MSFT vs. EEM
MSFT (Microsoft Corporation) is a stock, while EEM (iShares MSCI Emerging Markets ETF) is Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Over the past 10 years, MSFT returned 24.39%/yr vs 9.91%/yr for EEM. At a 0.50 correlation, their price movements are largely independent.
Performance
MSFT vs. EEM - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -18.85% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, MSFT has outperformed EEM with an annualized return of 24.39%, while EEM has yielded a comparatively lower 9.91% annualized return.
MSFT
- 1D
- 0.10%
- 1M
- -4.36%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
EEM
- 1D
- 0.56%
- 1M
- 0.74%
- YTD
- 24.07%
- 6M
- 26.94%
- 1Y
- 47.57%
- 3Y*
- 21.60%
- 5Y*
- 6.56%
- 10Y*
- 9.91%
MSFT vs. EEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -18.85% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
EEM iShares MSCI Emerging Markets ETF | 24.07% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
Correlation
The correlation between MSFT and EEM is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since Apr 14, 2003 | 0.50 |
Over the past year, the correlation between MSFT and EEM has dropped to 0.25 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.
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Return for Risk
MSFT vs. EEM — Risk / Return Rank
MSFT
EEM
MSFT vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and iShares MSCI Emerging Markets ETF (EEM). 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.
| MSFT | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.80 | ||
| Sortino ratioReturn per unit of downside risk | -3.57 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 1.40 | -0.51 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 3.36 | -3.89 |
| Martin ratioReturn relative to average drawdown | -1.08 | 12.38 | -13.46 |
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Drawdowns
MSFT vs. EEM - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, roughly equal to the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for MSFT and EEM.
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Drawdown Indicators
| MSFT | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -66.43% | -2.95% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -13.52% | -20.39% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | -17.29% | -16.62% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -37.49% | +0.34% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -39.82% | +2.67% |
Current DrawdownCurrent decline from peak | -27.46% | -4.12% | -23.34% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -16.00% | -5.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.48% | 3.67% | +12.81% |
Volatility
MSFT vs. EEM - Volatility Comparison
Microsoft Corporation (MSFT) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 10.52% and 10.80%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFT | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.52% | 10.80% | -0.28% |
Volatility (6M)Calculated over the trailing 6-month period | 22.31% | 19.39% | +2.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.42% | 21.64% | +3.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.66% | 19.26% | +7.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.06% | 20.64% | +6.42% |
Dividends
MSFT vs. EEM - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.91%, less than EEM's 1.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.79% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
MSFT Microsoft Corporation | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Frequently Asked Questions
MSFT and EEM have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (10.80%) compared to MSFT (10.52%). In terms of maximum drawdown, MSFT dropped -69.38% vs EEM's -66.43%.
EEM currently has the higher Sharpe Ratio (2.10 vs -0.70), 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.
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