FEMB vs. AIRR

Last updated Jun 4, 2026

FEMB (First Trust Emerging Markets Local Currency Bond ETF) and AIRR (First Trust RBA American Industrial Renaissance ETF) are both exchange-traded funds - FEMB is a Emerging Markets Bonds fund actively managed by First Trust, while AIRR is a Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance (TR). FEMB is actively managed, while AIRR is passively managed. Over the past 10 years, FEMB returned 2.51%/yr vs 21.89%/yr for AIRR. At a 0.25 correlation, their price movements are largely independent. FEMB charges 0.85%/yr vs 0.70%/yr for AIRR.

Performance

FEMB vs. AIRR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Local Currency Bond ETF (FEMB) and First Trust RBA American Industrial Renaissance ETF (AIRR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEMB achieves a 0.60% return, which is significantly lower than AIRR's 31.77% return. Over the past 10 years, FEMB has underperformed AIRR with an annualized return of 2.51%, while AIRR has yielded a comparatively higher 21.89% annualized return.

FEMB

• 1D: -0.81%
• 1M: 0.57%
• YTD: 0.60%
• 6M: 0.88%
• 1Y: 10.20%
• 3Y*: 7.79%
• 5Y*: 1.63%
• 10Y*: 2.51%

AIRR

• 1D: 0.54%
• 1M: 3.36%
• YTD: 31.77%
• 6M: 31.32%
• 1Y: 65.82%
• 3Y*: 37.10%
• 5Y*: 25.40%
• 10Y*: 21.89%

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

FEMB vs. AIRR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEMB First Trust Emerging Markets Local Currency Bond ETF	0.60%	21.77%	-5.61%	17.12%	-10.50%	-13.40%	3.16%	11.52%	-7.19%	11.92%
AIRR First Trust RBA American Industrial Renaissance ETF	31.77%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%

Correlation

The correlation between FEMB and AIRR is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Nov 6, 2014	0.25

The correlation between FEMB and AIRR shifts across timeframes, from 0.25 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FEMB vs. AIRR — Risk / Return Rank

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

FEMB

FEMB Risk / Return Rank: 32
FEMB Sharpe Ratio Rank: 33
FEMB Sortino Ratio Rank: 34
FEMB Omega Ratio Rank: 33
FEMB Calmar Ratio Rank: 28
FEMB Martin Ratio Rank: 30

AIRR

AIRR Risk / Return Rank: 78
AIRR Sharpe Ratio Rank: 79
AIRR Sortino Ratio Rank: 73
AIRR Omega Ratio Rank: 67
AIRR Calmar Ratio Rank: 87
AIRR Martin Ratio Rank: 86

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.

FEMB vs. AIRR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Local Currency Bond ETF (FEMB) and First Trust RBA American Industrial Renaissance ETF (AIRR). 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.

	FEMB	AIRR	Difference
Sharpe ratio: Return per unit of total volatility	1.22	2.61	-1.39
Sortino ratio: Return per unit of downside risk	1.79	3.37	-1.59
Omega ratio: Gain probability vs. loss probability	1.23	1.41	-0.19
Calmar ratio: Return relative to maximum drawdown	1.35	5.05	-3.70
Martin ratio: Return relative to average drawdown	4.34	18.68	-14.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FEMB vs. AIRR - Sharpe Ratio Comparison

The current FEMB Sharpe Ratio is 1.22, which is lower than the AIRR Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of FEMB and AIRR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FEMB	AIRR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.22	2.61	-1.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.16	1.01	-0.85
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.84	-0.61
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	0.67	-0.58

Drawdowns

FEMB vs. AIRR - Drawdown Comparison

The maximum FEMB drawdown since its inception was -30.44%, smaller than the maximum AIRR drawdown of -42.37%. Use the drawdown chart below to compare losses from any high point for FEMB and AIRR.

Drawdown Indicators

	FEMB	AIRR	Difference
Max Drawdown Largest peak-to-trough decline	-30.44%	-42.37%	+11.93%
Max Drawdown (1Y) Largest decline over 1 year	-7.58%	-13.09%	+5.51%
Max Drawdown (3Y) Largest decline over 3 years	-10.13%	-27.95%	+17.82%
Max Drawdown (5Y) Largest decline over 5 years	-27.85%	-27.95%	+0.10%
Max Drawdown (10Y) Largest decline over 10 years	-30.44%	-42.37%	+11.93%
Current Drawdown Current decline from peak	-3.91%	-1.86%	-2.05%
Average Drawdown Average peak-to-trough decline	-9.93%	-7.43%	-2.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	3.53%	-1.18%

Volatility

FEMB vs. AIRR - Volatility Comparison

The current volatility for First Trust Emerging Markets Local Currency Bond ETF (FEMB) is 3.05%, while First Trust RBA American Industrial Renaissance ETF (AIRR) has a volatility of 7.87%. This indicates that FEMB experiences smaller price fluctuations and is considered to be less risky than AIRR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMB	AIRR	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	7.87%	-4.82%
Volatility (6M) Calculated over the trailing 6-month period	6.57%	19.82%	-13.25%
Volatility (1Y) Calculated over the trailing 1-year period	8.36%	25.40%	-17.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.26%	25.29%	-15.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.99%	26.29%	-15.30%

FEMB vs. AIRR - Expense Ratio Comparison

FEMB has a 0.85% expense ratio, which is higher than AIRR's 0.70% expense ratio.

Dividends

FEMB vs. AIRR - Dividend Comparison

FEMB's dividend yield for the trailing twelve months is around 6.06%, more than AIRR's 0.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIRR First Trust RBA American Industrial Renaissance ETF	0.13%	0.19%	0.18%	0.23%	0.12%	0.05%	0.10%	0.20%	0.43%	0.30%	0.08%	0.47%
FEMB First Trust Emerging Markets Local Currency Bond ETF	6.06%	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

Can I hold both FEMB and AIRR in my portfolio?

FEMB and AIRR have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEMB or AIRR?

AIRR has higher volatility (7.87%) compared to FEMB (3.05%). In terms of maximum drawdown, FEMB dropped -30.44% vs AIRR's -42.37%.

Which ETF is better, FEMB or AIRR?

On 10-year performance, AIRR leads with 21.89% vs 2.51% for FEMB. On fees, AIRR is cheaper at 0.70% per year. On volatility, FEMB has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEMB or AIRR?

Over the 10-year period, AIRR has performed better with a 21.89% return vs 2.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEMB or AIRR?

AIRR is cheaper with a 0.70% expense ratio, compared with 0.85% for FEMB.

Which ETF pays a higher dividend yield, FEMB or AIRR?

FEMB has the higher dividend yield at 6.06%, compared with 0.13% for AIRR.

What is the main difference between FEMB and AIRR?

FEMB is categorized as Emerging Markets Bonds, while AIRR is Building & Construction. Their fees differ too: 0.85% for FEMB and 0.70% for AIRR.

Which has better risk-adjusted returns?

AIRR currently has the higher Sharpe Ratio (2.61 vs 1.22), 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.