EMDM vs. BKEM

Last updated Aug 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Emerging Markets Equities funds - EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 3 years, EMDM returned 28.08%/yr vs 19.15%/yr for BKEM. Their correlation of 0.88 means they have usually moved in the same direction. EMDM charges 0.75%/yr vs 0.11%/yr for BKEM.

Performance

EMDM vs. BKEM - Performance Comparison

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

Returns By Period

In the year-to-date period, EMDM achieves a 28.39% return, which is significantly higher than BKEM's 19.61% return.

EMDM

• 1D: 0.42%
• 1M: -3.12%
• 6M: 12.42%
• YTD: 28.39%
• 1Y: 66.69%
• 3Y*: 28.08%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 26.54%

BKEM

• 1D: 0.10%
• 1M: -2.18%
• 6M: 9.90%
• YTD: 19.61%
• 1Y: 36.20%
• 3Y*: 19.15%
• 5Y*: 6.90%
• 10Y*: —
• ALL TIME*: 12.53%

*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)
BKEM BNY Mellon Emerging Markets Equity ETF	$481.37K	$317.95K	$245.58K
EMDM First Trust Bloomberg Emerging Market Democracies ETF	$370.33K	$752.09K	$541.22K

EMDM vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	28.39%	59.68%	-4.93%	14.75%
BKEM BNY Mellon Emerging Markets Equity ETF	19.61%	30.55%	7.53%	5.88%

Correlation

The correlation between EMDM and BKEM is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (3Y) Balances recent behavior with more history.	0.88
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.88

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

EMDM vs. BKEM - Sectors Allocation Comparison

Sectors	EMDM	BKEM
Technology	39.9%	44.5%
Financial Services	25.6%	17.5%
Basic Materials	12.7%	5.4%
Consumer Cyclical	5.3%	7.7%
Energy	4.8%	3.1%
Communication Services	4.0%	5.8%
Consumer Defensive	3.1%	2.6%
Industrials	2.6%	7.6%
Utilities	1.5%	2.0%
Healthcare	0.5%	2.7%
Real Estate	-	1.1%

Return for Risk

EMDM vs. BKEM — Risk / Return Rank

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

EMDM

EMDM Risk / Return Rank: 89
EMDM Sharpe Ratio Rank: 91
EMDM Sortino Ratio Rank: 85
EMDM Omega Ratio Rank: 89
EMDM Calmar Ratio Rank: 92
EMDM Martin Ratio Rank: 88

BKEM

BKEM Risk / Return Rank: 64
BKEM Sharpe Ratio Rank: 63
BKEM Sortino Ratio Rank: 57
BKEM Omega Ratio Rank: 64
BKEM Calmar Ratio Rank: 72
BKEM Martin Ratio Rank: 64

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.

EMDM vs. BKEM - Risk-Adjusted Trends Comparison

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

	EMDM	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	2.41	1.53	+0.88
Sortino ratio: Return per unit of downside risk	2.94	2.05	+0.89
Omega ratio: Gain probability vs. loss probability	1.42	1.28	+0.13
Calmar ratio: Return relative to maximum drawdown	4.28	2.62	+1.67
Martin ratio: Return relative to average drawdown	13.58	8.01	+5.57

EMDM vs. BKEM - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.41, which is higher than the BKEM Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of EMDM and BKEM, 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

EMDM vs. BKEM - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum BKEM drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for EMDM and BKEM.

Drawdown Indicators

	EMDM	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-39.48%	+20.67%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-13.91%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-18.38%	-0.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-33.28%	—
Current Drawdown Current decline from peak	-10.51%	-9.43%	-1.08%
Average Drawdown Average peak-to-trough decline	-4.21%	-15.75%	+11.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	4.53%	+0.40%

Volatility

EMDM vs. BKEM - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.92% compared to BNY Mellon Emerging Markets Equity ETF (BKEM) at 9.11%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than BKEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.92%	9.11%	+0.81%
Volatility (6M) Calculated over the trailing 6-month period	25.36%	21.78%	+3.58%
Volatility (1Y) Calculated over the trailing 1-year period	27.91%	23.88%	+4.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	19.61%	+1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.15%	19.75%	+1.40%

EMDM vs. BKEM - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than BKEM's 0.11% expense ratio.

Dividends

EMDM vs. BKEM - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.95%, more than BKEM's 1.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
BKEM BNY Mellon Emerging Markets Equity ETF	1.96%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.95%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EMDM and BKEM in my portfolio?

With a correlation of 0.90, EMDM and BKEM 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 BKEM?

EMDM has higher volatility (9.92%) compared to BKEM (9.11%). In terms of maximum drawdown, EMDM dropped -18.81% vs BKEM's -39.48%.

Which ETF is better, EMDM or BKEM?

On 3-year performance, EMDM leads with 28.08% vs 19.15% for BKEM. On fees, BKEM is cheaper at 0.11% per year. On volatility, BKEM has been the lower-risk option at 9.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or BKEM?

Over the 3-year period, EMDM has performed better with a 28.08% return vs 19.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or BKEM?

BKEM is cheaper with a 0.11% expense ratio, compared with 0.75% for EMDM.

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

EMDM has the higher dividend yield at 2.95%, compared with 1.96% for BKEM.

What is the main difference between EMDM and BKEM?

EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: First Trust and BNY Mellon. Their fees differ too: 0.75% for EMDM and 0.11% for BKEM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.41 vs 1.53), 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.