EMDM vs. PEMX

Last updated Jun 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and PEMX (Putnam Emerging Markets Ex-China ETF) are both Emerging Markets Diversified funds. EMDM is passively managed, while PEMX is actively managed. Over the past 3 years, EMDM returned 32.95%/yr vs 34.73%/yr for PEMX. Their correlation of 0.87 suggests significant overlap in exposure. EMDM charges 0.75%/yr vs 0.85%/yr for PEMX.

Performance

EMDM vs. PEMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Putnam Emerging Markets Ex-China ETF (PEMX). 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 39.03% return and PEMX slightly higher at 40.36%.

EMDM

• 1D: -1.32%
• 1M: 11.04%
• YTD: 39.03%
• 6M: 45.21%
• 1Y: 91.32%
• 3Y*: 32.95%
• 5Y*: —
• 10Y*: —

PEMX

• 1D: -0.63%
• 1M: 11.09%
• YTD: 40.36%
• 6M: 45.50%
• 1Y: 75.31%
• 3Y*: 34.73%
• 5Y*: —
• 10Y*: —

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

EMDM vs. PEMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	39.03%	59.68%	-4.93%	13.57%
PEMX Putnam Emerging Markets Ex-China ETF	40.36%	34.01%	17.21%	15.13%

Correlation

The correlation between EMDM and PEMX is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since May 19, 2023	0.87

The correlation between EMDM and PEMX has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

EMDM vs. PEMX - Sectors Allocation Comparison

Sectors	EMDM	PEMX
Technology	32.1%	45.0%
Financial Services	27.2%	24.4%
Basic Materials	15.1%	2.8%
Energy	6.3%	-
Consumer Cyclical	6.0%	4.2%
Communication Services	4.3%	6.6%
Consumer Defensive	3.4%	1.2%
Industrials	3.3%	8.6%
Utilities	1.9%	4.5%
Healthcare	0.5%	1.9%
Real Estate	-	0.9%

Return for Risk

EMDM vs. PEMX — Risk / Return Rank

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

EMDM

EMDM Risk / Return Rank: 93
EMDM Sharpe Ratio Rank: 95
EMDM Sortino Ratio Rank: 92
EMDM Omega Ratio Rank: 93
EMDM Calmar Ratio Rank: 91
EMDM Martin Ratio Rank: 93

PEMX

PEMX Risk / Return Rank: 90
PEMX Sharpe Ratio Rank: 93
PEMX Sortino Ratio Rank: 91
PEMX Omega Ratio Rank: 91
PEMX Calmar Ratio Rank: 88
PEMX Martin Ratio Rank: 90

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. PEMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Putnam Emerging Markets Ex-China ETF (PEMX). 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.

	EMDM	PEMX	Difference
Sharpe ratio Return per unit of total volatility	3.92	3.52	+0.40
Sortino ratio Return per unit of downside risk	4.56	4.30	+0.26
Omega ratio Gain probability vs. loss probability	1.66	1.59	+0.06
Calmar ratio Return relative to maximum drawdown	5.87	5.24	+0.62
Martin ratio Return relative to average drawdown	24.30	20.66	+3.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMDM vs. PEMX - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 3.92, which is comparable to the PEMX Sharpe Ratio of 3.52. The chart below compares the historical Sharpe Ratios of EMDM and PEMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EMDM	PEMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.92	3.52	+0.40
Sharpe Ratio (All Time) Calculated using the full available price history	1.58	1.99	-0.40

Drawdowns

EMDM vs. PEMX - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, which is greater than PEMX's maximum drawdown of -14.91%. Use the drawdown chart below to compare losses from any high point for EMDM and PEMX.

Drawdown Indicators

	EMDM	PEMX	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-14.91%	-3.90%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-14.45%	-1.20%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-14.91%	-3.90%
Current Drawdown Current decline from peak	-1.32%	-0.63%	-0.69%
Average Drawdown Average peak-to-trough decline	-4.07%	-2.84%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.77%	3.66%	+0.11%

Volatility

EMDM vs. PEMX - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and Putnam Emerging Markets Ex-China ETF (PEMX) have volatilities of 9.61% and 9.67%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	PEMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.61%	9.67%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	20.78%	18.73%	+2.05%
Volatility (1Y) Calculated over the trailing 1-year period	23.42%	21.51%	+1.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	18.18%	+1.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.79%	18.18%	+1.61%

EMDM vs. PEMX - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is lower than PEMX's 0.85% expense ratio.

Dividends

EMDM vs. PEMX - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.57%, less than PEMX's 4.99% yield.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.57%	3.57%	5.87%	2.16%
PEMX Putnam Emerging Markets Ex-China ETF	4.99%	7.00%	5.00%	0.72%

Frequently Asked Questions

Can I hold both EMDM and PEMX in my portfolio?

With a correlation of 0.92, EMDM and PEMX 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 PEMX?

PEMX has higher volatility (9.67%) compared to EMDM (9.61%). In terms of maximum drawdown, EMDM dropped -18.81% vs PEMX's -14.91%.

Which ETF is better, EMDM or PEMX?

On 3-year performance, PEMX leads with 34.73% vs 32.95% for EMDM. On fees, EMDM is cheaper at 0.75% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or PEMX?

Over the 3-year period, PEMX has performed better with a 34.73% return vs 32.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or PEMX?

EMDM is cheaper with a 0.75% expense ratio, compared with 0.85% for PEMX.

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

PEMX has the higher dividend yield at 4.99%, compared with 2.57% for EMDM.

What is the main difference between EMDM and PEMX?

They also come from different issuers: First Trust and Putnam. Their fees differ too: 0.75% for EMDM and 0.85% for PEMX.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.92 vs 3.52), 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.