XC vs. HEEM
XC (WisdomTree Emerging Markets ex-China Fund) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - XC tracks the WisdomTree Emerging Markets ex-China Index - Benchmark TR Net while HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index. Both are passively managed. Over the past 3 years, XC returned 8.91%/yr vs 22.40%/yr for HEEM. A 0.75 correlation means they provide meaningful diversification when combined. XC charges 0.32%/yr vs 0.72%/yr for HEEM.
Performance
XC vs. HEEM - Performance Comparison
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Returns By Period
In the year-to-date period, XC achieves a -1.36% return, which is significantly lower than HEEM's 20.28% return.
XC
- 1D
- -1.21%
- 1M
- 0.28%
- 6M
- -3.58%
- YTD
- -1.36%
- 1Y
- 4.34%
- 3Y*
- 8.91%
- 5Y*
- —
- 10Y*
- —
HEEM
- 1D
- -3.79%
- 1M
- -4.46%
- 6M
- 13.12%
- YTD
- 20.28%
- 1Y
- 43.38%
- 3Y*
- 22.40%
- 5Y*
- 9.06%
- 10Y*
- 10.05%
XC vs. HEEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XC WisdomTree Emerging Markets ex-China Fund | -1.36% | 18.19% | 5.49% | 21.31% | 1.58% |
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 20.28% | 34.02% | 12.59% | 10.14% | 1.27% |
Correlation
The correlation between XC and HEEM is 0.69, 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 | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2022 | 0.75 |
The correlation between XC and HEEM has been stable across timeframes, ranging from 0.69 to 0.75 - a consistent structural relationship.
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Return for Risk
XC vs. HEEM — Risk / Return Rank
XC
HEEM
XC vs. HEEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets ex-China Fund (XC) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). 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.
| XC | HEEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.72 | ||
| Sortino ratioReturn per unit of downside risk | -2.07 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.39 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 0.35 | 4.03 | -3.68 |
| Martin ratioReturn relative to average drawdown | 0.89 | 13.50 | -12.61 |
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Drawdowns
XC vs. HEEM - Drawdown Comparison
The maximum XC drawdown since its inception was -20.97%, smaller than the maximum HEEM drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for XC and HEEM.
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Drawdown Indicators
| XC | HEEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.97% | -33.53% | +12.56% |
Max Drawdown (1Y)Largest decline over 1 year | -12.47% | -10.83% | -1.64% |
Max Drawdown (3Y)Largest decline over 3 years | -20.97% | -14.82% | -6.15% |
Max Drawdown (5Y)Largest decline over 5 years | — | -29.11% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.53% | — |
Current DrawdownCurrent decline from peak | -7.37% | -9.74% | +2.37% |
Average DrawdownAverage peak-to-trough decline | -4.21% | -11.08% | +6.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.87% | 3.22% | +1.65% |
Volatility
XC vs. HEEM - Volatility Comparison
The current volatility for WisdomTree Emerging Markets ex-China Fund (XC) is 4.62%, while iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a volatility of 11.44%. This indicates that XC experiences smaller price fluctuations and is considered to be less risky than HEEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XC | HEEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.62% | 11.44% | -6.82% |
Volatility (6M)Calculated over the trailing 6-month period | 13.36% | 19.69% | -6.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.84% | 21.64% | -6.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.88% | 17.87% | -1.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.88% | 18.29% | -2.41% |
XC vs. HEEM - Expense Ratio Comparison
XC has a 0.32% expense ratio, which is lower than HEEM's 0.72% expense ratio.
Dividends
XC vs. HEEM - Dividend Comparison
XC's dividend yield for the trailing twelve months is around 12.18%, more than HEEM's 3.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 3.19% | 3.98% | 2.38% | 2.75% | 7.49% | 1.93% | 1.49% | 3.04% | 2.37% | 2.05% | 1.84% | 6.28% |
XC WisdomTree Emerging Markets ex-China Fund | 12.18% | 11.74% | 1.49% | 1.42% | 0.57% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
XC and HEEM have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HEEM has higher volatility (11.44%) compared to XC (4.62%). In terms of maximum drawdown, XC dropped -20.97% vs HEEM's -33.53%.
On 3-year performance, HEEM leads with 22.40% vs 8.91% for XC. On fees, XC is cheaper at 0.32% per year. On volatility, XC has been the lower-risk option at 4.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HEEM has performed better with a 22.40% return vs 8.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XC is cheaper with a 0.32% expense ratio, compared with 0.72% for HEEM.
XC has the higher dividend yield at 12.18%, compared with 3.19% for HEEM.
XC tracks WisdomTree Emerging Markets ex-China Index - Benchmark TR Net, while HEEM tracks MSCI Emerging Markets 100% USD Hedged Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.32% for XC and 0.72% for HEEM.
HEEM currently has the higher Sharpe Ratio (2.02 vs 0.29), 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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