XSOE vs. DEM

Last updated Jun 4, 2026

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both Emerging Markets Equities funds from WisdomTree - XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index while DEM tracks the WisdomTree Emerging Markets Equity income Index. Both are passively managed. Over the past 10 years, XSOE returned 10.77%/yr vs 10.45%/yr for DEM. A 0.76 correlation means they provide meaningful diversification when combined. XSOE charges 0.32%/yr vs 0.63%/yr for DEM.

Performance

XSOE vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSOE achieves a 27.99% return, which is significantly higher than DEM's 19.97% return. Both investments have delivered pretty close results over the past 10 years, with XSOE having a 10.77% annualized return and DEM not far behind at 10.45%.

XSOE

• 1D: -1.31%
• 1M: 9.84%
• YTD: 27.99%
• 6M: 30.83%
• 1Y: 54.87%
• 3Y*: 23.36%
• 5Y*: 5.06%
• 10Y*: 10.77%

DEM

• 1D: -1.19%
• 1M: 6.63%
• YTD: 19.97%
• 6M: 20.75%
• 1Y: 32.23%
• 3Y*: 19.32%
• 5Y*: 9.57%
• 10Y*: 10.45%

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

XSOE vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	27.99%	30.05%	7.02%	10.28%	-25.83%	-5.92%	28.61%	24.81%	-18.60%	49.23%
DEM WisdomTree Emerging Markets Equity Income Fund	19.97%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%

Correlation

The correlation between XSOE and DEM is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Dec 11, 2014	0.76

The correlation between XSOE and DEM has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.

XSOE vs. DEM - Sectors Allocation Comparison

Sectors	XSOE	DEM
Technology	37.3%	17.4%
Financial Services	15.5%	21.9%
Consumer Cyclical	12.6%	5.0%
Industrials	9.6%	9.5%
Communication Services	7.0%	3.0%
Basic Materials	5.3%	3.5%
Healthcare	4.4%	0.6%
Consumer Defensive	3.8%	5.8%
Energy	2.0%	6.1%
Utilities	1.4%	3.0%
Real Estate	1.0%	3.0%

Return for Risk

XSOE vs. DEM — Risk / Return Rank

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

XSOE

XSOE Risk / Return Rank: 82
XSOE Sharpe Ratio Rank: 84
XSOE Sortino Ratio Rank: 81
XSOE Omega Ratio Rank: 84
XSOE Calmar Ratio Rank: 80
XSOE Martin Ratio Rank: 80

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

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.

XSOE vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	XSOE	DEM	Difference
Sharpe ratio: Return per unit of total volatility	2.79	2.38	+0.41
Sortino ratio: Return per unit of downside risk	3.65	3.28	+0.37
Omega ratio: Gain probability vs. loss probability	1.51	1.43	+0.08
Calmar ratio: Return relative to maximum drawdown	4.14	4.10	+0.04
Martin ratio: Return relative to average drawdown	15.84	14.52	+1.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSOE vs. DEM - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 2.79, which is comparable to the DEM Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of XSOE and DEM, 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

	XSOE	DEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.79	2.38	+0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.26	0.63	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.58	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.22	+0.18

Drawdowns

XSOE vs. DEM - Drawdown Comparison

The maximum XSOE drawdown since its inception was -45.23%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for XSOE and DEM.

Drawdown Indicators

	XSOE	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-51.85%	+6.62%
Max Drawdown (1Y) Largest decline over 1 year	-13.31%	-7.89%	-5.42%
Max Drawdown (3Y) Largest decline over 3 years	-19.96%	-15.64%	-4.32%
Max Drawdown (5Y) Largest decline over 5 years	-42.05%	-27.18%	-14.87%
Max Drawdown (10Y) Largest decline over 10 years	-45.23%	-37.79%	-7.44%
Current Drawdown Current decline from peak	-1.31%	-1.19%	-0.12%
Average Drawdown Average peak-to-trough decline	-17.28%	-12.90%	-4.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.47%	2.22%	+1.25%

Volatility

XSOE vs. DEM - Volatility Comparison

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) has a higher volatility of 8.57% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.64%. This indicates that XSOE's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSOE	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.57%	5.64%	+2.93%
Volatility (6M) Calculated over the trailing 6-month period	17.24%	11.33%	+5.91%
Volatility (1Y) Calculated over the trailing 1-year period	19.77%	13.59%	+6.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.43%	15.33%	+4.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.59%	17.96%	+2.63%

XSOE vs. DEM - Expense Ratio Comparison

XSOE has a 0.32% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

XSOE vs. DEM - Dividend Comparison

XSOE's dividend yield for the trailing twelve months is around 1.28%, less than DEM's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.76%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.28%	1.50%	1.44%	1.78%	2.53%	1.36%	1.02%	2.01%	1.56%	0.65%	1.43%	3.93%

Frequently Asked Questions

Can I hold both XSOE and DEM in my portfolio?

XSOE and DEM have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSOE or DEM?

XSOE has higher volatility (8.57%) compared to DEM (5.64%). In terms of maximum drawdown, XSOE dropped -45.23% vs DEM's -51.85%.

Which ETF is better, XSOE or DEM?

On 10-year performance, XSOE leads with 10.77% vs 10.45% for DEM. On fees, XSOE is cheaper at 0.32% per year. On volatility, DEM has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSOE or DEM?

Over the 10-year period, XSOE has performed better with a 10.77% return vs 10.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSOE or DEM?

XSOE is cheaper with a 0.32% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, XSOE or DEM?

DEM has the higher dividend yield at 3.76%, compared with 1.28% for XSOE.

What is the main difference between XSOE and DEM?

XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index, while DEM tracks WisdomTree Emerging Markets Equity income Index. Their fees differ too: 0.32% for XSOE and 0.63% for DEM.

Which has better risk-adjusted returns?

XSOE currently has the higher Sharpe Ratio (2.79 vs 2.38), 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.