EMDM vs. FDL

Last updated Aug 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - EMDM is a Emerging Markets Equities fund tracking the Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 3 years, EMDM returned 28.08%/yr vs 19.02%/yr for FDL. Their 0.28 correlation means their historical movements had little consistent relationship. EMDM charges 0.75%/yr vs 0.43%/yr for FDL.

Performance

EMDM vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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 FDL's 18.62% 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%

FDL

• 1D: 0.39%
• 1M: 3.67%
• 6M: 9.83%
• YTD: 18.62%
• 1Y: 28.15%
• 3Y*: 19.02%
• 5Y*: 14.10%
• 10Y*: 11.08%
• ALL TIME*: 8.96%

*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	$370.33K	$752.09K	$541.22K
FDL First Trust Morningstar Dividend Leaders Index Fund	$51.38M	$49.50M	$43.21M

EMDM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	28.39%	59.68%	-4.93%	14.75%
FDL First Trust Morningstar Dividend Leaders Index Fund	18.62%	14.79%	17.98%	2.97%

Correlation

The correlation between EMDM and FDL is -0.08, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.08
Correlation (3Y) Balances recent behavior with more history.	0.24
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.28

The correlation between EMDM and FDL shifts across timeframes, from -0.08 (1 year) to 0.28 (all time), reflecting how their relationship changes across market environments.

EMDM vs. FDL - Sectors Allocation Comparison

Sectors	EMDM	FDL
Technology	39.9%	4.3%
Financial Services	25.6%	13.7%
Basic Materials	12.7%	0.4%
Consumer Cyclical	5.3%	4.4%
Energy	4.8%	11.1%
Communication Services	4.0%	11.2%
Consumer Defensive	3.1%	24.3%
Industrials	2.6%	3.6%
Utilities	1.5%	15.4%
Healthcare	0.5%	11.7%
Real Estate	-	-

Return for Risk

EMDM vs. FDL — 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

FDL

FDL Risk / Return Rank: 92
FDL Sharpe Ratio Rank: 91
FDL Sortino Ratio Rank: 93
FDL Omega Ratio Rank: 89
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 91

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. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.38	+0.02
Sortino ratio: Return per unit of downside risk	2.94	3.58	-0.65
Omega ratio: Gain probability vs. loss probability	1.42	1.42	0.00
Calmar ratio: Return relative to maximum drawdown	4.28	6.62	-2.34
Martin ratio: Return relative to average drawdown	13.58	15.62	-2.03

EMDM vs. FDL - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.41, which is comparable to the FDL Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of EMDM and FDL, 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. FDL - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for EMDM and FDL.

Drawdown Indicators

	EMDM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-65.93%	+47.12%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-4.27%	-11.38%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-12.24%	-6.57%
Max Drawdown (5Y) Largest decline over 5 years	—	-16.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-10.51%	-1.58%	-8.93%
Average Drawdown Average peak-to-trough decline	-4.21%	-9.59%	+5.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	1.81%	+3.12%

Volatility

EMDM vs. FDL - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.92% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 4.65%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.92%	4.65%	+5.27%
Volatility (6M) Calculated over the trailing 6-month period	25.36%	8.75%	+16.61%
Volatility (1Y) Calculated over the trailing 1-year period	27.91%	11.89%	+16.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	14.44%	+6.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.15%	17.16%	+3.99%

EMDM vs. FDL - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

EMDM vs. FDL - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.95%, less than FDL's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.58%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%

Frequently Asked Questions

Can I hold both EMDM and FDL in my portfolio?

EMDM and FDL have a correlation of -0.08, 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 FDL?

EMDM has higher volatility (9.92%) compared to FDL (4.65%). In terms of maximum drawdown, EMDM dropped -18.81% vs FDL's -65.93%.

Which ETF is better, EMDM or FDL?

On 3-year performance, EMDM leads with 28.08% vs 19.02% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or FDL?

Over the 3-year period, EMDM has performed better with a 28.08% return vs 19.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.75% for EMDM.

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

FDL has the higher dividend yield at 3.58%, compared with 2.95% for EMDM.

What is the main difference between EMDM and FDL?

EMDM is categorized as Emerging Markets Equities, while FDL is Large Cap Value Equities. EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.75% for EMDM and 0.43% for FDL.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.41 vs 2.38), 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.