MSMLX vs. TEQLX

Last updated Jul 17, 2026

MSMLX (Matthews Emerging Markets Small Companies Fund) and TEQLX (TIAA-CREF Emerging Markets Equity Index Fund) are both Emerging Markets Diversified funds. Over the past 10 years, MSMLX returned 11.19%/yr vs 9.08%/yr for TEQLX. A 0.76 correlation means they provide meaningful diversification when combined. MSMLX charges 1.37%/yr vs 0.19%/yr for TEQLX.

Performance

MSMLX vs. TEQLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Emerging Markets Small Companies Fund (MSMLX) and TIAA-CREF Emerging Markets Equity Index Fund (TEQLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with MSMLX having a 21.51% return and TEQLX slightly lower at 20.73%. Over the past 10 years, MSMLX has outperformed TEQLX with an annualized return of 11.19%, while TEQLX has yielded a comparatively lower 9.08% annualized return.

MSMLX

• 1D: 0.71%
• 1M: -3.72%
• 6M: 17.42%
• YTD: 21.51%
• 1Y: 21.40%
• 3Y*: 9.79%
• 5Y*: 6.42%
• 10Y*: 11.19%

TEQLX

• 1D: 0.24%
• 1M: -4.35%
• 6M: 13.91%
• YTD: 20.73%
• 1Y: 37.51%
• 3Y*: 20.01%
• 5Y*: 6.95%
• 10Y*: 9.08%

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

MSMLX vs. TEQLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSMLX Matthews Emerging Markets Small Companies Fund	21.51%	13.50%	-6.10%	20.04%	-16.78%	26.40%	43.69%	17.38%	-17.80%	30.43%
TEQLX TIAA-CREF Emerging Markets Equity Index Fund	20.73%	34.10%	6.71%	9.23%	-20.22%	-3.07%	17.67%	18.59%	-14.60%	37.47%

Correlation

The correlation between MSMLX and TEQLX is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Aug 31, 2010	0.76

The correlation between MSMLX and TEQLX has been stable across timeframes, ranging from 0.74 to 0.78 - a consistent structural relationship.

Return for Risk

MSMLX vs. TEQLX — Risk / Return Rank

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

MSMLX

MSMLX Risk / Return Rank: 28
MSMLX Sharpe Ratio Rank: 25
MSMLX Sortino Ratio Rank: 25
MSMLX Omega Ratio Rank: 27
MSMLX Calmar Ratio Rank: 33
MSMLX Martin Ratio Rank: 30

TEQLX

TEQLX Risk / Return Rank: 62
TEQLX Sharpe Ratio Rank: 59
TEQLX Sortino Ratio Rank: 47
TEQLX Omega Ratio Rank: 64
TEQLX Calmar Ratio Rank: 78
TEQLX Martin Ratio Rank: 64

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.

MSMLX vs. TEQLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Emerging Markets Small Companies Fund (MSMLX) and TIAA-CREF Emerging Markets Equity Index Fund (TEQLX). 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.

	MSMLX	TEQLX	Difference
Sharpe ratio: Return per unit of total volatility	1.10	1.73	-0.63
Sortino ratio: Return per unit of downside risk	1.60	2.21	-0.61
Omega ratio: Gain probability vs. loss probability	1.21	1.33	-0.12
Calmar ratio: Return relative to maximum drawdown	1.73	2.85	-1.12
Martin ratio: Return relative to average drawdown	5.40	9.78	-4.38

MSMLX vs. TEQLX - Sharpe Ratio Comparison

The current MSMLX Sharpe Ratio is 1.10, which is lower than the TEQLX Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of MSMLX and TEQLX, 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

MSMLX vs. TEQLX - Drawdown Comparison

The maximum MSMLX drawdown since its inception was -36.40%, smaller than the maximum TEQLX drawdown of -39.33%. Use the drawdown chart below to compare losses from any high point for MSMLX and TEQLX.

Drawdown Indicators

	MSMLX	TEQLX	Difference
Max Drawdown Largest peak-to-trough decline	-36.40%	-39.33%	+2.93%
Max Drawdown (1Y) Largest decline over 1 year	-12.89%	-13.32%	+0.43%
Max Drawdown (3Y) Largest decline over 3 years	-22.62%	-15.97%	-6.65%
Max Drawdown (5Y) Largest decline over 5 years	-28.00%	-34.64%	+6.64%
Max Drawdown (10Y) Largest decline over 10 years	-34.33%	-39.33%	+5.00%
Current Drawdown Current decline from peak	-5.34%	-7.53%	+2.19%
Average Drawdown Average peak-to-trough decline	-9.20%	-14.53%	+5.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.07%	3.87%	+0.20%

Volatility

MSMLX vs. TEQLX - Volatility Comparison

The current volatility for Matthews Emerging Markets Small Companies Fund (MSMLX) is 7.36%, while TIAA-CREF Emerging Markets Equity Index Fund (TEQLX) has a volatility of 10.43%. This indicates that MSMLX experiences smaller price fluctuations and is considered to be less risky than TEQLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSMLX	TEQLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.36%	10.43%	-3.07%
Volatility (6M) Calculated over the trailing 6-month period	18.00%	20.13%	-2.13%
Volatility (1Y) Calculated over the trailing 1-year period	20.27%	22.01%	-1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.10%	17.91%	+0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.37%	18.01%	-0.64%

MSMLX vs. TEQLX - Expense Ratio Comparison

MSMLX has a 1.37% expense ratio, which is higher than TEQLX's 0.19% expense ratio.

Dividends

MSMLX vs. TEQLX - Dividend Comparison

MSMLX's dividend yield for the trailing twelve months is around 1.23%, less than TEQLX's 2.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSMLX Matthews Emerging Markets Small Companies Fund	1.23%	1.50%	3.95%	8.36%	8.04%	9.18%	0.28%	0.51%	21.31%	8.12%	0.43%	0.13%
TEQLX TIAA-CREF Emerging Markets Equity Index Fund	2.34%	2.83%	2.93%	3.08%	2.51%	2.27%	2.04%	2.77%	2.43%	1.98%	1.88%	2.40%

Frequently Asked Questions

Can I hold both MSMLX and TEQLX in my portfolio?

MSMLX and TEQLX have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSMLX or TEQLX?

TEQLX has higher volatility (10.43%) compared to MSMLX (7.36%). In terms of maximum drawdown, MSMLX dropped -36.40% vs TEQLX's -39.33%.

Which has better risk-adjusted returns?

TEQLX currently has the higher Sharpe Ratio (1.73 vs 1.10), 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.