DEM vs. RNEM

Last updated Jul 14, 2026

DEM (WisdomTree Emerging Markets Equity Income Fund) and RNEM (First Trust Emerging Markets Equity Select ETF) are both Emerging Markets Equities funds - DEM tracks the WisdomTree Emerging Markets Equity Income Index while RNEM tracks the Nasdaq Riskalyze Emerging Markets Equity Select Index. Both are passively managed. Over the past 5 years, DEM returned 9.77%/yr vs 4.79%/yr for RNEM. A 0.72 correlation means they provide meaningful diversification when combined. DEM charges 0.63%/yr vs 0.75%/yr for RNEM.

Performance

DEM vs. RNEM - 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 Emerging Markets Equity Select ETF (RNEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DEM achieves a 16.70% return, which is significantly higher than RNEM's 0.25% return.

DEM

• 1D: -1.82%
• 1M: -2.61%
• 6M: 13.85%
• YTD: 16.70%
• 1Y: 22.03%
• 3Y*: 16.63%
• 5Y*: 9.77%
• 10Y*: 9.22%

RNEM

• 1D: -1.44%
• 1M: -0.16%
• 6M: -1.96%
• YTD: 0.25%
• 1Y: 2.60%
• 3Y*: 6.03%
• 5Y*: 4.79%
• 10Y*: —

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

DEM vs. RNEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEM WisdomTree Emerging Markets Equity Income Fund	16.70%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	15.13%
RNEM First Trust Emerging Markets Equity Select ETF	0.25%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-8.16%	12.76%	-9.34%	11.97%

Correlation

The correlation between DEM and RNEM is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Jun 23, 2017	0.72

The correlation between DEM and RNEM has been stable across timeframes, ranging from 0.72 to 0.80 - a consistent structural relationship.

DEM vs. RNEM - Sectors Allocation Comparison

Sectors	DEM	RNEM
Financial Services	21.9%	35.0%
Technology	17.3%	6.4%
Industrials	9.7%	3.9%
Energy	6.1%	7.0%
Consumer Defensive	5.8%	6.0%
Consumer Cyclical	5.1%	9.9%
Basic Materials	3.5%	14.2%
Utilities	3.0%	3.5%
Communication Services	3.0%	8.7%
Real Estate	2.9%	0.8%
Healthcare	0.6%	4.5%

Return for Risk

DEM vs. RNEM — Risk / Return Rank

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

DEM

DEM Risk / Return Rank: 60
DEM Sharpe Ratio Rank: 56
DEM Sortino Ratio Rank: 54
DEM Omega Ratio Rank: 55
DEM Calmar Ratio Rank: 70
DEM Martin Ratio Rank: 64

RNEM

RNEM Risk / Return Rank: 12
RNEM Sharpe Ratio Rank: 13
RNEM Sortino Ratio Rank: 12
RNEM Omega Ratio Rank: 11
RNEM Calmar Ratio Rank: 13
RNEM Martin Ratio Rank: 13

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.

DEM vs. RNEM - 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 Emerging Markets Equity Select ETF (RNEM). 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	RNEM	Difference
Sharpe ratio: Return per unit of total volatility	1.51	0.21	+1.30
Sortino ratio: Return per unit of downside risk	2.10	0.39	+1.71
Omega ratio: Gain probability vs. loss probability	1.27	1.05	+0.23
Calmar ratio: Return relative to maximum drawdown	2.80	0.24	+2.56
Martin ratio: Return relative to average drawdown	9.03	0.65	+8.38

DEM vs. RNEM - Sharpe Ratio Comparison

The current DEM Sharpe Ratio is 1.51, which is higher than the RNEM Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of DEM and RNEM, 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. RNEM - Drawdown Comparison

The maximum DEM drawdown since its inception was -51.85%, which is greater than RNEM's maximum drawdown of -38.38%. Use the drawdown chart below to compare losses from any high point for DEM and RNEM.

Drawdown Indicators

	DEM	RNEM	Difference
Max Drawdown Largest peak-to-trough decline	-51.85%	-38.38%	-13.47%
Max Drawdown (1Y) Largest decline over 1 year	-7.89%	-10.71%	+2.82%
Max Drawdown (3Y) Largest decline over 3 years	-15.64%	-13.09%	-2.55%
Max Drawdown (5Y) Largest decline over 5 years	-27.18%	-21.41%	-5.77%
Max Drawdown (10Y) Largest decline over 10 years	-37.79%	—	—
Current Drawdown Current decline from peak	-3.87%	-5.81%	+1.94%
Average Drawdown Average peak-to-trough decline	-12.84%	-9.26%	-3.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	3.99%	-1.54%

Volatility

DEM vs. RNEM - Volatility Comparison

WisdomTree Emerging Markets Equity Income Fund (DEM) has a higher volatility of 5.76% compared to First Trust Emerging Markets Equity Select ETF (RNEM) at 3.75%. This indicates that DEM's price experiences larger fluctuations and is considered to be riskier than RNEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DEM	RNEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.76%	3.75%	+2.01%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	10.93%	+2.07%
Volatility (1Y) Calculated over the trailing 1-year period	14.73%	12.51%	+2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.57%	14.48%	+1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.84%	17.18%	+0.66%

DEM vs. RNEM - Expense Ratio Comparison

DEM has a 0.63% expense ratio, which is lower than RNEM's 0.75% expense ratio.

Dividends

DEM vs. RNEM - Dividend Comparison

DEM's dividend yield for the trailing twelve months is around 4.19%, more than RNEM's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.19%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
RNEM First Trust Emerging Markets Equity Select ETF	2.37%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DEM and RNEM in my portfolio?

DEM and RNEM have a correlation of 0.80, 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 RNEM?

DEM has higher volatility (5.76%) compared to RNEM (3.75%). In terms of maximum drawdown, DEM dropped -51.85% vs RNEM's -38.38%.

Which ETF is better, DEM or RNEM?

On 5-year performance, DEM leads with 9.77% vs 4.79% for RNEM. On fees, DEM is cheaper at 0.63% per year. On volatility, RNEM has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEM or RNEM?

Over the 5-year period, DEM has performed better with a 9.77% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEM or RNEM?

DEM is cheaper with a 0.63% expense ratio, compared with 0.75% for RNEM.

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

DEM has the higher dividend yield at 4.19%, compared with 2.37% for RNEM.

What is the main difference between DEM and RNEM?

DEM tracks WisdomTree Emerging Markets Equity Income Index, while RNEM tracks Nasdaq Riskalyze Emerging Markets Equity Select Index. They also come from different issuers: WisdomTree and First Trust. Their fees differ too: 0.63% for DEM and 0.75% for RNEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (1.51 vs 0.21), 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.