FEM vs. ECOW

Last updated Jul 17, 2026

FEM (First Trust Emerging Markets AlphaDEX Fund) and ECOW (Pacer Emerging Markets Cash Cows 100 ETF) are both Emerging Markets Equities funds - FEM tracks the NASDAQ AlphaDEX EM Index while ECOW tracks the Pacer Emerging Markets Cash Cows 100 Index. Both are passively managed. Over the past 5 years, FEM returned 7.22%/yr vs 7.05%/yr for ECOW. A 0.75 correlation means they provide meaningful diversification when combined. FEM charges 0.80%/yr vs 0.70%/yr for ECOW.

Performance

FEM vs. ECOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets AlphaDEX Fund (FEM) and Pacer Emerging Markets Cash Cows 100 ETF (ECOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEM achieves a 15.41% return, which is significantly higher than ECOW's 12.74% return.

FEM

• 1D: -1.60%
• 1M: -2.00%
• 6M: 8.55%
• YTD: 15.41%
• 1Y: 29.99%
• 3Y*: 15.77%
• 5Y*: 7.22%
• 10Y*: 8.39%

ECOW

• 1D: 0.70%
• 1M: 1.60%
• 6M: 8.22%
• YTD: 12.74%
• 1Y: 30.43%
• 3Y*: 17.04%
• 5Y*: 7.05%
• 10Y*: —

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

FEM vs. ECOW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FEM First Trust Emerging Markets AlphaDEX Fund	15.41%	28.36%	3.01%	10.84%	-14.24%	7.40%	-1.68%	9.87%
ECOW Pacer Emerging Markets Cash Cows 100 ETF	12.74%	32.50%	3.17%	15.79%	-19.28%	7.47%	-2.51%	10.37%

Correlation

The correlation between FEM and ECOW is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since May 6, 2019	0.75

The correlation between FEM and ECOW has been stable across timeframes, ranging from 0.75 to 0.85 - a consistent structural relationship.

FEM vs. ECOW - Sectors Allocation Comparison

Sectors	FEM	ECOW
Technology	28.4%	6.8%
Industrials	19.8%	9.3%
Energy	12.9%	8.6%
Basic Materials	7.8%	11.1%
Financial Services	6.4%	-
Utilities	6.1%	7.2%
Consumer Cyclical	5.7%	14.7%
Communication Services	4.6%	12.8%
Consumer Defensive	2.9%	13.1%
Healthcare	2.8%	3.6%
Real Estate	2.6%	-

Return for Risk

FEM vs. ECOW — Risk / Return Rank

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

FEM

FEM Risk / Return Rank: 62
FEM Sharpe Ratio Rank: 57
FEM Sortino Ratio Rank: 50
FEM Omega Ratio Rank: 56
FEM Calmar Ratio Rank: 78
FEM Martin Ratio Rank: 68

ECOW

ECOW Risk / Return Rank: 78
ECOW Sharpe Ratio Rank: 81
ECOW Sortino Ratio Rank: 78
ECOW Omega Ratio Rank: 79
ECOW Calmar Ratio Rank: 85
ECOW Martin Ratio Rank: 70

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.

FEM vs. ECOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets AlphaDEX Fund (FEM) and Pacer Emerging Markets Cash Cows 100 ETF (ECOW). 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.

	FEM	ECOW	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.06	-0.52
Sortino ratio: Return per unit of downside risk	2.01	2.79	-0.79
Omega ratio: Gain probability vs. loss probability	1.28	1.37	-0.09
Calmar ratio: Return relative to maximum drawdown	3.24	3.66	-0.43
Martin ratio: Return relative to average drawdown	9.78	9.98	-0.19

FEM vs. ECOW - Sharpe Ratio Comparison

The current FEM Sharpe Ratio is 1.54, which is comparable to the ECOW Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of FEM and ECOW, 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

FEM vs. ECOW - Drawdown Comparison

The maximum FEM drawdown since its inception was -46.23%, which is greater than ECOW's maximum drawdown of -40.27%. Use the drawdown chart below to compare losses from any high point for FEM and ECOW.

Drawdown Indicators

	FEM	ECOW	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-40.27%	-5.96%
Max Drawdown (1Y) Largest decline over 1 year	-9.31%	-8.35%	-0.96%
Max Drawdown (3Y) Largest decline over 3 years	-18.79%	-18.77%	-0.02%
Max Drawdown (5Y) Largest decline over 5 years	-31.72%	-33.30%	+1.58%
Max Drawdown (10Y) Largest decline over 10 years	-46.23%	—	—
Current Drawdown Current decline from peak	-6.52%	-3.83%	-2.69%
Average Drawdown Average peak-to-trough decline	-14.97%	-10.98%	-3.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.07%	3.06%	+0.01%

Volatility

FEM vs. ECOW - Volatility Comparison

First Trust Emerging Markets AlphaDEX Fund (FEM) has a higher volatility of 7.47% compared to Pacer Emerging Markets Cash Cows 100 ETF (ECOW) at 4.23%. This indicates that FEM's price experiences larger fluctuations and is considered to be riskier than ECOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEM	ECOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.47%	4.23%	+3.24%
Volatility (6M) Calculated over the trailing 6-month period	16.93%	12.07%	+4.86%
Volatility (1Y) Calculated over the trailing 1-year period	19.52%	14.85%	+4.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.78%	17.78%	+1.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.95%	20.08%	+0.87%

FEM vs. ECOW - Expense Ratio Comparison

FEM has a 0.80% expense ratio, which is higher than ECOW's 0.70% expense ratio.

Dividends

FEM vs. ECOW - Dividend Comparison

FEM's dividend yield for the trailing twelve months is around 2.28%, less than ECOW's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ECOW Pacer Emerging Markets Cash Cows 100 ETF	4.45%	5.20%	7.35%	5.46%	7.50%	4.39%	3.35%	8.08%	0.00%	0.00%	0.00%	0.00%
FEM First Trust Emerging Markets AlphaDEX Fund	2.28%	3.13%	3.66%	4.96%	6.15%	4.15%	2.68%	3.31%	3.52%	2.45%	2.25%	3.61%

Frequently Asked Questions

Can I hold both FEM and ECOW in my portfolio?

FEM and ECOW have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEM or ECOW?

FEM has higher volatility (7.47%) compared to ECOW (4.23%). In terms of maximum drawdown, FEM dropped -46.23% vs ECOW's -40.27%.

Which ETF is better, FEM or ECOW?

On 5-year performance, FEM leads with 7.22% vs 7.05% for ECOW. On fees, ECOW is cheaper at 0.70% per year. On volatility, ECOW has been the lower-risk option at 4.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEM or ECOW?

Over the 5-year period, FEM has performed better with a 7.22% return vs 7.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEM or ECOW?

ECOW is cheaper with a 0.70% expense ratio, compared with 0.80% for FEM.

Which ETF pays a higher dividend yield, FEM or ECOW?

ECOW has the higher dividend yield at 4.45%, compared with 2.28% for FEM.

What is the main difference between FEM and ECOW?

FEM tracks NASDAQ AlphaDEX EM Index, while ECOW tracks Pacer Emerging Markets Cash Cows 100 Index. They also come from different issuers: First Trust and Pacer. Their fees differ too: 0.80% for FEM and 0.70% for ECOW.

Which has better risk-adjusted returns?

ECOW currently has the higher Sharpe Ratio (2.06 vs 1.54), 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.