FEMB vs. FALN
Compare and contrast key facts about First Trust Emerging Markets Local Currency Bond ETF (FEMB) and iShares Fallen Angels USD Bond ETF (FALN).
FEMB and FALN 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. FALN is a passively managed fund by iShares that tracks the performance of the Bloomberg US High Yield Fallen Angel 3% Capped Index. It was launched on Jun 14, 2016.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FEMB or FALN.
Key characteristics
| FEMB | FALN | |
|---|---|---|
| YTD Return | -2.43% | 7.73% |
| 1Y Return | 2.58% | 14.46% |
| 3Y Return (Ann) | -0.07% | 1.55% |
| 5Y Return (Ann) | -1.34% | 5.54% |
| Sharpe Ratio | 0.28 | 2.95 |
| Sortino Ratio | 0.49 | 4.53 |
| Omega Ratio | 1.05 | 1.58 |
| Calmar Ratio | 0.18 | 1.63 |
| Martin Ratio | 0.83 | 20.87 |
| Ulcer Index | 3.28% | 0.69% |
| Daily Std Dev | 9.70% | 4.91% |
| Max Drawdown | -30.44% | -29.22% |
| Current Drawdown | -12.26% | -0.51% |
Correlation
The correlation between FEMB and FALN is 0.41, 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.
Performance
FEMB vs. FALN - Performance Comparison
In the year-to-date period, FEMB achieves a -2.43% return, which is significantly lower than FALN's 7.73% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FEMB vs. FALN - Expense Ratio Comparison
FEMB has a 0.85% expense ratio, which is higher than FALN's 0.25% expense ratio.
Risk-Adjusted Performance
FEMB vs. FALN - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Local Currency Bond ETF (FEMB) and iShares Fallen Angels USD Bond ETF (FALN). 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.
Dividends
FEMB vs. FALN - Dividend Comparison
FEMB's dividend yield for the trailing twelve months is around 5.80%, less than FALN's 6.09% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
FEMB First Trust Emerging Markets Local Currency Bond ETF | 5.80% | 5.15% | 6.36% | 6.12% | 5.29% | 5.40% | 5.86% | 6.38% | 5.83% | 4.89% | 0.62% |
FALN iShares Fallen Angels USD Bond ETF | 6.09% | 5.38% | 5.08% | 3.39% | 5.14% | 5.35% | 5.97% | 6.99% | 3.54% | 0.00% | 0.00% |
Drawdowns
FEMB vs. FALN - Drawdown Comparison
The maximum FEMB drawdown since its inception was -30.44%, roughly equal to the maximum FALN drawdown of -29.22%. Use the drawdown chart below to compare losses from any high point for FEMB and FALN. For additional features, visit the drawdowns tool.
Volatility
FEMB vs. FALN - Volatility Comparison
First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 2.11% compared to iShares Fallen Angels USD Bond ETF (FALN) at 1.27%. This indicates that FEMB's price experiences larger fluctuations and is considered to be riskier than FALN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.