LDEM vs. RNEM

Last updated Jul 14, 2026

LDEM (iShares ESG MSCI EM Leaders ETF) and RNEM (First Trust Emerging Markets Equity Select ETF) are both Emerging Markets Equities funds - LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index while RNEM tracks the Nasdaq Riskalyze Emerging Markets Equity Select Index. Both are passively managed. Over the past 5 years, LDEM returned 1.37%/yr vs 4.79%/yr for RNEM. A 0.70 correlation means they provide meaningful diversification when combined. LDEM charges 0.16%/yr vs 0.75%/yr for RNEM.

Performance

LDEM vs. RNEM - Performance Comparison

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

Returns By Period

In the year-to-date period, LDEM achieves a 1.92% return, which is significantly higher than RNEM's 0.25% return.

LDEM

• 1D: -2.73%
• 1M: -3.48%
• 6M: -3.28%
• YTD: 1.92%
• 1Y: 12.55%
• 3Y*: 11.60%
• 5Y*: 1.37%
• 10Y*: —

RNEM

• 1D: -1.44%
• 1M: -0.16%
• 6M: -1.96%
• YTD: 0.25%
• 1Y: 2.60%
• 3Y*: 6.03%
• 5Y*: 4.79%
• 10Y*: —

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

LDEM vs. RNEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LDEM iShares ESG MSCI EM Leaders ETF	1.92%	32.49%	5.87%	6.49%	-22.46%	-2.03%	16.30%
RNEM First Trust Emerging Markets Equity Select ETF	0.25%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-5.04%

Correlation

The correlation between LDEM and RNEM 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	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Feb 12, 2020	0.70

The correlation between LDEM and RNEM shifts across timeframes, from 0.70 (all time) to 0.81 (1 year), reflecting how their relationship changes across market environments.

LDEM vs. RNEM - Sectors Allocation Comparison

Sectors	LDEM	RNEM
Technology	25.4%	6.4%
Financial Services	23.7%	35.0%
Consumer Cyclical	9.9%	9.9%
Communication Services	9.4%	8.7%
Industrials	8.2%	3.9%
Basic Materials	6.8%	14.2%
Energy	4.1%	7.0%
Consumer Defensive	3.6%	6.0%
Healthcare	3.5%	4.5%
Utilities	2.7%	3.5%
Real Estate	1.4%	0.8%

Return for Risk

LDEM vs. RNEM — Risk / Return Rank

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

LDEM

LDEM Risk / Return Rank: 24
LDEM Sharpe Ratio Rank: 23
LDEM Sortino Ratio Rank: 22
LDEM Omega Ratio Rank: 23
LDEM Calmar Ratio Rank: 24
LDEM Martin Ratio Rank: 26

RNEM

RNEM Risk / Return Rank: 12
RNEM Sharpe Ratio Rank: 13
RNEM Sortino Ratio Rank: 12
RNEM Omega Ratio Rank: 11
RNEM Calmar Ratio Rank: 13
RNEM Martin Ratio Rank: 13

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. RNEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI EM Leaders ETF (LDEM) and First Trust Emerging Markets Equity Select ETF (RNEM). 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.

	LDEM	RNEM	Difference
Sharpe ratio: Return per unit of total volatility	0.66	0.21	+0.46
Sortino ratio: Return per unit of downside risk	1.02	0.39	+0.63
Omega ratio: Gain probability vs. loss probability	1.13	1.05	+0.09
Calmar ratio: Return relative to maximum drawdown	0.95	0.24	+0.71
Martin ratio: Return relative to average drawdown	2.80	0.65	+2.15

LDEM vs. RNEM - Sharpe Ratio Comparison

The current LDEM Sharpe Ratio is 0.66, which is higher than the RNEM Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of LDEM and RNEM, 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

LDEM vs. RNEM - Drawdown Comparison

The maximum LDEM drawdown since its inception was -40.82%, which is greater than RNEM's maximum drawdown of -38.38%. Use the drawdown chart below to compare losses from any high point for LDEM and RNEM.

Drawdown Indicators

	LDEM	RNEM	Difference
Max Drawdown Largest peak-to-trough decline	-40.82%	-38.38%	-2.44%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-10.71%	-2.50%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-13.09%	-2.03%
Max Drawdown (5Y) Largest decline over 5 years	-38.26%	-21.41%	-16.85%
Current Drawdown Current decline from peak	-8.42%	-5.81%	-2.61%
Average Drawdown Average peak-to-trough decline	-17.17%	-9.26%	-7.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.49%	3.99%	+0.50%

Volatility

LDEM vs. RNEM - Volatility Comparison

iShares ESG MSCI EM Leaders ETF (LDEM) has a higher volatility of 8.27% compared to First Trust Emerging Markets Equity Select ETF (RNEM) at 3.75%. This indicates that LDEM's price experiences larger fluctuations and is considered to be riskier than RNEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDEM	RNEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.27%	3.75%	+4.52%
Volatility (6M) Calculated over the trailing 6-month period	16.70%	10.93%	+5.77%
Volatility (1Y) Calculated over the trailing 1-year period	19.01%	12.51%	+6.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.49%	14.48%	+5.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.92%	17.18%	+3.74%

LDEM vs. RNEM - Expense Ratio Comparison

LDEM has a 0.16% expense ratio, which is lower than RNEM's 0.75% expense ratio.

Dividends

LDEM vs. RNEM - Dividend Comparison

LDEM's dividend yield for the trailing twelve months is around 3.01%, more than RNEM's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
LDEM iShares ESG MSCI EM Leaders ETF	3.01%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%
RNEM First Trust Emerging Markets Equity Select ETF	2.37%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%

Frequently Asked Questions

Can I hold both LDEM and RNEM in my portfolio?

LDEM and RNEM 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 RNEM?

LDEM has higher volatility (8.27%) compared to RNEM (3.75%). In terms of maximum drawdown, LDEM dropped -40.82% vs RNEM's -38.38%.

Which ETF is better, LDEM or RNEM?

On 5-year performance, RNEM leads with 4.79% vs 1.37% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, RNEM has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDEM or RNEM?

Over the 5-year period, RNEM has performed better with a 4.79% return vs 1.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDEM or RNEM?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.75% for RNEM.

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

LDEM has the higher dividend yield at 3.01%, compared with 2.37% for RNEM.

What is the main difference between LDEM and RNEM?

LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while RNEM tracks Nasdaq Riskalyze Emerging Markets Equity Select Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.16% for LDEM and 0.75% for RNEM.

Which has better risk-adjusted returns?

LDEM currently has the higher Sharpe Ratio (0.66 vs 0.21), 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.