WLDS.L vs. HSEF.L

Last updated Jun 5, 2026

WLDS.L (iShares MSCI World Small Cap UCITS ETF) and HSEF.L (HSBC Emerging Market Sustainable Equity UCITS ETF USD) are both exchange-traded funds - WLDS.L is a Small Cap Blend Equities fund tracking the MSCI World Small Cap Inde, while HSEF.L is a Emerging Markets Equities fund tracking the MSCI EM NR USD. Both are passively managed. Over the past 5 years, WLDS.L returned 8.23%/yr vs 7.39%/yr for HSEF.L. A 0.58 correlation means they provide meaningful diversification when combined. WLDS.L charges 0.35%/yr vs 0.18%/yr for HSEF.L.

Performance

WLDS.L vs. HSEF.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares MSCI World Small Cap UCITS ETF (WLDS.L) and HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with WLDS.L having a 14.58% return and HSEF.L slightly higher at 15.11%.

WLDS.L

• 1D: 0.69%
• 1M: 4.25%
• YTD: 14.58%
• 6M: 14.95%
• 1Y: 33.75%
• 3Y*: 15.03%
• 5Y*: 8.23%
• 10Y*: —

HSEF.L

• 1D: -0.64%
• 1M: 3.00%
• YTD: 15.11%
• 6M: 15.45%
• 1Y: 38.19%
• 3Y*: 17.57%
• 5Y*: 7.39%
• 10Y*: —

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

WLDS.L vs. HSEF.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
WLDS.L iShares MSCI World Small Cap UCITS ETF	14.58%	11.86%	8.58%	11.22%	-8.89%	16.71%	18.44%
HSEF.L HSBC Emerging Market Sustainable Equity UCITS ETF USD	15.11%	20.85%	17.02%	-1.33%	-8.36%	1.82%	11.41%

Correlation

The correlation between WLDS.L and HSEF.L is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (All Time) Calculated using the full available price history since Sep 1, 2020	0.58

The correlation between WLDS.L and HSEF.L has been stable across timeframes, ranging from 0.57 to 0.62 - a consistent structural relationship.

WLDS.L vs. HSEF.L - Sectors Allocation Comparison

Sectors	WLDS.L	HSEF.L
Industrials	20.5%	4.8%
Technology	15.2%	40.2%
Financial Services	13.3%	21.2%
Consumer Cyclical	10.6%	9.2%
Healthcare	9.5%	4.0%
Basic Materials	8.2%	9.3%
Real Estate	8.0%	0.6%
Energy	5.0%	4.2%
Consumer Defensive	3.9%	2.9%
Communication Services	3.0%	2.7%
Utilities	2.8%	1.1%

Return for Risk

WLDS.L vs. HSEF.L — Risk / Return Rank

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

WLDS.L

WLDS.L Risk / Return Rank: 83
WLDS.L Sharpe Ratio Rank: 83
WLDS.L Sortino Ratio Rank: 84
WLDS.L Omega Ratio Rank: 80
WLDS.L Calmar Ratio Rank: 83
WLDS.L Martin Ratio Rank: 82

HSEF.L

HSEF.L Risk / Return Rank: 77
HSEF.L Sharpe Ratio Rank: 81
HSEF.L Sortino Ratio Rank: 76
HSEF.L Omega Ratio Rank: 78
HSEF.L Calmar Ratio Rank: 78
HSEF.L Martin Ratio Rank: 72

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.

WLDS.L vs. HSEF.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI World Small Cap UCITS ETF (WLDS.L) and HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L). 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.

	WLDS.L	HSEF.L	Difference
Sharpe ratio: Return per unit of total volatility	2.67	2.58	+0.09
Sortino ratio: Return per unit of downside risk	3.75	3.35	+0.40
Omega ratio: Gain probability vs. loss probability	1.48	1.45	+0.02
Calmar ratio: Return relative to maximum drawdown	4.32	3.93	+0.38
Martin ratio: Return relative to average drawdown	16.35	13.29	+3.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WLDS.L vs. HSEF.L - Sharpe Ratio Comparison

The current WLDS.L Sharpe Ratio is 2.67, which is comparable to the HSEF.L Sharpe Ratio of 2.58. The chart below compares the historical Sharpe Ratios of WLDS.L and HSEF.L, 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

	WLDS.L	HSEF.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	2.58	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.47	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.59	-0.03

Drawdowns

WLDS.L vs. HSEF.L - Drawdown Comparison

The maximum WLDS.L drawdown since its inception was -33.26%, which is greater than HSEF.L's maximum drawdown of -23.33%. Use the drawdown chart below to compare losses from any high point for WLDS.L and HSEF.L.

Drawdown Indicators

	WLDS.L	HSEF.L	Difference
Max Drawdown Largest peak-to-trough decline	-33.26%	-23.33%	-9.93%
Max Drawdown (1Y) Largest decline over 1 year	-7.78%	-9.67%	+1.89%
Max Drawdown (3Y) Largest decline over 3 years	-21.55%	-15.36%	-6.19%
Max Drawdown (5Y) Largest decline over 5 years	-21.55%	-19.36%	-2.19%
Current Drawdown Current decline from peak	0.00%	-1.81%	+1.81%
Average Drawdown Average peak-to-trough decline	-6.36%	-9.31%	+2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.06%	2.87%	-0.81%

Volatility

WLDS.L vs. HSEF.L - Volatility Comparison

The current volatility for iShares MSCI World Small Cap UCITS ETF (WLDS.L) is 3.41%, while HSBC Emerging Market Sustainable Equity UCITS ETF USD (HSEF.L) has a volatility of 5.49%. This indicates that WLDS.L experiences smaller price fluctuations and is considered to be less risky than HSEF.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WLDS.L	HSEF.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	5.49%	-2.08%
Volatility (6M) Calculated over the trailing 6-month period	9.29%	11.66%	-2.37%
Volatility (1Y) Calculated over the trailing 1-year period	12.58%	14.77%	-2.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.53%	15.64%	-0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.29%	15.71%	+1.58%

WLDS.L vs. HSEF.L - Expense Ratio Comparison

WLDS.L has a 0.35% expense ratio, which is higher than HSEF.L's 0.18% expense ratio.

Dividends

WLDS.L vs. HSEF.L - Dividend Comparison

Neither WLDS.L nor HSEF.L has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both WLDS.L and HSEF.L in my portfolio?

WLDS.L and HSEF.L have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WLDS.L or HSEF.L?

On fees, HSEF.L is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, WLDS.L or HSEF.L?

HSEF.L is cheaper with a 0.18% expense ratio, compared with 0.35% for WLDS.L.

What is the main difference between WLDS.L and HSEF.L?

WLDS.L is categorized as Small Cap Blend Equities, while HSEF.L is Emerging Markets Equities. WLDS.L tracks MSCI World Small Cap Inde, while HSEF.L tracks MSCI EM NR USD. They also come from different issuers: iShares and HSBC. Their fees differ too: 0.35% for WLDS.L and 0.18% for HSEF.L.