FEMB vs. BWZ
FEMB (First Trust Emerging Markets Local Currency Bond ETF) and BWZ (SPDR Bloomberg Barclays Short Term International Treasury Bond ETF) are both exchange-traded funds - FEMB is a Emerging Markets Bonds fund actively managed by First Trust, while BWZ is a International Government Bonds fund tracking the Bloomberg Global Treasury (1-3 Y) Customized. FEMB is actively managed, while BWZ is passively managed. Over the past 10 years, FEMB returned 1.90%/yr vs -0.57%/yr for BWZ. At a 0.44 correlation, their price movements are largely independent. FEMB charges 0.85%/yr vs 0.35%/yr for BWZ.
Performance
FEMB vs. BWZ - Performance Comparison
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Returns By Period
In the year-to-date period, FEMB achieves a 1.12% return, which is significantly higher than BWZ's -1.65% return. Over the past 10 years, FEMB has outperformed BWZ with an annualized return of 1.90%, while BWZ has yielded a comparatively lower -0.57% annualized return.
FEMB
- 1D
- -0.53%
- 1M
- 1.08%
- YTD
- 1.12%
- 6M
- 1.60%
- 1Y
- 9.82%
- 3Y*
- 6.95%
- 5Y*
- 2.30%
- 10Y*
- 1.90%
BWZ
- 1D
- -0.45%
- 1M
- -1.11%
- YTD
- -1.65%
- 6M
- -1.18%
- 1Y
- -1.14%
- 3Y*
- 2.15%
- 5Y*
- -1.80%
- 10Y*
- -0.57%
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 | 1.12% | 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 | -1.65% | 10.47% | -5.31% | 2.97% | -10.56% | -6.85% | 6.47% | 0.99% | -3.36% | 10.18% |
Correlation
The correlation between FEMB and BWZ is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.44 |
The correlation between FEMB and BWZ shifts across timeframes, from 0.44 (all time) to 0.63 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FEMB vs. BWZ — Risk / Return Rank
FEMB
BWZ
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.
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.
| FEMB | BWZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.31 | ||
| Sortino ratioReturn per unit of downside risk | +1.87 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 0.98 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.30 | -0.22 | +1.52 |
| Martin ratioReturn relative to average drawdown | 3.97 | -0.47 | +4.44 |
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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.
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Drawdown Indicators
| FEMB | BWZ | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 (3Y)Largest decline over 3 years | -10.13% | -8.60% | -1.53% |
Max Drawdown (5Y)Largest decline over 5 years | -25.93% | -22.15% | -3.78% |
Max Drawdown (10Y)Largest decline over 10 years | -30.44% | -24.90% | -5.54% |
Current DrawdownCurrent decline from peak | -3.41% | -23.20% | +19.79% |
Average DrawdownAverage peak-to-trough decline | -9.90% | -16.12% | +6.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.48% | 2.40% | +0.08% |
Volatility
FEMB vs. BWZ - Volatility Comparison
First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 2.80% compared to SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) at 1.77%. 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.
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Volatility by Period
| FEMB | BWZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.80% | 1.77% | +1.03% |
Volatility (6M)Calculated over the trailing 6-month period | 6.87% | 5.11% | +1.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.61% | 6.87% | +1.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.27% | 7.60% | +2.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.86% | 6.96% | +3.90% |
FEMB vs. BWZ - Expense Ratio Comparison
FEMB has a 0.85% expense ratio, which is higher than BWZ's 0.35% expense ratio.
Dividends
FEMB vs. BWZ - Dividend Comparison
FEMB's dividend yield for the trailing twelve months is around 6.03%, more than BWZ's 2.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | 2.12% | 2.05% | 2.47% | 1.63% | 0.44% | 0.60% | 0.13% | 0.43% | 1.10% | 0.40% | 0.13% | 0.06% |
FEMB First Trust Emerging Markets Local Currency Bond ETF | 6.03% | 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
FEMB and BWZ have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEMB has higher volatility (2.80%) compared to BWZ (1.77%). In terms of maximum drawdown, FEMB dropped -30.44% vs BWZ's -34.23%.
On 10-year performance, FEMB leads with 1.90% vs -0.57% for BWZ. On fees, BWZ is cheaper at 0.35% per year. On volatility, BWZ has been the lower-risk option at 1.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FEMB has performed better with a 1.90% return vs -0.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BWZ is cheaper with a 0.35% expense ratio, compared with 0.85% for FEMB.
FEMB has the higher dividend yield at 6.03%, compared with 2.12% for BWZ.
FEMB is categorized as Emerging Markets Bonds, while BWZ is International Government Bonds. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.85% for FEMB and 0.35% for BWZ.
FEMB currently has the higher Sharpe Ratio (1.15 vs -0.17), 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.
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