FEM vs. MMKT

Last updated Jun 23, 2026

FEM (First Trust Emerging Markets AlphaDEX Fund) and MMKT (Texas Capital Government Money Market ETF) are both exchange-traded funds - FEM is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Index, while MMKT is a Money Market fund actively managed by Texas Capital. FEM is passively managed, while MMKT is actively managed. Over the past year, FEM returned 42.19% vs 3.79% for MMKT. At a correlation of -0.05, they often move in opposite directions. FEM charges 0.80%/yr vs 0.20%/yr for MMKT.

Performance

FEM vs. MMKT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets AlphaDEX Fund (FEM) and Texas Capital Government Money Market ETF (MMKT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEM achieves a 20.65% return, which is significantly higher than MMKT's 1.62% return.

FEM

• 1D: 1.04%
• 1M: 1.06%
• YTD: 20.65%
• 6M: 20.82%
• 1Y: 42.19%
• 3Y*: 20.56%
• 5Y*: 7.94%
• 10Y*: 10.00%

MMKT

• 1D: 0.01%
• 1M: 0.25%
• YTD: 1.62%
• 6M: 1.73%
• 1Y: 3.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FEM vs. MMKT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FEM First Trust Emerging Markets AlphaDEX Fund	20.65%	28.36%	-6.74%
MMKT Texas Capital Government Money Market ETF	1.62%	4.13%	1.22%

Correlation

The correlation between FEM and MMKT is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.09
Correlation (All Time) Calculated using the full available price history since Sep 25, 2024	-0.05

Return for Risk

FEM vs. MMKT — Risk / Return Rank

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

FEM

FEM Risk / Return Rank: 76
FEM Sharpe Ratio Rank: 74
FEM Sortino Ratio Rank: 64
FEM Omega Ratio Rank: 72
FEM Calmar Ratio Rank: 85
FEM Martin Ratio Rank: 82

MMKT

MMKT Risk / Return Rank: 100
MMKT Sharpe Ratio Rank: 100
MMKT Sortino Ratio Rank: 100
MMKT Omega Ratio Rank: 100
MMKT Calmar Ratio Rank: 100
MMKT Martin Ratio Rank: 100

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. MMKT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets AlphaDEX Fund (FEM) and Texas Capital Government Money Market ETF (MMKT). 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	MMKT	Difference
Sharpe ratio: Return per unit of total volatility	2.29	16.76	-14.47
Sortino ratio: Return per unit of downside risk	2.87	62.94	-60.07
Omega ratio: Gain probability vs. loss probability	1.41	15.54	-14.13
Calmar ratio: Return relative to maximum drawdown	4.56	152.72	-148.17
Martin ratio: Return relative to average drawdown	15.81	913.70	-897.90

FEM vs. MMKT - Sharpe Ratio Comparison

The current FEM Sharpe Ratio is 2.29, which is lower than the MMKT Sharpe Ratio of 16.76. The chart below compares the historical Sharpe Ratios of FEM and MMKT, 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. MMKT - Drawdown Comparison

The maximum FEM drawdown since its inception was -46.23%, which is greater than MMKT's maximum drawdown of -0.04%. Use the drawdown chart below to compare losses from any high point for FEM and MMKT.

Drawdown Indicators

	FEM	MMKT	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-0.04%	-46.19%
Max Drawdown (1Y) Largest decline over 1 year	-9.31%	-0.02%	-9.29%
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	-2.28%	0.00%	-2.28%
Average Drawdown Average peak-to-trough decline	-15.01%	-0.00%	-15.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	0.00%	+2.68%

Volatility

FEM vs. MMKT - Volatility Comparison

First Trust Emerging Markets AlphaDEX Fund (FEM) has a higher volatility of 7.89% compared to Texas Capital Government Money Market ETF (MMKT) at 0.05%. This indicates that FEM's price experiences larger fluctuations and is considered to be riskier than MMKT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEM	MMKT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.89%	0.05%	+7.84%
Volatility (6M) Calculated over the trailing 6-month period	15.85%	0.13%	+15.72%
Volatility (1Y) Calculated over the trailing 1-year period	18.54%	0.23%	+18.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.60%	0.23%	+18.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.01%	0.23%	+20.78%

FEM vs. MMKT - Expense Ratio Comparison

FEM has a 0.80% expense ratio, which is higher than MMKT's 0.20% expense ratio.

Dividends

FEM vs. MMKT - Dividend Comparison

FEM's dividend yield for the trailing twelve months is around 2.58%, less than MMKT's 3.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEM First Trust Emerging Markets AlphaDEX Fund	2.58%	3.13%	3.66%	4.96%	6.15%	4.15%	2.68%	3.31%	3.52%	2.45%	2.25%	3.61%
MMKT Texas Capital Government Money Market ETF	3.71%	3.98%	1.07%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FEM and MMKT in my portfolio?

FEM and MMKT have a correlation of -0.09, 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 MMKT?

FEM has higher volatility (7.89%) compared to MMKT (0.05%). In terms of maximum drawdown, FEM dropped -46.23% vs MMKT's -0.04%.

Which ETF is better, FEM or MMKT?

On 1-year performance, FEM leads with 42.19% vs 3.79% for MMKT. On fees, MMKT is cheaper at 0.20% per year. On volatility, MMKT has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEM or MMKT?

Over the 1-year period, FEM has performed better with a 42.19% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEM or MMKT?

MMKT is cheaper with a 0.20% expense ratio, compared with 0.80% for FEM.

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

MMKT has the higher dividend yield at 3.71%, compared with 2.58% for FEM.

What is the main difference between FEM and MMKT?

FEM is categorized as Emerging Markets Equities, while MMKT is Money Market. They also come from different issuers: First Trust and Texas Capital. Their fees differ too: 0.80% for FEM and 0.20% for MMKT.

Which has better risk-adjusted returns?

MMKT currently has the higher Sharpe Ratio (16.76 vs 2.29), 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.