FEMB vs. BWZ

Last updated Apr 1, 2026

Compare and contrast key facts about First Trust Emerging Markets Local Currency Bond ETF (FEMB) and SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ).

FEMB and BWZ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FEMB is an actively managed fund by First Trust. It was launched on Nov 4, 2014. BWZ is a passively managed fund by State Street that tracks the performance of the Bloomberg Global Treasury (1-3 Y) Customized. It was launched on Jan 15, 2009.

Performance

FEMB vs. BWZ - 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 SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ). The values are adjusted to include any dividend payments, if applicable.

FEMB vs. BWZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEMB First Trust Emerging Markets Local Currency Bond ETF	-2.12%	21.77%	-5.61%	17.12%	-10.50%	-13.40%	3.16%	11.52%	-7.19%	11.92%
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF	-1.47%	10.47%	-5.31%	2.97%	-10.56%	-6.85%	6.47%	0.99%	-3.36%	10.18%

Returns By Period

In the year-to-date period, FEMB achieves a -2.12% return, which is significantly lower than BWZ's -1.47% return. Over the past 10 years, FEMB has outperformed BWZ with an annualized return of 1.94%, while BWZ has yielded a comparatively lower -0.56% annualized return.

FEMB

• 1D: 1.15%
• 1M: -6.18%
• YTD: -2.12%
• 6M: 0.86%
• 1Y: 13.41%
• 3Y*: 7.19%
• 5Y*: 2.14%
• 10Y*: 1.94%

BWZ

• 1D: 0.75%
• 1M: -3.02%
• YTD: -1.47%
• 6M: -2.27%
• 1Y: 4.60%
• 3Y*: 1.67%
• 5Y*: -1.67%
• 10Y*: -0.56%

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

FEMB vs. BWZ - Expense Ratio Comparison

FEMB has a 0.85% expense ratio, which is higher than BWZ's 0.35% expense ratio.

FEMB

First Trust Emerging Markets Local Currency Bond ETF

BWZ

SPDR Bloomberg Barclays Short Term International Treasury Bond ETF

Return for Risk

FEMB vs. BWZ — Risk / Return Rank

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

FEMB

FEMB Risk / Return Rank: 77
FEMB Sharpe Ratio Rank: 81
FEMB Sortino Ratio Rank: 81
FEMB Omega Ratio Rank: 77
FEMB Calmar Ratio Rank: 72
FEMB Martin Ratio Rank: 74

BWZ

BWZ Risk / Return Rank: 31
BWZ Sharpe Ratio Rank: 33
BWZ Sortino Ratio Rank: 33
BWZ Omega Ratio Rank: 28
BWZ Calmar Ratio Rank: 32
BWZ Martin Ratio Rank: 27

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. BWZ - 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 SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ). 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	BWZ	Difference
Sharpe ratio Return per unit of total volatility	1.51	0.59	+0.91
Sortino ratio Return per unit of downside risk	2.07	0.92	+1.15
Omega ratio Gain probability vs. loss probability	1.29	1.11	+0.18
Calmar ratio Return relative to maximum drawdown	1.83	0.76	+1.07
Martin ratio Return relative to average drawdown	7.66	2.05	+5.61
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. BWZ - Sharpe Ratio Comparison

The current FEMB Sharpe Ratio is 1.51, which is higher than the BWZ Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of FEMB and BWZ, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	FEMB	BWZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.51	0.59	+0.91
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.21	-0.22	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.17	-0.08	+0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	-0.03	+0.10

Correlation

The correlation between FEMB and BWZ is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

FEMB vs. BWZ - Dividend Comparison

FEMB's dividend yield for the trailing twelve months is around 6.00%, more than BWZ's 2.05% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEMB First Trust Emerging Markets Local Currency Bond ETF	6.00%	5.67%	6.09%	5.15%	6.35%	6.12%	5.29%	5.40%	5.86%	6.38%	5.83%	4.89%
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF	2.05%	2.05%	2.47%	1.63%	0.44%	0.60%	0.13%	0.43%	1.10%	0.40%	0.13%	0.06%

Drawdowns

FEMB vs. BWZ - Drawdown Comparison

The maximum FEMB drawdown since its inception was -30.44%, smaller than the maximum BWZ drawdown of -34.23%. Use the drawdown chart below to compare losses from any high point for FEMB and BWZ.

Drawdown Indicators

	FEMB	BWZ	Difference
Max Drawdown Largest peak-to-trough decline	-30.44%	-34.23%	+3.79%
Max Drawdown (1Y) Largest decline over 1 year	-7.58%	-5.15%	-2.43%
Max Drawdown (5Y) Largest decline over 5 years	-27.85%	-23.72%	-4.13%
Max Drawdown (10Y) Largest decline over 10 years	-30.44%	-24.90%	-5.54%
Current Drawdown Current decline from peak	-6.52%	-23.06%	+16.54%
Average Drawdown Average peak-to-trough decline	-10.03%	-16.04%	+6.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.81%	1.92%	-0.11%

Volatility

FEMB vs. BWZ - Volatility Comparison

First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 3.81% compared to SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) at 2.80%. This indicates that FEMB's price experiences larger fluctuations and is considered to be riskier than BWZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMB	BWZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	2.80%	+1.01%
Volatility (6M) Calculated over the trailing 6-month period	5.46%	4.76%	+0.70%
Volatility (1Y) Calculated over the trailing 1-year period	8.94%	7.82%	+1.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.21%	7.56%	+2.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.22%	6.96%	+4.26%