EMDM vs. BBEM

Last updated Jun 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and BBEM (JPMorgan Betabuilders Emerging Markets Equity ETF) are both Emerging Markets Diversified funds - EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net while BBEM tracks the Morningstar Emerging Markets Target Market Exposure Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, EMDM returned 32.95%/yr vs 23.00%/yr for BBEM. Their correlation of 0.88 suggests significant overlap in exposure. EMDM charges 0.75%/yr vs 0.15%/yr for BBEM.

Performance

EMDM vs. BBEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and JPMorgan Betabuilders Emerging Markets Equity ETF (BBEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMDM achieves a 39.03% return, which is significantly higher than BBEM's 27.02% return.

EMDM

• 1D: -1.32%
• 1M: 11.04%
• YTD: 39.03%
• 6M: 45.21%
• 1Y: 91.32%
• 3Y*: 32.95%
• 5Y*: —
• 10Y*: —

BBEM

• 1D: -1.31%
• 1M: 9.46%
• YTD: 27.02%
• 6M: 29.37%
• 1Y: 53.50%
• 3Y*: 23.00%
• 5Y*: —
• 10Y*: —

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

EMDM vs. BBEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	39.03%	59.68%	-4.93%	14.49%
BBEM JPMorgan Betabuilders Emerging Markets Equity ETF	27.02%	32.43%	5.61%	6.01%

Correlation

The correlation between EMDM and BBEM is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (All Time) Calculated using the full available price history since May 12, 2023	0.88

The correlation between EMDM and BBEM has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

EMDM vs. BBEM - Sectors Allocation Comparison

Sectors	EMDM	BBEM
Technology	32.1%	36.5%
Financial Services	27.2%	19.0%
Basic Materials	15.1%	6.2%
Energy	6.3%	4.2%
Consumer Cyclical	6.0%	10.0%
Communication Services	4.3%	6.7%
Consumer Defensive	3.4%	3.0%
Industrials	3.3%	8.1%
Utilities	1.9%	2.5%
Healthcare	0.5%	2.8%
Real Estate	-	1.0%

Return for Risk

EMDM vs. BBEM — Risk / Return Rank

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

EMDM

EMDM Risk / Return Rank: 93
EMDM Sharpe Ratio Rank: 95
EMDM Sortino Ratio Rank: 92
EMDM Omega Ratio Rank: 93
EMDM Calmar Ratio Rank: 91
EMDM Martin Ratio Rank: 93

BBEM

BBEM Risk / Return Rank: 82
BBEM Sharpe Ratio Rank: 84
BBEM Sortino Ratio Rank: 81
BBEM Omega Ratio Rank: 83
BBEM Calmar Ratio Rank: 80
BBEM Martin Ratio Rank: 81

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.

EMDM vs. BBEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and JPMorgan Betabuilders Emerging Markets Equity ETF (BBEM). 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.

	EMDM	BBEM	Difference
Sharpe ratio: Return per unit of total volatility	3.92	2.76	+1.16
Sortino ratio: Return per unit of downside risk	4.56	3.64	+0.92
Omega ratio: Gain probability vs. loss probability	1.66	1.51	+0.15
Calmar ratio: Return relative to maximum drawdown	5.87	4.10	+1.77
Martin ratio: Return relative to average drawdown	24.30	16.16	+8.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMDM vs. BBEM - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 3.92, which is higher than the BBEM Sharpe Ratio of 2.76. The chart below compares the historical Sharpe Ratios of EMDM and BBEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EMDM	BBEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.92	2.76	+1.16
Sharpe Ratio (All Time) Calculated using the full available price history	1.58	1.32	+0.26

Drawdowns

EMDM vs. BBEM - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, which is greater than BBEM's maximum drawdown of -17.42%. Use the drawdown chart below to compare losses from any high point for EMDM and BBEM.

Drawdown Indicators

	EMDM	BBEM	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-17.42%	-1.39%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-13.12%	-2.53%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-17.42%	-1.39%
Current Drawdown Current decline from peak	-1.32%	-1.31%	-0.01%
Average Drawdown Average peak-to-trough decline	-4.07%	-3.70%	-0.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.77%	3.32%	+0.45%

Volatility

EMDM vs. BBEM - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.61% compared to JPMorgan Betabuilders Emerging Markets Equity ETF (BBEM) at 8.59%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than BBEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	BBEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.61%	8.59%	+1.02%
Volatility (6M) Calculated over the trailing 6-month period	20.78%	17.20%	+3.58%
Volatility (1Y) Calculated over the trailing 1-year period	23.42%	19.49%	+3.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	17.50%	+2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.79%	17.50%	+2.29%

EMDM vs. BBEM - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than BBEM's 0.15% expense ratio.

Dividends

EMDM vs. BBEM - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.57%, less than BBEM's 4.59% yield.

Position	TTM	2025	2024	2023
BBEM JPMorgan Betabuilders Emerging Markets Equity ETF	4.59%	5.86%	2.73%	1.94%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.57%	3.57%	5.87%	2.16%

Frequently Asked Questions

Can I hold both EMDM and BBEM in my portfolio?

With a correlation of 0.90, EMDM and BBEM 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, EMDM or BBEM?

EMDM has higher volatility (9.61%) compared to BBEM (8.59%). In terms of maximum drawdown, EMDM dropped -18.81% vs BBEM's -17.42%.

Which ETF is better, EMDM or BBEM?

On 3-year performance, EMDM leads with 32.95% vs 23.00% for BBEM. On fees, BBEM is cheaper at 0.15% per year. On volatility, BBEM has been the lower-risk option at 8.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or BBEM?

Over the 3-year period, EMDM has performed better with a 32.95% return vs 23.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or BBEM?

BBEM is cheaper with a 0.15% expense ratio, compared with 0.75% for EMDM.

Which ETF pays a higher dividend yield, EMDM or BBEM?

BBEM has the higher dividend yield at 4.59%, compared with 2.57% for EMDM.

What is the main difference between EMDM and BBEM?

EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while BBEM tracks Morningstar Emerging Markets Target Market Exposure Index - Benchmark TR Net. They also come from different issuers: First Trust and JPMorgan. Their fees differ too: 0.75% for EMDM and 0.15% for BBEM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.92 vs 2.76), 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.