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XSOE vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XSOE vs. EEM

Last updated Aug 2, 2026
Documentation

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Equities funds - XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index while EEM tracks the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XSOE returned 9.07%/yr vs 8.32%/yr for EEM. Their correlation of 0.88 means they have usually moved in the same direction. 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.

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Returns By Period

The year-to-date returns for both investments are quite close, with XSOE having a 16.94% return and EEM slightly higher at 17.75%. Over the past 10 years, XSOE has outperformed EEM with an annualized return of 9.07%, while EEM has yielded a comparatively lower 8.32% annualized return.

XSOE

1D
0.73%
1M
-3.72%
6M
9.40%
YTD
16.94%
1Y
34.12%
3Y*
17.32%
5Y*
4.82%
10Y*
9.07%
ALL TIME*
7.19%

EEM

1D
0.79%
1M
-2.45%
6M
9.01%
YTD
17.75%
1Y
35.57%
3Y*
18.45%
5Y*
6.91%
10Y*
8.32%
ALL TIME*
9.87%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

EEM

iShares MSCI Emerging Markets ETF
$1.56B$1.60B$1.90B

XSOE

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund
$6.63M$5.94M$6.98M

XSOE vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XSOE
WisdomTree Emerging Markets ex-State-Owned Enterprises Fund		16.94%30.05%7.02%10.28%-25.83%-5.92%28.61%24.81%-18.60%49.23%
EEM
iShares MSCI Emerging Markets ETF		17.75%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 - they have historically moved very closely together. At this level, their price movements offset little of one another.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.99

Correlation (3Y)
Balances recent behavior with more history.

0.98

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.99

Correlation (10Y)
Provides a long-term view across more market conditions.

0.94

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 (1 year), reflecting how their relationship changes across market environments.

XSOE vs. EEM - Sectors Allocation Comparison

Sectors
XSOE
EEM

Technology

40.8%
45.9%

Consumer Cyclical

10.0%
7.4%

Financial Services

8.7%
18.2%

Industrials

6.9%
6.2%

Communication Services

5.0%
6.0%

Basic Materials

3.5%
5.4%

Consumer Defensive

2.5%
2.5%

Healthcare

2.3%
2.5%

Energy

1.4%
3.2%

Real Estate

0.6%
1.0%

Utilities

0.4%
1.8%

Technology

XSOE
40.8%
EEM
45.9%

Consumer Cyclical

XSOE
10.0%
EEM
7.4%

Financial Services

XSOE
8.7%
EEM
18.2%

Industrials

XSOE
6.9%
EEM
6.2%

Communication Services

XSOE
5.0%
EEM
6.0%

Basic Materials

XSOE
3.5%
EEM
5.4%

Consumer Defensive

XSOE
2.5%
EEM
2.5%

Healthcare

XSOE
2.3%
EEM
2.5%

Energy

XSOE
1.4%
EEM
3.2%

Real Estate

XSOE
0.6%
EEM
1.0%

Utilities

XSOE
0.4%
EEM
1.8%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund

iShares MSCI Emerging Markets ETF

Often compared with XSOE:
XSOE vs. SPEMXSOE vs. WTMFXSOE vs. ETHOXSOE vs. DFAEXSOE vs. AVEMXSOE vs. VWOXSOE vs. QQQ
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. VXUSEEM vs. IS3N.DEEEM vs. EEMSEEM vs. SPEM

Return for Risk

XSOE vs. EEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
XSOE
XSOE Risk / Return Rank: 5959
Overall Rank
XSOE Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
XSOE Sortino Ratio Rank: 5454
Sortino Ratio Rank
XSOE Omega Ratio Rank: 6161
Omega Ratio Rank
XSOE Calmar Ratio Rank: 6565
Calmar Ratio Rank
XSOE Martin Ratio Rank: 6060
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 6363
Overall Rank
EEM Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 5656
Sortino Ratio Rank
EEM Omega Ratio Rank: 6464
Omega Ratio Rank
EEM Calmar Ratio Rank: 7171
Calmar Ratio Rank
EEM Martin Ratio Rank: 6363
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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.

XSOEEEMDifference
Sharpe ratioReturn per unit of total volatility
1.37
1.42

-0.05

Sortino ratioReturn per unit of downside risk
1.88
1.93

-0.05

Omega ratioGain probability vs. loss probability

1.26

1.27

-0.01

Calmar ratioReturn relative to maximum drawdown

2.25

2.44

-0.19

Martin ratioReturn relative to average drawdown

7.19

7.49

-0.31

XSOE vs. EEM - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 1.37, which is comparable to the EEM Sharpe Ratio of 1.42. 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.

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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.

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Drawdown Indicators

XSOEEEMDifference

Max Drawdown

Largest peak-to-trough decline

-45.23%

-66.43%

+21.20%

Max Drawdown (1Y)

Largest decline over 1 year

-14.79%

-14.24%

-0.55%

Max Drawdown (3Y)

Largest decline over 3 years

-19.96%

-17.29%

-2.67%

Max Drawdown (5Y)

Largest decline over 5 years

-38.76%

-35.01%

-3.75%

Max Drawdown (10Y)

Largest decline over 10 years

-45.23%

-39.82%

-5.41%

Current Drawdown

Current decline from peak

-10.73%

-10.00%

-0.73%

Average Drawdown

Average peak-to-trough decline

-17.13%

-15.95%

-1.18%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.62%

4.63%

-0.01%

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 9.05% and 9.09%, 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.

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Volatility by Period

XSOEEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.05%

9.09%

-0.04%

Volatility (6M)

Calculated over the trailing 6-month period

22.29%

22.40%

-0.11%

Volatility (1Y)

Calculated over the trailing 1-year period

24.33%

24.46%

-0.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.28%

19.83%

+0.45%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.97%

20.80%

+0.17%

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 1.67%, less than EEM's 1.74% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XSOE
WisdomTree Emerging Markets ex-State-Owned Enterprises Fund		1.67%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

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.

EEM has higher volatility (9.09%) compared to XSOE (9.05%). In terms of maximum drawdown, XSOE dropped -45.23% vs EEM's -66.43%.

On 10-year performance, XSOE leads with 9.07% vs 8.32% 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.

Over the 10-year period, XSOE has performed better with a 9.07% return vs 8.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

EEM has the higher dividend yield at 1.74%, compared with 1.67% for XSOE.

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.

EEM currently has the higher Sharpe Ratio (1.42 vs 1.37), 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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