DEM vs. FDL

Last updated Aug 6, 2026

DEM (WisdomTree Emerging Markets Equity Income Fund) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, DEM returned 9.13%/yr vs 11.08%/yr for FDL. Their 0.59 correlation means they have sometimes moved together and sometimes differently. DEM charges 0.63%/yr vs 0.43%/yr for FDL.

Performance

DEM vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets Equity Income Fund (DEM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with DEM having a 18.54% return and FDL slightly higher at 18.60%. Over the past 10 years, DEM has underperformed FDL with an annualized return of 9.13%, while FDL has yielded a comparatively higher 11.08% annualized return.

DEM

• 1D: -0.48%
• 1M: 0.07%
• 6M: 10.98%
• YTD: 18.54%
• 1Y: 24.54%
• 3Y*: 17.43%
• 5Y*: 10.33%
• 10Y*: 9.13%
• ALL TIME*: 4.99%

FDL

• 1D: -0.54%
• 1M: 4.47%
• 6M: 5.75%
• YTD: 18.60%
• 1Y: 26.71%
• 3Y*: 19.02%
• 5Y*: 13.96%
• 10Y*: 11.08%
• ALL TIME*: 8.95%

*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)
DEM WisdomTree Emerging Markets Equity Income Fund	$21.83M	$15.09M	$12.97M
FDL First Trust Morningstar Dividend Leaders Index Fund	$48.97M	$49.30M	$42.41M

DEM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEM WisdomTree Emerging Markets Equity Income Fund	18.54%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%
FDL First Trust Morningstar Dividend Leaders Index Fund	18.60%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between DEM and FDL is 0.07, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.07
Correlation (3Y) Balances recent behavior with more history.	0.33
Correlation (5Y) Shows whether the relationship held over a longer period.	0.45
Correlation (10Y) Provides a long-term view across more market conditions.	0.50
Correlation (All Time) Calculated using the full available price history since Jul 13, 2007	0.59

Over the past year, the correlation between DEM and FDL has dropped to 0.07 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

DEM vs. FDL - Sectors Allocation Comparison

Sectors	DEM	FDL
Financial Services	21.9%	13.7%
Technology	17.5%	4.3%
Industrials	8.9%	3.6%
Energy	6.2%	11.1%
Consumer Defensive	5.8%	24.3%
Consumer Cyclical	5.4%	4.4%
Basic Materials	3.7%	0.4%
Utilities	3.0%	15.4%
Communication Services	3.0%	11.2%
Real Estate	2.9%	-
Healthcare	0.6%	11.7%

Return for Risk

DEM vs. FDL — Risk / Return Rank

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

DEM

DEM Risk / Return Rank: 65
DEM Sharpe Ratio Rank: 61
DEM Sortino Ratio Rank: 58
DEM Omega Ratio Rank: 59
DEM Calmar Ratio Rank: 78
DEM Martin Ratio Rank: 68

FDL

FDL Risk / Return Rank: 89
FDL Sharpe Ratio Rank: 87
FDL Sortino Ratio Rank: 90
FDL Omega Ratio Rank: 83
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 88

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.

DEM vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets Equity Income Fund (DEM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	DEM	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.26	-0.62
Sortino ratio: Return per unit of downside risk	2.29	3.41	-1.12
Omega ratio: Gain probability vs. loss probability	1.30	1.39	-0.10
Calmar ratio: Return relative to maximum drawdown	3.12	6.28	-3.15
Martin ratio: Return relative to average drawdown	9.38	14.78	-5.41

DEM vs. FDL - Sharpe Ratio Comparison

The current DEM Sharpe Ratio is 1.64, which is comparable to the FDL Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of DEM and FDL, 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

DEM vs. FDL - Drawdown Comparison

The maximum DEM drawdown since its inception was -51.85%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for DEM and FDL.

Drawdown Indicators

	DEM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-51.85%	-65.93%	+14.08%
Max Drawdown (1Y) Largest decline over 1 year	-7.89%	-4.27%	-3.62%
Max Drawdown (3Y) Largest decline over 3 years	-15.64%	-12.24%	-3.40%
Max Drawdown (5Y) Largest decline over 5 years	-27.18%	-16.46%	-10.72%
Max Drawdown (10Y) Largest decline over 10 years	-37.79%	-41.40%	+3.61%
Current Drawdown Current decline from peak	-2.36%	-1.60%	-0.76%
Average Drawdown Average peak-to-trough decline	-12.81%	-9.59%	-3.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	1.81%	+0.81%

Volatility

DEM vs. FDL - Volatility Comparison

WisdomTree Emerging Markets Equity Income Fund (DEM) and First Trust Morningstar Dividend Leaders Index Fund (FDL) have volatilities of 4.62% and 4.48%, 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

	DEM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.62%	4.48%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	13.24%	8.63%	+4.61%
Volatility (1Y) Calculated over the trailing 1-year period	15.03%	11.88%	+3.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.62%	14.43%	+1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.86%	17.16%	+0.70%

DEM vs. FDL - Expense Ratio Comparison

DEM has a 0.63% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

DEM vs. FDL - Dividend Comparison

DEM's dividend yield for the trailing twelve months is around 4.13%, more than FDL's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.13%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.58%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%

Frequently Asked Questions

Can I hold both DEM and FDL in my portfolio?

DEM and FDL have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEM or FDL?

DEM has higher volatility (4.62%) compared to FDL (4.48%). In terms of maximum drawdown, DEM dropped -51.85% vs FDL's -65.93%.

Which ETF is better, DEM or FDL?

On 10-year performance, FDL leads with 11.08% vs 9.13% for DEM. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEM or FDL?

Over the 10-year period, FDL has performed better with a 11.08% return vs 9.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEM or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.63% for DEM.

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

DEM has the higher dividend yield at 4.13%, compared with 3.58% for FDL.

What is the main difference between DEM and FDL?

DEM is categorized as Dividend, while FDL is Large Cap Value Equities. DEM tracks WisdomTree Emerging Markets Equity Income Index, while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: WisdomTree and First Trust. Their fees differ too: 0.63% for DEM and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.26 vs 1.64), 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.