.47%
• 10Y*: 10.04%

ESGE

• 1D: 2.95%
• 1M: 8.60%
• YTD: 27.56%
• 6M: 30.80%
• 1Y: 51.80%
• 3Y*: 22.81%
• 5Y*: 7.48%
• 10Y*: —

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

IQLT vs. ESGE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQLT iShares MSCI Intl Quality Factor ETF	10.27%	25.42%	1.54%	18.73%	-15.22%	12.94%	12.48%	28.18%	-10.76%	24.04%
ESGE iShares ESG Aware MSCI EM ETF	27.56%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%

Correlation

The correlation between IQLT and ESGE is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jul 20, 2016	0.73

The correlation between IQLT and ESGE has been stable across timeframes, ranging from 0.73 to 0.76 - a consistent structural relationship.

IQLT vs. ESGE - Sectors Allocation Comparison

Sectors	IQLT	ESGE
Financial Services	24.9%	22.0%
Industrials	17.8%	5.7%
Technology	11.8%	43.9%
Healthcare	9.2%	2.2%
Consumer Cyclical	8.2%	7.5%
Basic Materials	7.2%	5.0%
Consumer Defensive	6.4%	2.1%
Energy	5.6%	1.9%
Utilities	3.7%	1.3%
Communication Services	3.2%	7.4%
Real Estate	1.5%	1.0%

Return for Risk

IQLT vs. ESGE — Risk / Return Rank

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

IQLT

IQLT Risk / Return Rank: 40
IQLT Sharpe Ratio Rank: 39
IQLT Sortino Ratio Rank: 39
IQLT Omega Ratio Rank: 36
IQLT Calmar Ratio Rank: 40
IQLT Martin Ratio Rank: 46

ESGE

ESGE Risk / Return Rank: 80
ESGE Sharpe Ratio Rank: 82
ESGE Sortino Ratio Rank: 75
ESGE Omega Ratio Rank: 83
ESGE Calmar Ratio Rank: 79
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.

IQLT vs. ESGE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Intl Quality Factor ETF (IQLT) 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.

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.

	IQLT	ESGE	Difference
Sharpe ratio: Return per unit of total volatility	1.26	2.38	-1.12
Sortino ratio: Return per unit of downside risk	1.85	3.05	-1.19
Omega ratio: Gain probability vs. loss probability	1.22	1.45	-0.22
Calmar ratio: Return relative to maximum drawdown	1.82	3.75	-1.93
Martin ratio: Return relative to average drawdown	6.90	14.02	-7.12

IQLT vs. ESGE - Sharpe Ratio Comparison

The current IQLT Sharpe Ratio is 1.26, which is lower than the ESGE Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of IQLT 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.

Drawdowns

IQLT vs. ESGE - Drawdown Comparison

The maximum IQLT drawdown since its inception was -32.21%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for IQLT and ESGE.

Drawdown Indicators

	IQLT	ESGE	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-41.07%	+8.86%
Max Drawdown (1Y) Largest decline over 1 year	-10.38%	-13.90%	+3.52%
Max Drawdown (3Y) Largest decline over 3 years	-13.18%	-16.71%	+3.53%
Max Drawdown (5Y) Largest decline over 5 years	-30.24%	-39.18%	+8.94%
Max Drawdown (10Y) Largest decline over 10 years	-32.21%	—	—
Current Drawdown Current decline from peak	0.00%	-0.68%	+0.68%
Average Drawdown Average peak-to-trough decline	-6.21%	-14.43%	+8.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	3.70%	-0.97%

Volatility

IQLT vs. ESGE - Volatility Comparison

The current volatility for iShares MSCI Intl Quality Factor ETF (IQLT) is 5.39%, while iShares ESG Aware MSCI EM ETF (ESGE) has a volatility of 11.18%. This indicates that IQLT experiences smaller price fluctuations and is considered to be less risky than ESGE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQLT	ESGE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	11.18%	-5.79%
Volatility (6M) Calculated over the trailing 6-month period	12.71%	19.61%	-6.90%
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	21.89%	-6.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.56%	19.50%	-2.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	20.10%	-3.12%

IQLT vs. ESGE - Expense Ratio Comparison

IQLT has a 0.30% expense ratio, which is higher than ESGE's 0.25% expense ratio.

Dividends

IQLT vs. ESGE - Dividend Comparison

IQLT's dividend yield for the trailing twelve months is around 3.65%, more than ESGE's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGE iShares ESG Aware MSCI EM ETF	2.69%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%	0.00%
IQLT iShares MSCI Intl Quality Factor ETF	3.65%	2.33%	2.87%	2.27%	3.14%	2.24%	1.61%	2.28%	2.72%	2.36%	2.91%	2.78%

Frequently Asked Questions

Can I hold both IQLT and ESGE in my portfolio?

IQLT and ESGE have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQLT or ESGE?

ESGE has higher volatility (11.18%) compared to IQLT (5.39%). In terms of maximum drawdown, IQLT dropped -32.21% vs ESGE's -41.07%.

Which ETF is better, IQLT or ESGE?

On 5-year performance, ESGE leads with 7.48% vs 7.47% for IQLT. On fees, ESGE is cheaper at 0.25% per year. On volatility, IQLT has been the lower-risk option at 5.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQLT or ESGE?

Over the 5-year period, ESGE has performed better with a 7.48% return vs 7.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQLT or ESGE?

ESGE is cheaper with a 0.25% expense ratio, compared with 0.30% for IQLT.

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

IQLT has the higher dividend yield at 3.65%, compared with 2.69% for ESGE.

What is the main difference between IQLT and ESGE?

IQLT is categorized as Foreign Large Cap Equities, while ESGE is Emerging Markets Equities. IQLT tracks MSCI World ex USA Sector Neutral Quality Index (Net), while ESGE tracks MSCI EM Extended ESG Focus Index. Their fees differ too: 0.30% for IQLT and 0.25% for ESGE.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.38 vs 1.26), 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.