KLMT vs. SDG

Last updated Jun 25, 2026

KLMT (Invesco MSCI Global Climate 500 ETF) and SDG (iShares MSCI Global Sustainable Development Goals ETF) are both Global Equities funds - KLMT tracks the MSCI ACWI Select Climate 500 Index while SDG tracks the MSCI ACWI Sustainable Development Index. Both are passively managed. Over the past year, KLMT returned 23.15% vs 18.22% for SDG. A 0.70 correlation means they provide meaningful diversification when combined. KLMT charges 0.10%/yr vs 0.50%/yr for SDG.

Performance

KLMT vs. SDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI Global Climate 500 ETF (KLMT) and iShares MSCI Global Sustainable Development Goals ETF (SDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KLMT achieves a 10.09% return, which is significantly higher than SDG's 5.31% return.

KLMT

• 1D: -0.33%
• 1M: 0.00%
• YTD: 10.09%
• 6M: 9.12%
• 1Y: 23.15%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SDG

• 1D: 0.01%
• 1M: -2.70%
• YTD: 5.31%
• 6M: 4.51%
• 1Y: 18.22%
• 3Y*: 6.40%
• 5Y*: -0.48%
• 10Y*: 8.59%

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

KLMT vs. SDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KLMT Invesco MSCI Global Climate 500 ETF	10.09%	21.31%	4.94%
SDG iShares MSCI Global Sustainable Development Goals ETF	5.31%	20.19%	-4.88%

Correlation

The correlation between KLMT and SDG is 0.75, 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	0.75
Correlation (All Time) Calculated using the full available price history since Jun 26, 2024	0.70

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

Return for Risk

KLMT vs. SDG — Risk / Return Rank

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

KLMT

KLMT Risk / Return Rank: 60
KLMT Sharpe Ratio Rank: 60
KLMT Sortino Ratio Rank: 59
KLMT Omega Ratio Rank: 59
KLMT Calmar Ratio Rank: 57
KLMT Martin Ratio Rank: 65

SDG

SDG Risk / Return Rank: 42
SDG Sharpe Ratio Rank: 38
SDG Sortino Ratio Rank: 37
SDG Omega Ratio Rank: 37
SDG Calmar Ratio Rank: 48
SDG Martin Ratio Rank: 49

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.

KLMT vs. SDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Global Climate 500 ETF (KLMT) and iShares MSCI Global Sustainable Development Goals ETF (SDG). 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.

	KLMT	SDG	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.23	+0.52
Sortino ratio: Return per unit of downside risk	2.43	1.76	+0.67
Omega ratio: Gain probability vs. loss probability	1.32	1.23	+0.09
Calmar ratio: Return relative to maximum drawdown	2.44	2.11	+0.33
Martin ratio: Return relative to average drawdown	10.30	7.47	+2.83

KLMT vs. SDG - Sharpe Ratio Comparison

The current KLMT Sharpe Ratio is 1.75, which is higher than the SDG Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of KLMT and SDG, 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

KLMT vs. SDG - Drawdown Comparison

The maximum KLMT drawdown since its inception was -16.87%, smaller than the maximum SDG drawdown of -30.35%. Use the drawdown chart below to compare losses from any high point for KLMT and SDG.

Drawdown Indicators

	KLMT	SDG	Difference
Max Drawdown Largest peak-to-trough decline	-16.87%	-30.35%	+13.48%
Max Drawdown (1Y) Largest decline over 1 year	-9.54%	-8.68%	-0.86%
Max Drawdown (3Y) Largest decline over 3 years	—	-22.92%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.35%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-30.35%	—
Current Drawdown Current decline from peak	-2.50%	-4.77%	+2.27%
Average Drawdown Average peak-to-trough decline	-1.91%	-9.62%	+7.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	2.45%	-0.20%

Volatility

KLMT vs. SDG - Volatility Comparison

The current volatility for Invesco MSCI Global Climate 500 ETF (KLMT) is 5.41%, while iShares MSCI Global Sustainable Development Goals ETF (SDG) has a volatility of 5.94%. This indicates that KLMT experiences smaller price fluctuations and is considered to be less risky than SDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KLMT	SDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	5.94%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	11.08%	11.98%	-0.90%
Volatility (1Y) Calculated over the trailing 1-year period	13.38%	15.00%	-1.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.02%	15.78%	+0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.02%	16.63%	-0.61%

KLMT vs. SDG - Expense Ratio Comparison

KLMT has a 0.10% expense ratio, which is lower than SDG's 0.50% expense ratio.

Dividends

KLMT vs. SDG - Dividend Comparison

KLMT's dividend yield for the trailing twelve months is around 1.79%, more than SDG's 1.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
KLMT Invesco MSCI Global Climate 500 ETF	1.79%	1.95%	0.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SDG iShares MSCI Global Sustainable Development Goals ETF	1.72%	2.00%	1.95%	1.77%	1.82%	1.66%	0.97%	1.39%	2.47%	2.54%	1.34%

Frequently Asked Questions

Can I hold both KLMT and SDG in my portfolio?

KLMT and SDG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KLMT or SDG?

SDG has higher volatility (5.94%) compared to KLMT (5.41%). In terms of maximum drawdown, KLMT dropped -16.87% vs SDG's -30.35%.

Which ETF is better, KLMT or SDG?

On 1-year performance, KLMT leads with 23.15% vs 18.22% for SDG. On fees, KLMT is cheaper at 0.10% per year. On volatility, KLMT has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KLMT or SDG?

Over the 1-year period, KLMT has performed better with a 23.15% return vs 18.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KLMT or SDG?

KLMT is cheaper with a 0.10% expense ratio, compared with 0.50% for SDG.

Which ETF pays a higher dividend yield, KLMT or SDG?

KLMT has the higher dividend yield at 1.79%, compared with 1.72% for SDG.

What is the main difference between KLMT and SDG?

KLMT tracks MSCI ACWI Select Climate 500 Index, while SDG tracks MSCI ACWI Sustainable Development Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.10% for KLMT and 0.50% for SDG.

Which has better risk-adjusted returns?

KLMT currently has the higher Sharpe Ratio (1.75 vs 1.23), 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.