FEM vs. EQLT

Last updated Aug 4, 2026

FEM (First Trust Emerging Markets AlphaDEX Fund) and EQLT (iShares MSCI Emerging Markets Quality Factor ETF) are both exchange-traded funds - FEM is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Index, while EQLT is a Quality Factor fund tracking the MSCI Emerging Markets Quality Factor Select Index. Both are passively managed. Over the past year, FEM returned 28.96% vs 47.25% for EQLT. Their correlation of 0.81 means they have usually moved in the same direction. FEM charges 0.80%/yr vs 0.35%/yr for EQLT.

Performance

FEM vs. EQLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets AlphaDEX Fund (FEM) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEM achieves a 14.62% return, which is significantly lower than EQLT's 25.30% return.

FEM

• 1D: 1.10%
• 1M: -0.97%
• 6M: 7.32%
• YTD: 14.62%
• 1Y: 28.96%
• 3Y*: 15.72%
• 5Y*: 6.98%
• 10Y*: 8.01%
• ALL TIME*: 3.68%

EQLT

• 1D: 1.99%
• 1M: 0.61%
• 6M: 15.96%
• YTD: 25.30%
• 1Y: 47.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 30.32%

*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)
EQLT iShares MSCI Emerging Markets Quality Factor ETF	$66.04K	$56.95K	$121.40K
FEM First Trust Emerging Markets AlphaDEX Fund	$3.69M	$3.65M	$3.68M

FEM vs. EQLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FEM First Trust Emerging Markets AlphaDEX Fund	14.62%	28.36%	-1.75%
EQLT iShares MSCI Emerging Markets Quality Factor ETF	25.30%	33.93%	-1.29%

Correlation

The correlation between FEM and EQLT is 0.82, 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.	0.82
Correlation (All Time) Calculated using the full available price history since Sep 6, 2024	0.81

The correlation between FEM and EQLT has been stable across timeframes, ranging from 0.81 to 0.82 - a consistent structural relationship.

FEM vs. EQLT - Sectors Allocation Comparison

Sectors	FEM	EQLT
Technology	29.9%	34.8%
Industrials	19.1%	11.4%
Energy	12.2%	3.5%
Financial Services	7.5%	19.5%
Basic Materials	7.2%	6.5%
Utilities	6.0%	1.8%
Consumer Cyclical	5.4%	8.2%
Communication Services	4.6%	5.2%
Consumer Defensive	2.9%	3.5%
Healthcare	2.7%	3.3%
Real Estate	2.5%	0.9%

Return for Risk

FEM vs. EQLT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FEM

FEM Risk / Return Rank: 61
FEM Sharpe Ratio Rank: 58
FEM Sortino Ratio Rank: 51
FEM Omega Ratio Rank: 56
FEM Calmar Ratio Rank: 73
FEM Martin Ratio Rank: 66

EQLT

EQLT Risk / Return Rank: 82
EQLT Sharpe Ratio Rank: 82
EQLT Sortino Ratio Rank: 76
EQLT Omega Ratio Rank: 80
EQLT Calmar Ratio Rank: 90
EQLT Martin Ratio Rank: 82

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.

FEM vs. EQLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets AlphaDEX Fund (FEM) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). 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	EQLT	Difference
Sharpe ratio: Return per unit of total volatility	1.44	2.03	-0.58
Sortino ratio: Return per unit of downside risk	1.90	2.63	-0.73
Omega ratio: Gain probability vs. loss probability	1.26	1.36	-0.10
Calmar ratio: Return relative to maximum drawdown	2.67	3.96	-1.28
Martin ratio: Return relative to average drawdown	8.27	11.90	-3.64

FEM vs. EQLT - Sharpe Ratio Comparison

The current FEM Sharpe Ratio is 1.44, which is comparable to the EQLT Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of FEM and EQLT, 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. EQLT - Drawdown Comparison

The maximum FEM drawdown since its inception was -46.23%, which is greater than EQLT's maximum drawdown of -17.38%. Use the drawdown chart below to compare losses from any high point for FEM and EQLT.

Drawdown Indicators

	FEM	EQLT	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-17.38%	-28.85%
Max Drawdown (1Y) Largest decline over 1 year	-10.88%	-12.00%	+1.12%
Max Drawdown (3Y) Largest decline over 3 years	-18.79%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-31.72%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-46.23%	—	—
Current Drawdown Current decline from peak	-7.17%	-6.54%	-0.63%
Average Drawdown Average peak-to-trough decline	-14.94%	-3.81%	-11.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.51%	3.98%	-0.47%

Volatility

FEM vs. EQLT - Volatility Comparison

First Trust Emerging Markets AlphaDEX Fund (FEM) has a higher volatility of 7.85% compared to iShares MSCI Emerging Markets Quality Factor ETF (EQLT) at 6.29%. This indicates that FEM's price experiences larger fluctuations and is considered to be riskier than EQLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEM	EQLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.85%	6.29%	+1.56%
Volatility (6M) Calculated over the trailing 6-month period	17.34%	21.12%	-3.78%
Volatility (1Y) Calculated over the trailing 1-year period	20.22%	23.48%	-3.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.86%	21.27%	-2.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.01%	21.27%	-0.26%

FEM vs. EQLT - Expense Ratio Comparison

FEM has a 0.80% expense ratio, which is higher than EQLT's 0.35% expense ratio.

Dividends

FEM vs. EQLT - Dividend Comparison

FEM's dividend yield for the trailing twelve months is around 2.30%, less than EQLT's 2.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EQLT iShares MSCI Emerging Markets Quality Factor ETF	2.80%	3.10%	0.51%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FEM First Trust Emerging Markets AlphaDEX Fund	2.30%	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 EQLT in my portfolio?

FEM and EQLT have a correlation of 0.82, 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 EQLT?

FEM has higher volatility (7.85%) compared to EQLT (6.29%). In terms of maximum drawdown, FEM dropped -46.23% vs EQLT's -17.38%.

Which ETF is better, FEM or EQLT?

On 1-year performance, EQLT leads with 47.25% vs 28.96% for FEM. On fees, EQLT is cheaper at 0.35% per year. On volatility, EQLT has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEM or EQLT?

Over the 1-year period, EQLT has performed better with a 47.25% return vs 28.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEM or EQLT?

EQLT is cheaper with a 0.35% expense ratio, compared with 0.80% for FEM.

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

EQLT has the higher dividend yield at 2.80%, compared with 2.30% for FEM.

What is the main difference between FEM and EQLT?

FEM is categorized as Emerging Markets Equities, while EQLT is Quality Factor. FEM tracks NASDAQ AlphaDEX EM Index, while EQLT tracks MSCI Emerging Markets Quality Factor Select Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.80% for FEM and 0.35% for EQLT.

Which has better risk-adjusted returns?

EQLT currently has the higher Sharpe Ratio (2.03 vs 1.44), 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.