NSI vs. EEM

Last updated Jun 23, 2026

NSI (National Security Emerging Markets Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - NSI tracks the Alerian National Security Emerging Markets Index while EEM tracks the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past year, NSI returned 40.23% vs 56.71% for EEM. Their correlation of 0.94 suggests significant overlap in exposure. NSI charges 1.00%/yr vs 0.72%/yr for EEM.

Performance

NSI vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in National Security Emerging Markets Index ETF (NSI) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NSI achieves a 17.20% return, which is significantly lower than EEM's 30.84% return.

NSI

• 1D: -0.10%
• 1M: 3.74%
• YTD: 17.20%
• 6M: 18.61%
• 1Y: 40.23%
• 3Y*: —
• 5Y*: —
• 10Y*: —

EEM

• 1D: 0.59%
• 1M: 8.65%
• YTD: 30.84%
• 6M: 32.53%
• 1Y: 56.71%
• 3Y*: 24.99%
• 5Y*: 7.99%
• 10Y*: 10.51%

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

NSI vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NSI National Security Emerging Markets Index ETF	17.20%	35.94%	-1.21%	4.94%
EEM iShares MSCI Emerging Markets ETF	30.84%	33.98%	6.49%	5.08%

Correlation

The correlation between NSI and EEM is 0.95, 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	0.95
Correlation (All Time) Calculated using the full available price history since Dec 7, 2023	0.94

The correlation between NSI and EEM has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

Return for Risk

NSI vs. EEM — Risk / Return Rank

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

NSI

NSI Risk / Return Rank: 62
NSI Sharpe Ratio Rank: 64
NSI Sortino Ratio Rank: 60
NSI Omega Ratio Rank: 63
NSI Calmar Ratio Rank: 62
NSI Martin Ratio Rank: 61

EEM

EEM Risk / Return Rank: 82
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 77
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 83
EEM Martin Ratio Rank: 81

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.

NSI vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for National Security Emerging Markets Index ETF (NSI) 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.

	NSI	EEM	Difference
Sharpe ratio: Return per unit of total volatility	2.04	2.59	-0.55
Sortino ratio: Return per unit of downside risk	2.74	3.28	-0.53
Omega ratio: Gain probability vs. loss probability	1.37	1.48	-0.11
Calmar ratio: Return relative to maximum drawdown	2.96	4.22	-1.26
Martin ratio: Return relative to average drawdown	10.57	15.52	-4.95

NSI vs. EEM - Sharpe Ratio Comparison

The current NSI Sharpe Ratio is 2.04, which is comparable to the EEM Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of NSI and EEM, 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

NSI vs. EEM - Drawdown Comparison

The maximum NSI drawdown since its inception was -18.77%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for NSI and EEM.

Drawdown Indicators

	NSI	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-18.77%	-66.43%	+47.66%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-13.52%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.29%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-37.49%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-39.82%	—
Current Drawdown Current decline from peak	-1.80%	0.00%	-1.80%
Average Drawdown Average peak-to-trough decline	-3.65%	-15.99%	+12.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	3.66%	+0.16%

Volatility

NSI vs. EEM - Volatility Comparison

The current volatility for National Security Emerging Markets Index ETF (NSI) is 8.78%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.95%. This indicates that NSI experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NSI	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.78%	10.95%	-2.17%
Volatility (6M) Calculated over the trailing 6-month period	17.19%	19.83%	-2.64%
Volatility (1Y) Calculated over the trailing 1-year period	19.82%	22.04%	-2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.64%	19.39%	-0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.64%	20.69%	-2.05%

NSI vs. EEM - Expense Ratio Comparison

NSI has a 1.00% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

NSI vs. EEM - Dividend Comparison

NSI's dividend yield for the trailing twelve months is around 1.17%, less than EEM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.56%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
NSI National Security Emerging Markets Index ETF	1.17%	1.69%	3.39%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both NSI and EEM in my portfolio?

With a correlation of 0.95, NSI and EEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, NSI or EEM?

EEM has higher volatility (10.95%) compared to NSI (8.78%). In terms of maximum drawdown, NSI dropped -18.77% vs EEM's -66.43%.

Which ETF is better, NSI or EEM?

On 1-year performance, EEM leads with 56.71% vs 40.23% for NSI. On fees, EEM is cheaper at 0.72% per year. On volatility, NSI has been the lower-risk option at 8.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NSI or EEM?

Over the 1-year period, EEM has performed better with a 56.71% return vs 40.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NSI or EEM?

EEM is cheaper with a 0.72% expense ratio, compared with 1.00% for NSI.

Which ETF pays a higher dividend yield, NSI or EEM?

EEM has the higher dividend yield at 1.56%, compared with 1.17% for NSI.

What is the main difference between NSI and EEM?

NSI tracks Alerian National Security Emerging Markets Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Tuttle and iShares. Their fees differ too: 1.00% for NSI and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.59 vs 2.04), 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.