LDEM vs. DEM

Last updated Jun 4, 2026

LDEM (iShares ESG MSCI EM Leaders ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both Emerging Markets Equities funds - LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index while DEM tracks the WisdomTree Emerging Markets Equity income Index. Both are passively managed. Over the past 5 years, LDEM returned 1.89%/yr vs 9.57%/yr for DEM. A 0.80 correlation means they provide meaningful diversification when combined. LDEM charges 0.16%/yr vs 0.63%/yr for DEM.

Performance

LDEM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI EM Leaders ETF (LDEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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 DEM's 19.97% return.

LDEM

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

DEM

• 1D: -1.19%
• 1M: 6.63%
• YTD: 19.97%
• 6M: 20.75%
• 1Y: 32.23%
• 3Y*: 19.32%
• 5Y*: 9.57%
• 10Y*: 10.45%

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

LDEM vs. DEM - 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%
DEM WisdomTree Emerging Markets Equity Income Fund	19.97%	21.29%	4.46%	20.93%	-10.43%	11.49%	-2.65%

Correlation

The correlation between LDEM and DEM is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Feb 13, 2020	0.80

The correlation between LDEM and DEM has been stable across timeframes, ranging from 0.80 to 0.83 - a consistent structural relationship.

LDEM vs. DEM - Sectors Allocation Comparison

Sectors	LDEM	DEM
Financial Services	28.2%	21.9%
Consumer Cyclical	14.0%	5.0%
Technology	13.0%	17.4%
Communication Services	11.2%	3.0%
Industrials	8.0%	9.5%
Basic Materials	7.8%	3.5%
Energy	5.3%	6.1%
Healthcare	4.3%	0.6%
Consumer Defensive	3.6%	5.8%
Utilities	2.9%	3.0%
Real Estate	1.7%	3.0%

Return for Risk

LDEM vs. DEM — 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

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

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. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI EM Leaders ETF (LDEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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	DEM	Difference
Sharpe ratio Return per unit of total volatility	1.44	2.38	-0.94
Sortino ratio Return per unit of downside risk	2.03	3.28	-1.26
Omega ratio Gain probability vs. loss probability	1.27	1.43	-0.16
Calmar ratio Return relative to maximum drawdown	1.93	4.10	-2.18
Martin ratio Return relative to average drawdown	6.33	14.52	-8.19
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. DEM - Sharpe Ratio Comparison

The current LDEM Sharpe Ratio is 1.44, which is lower than the DEM Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of LDEM and DEM, 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	DEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	2.38	-0.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.63	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.22	+0.04

Drawdowns

LDEM vs. DEM - Drawdown Comparison

The maximum LDEM drawdown since its inception was -40.82%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for LDEM and DEM.

Drawdown Indicators

	LDEM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-40.82%	-51.85%	+11.03%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-7.89%	-5.32%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-15.64%	+0.52%
Max Drawdown (5Y) Largest decline over 5 years	-39.17%	-27.18%	-11.99%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-3.92%	-1.19%	-2.73%
Average Drawdown Average peak-to-trough decline	-17.36%	-12.90%	-4.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	2.22%	+1.79%

Volatility

LDEM vs. DEM - Volatility Comparison

iShares ESG MSCI EM Leaders ETF (LDEM) has a higher volatility of 6.08% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.64%. This indicates that LDEM's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDEM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	5.64%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	11.33%	+2.57%
Volatility (1Y) Calculated over the trailing 1-year period	17.68%	13.59%	+4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	15.33%	+3.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	17.96%	+2.77%

LDEM vs. DEM - Expense Ratio Comparison

LDEM has a 0.16% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

LDEM vs. DEM - Dividend Comparison

LDEM's dividend yield for the trailing twelve months is around 3.04%, less than DEM's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.76%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
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 DEM in my portfolio?

LDEM and DEM have a correlation of 0.81, 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 DEM?

LDEM has higher volatility (6.08%) compared to DEM (5.64%). In terms of maximum drawdown, LDEM dropped -40.82% vs DEM's -51.85%.

Which ETF is better, LDEM or DEM?

On 5-year performance, DEM leads with 9.57% vs 1.89% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, DEM has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDEM or DEM?

Over the 5-year period, DEM has performed better with a 9.57% 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 DEM?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.63% for DEM.

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

DEM has the higher dividend yield at 3.76%, compared with 3.04% for LDEM.

What is the main difference between LDEM and DEM?

LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while DEM tracks WisdomTree Emerging Markets Equity income Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.16% for LDEM and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (2.38 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.