EMDM vs. FRDM

Last updated Aug 2, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both Emerging Markets Equities funds - EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net while FRDM tracks the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past 3 years, EMDM returned 26.67%/yr vs 29.15%/yr for FRDM. Their correlation of 0.92 means they have usually moved in the same direction. EMDM charges 0.75%/yr vs 0.49%/yr for FRDM.

Performance

EMDM vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with EMDM having a 27.86% return and FRDM slightly higher at 28.12%.

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%

FRDM

• 1D: 0.66%
• 1M: -4.87%
• 6M: 13.53%
• YTD: 28.12%
• 1Y: 65.50%
• 3Y*: 29.15%
• 5Y*: 17.22%
• 10Y*: —
• ALL TIME*: 16.90%

*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
FRDM Freedom 100 Emerging Markets ETF	$22.77M	$21.45M	$25.02M

EMDM vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	27.86%	59.68%	-4.93%	14.75%
FRDM Freedom 100 Emerging Markets ETF	28.12%	61.27%	1.70%	16.58%

Correlation

The correlation between EMDM and FRDM is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.92
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.92

The correlation between EMDM and FRDM has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

EMDM vs. FRDM - Sectors Allocation Comparison

Sectors	EMDM	FRDM
Technology	39.9%	8.5%
Financial Services	25.6%	15.3%
Basic Materials	12.7%	3.4%
Consumer Cyclical	5.3%	3.6%
Energy	4.8%	1.7%
Communication Services	4.0%	0.3%
Consumer Defensive	3.1%	0.9%
Industrials	2.6%	0.3%
Utilities	1.5%	1.2%
Healthcare	0.5%	0.1%
Real Estate	-	2.3%

Return for Risk

EMDM vs. FRDM — 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

FRDM

FRDM Risk / Return Rank: 85
FRDM Sharpe Ratio Rank: 88
FRDM Sortino Ratio Rank: 81
FRDM Omega Ratio Rank: 86
FRDM Calmar Ratio Rank: 87
FRDM Martin Ratio Rank: 83

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. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Freedom 100 Emerging Markets ETF (FRDM). 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	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.13	+0.25
Sortino ratio: Return per unit of downside risk	2.91	2.63	+0.28
Omega ratio: Gain probability vs. loss probability	1.41	1.37	+0.04
Calmar ratio: Return relative to maximum drawdown	4.23	3.39	+0.84
Martin ratio: Return relative to average drawdown	13.54	11.29	+2.25

EMDM vs. FRDM - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.38, which is comparable to the FRDM Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of EMDM and FRDM, 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. FRDM - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for EMDM and FRDM.

Drawdown Indicators

	EMDM	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-40.49%	+21.68%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-19.24%	+3.59%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-19.24%	+0.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-29.25%	—
Current Drawdown Current decline from peak	-10.88%	-14.15%	+3.27%
Average Drawdown Average peak-to-trough decline	-4.20%	-7.13%	+2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.88%	5.77%	-0.89%

Volatility

EMDM vs. FRDM - Volatility Comparison

The current volatility for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is 9.95%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 12.28%. This indicates that EMDM experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.95%	12.28%	-2.33%
Volatility (6M) Calculated over the trailing 6-month period	25.55%	28.47%	-2.92%
Volatility (1Y) Calculated over the trailing 1-year period	27.87%	30.66%	-2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.16%	22.38%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.16%	23.62%	-2.46%

EMDM vs. FRDM - Expense Ratio Comparison

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

Dividends

EMDM vs. FRDM - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.96%, more than FRDM's 1.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.96%	3.57%	5.87%	2.16%	0.00%	0.00%	0.00%	0.00%
FRDM Freedom 100 Emerging Markets ETF	1.69%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%

Frequently Asked Questions

Can I hold both EMDM and FRDM in my portfolio?

With a correlation of 0.95, EMDM and FRDM 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 FRDM?

FRDM has higher volatility (12.28%) compared to EMDM (9.95%). In terms of maximum drawdown, EMDM dropped -18.81% vs FRDM's -40.49%.

Which ETF is better, EMDM or FRDM?

On 3-year performance, FRDM leads with 29.15% vs 26.67% for EMDM. On fees, FRDM is cheaper at 0.49% per year. 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 FRDM?

Over the 3-year period, FRDM has performed better with a 29.15% 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 FRDM?

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

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

EMDM has the higher dividend yield at 2.96%, compared with 1.69% for FRDM.

What is the main difference between EMDM and FRDM?

EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: First Trust and Freedom Funds. Their fees differ too: 0.75% for EMDM and 0.49% for FRDM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.38 vs 2.13), 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.