EMDM vs. EUFN

Last updated Aug 2, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and EUFN (iShares MSCI Europe Financials ETF) are both exchange-traded funds - EMDM is a Emerging Markets Equities fund tracking the Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while EUFN is a Financials Equities fund tracking the MSCI Europe Financials Index (Net). Both are passively managed. Over the past 3 years, EMDM returned 26.67%/yr vs 34.07%/yr for EUFN. Their 0.66 correlation means they have sometimes moved together and sometimes differently. EMDM charges 0.75%/yr vs 0.49%/yr for EUFN.

Performance

EMDM vs. EUFN - 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 Europe Financials ETF (EUFN). 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 EUFN's 15.76% 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%

EUFN

• 1D: -0.05%
• 1M: 4.57%
• 6M: 12.34%
• YTD: 15.76%
• 1Y: 37.30%
• 3Y*: 34.07%
• 5Y*: 21.90%
• 10Y*: 14.87%
• ALL TIME*: 7.77%

*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
EUFN iShares MSCI Europe Financials ETF	$57.65M	$60.11M	$50.38M

EMDM vs. EUFN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	27.86%	59.68%	-4.93%	14.75%
EUFN iShares MSCI Europe Financials ETF	15.76%	65.73%	17.20%	11.52%

Correlation

The correlation between EMDM and EUFN is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.65
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.66

The correlation between EMDM and EUFN has been stable across timeframes, ranging from 0.64 to 0.66 - a consistent structural relationship.

EMDM vs. EUFN - Sectors Allocation Comparison

Sectors	EMDM	EUFN
Technology	39.9%	0.9%
Financial Services	25.6%	98.1%
Basic Materials	12.7%	-
Consumer Cyclical	5.3%	0.2%
Energy	4.8%	-
Communication Services	4.0%	-
Consumer Defensive	3.1%	-
Industrials	2.6%	0.4%
Utilities	1.5%	-
Healthcare	0.5%	-
Real Estate	-	-

Return for Risk

EMDM vs. EUFN — 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

EUFN

EUFN Risk / Return Rank: 74
EUFN Sharpe Ratio Rank: 78
EUFN Sortino Ratio Rank: 78
EUFN Omega Ratio Rank: 72
EUFN Calmar Ratio Rank: 71
EUFN Martin Ratio Rank: 70

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. EUFN - 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 Europe Financials ETF (EUFN). 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	EUFN	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.76	+0.61
Sortino ratio: Return per unit of downside risk	2.91	2.50	+0.41
Omega ratio: Gain probability vs. loss probability	1.41	1.30	+0.11
Calmar ratio: Return relative to maximum drawdown	4.23	2.43	+1.79
Martin ratio: Return relative to average drawdown	13.54	8.55	+4.98

EMDM vs. EUFN - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.38, which is higher than the EUFN Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of EMDM and EUFN, 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. EUFN - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum EUFN drawdown of -53.25%. Use the drawdown chart below to compare losses from any high point for EMDM and EUFN.

Drawdown Indicators

	EMDM	EUFN	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-53.25%	+34.44%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-14.77%	-0.88%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-15.95%	-2.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.15%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-53.25%	—
Current Drawdown Current decline from peak	-10.88%	-0.05%	-10.83%
Average Drawdown Average peak-to-trough decline	-4.20%	-14.42%	+10.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.88%	4.20%	+0.68%

Volatility

EMDM vs. EUFN - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.95% compared to iShares MSCI Europe Financials ETF (EUFN) at 6.32%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than EUFN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	EUFN	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.95%	6.32%	+3.63%
Volatility (6M) Calculated over the trailing 6-month period	25.55%	17.74%	+7.81%
Volatility (1Y) Calculated over the trailing 1-year period	27.87%	20.39%	+7.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.16%	21.81%	-0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.16%	23.71%	-2.55%

EMDM vs. EUFN - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than EUFN's 0.49% expense ratio.

Dividends

EMDM vs. EUFN - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.96%, less than EUFN's 3.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.96%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
EUFN iShares MSCI Europe Financials ETF	3.96%	3.57%	5.36%	5.00%	4.24%	4.15%	1.38%	4.55%	6.48%	3.04%	4.03%	3.65%

Frequently Asked Questions

Can I hold both EMDM and EUFN in my portfolio?

EMDM and EUFN have a correlation of 0.64, 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 EUFN?

EMDM has higher volatility (9.95%) compared to EUFN (6.32%). In terms of maximum drawdown, EMDM dropped -18.81% vs EUFN's -53.25%.

Which ETF is better, EMDM or EUFN?

On 3-year performance, EUFN leads with 34.07% vs 26.67% for EMDM. On fees, EUFN is cheaper at 0.49% per year. On volatility, EUFN has been the lower-risk option at 6.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or EUFN?

Over the 3-year period, EUFN has performed better with a 34.07% return vs 26.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or EUFN?

EUFN is cheaper with a 0.49% expense ratio, compared with 0.75% for EMDM.

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

EUFN has the higher dividend yield at 3.96%, compared with 2.96% for EMDM.

What is the main difference between EMDM and EUFN?

EMDM is categorized as Emerging Markets Equities, while EUFN is Financials Equities. EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while EUFN tracks MSCI Europe Financials Index (Net). They also come from different issuers: First Trust and iShares. Their fees differ too: 0.75% for EMDM and 0.49% for EUFN.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.38 vs 1.76), 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.