FEMB vs. GAEM

Last updated Jun 4, 2026

FEMB (First Trust Emerging Markets Local Currency Bond ETF) and GAEM (Simplify Gamma Emerging Market Bond ETF) are both Emerging Markets Bonds funds. Both are actively managed. Over the past year, FEMB returned 10.20% vs 13.15% for GAEM. At a 0.38 correlation, their price movements are largely independent. FEMB charges 0.85%/yr vs 0.76%/yr for GAEM.

Performance

FEMB vs. GAEM - 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 Simplify Gamma Emerging Market Bond ETF (GAEM). 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 GAEM's 3.26% 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%

GAEM

• 1D: -0.20%
• 1M: 0.20%
• YTD: 3.26%
• 6M: 4.63%
• 1Y: 13.15%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FEMB vs. GAEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FEMB First Trust Emerging Markets Local Currency Bond ETF	0.60%	21.77%	-6.25%
GAEM Simplify Gamma Emerging Market Bond ETF	3.26%	13.55%	3.72%

Correlation

The correlation between FEMB and GAEM is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (All Time) Calculated using the full available price history since Aug 14, 2024	0.38

The correlation between FEMB and GAEM shifts across timeframes, from 0.38 (all time) to 0.49 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FEMB vs. GAEM — 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

GAEM

GAEM Risk / Return Rank: 84
GAEM Sharpe Ratio Rank: 85
GAEM Sortino Ratio Rank: 92
GAEM Omega Ratio Rank: 89
GAEM Calmar Ratio Rank: 73
GAEM Martin Ratio Rank: 83

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. GAEM - 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 Simplify Gamma Emerging Market Bond ETF (GAEM). 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	GAEM	Difference
Sharpe ratio: Return per unit of total volatility	1.22	2.81	-1.58
Sortino ratio: Return per unit of downside risk	1.79	4.48	-2.69
Omega ratio: Gain probability vs. loss probability	1.23	1.57	-0.34
Calmar ratio: Return relative to maximum drawdown	1.35	3.66	-2.31
Martin ratio: Return relative to average drawdown	4.34	16.69	-12.35
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. GAEM - Sharpe Ratio Comparison

The current FEMB Sharpe Ratio is 1.22, which is lower than the GAEM Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of FEMB and GAEM, 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	GAEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.22	2.81	-1.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.16	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	2.33	-2.24

Drawdowns

FEMB vs. GAEM - Drawdown Comparison

The maximum FEMB drawdown since its inception was -30.44%, which is greater than GAEM's maximum drawdown of -3.84%. Use the drawdown chart below to compare losses from any high point for FEMB and GAEM.

Drawdown Indicators

	FEMB	GAEM	Difference
Max Drawdown Largest peak-to-trough decline	-30.44%	-3.84%	-26.60%
Max Drawdown (1Y) Largest decline over 1 year	-7.58%	-3.61%	-3.97%
Max Drawdown (3Y) Largest decline over 3 years	-10.13%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-27.85%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-30.44%	—	—
Current Drawdown Current decline from peak	-3.91%	-0.20%	-3.71%
Average Drawdown Average peak-to-trough decline	-9.93%	-0.52%	-9.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	0.79%	+1.56%

Volatility

FEMB vs. GAEM - Volatility Comparison

First Trust Emerging Markets Local Currency Bond ETF (FEMB) has a higher volatility of 3.05% compared to Simplify Gamma Emerging Market Bond ETF (GAEM) at 1.33%. This indicates that FEMB's price experiences larger fluctuations and is considered to be riskier than GAEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMB	GAEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	1.33%	+1.72%
Volatility (6M) Calculated over the trailing 6-month period	6.57%	3.74%	+2.83%
Volatility (1Y) Calculated over the trailing 1-year period	8.36%	4.71%	+3.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.26%	4.96%	+5.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.99%	4.96%	+6.03%

FEMB vs. GAEM - Expense Ratio Comparison

FEMB has a 0.85% expense ratio, which is higher than GAEM's 0.76% expense ratio.

Dividends

FEMB vs. GAEM - Dividend Comparison

FEMB's dividend yield for the trailing twelve months is around 6.06%, less than GAEM's 7.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
GAEM Simplify Gamma Emerging Market Bond ETF	7.54%	6.50%	3.78%	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 FEMB and GAEM in my portfolio?

FEMB and GAEM have a correlation of 0.49, 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 GAEM?

FEMB has higher volatility (3.05%) compared to GAEM (1.33%). In terms of maximum drawdown, FEMB dropped -30.44% vs GAEM's -3.84%.

Which ETF is better, FEMB or GAEM?

On 1-year performance, GAEM leads with 13.15% vs 10.20% for FEMB. On fees, GAEM is cheaper at 0.76% per year. On volatility, GAEM has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEMB or GAEM?

Over the 1-year period, GAEM has performed better with a 13.15% return vs 10.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEMB or GAEM?

GAEM is cheaper with a 0.76% expense ratio, compared with 0.85% for FEMB.

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

GAEM has the higher dividend yield at 7.54%, compared with 6.06% for FEMB.

What is the main difference between FEMB and GAEM?

They also come from different issuers: First Trust and Simplify. Their fees differ too: 0.85% for FEMB and 0.76% for GAEM.

Which has better risk-adjusted returns?

GAEM currently has the higher Sharpe Ratio (2.81 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.