FALN vs. FEMB
FALN (iShares Fallen Angels USD Bond ETF) and FEMB (First Trust Emerging Markets Local Currency Bond ETF) are both exchange-traded funds - FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index, while FEMB is a Emerging Markets Bonds fund actively managed by First Trust. FALN is passively managed, while FEMB is actively managed. Over the past 5 years, FALN returned 3.89%/yr vs 1.91%/yr for FEMB. At a 0.41 correlation, their price movements are largely independent. FALN charges 0.25%/yr vs 0.85%/yr for FEMB.
Performance
FALN vs. FEMB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FALN achieves a 1.78% return, which is significantly higher than FEMB's 1.43% return.
FALN
- 1D
- 0.00%
- 1M
- 0.57%
- YTD
- 1.78%
- 6M
- 1.70%
- 1Y
- 9.07%
- 3Y*
- 9.26%
- 5Y*
- 3.89%
- 10Y*
- —
FEMB
- 1D
- 0.27%
- 1M
- 0.77%
- YTD
- 1.43%
- 6M
- 2.67%
- 1Y
- 11.30%
- 3Y*
- 8.09%
- 5Y*
- 1.91%
- 10Y*
- 2.60%
FALN vs. FEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 1.78% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
FEMB First Trust Emerging Markets Local Currency Bond ETF | 1.43% | 21.77% | -5.61% | 17.12% | -10.50% | -13.40% | 3.16% | 11.52% | -7.19% | 11.92% |
Correlation
The correlation between FALN and FEMB is 0.54, 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 | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2016 | 0.41 |
The correlation between FALN and FEMB shifts across timeframes, from 0.41 (all time) to 0.54 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FALN vs. FEMB — Risk / Return Rank
FALN
FEMB
FALN vs. FEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and First Trust Emerging Markets Local Currency Bond ETF (FEMB). 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.
| FALN | FEMB | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.01 | 1.36 | +0.64 |
Sortino ratioReturn per unit of downside risk | 2.91 | 1.98 | +0.93 |
Omega ratioGain probability vs. loss probability | 1.39 | 1.26 | +0.14 |
Calmar ratioReturn relative to maximum drawdown | 2.28 | 1.50 | +0.78 |
Martin ratioReturn relative to average drawdown | 9.55 | 4.86 | +4.69 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| FALN | FEMB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.01 | 1.36 | +0.64 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.54 | 0.19 | +0.35 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.24 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.74 | 0.09 | +0.65 |
Drawdowns
FALN vs. FEMB - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, roughly equal to the maximum FEMB drawdown of -30.44%. Use the drawdown chart below to compare losses from any high point for FALN and FEMB.
Loading charts...
Drawdown Indicators
| FALN | FEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -30.44% | +1.22% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -7.58% | +3.62% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -10.13% | +4.21% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -27.85% | +9.07% |
Max Drawdown (10Y)Largest decline over 10 years | — | -30.44% | — |
Current DrawdownCurrent decline from peak | -0.04% | -3.12% | +3.08% |
Average DrawdownAverage peak-to-trough decline | -3.32% | -9.94% | +6.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 2.34% | -1.39% |
Volatility
FALN vs. FEMB - Volatility Comparison
The current volatility for iShares Fallen Angels USD Bond ETF (FALN) is 1.40%, while First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a volatility of 3.00%. This indicates that FALN experiences smaller price fluctuations and is considered to be less risky than FEMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FALN | FEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.40% | 3.00% | -1.60% |
Volatility (6M)Calculated over the trailing 6-month period | 3.63% | 6.51% | -2.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.54% | 8.32% | -3.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.31% | 10.25% | -2.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.95% | 10.99% | -2.04% |
FALN vs. FEMB - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than FEMB's 0.85% expense ratio.
Dividends
FALN vs. FEMB - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.45%, more than FEMB's 6.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.45% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% |
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.01% | 5.67% | 6.09% | 5.15% | 6.35% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% |
Frequently Asked Questions
FALN and FEMB have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (3.00%) compared to FALN (1.40%). In terms of maximum drawdown, FALN dropped -29.22% vs FEMB's -30.44%.
On 5-year performance, FALN leads with 3.89% vs 1.91% for FEMB. On fees, FALN is cheaper at 0.25% per year. On volatility, FALN has been the lower-risk option at 1.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FALN has performed better with a 3.89% return vs 1.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FALN is cheaper with a 0.25% expense ratio, compared with 0.85% for FEMB.
FALN has the higher dividend yield at 6.45%, compared with 6.01% for FEMB.
FALN is categorized as High Yield Bonds, while FEMB is Emerging Markets Bonds. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.25% for FALN and 0.85% for FEMB.
FALN currently has the higher Sharpe Ratio (2.01 vs 1.36), 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.
Find the right allocation for FALN and FEMB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer