DFEM vs. FTHF

Last updated Jun 24, 2026

DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and FTHF (First Trust Emerging Markets Human Flourishing ETF) are both Emerging Markets Diversified funds. DFEM is actively managed, while FTHF is passively managed. Over the past year, DFEM returned 41.37% vs 99.98% for FTHF. Their correlation of 0.86 suggests significant overlap in exposure. DFEM charges 0.39%/yr vs 0.75%/yr for FTHF.

Performance

DFEM vs. FTHF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and First Trust Emerging Markets Human Flourishing ETF (FTHF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFEM achieves a 20.81% return, which is significantly lower than FTHF's 48.98% return.

DFEM

• 1D: -5.74%
• 1M: 0.43%
• YTD: 20.81%
• 6M: 21.36%
• 1Y: 41.37%
• 3Y*: 21.68%
• 5Y*: —
• 10Y*: —

FTHF

• 1D: -6.80%
• 1M: 6.57%
• YTD: 48.98%
• 6M: 51.53%
• 1Y: 99.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFEM vs. FTHF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFEM Dimensional Emerging Markets Core Equity 2 ETF	20.81%	29.51%	7.53%	11.00%
FTHF First Trust Emerging Markets Human Flourishing ETF	48.98%	65.30%	-8.14%	18.14%

Correlation

The correlation between DFEM and FTHF is 0.88, 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	0.88
Correlation (All Time) Calculated using the full available price history since Oct 31, 2023	0.86

The correlation between DFEM and FTHF has been stable across timeframes, ranging from 0.86 to 0.88 - a consistent structural relationship.

Return for Risk

DFEM vs. FTHF — Risk / Return Rank

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

DFEM

DFEM Risk / Return Rank: 66
DFEM Sharpe Ratio Rank: 63
DFEM Sortino Ratio Rank: 55
DFEM Omega Ratio Rank: 67
DFEM Calmar Ratio Rank: 72
DFEM Martin Ratio Rank: 72

FTHF

FTHF Risk / Return Rank: 87
FTHF Sharpe Ratio Rank: 89
FTHF Sortino Ratio Rank: 79
FTHF Omega Ratio Rank: 89
FTHF Calmar Ratio Rank: 93
FTHF Martin Ratio Rank: 86

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.

DFEM vs. FTHF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and First Trust Emerging Markets Human Flourishing ETF (FTHF). 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.

	DFEM	FTHF	Difference
Sharpe ratio: Return per unit of total volatility	1.97	2.79	-0.82
Sortino ratio: Return per unit of downside risk	2.52	3.22	-0.70
Omega ratio: Gain probability vs. loss probability	1.38	1.52	-0.14
Calmar ratio: Return relative to maximum drawdown	3.43	6.16	-2.74
Martin ratio: Return relative to average drawdown	12.74	16.85	-4.11

DFEM vs. FTHF - Sharpe Ratio Comparison

The current DFEM Sharpe Ratio is 1.97, which is comparable to the FTHF Sharpe Ratio of 2.79. The chart below compares the historical Sharpe Ratios of DFEM and FTHF, 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

DFEM vs. FTHF - Drawdown Comparison

The maximum DFEM drawdown since its inception was -20.82%, which is greater than FTHF's maximum drawdown of -17.36%. Use the drawdown chart below to compare losses from any high point for DFEM and FTHF.

Drawdown Indicators

	DFEM	FTHF	Difference
Max Drawdown Largest peak-to-trough decline	-20.82%	-17.36%	-3.46%
Max Drawdown (1Y) Largest decline over 1 year	-12.12%	-16.31%	+4.19%
Max Drawdown (3Y) Largest decline over 3 years	-18.09%	—	—
Current Drawdown Current decline from peak	-5.74%	-6.80%	+1.06%
Average Drawdown Average peak-to-trough decline	-5.01%	-4.22%	-0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	5.95%	-2.69%

Volatility

DFEM vs. FTHF - Volatility Comparison

The current volatility for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is 12.01%, while First Trust Emerging Markets Human Flourishing ETF (FTHF) has a volatility of 17.38%. This indicates that DFEM experiences smaller price fluctuations and is considered to be less risky than FTHF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEM	FTHF	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.01%	17.38%	-5.37%
Volatility (6M) Calculated over the trailing 6-month period	19.31%	28.89%	-9.58%
Volatility (1Y) Calculated over the trailing 1-year period	21.16%	36.06%	-14.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.94%	26.89%	-8.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.94%	26.89%	-8.95%

DFEM vs. FTHF - Expense Ratio Comparison

DFEM has a 0.39% expense ratio, which is lower than FTHF's 0.75% expense ratio.

Dividends

DFEM vs. FTHF - Dividend Comparison

DFEM's dividend yield for the trailing twelve months is around 1.89%, less than FTHF's 3.03% yield.

Position	TTM	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.89%	2.32%	2.50%	2.38%	1.99%
FTHF First Trust Emerging Markets Human Flourishing ETF	3.03%	4.40%	3.34%	0.51%	0.00%

Frequently Asked Questions

Can I hold both DFEM and FTHF in my portfolio?

DFEM and FTHF have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFEM or FTHF?

FTHF has higher volatility (17.38%) compared to DFEM (12.01%). In terms of maximum drawdown, DFEM dropped -20.82% vs FTHF's -17.36%.

Which ETF is better, DFEM or FTHF?

On 1-year performance, FTHF leads with 99.98% vs 41.37% for DFEM. On fees, DFEM is cheaper at 0.39% per year. On volatility, DFEM has been the lower-risk option at 12.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEM or FTHF?

Over the 1-year period, FTHF has performed better with a 99.98% return vs 41.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEM or FTHF?

DFEM is cheaper with a 0.39% expense ratio, compared with 0.75% for FTHF.

Which ETF pays a higher dividend yield, DFEM or FTHF?

FTHF has the higher dividend yield at 3.03%, compared with 1.89% for DFEM.

What is the main difference between DFEM and FTHF?

They also come from different issuers: Dimensional and First Trust. Their fees differ too: 0.39% for DFEM and 0.75% for FTHF.

Which has better risk-adjusted returns?

FTHF currently has the higher Sharpe Ratio (2.79 vs 1.97), 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.