XJR vs. ESGE

Last updated Jun 16, 2026

XJR (iShares ESG Screened S&P Small-Cap ETF) and ESGE (iShares ESG Aware MSCI EM ETF) are both exchange-traded funds - XJR is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Sustainability Screened Index, while ESGE is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Focus Index. Both are passively managed. Over the past 5 years, XJR returned 6.15%/yr vs 7.48%/yr for ESGE. A 0.56 correlation means they provide meaningful diversification when combined. XJR charges 0.12%/yr vs 0.25%/yr for ESGE.

Performance

XJR vs. ESGE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Screened S&P Small-Cap ETF (XJR) and iShares ESG Aware MSCI EM ETF (ESGE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XJR achieves a 19.59% return, which is significantly lower than ESGE's 27.56% return.

XJR

• 1D: -0.07%
• 1M: 8.05%
• YTD: 19.59%
• 6M: 16.55%
• 1Y: 34.56%
• 3Y*: 14.92%
• 5Y*: 6.15%
• 10Y*: —

ESGE

• 1D: 2.95%
• 1M: 8.60%
• YTD: 27.56%
• 6M: 30.80%
• 1Y: 51.80%
• 3Y*: 22.81%
• 5Y*: 7.48%
• 10Y*: —

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

XJR vs. ESGE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XJR iShares ESG Screened S&P Small-Cap ETF	19.59%	4.73%	9.59%	16.39%	-17.30%	24.96%	35.61%
ESGE iShares ESG Aware MSCI EM ETF	27.56%	35.86%	6.63%	9.51%	-22.41%	-2.87%	21.46%

Correlation

The correlation between XJR and ESGE is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020	0.56

The correlation between XJR and ESGE has been stable across timeframes, ranging from 0.54 to 0.57 - a consistent structural relationship.

XJR vs. ESGE - Sectors Allocation Comparison

Sectors	XJR	ESGE
Financial Services	18.2%	22.0%
Technology	16.8%	43.9%
Industrials	15.5%	5.7%
Consumer Cyclical	13.5%	7.5%
Healthcare	10.7%	2.2%
Real Estate	7.6%	1.0%
Energy	4.7%	1.9%
Basic Materials	4.5%	5.0%
Consumer Defensive	2.7%	2.1%
Communication Services	2.5%	7.4%
Utilities	2.0%	1.3%

Return for Risk

XJR vs. ESGE — Risk / Return Rank

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

XJR

XJR Risk / Return Rank: 66
XJR Sharpe Ratio Rank: 63
XJR Sortino Ratio Rank: 66
XJR Omega Ratio Rank: 58
XJR Calmar Ratio Rank: 77
XJR Martin Ratio Rank: 69

ESGE

ESGE Risk / Return Rank: 80
ESGE Sharpe Ratio Rank: 82
ESGE Sortino Ratio Rank: 75
ESGE Omega Ratio Rank: 83
ESGE Calmar Ratio Rank: 79
ESGE Martin Ratio Rank: 79

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.

XJR vs. ESGE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Screened S&P Small-Cap ETF (XJR) and iShares ESG Aware MSCI EM ETF (ESGE). 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.

	XJR	ESGE	Difference
Sharpe ratio: Return per unit of total volatility	1.93	2.38	-0.45
Sortino ratio: Return per unit of downside risk	2.80	3.05	-0.25
Omega ratio: Gain probability vs. loss probability	1.33	1.45	-0.12
Calmar ratio: Return relative to maximum drawdown	3.68	3.75	-0.07
Martin ratio: Return relative to average drawdown	11.93	14.02	-2.10

XJR vs. ESGE - Sharpe Ratio Comparison

The current XJR Sharpe Ratio is 1.93, which is comparable to the ESGE Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of XJR and ESGE, 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

XJR vs. ESGE - Drawdown Comparison

The maximum XJR drawdown since its inception was -27.14%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for XJR and ESGE.

Drawdown Indicators

	XJR	ESGE	Difference
Max Drawdown Largest peak-to-trough decline	-27.14%	-41.07%	+13.93%
Max Drawdown (1Y) Largest decline over 1 year	-9.43%	-13.90%	+4.47%
Max Drawdown (3Y) Largest decline over 3 years	-27.14%	-16.71%	-10.43%
Max Drawdown (5Y) Largest decline over 5 years	-27.14%	-39.18%	+12.04%
Current Drawdown Current decline from peak	-0.07%	-0.68%	+0.61%
Average Drawdown Average peak-to-trough decline	-9.42%	-14.43%	+5.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	3.70%	-0.80%

Volatility

XJR vs. ESGE - Volatility Comparison

The current volatility for iShares ESG Screened S&P Small-Cap ETF (XJR) is 5.39%, while iShares ESG Aware MSCI EM ETF (ESGE) has a volatility of 11.18%. This indicates that XJR experiences smaller price fluctuations and is considered to be less risky than ESGE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XJR	ESGE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	11.18%	-5.79%
Volatility (6M) Calculated over the trailing 6-month period	12.51%	19.61%	-7.10%
Volatility (1Y) Calculated over the trailing 1-year period	17.99%	21.89%	-3.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.47%	19.50%	+1.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.72%	20.10%	+1.62%

XJR vs. ESGE - Expense Ratio Comparison

XJR has a 0.12% expense ratio, which is lower than ESGE's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XJR vs. ESGE - Dividend Comparison

XJR's dividend yield for the trailing twelve months is around 1.24%, less than ESGE's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESGE iShares ESG Aware MSCI EM ETF	2.69%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%
XJR iShares ESG Screened S&P Small-Cap ETF	1.24%	1.14%	1.96%	0.92%	1.29%	2.00%	0.58%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XJR and ESGE in my portfolio?

XJR and ESGE have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XJR or ESGE?

ESGE has higher volatility (11.18%) compared to XJR (5.39%). In terms of maximum drawdown, XJR dropped -27.14% vs ESGE's -41.07%.

Which ETF is better, XJR or ESGE?

On 5-year performance, ESGE leads with 7.48% vs 6.15% for XJR. On fees, XJR is cheaper at 0.12% per year. On volatility, XJR has been the lower-risk option at 5.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XJR or ESGE?

Over the 5-year period, ESGE has performed better with a 7.48% return vs 6.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XJR or ESGE?

XJR is cheaper with a 0.12% expense ratio, compared with 0.25% for ESGE.

Which ETF pays a higher dividend yield, XJR or ESGE?

ESGE has the higher dividend yield at 2.69%, compared with 1.24% for XJR.

What is the main difference between XJR and ESGE?

XJR is categorized as Small Cap Blend Equities, while ESGE is Emerging Markets Equities. XJR tracks S&P SmallCap 600 Sustainability Screened Index, while ESGE tracks MSCI EM Extended ESG Focus Index. Their fees differ too: 0.12% for XJR and 0.25% for ESGE.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (2.38 vs 1.93), 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.