XCEM vs. EEM

Last updated Jun 4, 2026

XCEM (Columbia EM Core ex-China ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XCEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XCEM returned 12.99%/yr vs 9.93%/yr for EEM. Their correlation of 0.80 suggests significant overlap in exposure. XCEM charges 0.16%/yr vs 0.72%/yr for EEM.

Performance

XCEM vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Columbia EM Core ex-China ETF (XCEM) 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, XCEM achieves a 38.32% return, which is significantly higher than EEM's 27.80% return. Over the past 10 years, XCEM has outperformed EEM with an annualized return of 12.99%, while EEM has yielded a comparatively lower 9.93% annualized return.

XCEM

• 1D: -1.25%
• 1M: 12.13%
• YTD: 38.32%
• 6M: 44.13%
• 1Y: 71.14%
• 3Y*: 26.37%
• 5Y*: 11.95%
• 10Y*: 12.99%

EEM

• 1D: -1.24%
• 1M: 9.08%
• YTD: 27.80%
• 6M: 30.51%
• 1Y: 55.80%
• 3Y*: 23.95%
• 5Y*: 7.01%
• 10Y*: 9.93%

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

XCEM vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XCEM Columbia EM Core ex-China ETF	38.32%	34.05%	0.42%	19.96%	-17.59%	7.87%	9.47%	19.74%	-11.75%	34.78%
EEM iShares MSCI Emerging Markets ETF	27.80%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between XCEM and EEM is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Sep 3, 2015	0.80

The correlation between XCEM and EEM shifts across timeframes, from 0.80 (all time) to 0.94 (1 year), reflecting how their relationship changes across market environments.

XCEM vs. EEM - Sectors Allocation Comparison

Sectors	XCEM	EEM
Financial Services	7.7%	17.5%
Communication Services	4.2%	5.7%
Utilities	1.9%	2.0%
Technology	1.1%	43.6%
Consumer Cyclical	1.1%	8.1%
Basic Materials	0.7%	6.1%
Industrials	0.4%	6.2%
Consumer Defensive	0.3%	2.7%
Energy	0.2%	3.3%
Healthcare	0.1%	2.5%
Real Estate	0.0%	0.9%

Return for Risk

XCEM vs. EEM — Risk / Return Rank

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

XCEM

XCEM Risk / Return Rank: 90
XCEM Sharpe Ratio Rank: 92
XCEM Sortino Ratio Rank: 90
XCEM Omega Ratio Rank: 91
XCEM Calmar Ratio Rank: 87
XCEM Martin Ratio Rank: 89

EEM

EEM Risk / Return Rank: 81
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 79
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 79
EEM Martin Ratio Rank: 80

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.

XCEM vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Columbia EM Core ex-China ETF (XCEM) 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.

	XCEM	EEM	Difference
Sharpe ratio: Return per unit of total volatility	3.42	2.81	+0.62
Sortino ratio: Return per unit of downside risk	4.27	3.62	+0.66
Omega ratio: Gain probability vs. loss probability	1.61	1.51	+0.09
Calmar ratio: Return relative to maximum drawdown	4.95	4.15	+0.80
Martin ratio: Return relative to average drawdown	19.98	15.99	+4.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XCEM vs. EEM - Sharpe Ratio Comparison

The current XCEM Sharpe Ratio is 3.42, which is comparable to the EEM Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of XCEM 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.

Sharpe Ratios by Period

	XCEM	EEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.42	2.81	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.37	+0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.49	+0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.38	+0.25

Drawdowns

XCEM vs. EEM - Drawdown Comparison

The maximum XCEM drawdown since its inception was -41.24%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for XCEM and EEM.

Drawdown Indicators

	XCEM	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-41.24%	-66.43%	+25.19%
Max Drawdown (1Y) Largest decline over 1 year	-14.46%	-13.52%	-0.94%
Max Drawdown (3Y) Largest decline over 3 years	-18.92%	-17.29%	-1.63%
Max Drawdown (5Y) Largest decline over 5 years	-29.67%	-37.71%	+8.04%
Max Drawdown (10Y) Largest decline over 10 years	-41.24%	-39.82%	-1.42%
Current Drawdown Current decline from peak	-1.25%	-1.24%	-0.01%
Average Drawdown Average peak-to-trough decline	-8.59%	-16.02%	+7.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.57%	3.50%	+0.07%

Volatility

XCEM vs. EEM - Volatility Comparison

Columbia EM Core ex-China ETF (XCEM) has a higher volatility of 9.43% compared to iShares MSCI Emerging Markets ETF (EEM) at 8.52%. This indicates that XCEM's price experiences larger fluctuations and is considered to be riskier than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XCEM	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.43%	8.52%	+0.91%
Volatility (6M) Calculated over the trailing 6-month period	18.72%	17.42%	+1.30%
Volatility (1Y) Calculated over the trailing 1-year period	20.89%	19.97%	+0.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	18.91%	-1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.72%	20.50%	-0.78%

XCEM vs. EEM - Expense Ratio Comparison

XCEM has a 0.16% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

XCEM vs. EEM - Dividend Comparison

XCEM's dividend yield for the trailing twelve months is around 2.35%, more than EEM's 1.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.74%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
XCEM Columbia EM Core ex-China ETF	2.35%	3.25%	2.76%	1.22%	2.42%	1.94%	1.63%	2.11%	2.70%	9.56%	1.24%	2.63%

Frequently Asked Questions

Can I hold both XCEM and EEM in my portfolio?

With a correlation of 0.94, XCEM 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, XCEM or EEM?

XCEM has higher volatility (9.43%) compared to EEM (8.52%). In terms of maximum drawdown, XCEM dropped -41.24% vs EEM's -66.43%.

Which ETF is better, XCEM or EEM?

On 10-year performance, XCEM leads with 12.99% vs 9.93% for EEM. On fees, XCEM is cheaper at 0.16% per year. On volatility, EEM has been the lower-risk option at 8.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XCEM or EEM?

Over the 10-year period, XCEM has performed better with a 12.99% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XCEM or EEM?

XCEM is cheaper with a 0.16% expense ratio, compared with 0.72% for EEM.

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

XCEM has the higher dividend yield at 2.35%, compared with 1.74% for EEM.

What is the main difference between XCEM and EEM?

XCEM is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. XCEM tracks MSCI Emerging Markets ex China Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Ameriprise Financial and iShares. Their fees differ too: 0.16% for XCEM and 0.72% for EEM.

Which has better risk-adjusted returns?

XCEM currently has the higher Sharpe Ratio (3.42 vs 2.81), 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.