EMDM vs. EMM

Last updated Aug 2, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and EMM (Global X Emerging Markets ex-China ETF) are both Emerging Markets Equities funds. EMDM is passively managed, while EMM is actively managed. Over the past 3 years, EMDM returned 26.67%/yr vs 16.45%/yr for EMM. Their correlation of 0.88 means they have usually moved in the same direction. Both charge a 0.75% expense ratio.

Performance

EMDM vs. EMM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Global X Emerging Markets ex-China ETF (EMM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EMDM achieves a 27.86% return, which is significantly higher than EMM's 20.39% return.

EMDM

• 1D: 0.46%
• 1M: -3.52%
• 6M: 13.18%
• YTD: 27.86%
• 1Y: 66.00%
• 3Y*: 26.67%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 26.46%

EMM

• 1D: 0.69%
• 1M: -5.50%
• 6M: 12.37%
• YTD: 20.39%
• 1Y: 39.26%
• 3Y*: 16.45%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 16.93%

*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)
EMDM First Trust Bloomberg Emerging Market Democracies ETF	$660.85K	$757.43K	$571.79K
EMM Global X Emerging Markets ex-China ETF	$252.31K	$295.99K	$449.48K

EMDM vs. EMM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	27.86%	59.68%	-4.93%	14.69%
EMM Global X Emerging Markets ex-China ETF	20.39%	30.21%	2.34%	2.99%

Correlation

The correlation between EMDM and EMM is 0.92, 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.	0.92
Correlation (3Y) Balances recent behavior with more history.	0.88
Correlation (All Time) Calculated using the full available price history since May 15, 2023	0.88

The correlation between EMDM and EMM has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.

EMDM vs. EMM - Sectors Allocation Comparison

Sectors	EMDM	EMM
Technology	39.9%	48.1%
Financial Services	25.6%	20.9%
Basic Materials	12.7%	3.8%
Consumer Cyclical	5.3%	2.6%
Energy	4.8%	4.5%
Communication Services	4.0%	1.7%
Consumer Defensive	3.1%	4.3%
Industrials	2.6%	9.9%
Utilities	1.5%	1.2%
Healthcare	0.5%	1.4%
Real Estate	-	1.6%

Return for Risk

EMDM vs. EMM — Risk / Return Rank

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

EMDM

EMDM Risk / Return Rank: 90
EMDM Sharpe Ratio Rank: 92
EMDM Sortino Ratio Rank: 87
EMDM Omega Ratio Rank: 89
EMDM Calmar Ratio Rank: 92
EMDM Martin Ratio Rank: 89

EMM

EMM Risk / Return Rank: 62
EMM Sharpe Ratio Rank: 62
EMM Sortino Ratio Rank: 58
EMM Omega Ratio Rank: 64
EMM Calmar Ratio Rank: 62
EMM Martin Ratio Rank: 63

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. EMM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Global X Emerging Markets ex-China ETF (EMM). 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	EMM	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.44	+0.93
Sortino ratio: Return per unit of downside risk	2.91	1.99	+0.92
Omega ratio: Gain probability vs. loss probability	1.41	1.27	+0.14
Calmar ratio: Return relative to maximum drawdown	4.23	2.19	+2.04
Martin ratio: Return relative to average drawdown	13.54	7.68	+5.85

EMDM vs. EMM - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.38, which is higher than the EMM Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of EMDM and EMM, 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. EMM - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum EMM drawdown of -21.99%. Use the drawdown chart below to compare losses from any high point for EMDM and EMM.

Drawdown Indicators

	EMDM	EMM	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-21.99%	+3.18%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-17.62%	+1.97%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-21.99%	+3.18%
Current Drawdown Current decline from peak	-10.88%	-12.87%	+1.99%
Average Drawdown Average peak-to-trough decline	-4.20%	-4.84%	+0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.88%	5.00%	-0.12%

Volatility

EMDM vs. EMM - Volatility Comparison

The current volatility for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is 9.95%, while Global X Emerging Markets ex-China ETF (EMM) has a volatility of 10.56%. This indicates that EMDM experiences smaller price fluctuations and is considered to be less risky than EMM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	EMM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.95%	10.56%	-0.61%
Volatility (6M) Calculated over the trailing 6-month period	25.55%	24.68%	+0.87%
Volatility (1Y) Calculated over the trailing 1-year period	27.87%	26.65%	+1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.16%	20.48%	+0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.16%	20.48%	+0.68%

EMDM vs. EMM - Expense Ratio Comparison

Both EMDM and EMM have an expense ratio of 0.75%.

Dividends

EMDM vs. EMM - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.96%, more than EMM's 0.79% yield.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.96%	3.57%	5.87%	2.16%
EMM Global X Emerging Markets ex-China ETF	0.79%	0.90%	0.80%	0.66%

Frequently Asked Questions

Can I hold both EMDM and EMM in my portfolio?

With a correlation of 0.92, EMDM and EMM 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 EMM?

EMM has higher volatility (10.56%) compared to EMDM (9.95%). In terms of maximum drawdown, EMDM dropped -18.81% vs EMM's -21.99%.

Which ETF is better, EMDM or EMM?

On 3-year performance, EMDM leads with 26.67% vs 16.45% for EMM. Both ETFs have the same 0.75% expense ratio. On volatility, EMDM has been the lower-risk option at 9.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or EMM?

Over the 3-year period, EMDM has performed better with a 26.67% return vs 16.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or EMM?

EMDM and EMM have the same expense ratio: 0.75% per year.

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

EMDM has the higher dividend yield at 2.96%, compared with 0.79% for EMM.

What is the main difference between EMDM and EMM?

They also come from different issuers: First Trust and Global X.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.38 vs 1.44), 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.