EMDM vs. EEMS

Last updated Aug 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and EEMS (iShares MSCI Emerging Markets Small-Cap ETF) are both Emerging Markets Equities funds - EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net while EEMS tracks the MSCI Emerging Markets Small Cap Index. Both are passively managed. Over the past 3 years, EMDM returned 28.08%/yr vs 11.61%/yr for EEMS. Their correlation of 0.82 means they have usually moved in the same direction. EMDM charges 0.75%/yr vs 0.73%/yr for EEMS.

Performance

EMDM vs. EEMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and iShares MSCI Emerging Markets Small-Cap ETF (EEMS). 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 EEMS's 5.91% 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%

EEMS

• 1D: 1.87%
• 1M: -5.13%
• 6M: -1.18%
• YTD: 5.91%
• 1Y: 14.69%
• 3Y*: 11.61%
• 5Y*: 5.30%
• 10Y*: 7.74%
• ALL TIME*: 5.15%

*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)
EEMS iShares MSCI Emerging Markets Small-Cap ETF	$1.31M	$5.09M	$6.23M
EMDM First Trust Bloomberg Emerging Market Democracies ETF	$370.33K	$752.09K	$541.22K

EMDM vs. EEMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	28.39%	59.68%	-4.93%	14.75%
EEMS iShares MSCI Emerging Markets Small-Cap ETF	5.91%	19.78%	3.13%	17.66%

Correlation

The correlation between EMDM and EEMS is 0.83, 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.	0.83
Correlation (3Y) Balances recent behavior with more history.	0.82
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.82

The correlation between EMDM and EEMS has been stable across timeframes, ranging from 0.82 to 0.83 - a consistent structural relationship.

EMDM vs. EEMS - Sectors Allocation Comparison

Sectors	EMDM	EEMS
Technology	39.9%	26.4%
Financial Services	25.6%	10.3%
Basic Materials	12.7%	8.5%
Consumer Cyclical	5.3%	10.3%
Energy	4.8%	2.0%
Communication Services	4.0%	2.7%
Consumer Defensive	3.1%	4.9%
Industrials	2.6%	18.3%
Utilities	1.5%	2.7%
Healthcare	0.5%	8.6%
Real Estate	-	5.6%

Return for Risk

EMDM vs. EEMS — 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

EEMS

EEMS Risk / Return Rank: 31
EEMS Sharpe Ratio Rank: 30
EEMS Sortino Ratio Rank: 29
EEMS Omega Ratio Rank: 31
EEMS Calmar Ratio Rank: 32
EEMS Martin Ratio Rank: 35

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. EEMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and iShares MSCI Emerging Markets Small-Cap ETF (EEMS). 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	EEMS	Difference
Sharpe ratio: Return per unit of total volatility	2.41	0.74	+1.67
Sortino ratio: Return per unit of downside risk	2.94	1.10	+1.84
Omega ratio: Gain probability vs. loss probability	1.42	1.15	+0.27
Calmar ratio: Return relative to maximum drawdown	4.28	1.11	+3.17
Martin ratio: Return relative to average drawdown	13.58	3.54	+10.04

EMDM vs. EEMS - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.41, which is higher than the EEMS Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of EMDM and EEMS, 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. EEMS - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum EEMS drawdown of -48.89%. Use the drawdown chart below to compare losses from any high point for EMDM and EEMS.

Drawdown Indicators

	EMDM	EEMS	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-48.89%	+30.08%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-13.31%	-2.34%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-19.71%	+0.90%
Max Drawdown (5Y) Largest decline over 5 years	—	-27.07%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-48.89%	—
Current Drawdown Current decline from peak	-10.51%	-9.83%	-0.68%
Average Drawdown Average peak-to-trough decline	-4.21%	-10.46%	+6.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	4.15%	+0.78%

Volatility

EMDM vs. EEMS - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.92% compared to iShares MSCI Emerging Markets Small-Cap ETF (EEMS) at 6.80%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than EEMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	EEMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.92%	6.80%	+3.12%
Volatility (6M) Calculated over the trailing 6-month period	25.36%	18.30%	+7.06%
Volatility (1Y) Calculated over the trailing 1-year period	27.91%	19.96%	+7.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	16.71%	+4.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.15%	18.18%	+2.97%

EMDM vs. EEMS - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than EEMS's 0.73% expense ratio.

Dividends

EMDM vs. EEMS - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.95%, less than EEMS's 3.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEMS iShares MSCI Emerging Markets Small-Cap ETF	3.01%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.95%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EMDM and EEMS in my portfolio?

EMDM and EEMS have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMDM or EEMS?

EMDM has higher volatility (9.92%) compared to EEMS (6.80%). In terms of maximum drawdown, EMDM dropped -18.81% vs EEMS's -48.89%.

Which ETF is better, EMDM or EEMS?

On 3-year performance, EMDM leads with 28.08% vs 11.61% for EEMS. On fees, EEMS is cheaper at 0.73% per year. On volatility, EEMS has been the lower-risk option at 6.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or EEMS?

Over the 3-year period, EMDM has performed better with a 28.08% return vs 11.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or EEMS?

EEMS is cheaper with a 0.73% expense ratio, compared with 0.75% for EMDM.

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

EEMS has the higher dividend yield at 3.01%, compared with 2.95% for EMDM.

What is the main difference between EMDM and EEMS?

EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while EEMS tracks MSCI Emerging Markets Small Cap Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.75% for EMDM and 0.73% for EEMS.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.41 vs 0.74), 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.