EMDM vs. MOOD

Last updated Jun 13, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and MOOD (Relative Sentiment Tactical Allocation ETF) are both exchange-traded funds - EMDM is a Emerging Markets Diversified fund tracking the Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while MOOD is a Tactical Allocation fund actively managed by Relative Sentiment. EMDM is passively managed, while MOOD is actively managed. Over the past 3 years, EMDM returned 30.34%/yr vs 20.20%/yr for MOOD. A 0.76 correlation means they provide meaningful diversification when combined. EMDM charges 0.75%/yr vs 0.68%/yr for MOOD.

Performance

EMDM vs. MOOD - Performance Comparison

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

Returns By Period

In the year-to-date period, EMDM achieves a 36.28% return, which is significantly higher than MOOD's 14.12% return.

EMDM

• 1D: 0.70%
• 1M: 2.75%
• YTD: 36.28%
• 6M: 42.03%
• 1Y: 80.58%
• 3Y*: 30.34%
• 5Y*: —
• 10Y*: —

MOOD

• 1D: 0.41%
• 1M: 1.18%
• YTD: 14.12%
• 6M: 15.59%
• 1Y: 33.44%
• 3Y*: 20.20%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

EMDM vs. MOOD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	36.28%	59.68%	-4.93%	14.75%
MOOD Relative Sentiment Tactical Allocation ETF	14.12%	30.39%	12.53%	8.29%

Correlation

The correlation between EMDM and MOOD is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (All Time) Calculated using the full available price history since Mar 3, 2023	0.76

The correlation between EMDM and MOOD has been stable across timeframes, ranging from 0.76 to 0.78 - a consistent structural relationship.

EMDM vs. MOOD - Sectors Allocation Comparison

Sectors	EMDM	MOOD
Technology	32.1%	27.6%
Financial Services	27.2%	15.7%
Basic Materials	15.1%	4.4%
Energy	6.3%	3.7%
Consumer Cyclical	6.0%	9.5%
Communication Services	4.3%	7.9%
Consumer Defensive	3.4%	5.1%
Industrials	3.3%	12.6%
Utilities	1.9%	2.7%
Healthcare	0.5%	8.4%
Real Estate	-	2.5%

Return for Risk

EMDM vs. MOOD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EMDM

EMDM Risk / Return Rank: 92
EMDM Sharpe Ratio Rank: 94
EMDM Sortino Ratio Rank: 91
EMDM Omega Ratio Rank: 92
EMDM Calmar Ratio Rank: 91
EMDM Martin Ratio Rank: 92

MOOD

MOOD Risk / Return Rank: 77
MOOD Sharpe Ratio Rank: 83
MOOD Sortino Ratio Rank: 70
MOOD Omega Ratio Rank: 86
MOOD Calmar Ratio Rank: 77
MOOD Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EMDM vs. MOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Relative Sentiment Tactical Allocation ETF (MOOD). 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	MOOD	Difference
Sharpe ratio: Return per unit of total volatility	3.21	2.32	+0.89
Sortino ratio: Return per unit of downside risk	3.78	2.76	+1.02
Omega ratio: Gain probability vs. loss probability	1.55	1.45	+0.10
Calmar ratio: Return relative to maximum drawdown	5.18	3.46	+1.71
Martin ratio: Return relative to average drawdown	20.59	10.68	+9.91

EMDM vs. MOOD - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 3.21, which is higher than the MOOD Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of EMDM and MOOD, 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. MOOD - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, which is greater than MOOD's maximum drawdown of -14.34%. Use the drawdown chart below to compare losses from any high point for EMDM and MOOD.

Drawdown Indicators

	EMDM	MOOD	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-14.34%	-4.47%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-9.71%	-5.94%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-9.71%	-9.10%
Current Drawdown Current decline from peak	-3.27%	-0.86%	-2.41%
Average Drawdown Average peak-to-trough decline	-4.08%	-2.32%	-1.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.93%	3.14%	+0.79%

Volatility

EMDM vs. MOOD - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 12.16% compared to Relative Sentiment Tactical Allocation ETF (MOOD) at 4.19%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than MOOD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	MOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.16%	4.19%	+7.97%
Volatility (6M) Calculated over the trailing 6-month period	22.86%	12.73%	+10.13%
Volatility (1Y) Calculated over the trailing 1-year period	25.23%	14.49%	+10.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.36%	12.13%	+8.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.36%	12.13%	+8.23%

EMDM vs. MOOD - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is higher than MOOD's 0.68% expense ratio.

Dividends

EMDM vs. MOOD - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.62%, more than MOOD's 0.35% yield.

Position	TTM	2025	2024	2023	2022
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.62%	3.57%	5.87%	2.16%	0.00%
MOOD Relative Sentiment Tactical Allocation ETF	0.35%	0.40%	1.33%	1.34%	1.43%

Frequently Asked Questions

Can I hold both EMDM and MOOD in my portfolio?

EMDM and MOOD have a correlation of 0.78, 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 MOOD?

EMDM has higher volatility (12.16%) compared to MOOD (4.19%). In terms of maximum drawdown, EMDM dropped -18.81% vs MOOD's -14.34%.

Which ETF is better, EMDM or MOOD?

On 3-year performance, EMDM leads with 30.34% vs 20.20% for MOOD. On fees, MOOD is cheaper at 0.68% per year. On volatility, MOOD has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or MOOD?

Over the 3-year period, EMDM has performed better with a 30.34% return vs 20.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or MOOD?

MOOD is cheaper with a 0.68% expense ratio, compared with 0.75% for EMDM.

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

EMDM has the higher dividend yield at 2.62%, compared with 0.35% for MOOD.

What is the main difference between EMDM and MOOD?

EMDM is categorized as Emerging Markets Diversified, while MOOD is Tactical Allocation. They also come from different issuers: First Trust and Relative Sentiment. Their fees differ too: 0.75% for EMDM and 0.68% for MOOD.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.21 vs 2.32), 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.