LDEM vs. ACWI

Last updated Jun 4, 2026

LDEM (iShares ESG MSCI EM Leaders ETF) and ACWI (iShares MSCI ACWI ETF) are both exchange-traded funds - LDEM is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while ACWI is a Global Equities fund tracking the MSCI All Country World Index. Both are passively managed. Over the past 5 years, LDEM returned 1.89%/yr vs 11.28%/yr for ACWI. A 0.72 correlation means they provide meaningful diversification when combined. LDEM charges 0.16%/yr vs 0.32%/yr for ACWI.

Performance

LDEM vs. ACWI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI EM Leaders ETF (LDEM) and iShares MSCI ACWI ETF (ACWI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDEM achieves a 6.92% return, which is significantly lower than ACWI's 12.13% return.

LDEM

• 1D: -1.61%
• 1M: 0.72%
• YTD: 6.92%
• 6M: 7.76%
• 1Y: 25.33%
• 3Y*: 15.06%
• 5Y*: 1.89%
• 10Y*: —

ACWI

• 1D: -0.83%
• 1M: 5.28%
• YTD: 12.13%
• 6M: 12.96%
• 1Y: 29.18%
• 3Y*: 21.15%
• 5Y*: 11.28%
• 10Y*: 12.85%

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

LDEM vs. ACWI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LDEM iShares ESG MSCI EM Leaders ETF	6.92%	32.49%	5.87%	6.49%	-22.46%	-2.03%	15.59%
ACWI iShares MSCI ACWI ETF	12.13%	22.41%	17.45%	22.27%	-18.39%	18.66%	12.81%

Correlation

The correlation between LDEM and ACWI is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (All Time) Calculated using the full available price history since Feb 13, 2020	0.72

The correlation between LDEM and ACWI has been stable across timeframes, ranging from 0.72 to 0.80 - a consistent structural relationship.

LDEM vs. ACWI - Sectors Allocation Comparison

Sectors	LDEM	ACWI
Financial Services	28.2%	16.1%
Consumer Cyclical	14.0%	9.3%
Technology	13.0%	29.4%
Communication Services	11.2%	9.0%
Industrials	8.0%	10.9%
Basic Materials	7.8%	3.7%
Energy	5.3%	4.2%
Healthcare	4.3%	8.1%
Consumer Defensive	3.6%	5.0%
Utilities	2.9%	2.6%
Real Estate	1.7%	1.8%

Return for Risk

LDEM vs. ACWI — Risk / Return Rank

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

LDEM

LDEM Risk / Return Rank: 40
LDEM Sharpe Ratio Rank: 40
LDEM Sortino Ratio Rank: 39
LDEM Omega Ratio Rank: 42
LDEM Calmar Ratio Rank: 39
LDEM Martin Ratio Rank: 40

ACWI

ACWI Risk / Return Rank: 66
ACWI Sharpe Ratio Rank: 68
ACWI Sortino Ratio Rank: 67
ACWI Omega Ratio Rank: 67
ACWI Calmar Ratio Rank: 59
ACWI Martin Ratio Rank: 71

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.

LDEM vs. ACWI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI EM Leaders ETF (LDEM) and iShares MSCI ACWI ETF (ACWI). 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.

	LDEM	ACWI	Difference
Sharpe ratio Return per unit of total volatility	1.44	2.29	-0.85
Sortino ratio Return per unit of downside risk	2.03	3.17	-1.14
Omega ratio Gain probability vs. loss probability	1.27	1.41	-0.15
Calmar ratio Return relative to maximum drawdown	1.93	3.01	-1.09
Martin ratio Return relative to average drawdown	6.33	13.53	-7.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LDEM vs. ACWI - Sharpe Ratio Comparison

The current LDEM Sharpe Ratio is 1.44, which is lower than the ACWI Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of LDEM and ACWI, 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

	LDEM	ACWI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	2.29	-0.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.71	-0.61
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.75	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.43	-0.16

Drawdowns

LDEM vs. ACWI - Drawdown Comparison

The maximum LDEM drawdown since its inception was -40.82%, smaller than the maximum ACWI drawdown of -56.00%. Use the drawdown chart below to compare losses from any high point for LDEM and ACWI.

Drawdown Indicators

	LDEM	ACWI	Difference
Max Drawdown Largest peak-to-trough decline	-40.82%	-56.00%	+15.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-9.73%	-3.48%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-16.55%	+1.43%
Max Drawdown (5Y) Largest decline over 5 years	-39.17%	-26.42%	-12.75%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-3.92%	-0.83%	-3.09%
Average Drawdown Average peak-to-trough decline	-17.36%	-8.61%	-8.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	2.16%	+1.85%

Volatility

LDEM vs. ACWI - Volatility Comparison

iShares ESG MSCI EM Leaders ETF (LDEM) has a higher volatility of 6.08% compared to iShares MSCI ACWI ETF (ACWI) at 3.93%. This indicates that LDEM's price experiences larger fluctuations and is considered to be riskier than ACWI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDEM	ACWI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	3.93%	+2.15%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	10.29%	+3.61%
Volatility (1Y) Calculated over the trailing 1-year period	17.68%	12.78%	+4.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	16.05%	+3.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	17.11%	+3.62%

LDEM vs. ACWI - Expense Ratio Comparison

LDEM has a 0.16% expense ratio, which is lower than ACWI's 0.32% expense ratio.

Dividends

LDEM vs. ACWI - Dividend Comparison

LDEM's dividend yield for the trailing twelve months is around 3.04%, more than ACWI's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWI iShares MSCI ACWI ETF	1.38%	1.55%	1.70%	1.88%	1.79%	1.71%	1.43%	2.33%	2.18%	1.94%	2.19%	2.56%
LDEM iShares ESG MSCI EM Leaders ETF	3.04%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LDEM and ACWI in my portfolio?

LDEM and ACWI have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LDEM or ACWI?

LDEM has higher volatility (6.08%) compared to ACWI (3.93%). In terms of maximum drawdown, LDEM dropped -40.82% vs ACWI's -56.00%.

Which ETF is better, LDEM or ACWI?

On 5-year performance, ACWI leads with 11.28% vs 1.89% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, ACWI has been the lower-risk option at 3.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDEM or ACWI?

Over the 5-year period, ACWI has performed better with a 11.28% return vs 1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDEM or ACWI?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.32% for ACWI.

Which ETF pays a higher dividend yield, LDEM or ACWI?

LDEM has the higher dividend yield at 3.04%, compared with 1.38% for ACWI.

What is the main difference between LDEM and ACWI?

LDEM is categorized as Emerging Markets Equities, while ACWI is Global Equities. LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while ACWI tracks MSCI All Country World Index. Their fees differ too: 0.16% for LDEM and 0.32% for ACWI.

Which has better risk-adjusted returns?

ACWI currently has the higher Sharpe Ratio (2.29 vs 1.44), 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.