XSOE vs. IEMG

Last updated Aug 4, 2026

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Equities funds - XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index while IEMG tracks the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, XSOE returned 9.26%/yr vs 8.70%/yr for IEMG. Their correlation of 0.88 means they have usually moved in the same direction. XSOE charges 0.32%/yr vs 0.09%/yr for IEMG.

Performance

XSOE vs. IEMG - 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 Core MSCI Emerging Markets ETF (IEMG). 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 17.82% return and IEMG slightly lower at 17.13%. Over the past 10 years, XSOE has outperformed IEMG with an annualized return of 9.26%, while IEMG has yielded a comparatively lower 8.70% annualized return.

XSOE

• 1D: 0.75%
• 1M: -3.00%
• 6M: 9.56%
• YTD: 17.82%
• 1Y: 35.13%
• 3Y*: 18.40%
• 5Y*: 4.61%
• 10Y*: 9.26%
• ALL TIME*: 7.25%

IEMG

• 1D: 0.64%
• 1M: -2.17%
• 6M: 8.11%
• YTD: 17.13%
• 1Y: 33.73%
• 3Y*: 19.02%
• 5Y*: 7.08%
• 10Y*: 8.70%
• ALL TIME*: 6.15%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IEMG iShares Core MSCI Emerging Markets ETF	$832.99M	$964.62M	$1.10B
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	$5.36M	$5.75M	$6.87M

XSOE vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	17.82%	30.05%	7.02%	10.28%	-25.83%	-5.92%	28.61%	24.81%	-18.60%	49.23%
IEMG iShares Core MSCI Emerging Markets ETF	17.13%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between XSOE and IEMG 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 IEMG shifts across timeframes, from 0.88 (all time) to 0.99 (1 year), reflecting how their relationship changes across market environments.

XSOE vs. IEMG - Sectors Allocation Comparison

Sectors	XSOE	IEMG
Technology	40.8%	43.6%
Consumer Cyclical	10.0%	7.7%
Financial Services	8.7%	17.3%
Industrials	6.9%	7.7%
Communication Services	5.0%	5.6%
Basic Materials	3.5%	5.8%
Consumer Defensive	2.5%	2.8%
Healthcare	2.3%	3.2%
Energy	1.4%	3.0%
Real Estate	0.6%	1.5%
Utilities	0.4%	1.9%

Return for Risk

XSOE vs. IEMG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XSOE

XSOE Risk / Return Rank: 60
XSOE Sharpe Ratio Rank: 59
XSOE Sortino Ratio Rank: 54
XSOE Omega Ratio Rank: 62
XSOE Calmar Ratio Rank: 65
XSOE Martin Ratio Rank: 60

IEMG

IEMG Risk / Return Rank: 62
IEMG Sharpe Ratio Rank: 60
IEMG Sortino Ratio Rank: 55
IEMG Omega Ratio Rank: 63
IEMG Calmar Ratio Rank: 70
IEMG Martin Ratio Rank: 61

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. IEMG - 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 Core MSCI Emerging Markets ETF (IEMG). 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	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.43	+0.02
Sortino ratio: Return per unit of downside risk	1.98	1.94	+0.04
Omega ratio: Gain probability vs. loss probability	1.28	1.27	0.00
Calmar ratio: Return relative to maximum drawdown	2.39	2.46	-0.07
Martin ratio: Return relative to average drawdown	7.55	7.50	+0.05

XSOE vs. IEMG - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 1.45, which is comparable to the IEMG Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of XSOE and IEMG, 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. IEMG - Drawdown Comparison

The maximum XSOE drawdown since its inception was -45.23%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for XSOE and IEMG.

Drawdown Indicators

	XSOE	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-38.71%	-6.52%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-13.78%	-1.01%
Max Drawdown (3Y) Largest decline over 3 years	-19.96%	-17.21%	-2.75%
Max Drawdown (5Y) Largest decline over 5 years	-38.76%	-33.61%	-5.15%
Max Drawdown (10Y) Largest decline over 10 years	-45.23%	-38.71%	-6.52%
Current Drawdown Current decline from peak	-10.06%	-9.17%	-0.89%
Average Drawdown Average peak-to-trough decline	-17.13%	-12.89%	-4.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.66%	4.51%	+0.15%

Volatility

XSOE vs. IEMG - Volatility Comparison

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 9.01% and 8.73%, 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	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.01%	8.73%	+0.28%
Volatility (6M) Calculated over the trailing 6-month period	22.22%	21.65%	+0.57%
Volatility (1Y) Calculated over the trailing 1-year period	24.36%	23.74%	+0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.29%	19.27%	+1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.97%	20.32%	+0.65%

XSOE vs. IEMG - Expense Ratio Comparison

XSOE has a 0.32% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

XSOE vs. IEMG - Dividend Comparison

XSOE's dividend yield for the trailing twelve months is around 1.66%, less than IEMG's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.30%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.66%	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 IEMG in my portfolio?

With a correlation of 0.99, XSOE and IEMG 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 IEMG?

XSOE has higher volatility (9.01%) compared to IEMG (8.73%). In terms of maximum drawdown, XSOE dropped -45.23% vs IEMG's -38.71%.

Which ETF is better, XSOE or IEMG?

On 10-year performance, XSOE leads with 9.26% vs 8.70% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSOE or IEMG?

Over the 10-year period, XSOE has performed better with a 9.26% return vs 8.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSOE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.32% for XSOE.

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

IEMG has the higher dividend yield at 2.30%, compared with 1.66% for XSOE.

What is the main difference between XSOE and IEMG?

XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.32% for XSOE and 0.09% for IEMG.

Which has better risk-adjusted returns?

XSOE currently has the higher Sharpe Ratio (1.45 vs 1.43), 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.