XSOE vs. EEM

Last updated Jul 14, 2026

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XSOE is a Emerging Markets Equities fund tracking the WisdomTree Emerging Markets ex-State-Owned Enterprises 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, XSOE returned 9.52%/yr vs 8.45%/yr for EEM. Their correlation of 0.88 suggests significant overlap in exposure. XSOE charges 0.32%/yr vs 0.72%/yr for EEM.

Performance

XSOE vs. EEM - 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 iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XSOE having a 19.08% return and EEM slightly lower at 18.51%. Over the past 10 years, XSOE has outperformed EEM with an annualized return of 9.52%, while EEM has yielded a comparatively lower 8.45% annualized return.

XSOE

• 1D: -3.45%
• 1M: -4.00%
• 6M: 12.89%
• YTD: 19.08%
• 1Y: 36.58%
• 3Y*: 18.47%
• 5Y*: 4.12%
• 10Y*: 9.52%

EEM

• 1D: -3.59%
• 1M: -4.49%
• 6M: 11.90%
• YTD: 18.51%
• 1Y: 36.27%
• 3Y*: 19.09%
• 5Y*: 6.13%
• 10Y*: 8.45%

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

XSOE vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	19.08%	30.05%	7.02%	10.28%	-25.83%	-5.92%	28.61%	24.81%	-18.60%	49.23%
EEM iShares MSCI Emerging Markets ETF	18.51%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between XSOE and EEM is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Dec 10, 2014	0.88

The correlation between XSOE and EEM shifts across timeframes, from 0.88 (all time) to 0.99 (5 years), reflecting how their relationship changes across market environments.

XSOE vs. EEM - Sectors Allocation Comparison

Sectors	XSOE	EEM
Technology	43.9%	44.3%
Financial Services	14.1%	17.7%
Consumer Cyclical	11.3%	8.3%
Industrials	8.6%	6.6%
Communication Services	6.1%	6.0%
Basic Materials	4.8%	5.9%
Healthcare	3.9%	2.5%
Consumer Defensive	3.4%	2.5%
Energy	1.6%	3.4%
Utilities	1.3%	1.8%
Real Estate	0.9%	1.0%

Return for Risk

XSOE vs. EEM — Risk / Return Rank

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

XSOE

XSOE Risk / Return Rank: 62
XSOE Sharpe Ratio Rank: 59
XSOE Sortino Ratio Rank: 54
XSOE Omega Ratio Rank: 63
XSOE Calmar Ratio Rank: 69
XSOE Martin Ratio Rank: 66

EEM

EEM Risk / Return Rank: 61
EEM Sharpe Ratio Rank: 57
EEM Sortino Ratio Rank: 52
EEM Omega Ratio Rank: 62
EEM Calmar Ratio Rank: 67
EEM Martin Ratio Rank: 65

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. EEM - 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 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.

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.

	XSOE	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.55	+0.02
Sortino ratio: Return per unit of downside risk	2.10	2.05	+0.04
Omega ratio: Gain probability vs. loss probability	1.30	1.30	+0.01
Calmar ratio: Return relative to maximum drawdown	2.76	2.69	+0.07
Martin ratio: Return relative to average drawdown	9.42	9.20	+0.23

XSOE vs. EEM - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 1.57, which is comparable to the EEM Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of XSOE 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.

Drawdowns

XSOE vs. EEM - Drawdown Comparison

The maximum XSOE drawdown since its inception was -45.23%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for XSOE and EEM.

Drawdown Indicators

	XSOE	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-66.43%	+21.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.31%	-13.52%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-19.96%	-17.29%	-2.67%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-35.70%	-4.81%
Max Drawdown (10Y) Largest decline over 10 years	-45.23%	-39.82%	-5.41%
Current Drawdown Current decline from peak	-9.09%	-9.42%	+0.33%
Average Drawdown Average peak-to-trough decline	-17.17%	-15.97%	-1.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	3.95%	-0.06%

Volatility

XSOE vs. EEM - Volatility Comparison

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 11.36% and 11.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSOE	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.36%	11.27%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	21.46%	21.57%	-0.11%
Volatility (1Y) Calculated over the trailing 1-year period	23.43%	23.57%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.20%	19.71%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.86%	20.70%	+0.16%

XSOE vs. EEM - Expense Ratio Comparison

XSOE has a 0.32% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

XSOE vs. EEM - Dividend Comparison

XSOE's dividend yield for the trailing twelve months is around 1.64%, less than EEM's 1.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.73%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.64%	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 EEM in my portfolio?

With a correlation of 0.99, XSOE 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, XSOE or EEM?

XSOE has higher volatility (11.36%) compared to EEM (11.27%). In terms of maximum drawdown, XSOE dropped -45.23% vs EEM's -66.43%.

Which ETF is better, XSOE or EEM?

On 10-year performance, XSOE leads with 9.52% vs 8.45% for EEM. On fees, XSOE is cheaper at 0.32% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSOE or EEM?

Over the 10-year period, XSOE has performed better with a 9.52% return vs 8.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSOE or EEM?

XSOE is cheaper with a 0.32% expense ratio, compared with 0.72% for EEM.

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

EEM has the higher dividend yield at 1.73%, compared with 1.64% for XSOE.

What is the main difference between XSOE and EEM?

XSOE is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.32% for XSOE and 0.72% for EEM.

Which has better risk-adjusted returns?

XSOE currently has the higher Sharpe Ratio (1.57 vs 1.55), 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.