EMDM vs. TDEC

Last updated Aug 4, 2026

EMDM (First Trust Bloomberg Emerging Market Democracies ETF) and TDEC (FT Vest Emerging Markets Buffer ETF - December) are both exchange-traded funds - EMDM is a Emerging Markets Equities fund tracking the Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while TDEC is a Defined Outcome fund tracking the MSCI Emerging Markets. Both are passively managed. Over the past year, EMDM returned 66.69% vs 18.55% for TDEC. Their correlation of 0.87 means they have usually moved in the same direction. EMDM charges 0.75%/yr vs 0.95%/yr for TDEC.

Performance

EMDM vs. TDEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and FT Vest Emerging Markets Buffer ETF - December (TDEC). 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 TDEC's 8.63% 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%

TDEC

• 1D: 0.34%
• 1M: 1.07%
• 6M: 4.11%
• YTD: 8.63%
• 1Y: 18.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 18.20%

*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
TDEC FT Vest Emerging Markets Buffer ETF - December	$55.26K	$76.69K	$194.15K

EMDM vs. TDEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EMDM First Trust Bloomberg Emerging Market Democracies ETF	28.39%	59.68%	-2.11%
TDEC FT Vest Emerging Markets Buffer ETF - December	8.63%	21.39%	-0.75%

Correlation

The correlation between EMDM and TDEC is 0.88, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.88
Correlation (All Time) Calculated using the full available price history since Dec 23, 2024	0.87

The correlation between EMDM and TDEC has been stable across timeframes, ranging from 0.87 to 0.88 - a consistent structural relationship.

Return for Risk

EMDM vs. TDEC — 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

TDEC

TDEC Risk / Return Rank: 68
TDEC Sharpe Ratio Rank: 67
TDEC Sortino Ratio Rank: 65
TDEC Omega Ratio Rank: 80
TDEC Calmar Ratio Rank: 60
TDEC Martin Ratio Rank: 69

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. TDEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Emerging Market Democracies ETF (EMDM) and FT Vest Emerging Markets Buffer ETF - December (TDEC). 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	TDEC	Difference
Sharpe ratio: Return per unit of total volatility	2.41	1.69	+0.72
Sortino ratio: Return per unit of downside risk	2.94	2.34	+0.60
Omega ratio: Gain probability vs. loss probability	1.42	1.36	+0.05
Calmar ratio: Return relative to maximum drawdown	4.28	2.28	+2.00
Martin ratio: Return relative to average drawdown	13.58	9.26	+4.32

EMDM vs. TDEC - Sharpe Ratio Comparison

The current EMDM Sharpe Ratio is 2.41, which is higher than the TDEC Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of EMDM and TDEC, 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. TDEC - Drawdown Comparison

The maximum EMDM drawdown since its inception was -18.81%, which is greater than TDEC's maximum drawdown of -10.30%. Use the drawdown chart below to compare losses from any high point for EMDM and TDEC.

Drawdown Indicators

	EMDM	TDEC	Difference
Max Drawdown Largest peak-to-trough decline	-18.81%	-10.30%	-8.51%
Max Drawdown (1Y) Largest decline over 1 year	-15.65%	-8.16%	-7.49%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	—	—
Current Drawdown Current decline from peak	-10.51%	-1.25%	-9.26%
Average Drawdown Average peak-to-trough decline	-4.21%	-1.12%	-3.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	2.01%	+2.92%

Volatility

EMDM vs. TDEC - Volatility Comparison

First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a higher volatility of 9.92% compared to FT Vest Emerging Markets Buffer ETF - December (TDEC) at 3.53%. This indicates that EMDM's price experiences larger fluctuations and is considered to be riskier than TDEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMDM	TDEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.92%	3.53%	+6.39%
Volatility (6M) Calculated over the trailing 6-month period	25.36%	10.26%	+15.10%
Volatility (1Y) Calculated over the trailing 1-year period	27.91%	11.07%	+16.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	11.97%	+9.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.15%	11.97%	+9.18%

EMDM vs. TDEC - Expense Ratio Comparison

EMDM has a 0.75% expense ratio, which is lower than TDEC's 0.95% expense ratio.

Dividends

EMDM vs. TDEC - Dividend Comparison

EMDM's dividend yield for the trailing twelve months is around 2.95%, while TDEC has not paid dividends to shareholders.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.95%	3.57%	5.87%	2.16%
TDEC FT Vest Emerging Markets Buffer ETF - December	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EMDM and TDEC in my portfolio?

EMDM and TDEC have a correlation of 0.88, 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 TDEC?

EMDM has higher volatility (9.92%) compared to TDEC (3.53%). In terms of maximum drawdown, EMDM dropped -18.81% vs TDEC's -10.30%.

Which ETF is better, EMDM or TDEC?

On 1-year performance, EMDM leads with 66.69% vs 18.55% for TDEC. On fees, EMDM is cheaper at 0.75% per year. On volatility, TDEC has been the lower-risk option at 3.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMDM or TDEC?

Over the 1-year period, EMDM has performed better with a 66.69% return vs 18.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMDM or TDEC?

EMDM is cheaper with a 0.75% expense ratio, compared with 0.95% for TDEC.

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

EMDM has the higher dividend yield at 2.95%, compared with 0.00% for TDEC.

What is the main difference between EMDM and TDEC?

EMDM is categorized as Emerging Markets Equities, while TDEC is Defined Outcome. EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net, while TDEC tracks MSCI Emerging Markets. They also come from different issuers: First Trust and FT Vest. Their fees differ too: 0.75% for EMDM and 0.95% for TDEC.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (2.41 vs 1.69), 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.