FEMS vs. AIRR

Last updated Jun 26, 2026

FEMS (First Trust Emerging Markets Small Cap AlphaDEX Fund) and AIRR (First Trust RBA American Industrial Renaissance ETF) are both exchange-traded funds - FEMS is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Small Cap Index, while AIRR is a Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance Index. Both are passively managed. Over the past 10 years, FEMS returned 9.42%/yr vs 22.80%/yr for AIRR. At a 0.47 correlation, their price movements are largely independent. FEMS charges 0.80%/yr vs 0.69%/yr for AIRR.

Performance

FEMS vs. AIRR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 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, FEMS achieves a 8.92% return, which is significantly lower than AIRR's 35.27% return. Over the past 10 years, FEMS has underperformed AIRR with an annualized return of 9.42%, while AIRR has yielded a comparatively higher 22.80% annualized return.

FEMS

• 1D: -0.48%
• 1M: -3.69%
• YTD: 8.92%
• 6M: 8.47%
• 1Y: 19.24%
• 3Y*: 12.32%
• 5Y*: 4.09%
• 10Y*: 9.42%

AIRR

• 1D: 1.87%
• 1M: 3.60%
• YTD: 35.27%
• 6M: 30.88%
• 1Y: 67.84%
• 3Y*: 37.44%
• 5Y*: 26.56%
• 10Y*: 22.80%

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

FEMS vs. AIRR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	8.92%	16.48%	1.88%	3.55%	1.85%	3.76%	7.85%	28.88%	-22.63%	49.02%
AIRR First Trust RBA American Industrial Renaissance ETF	35.27%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%

Correlation

The correlation between FEMS and AIRR is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Mar 11, 2014	0.47

The correlation between FEMS and AIRR has been stable across timeframes, ranging from 0.44 to 0.52 - a consistent structural relationship.

FEMS vs. AIRR - Sectors Allocation Comparison

Sectors	FEMS	AIRR
Technology	16.4%	0.7%
Industrials	16.2%	92.4%
Consumer Cyclical	14.9%	-
Basic Materials	11.7%	-
Real Estate	7.6%	-
Energy	7.4%	3.8%
Consumer Defensive	6.8%	-
Utilities	6.3%	-
Financial Services	5.3%	6.9%
Communication Services	4.4%	-
Healthcare	3.0%	-

Return for Risk

FEMS vs. AIRR — Risk / Return Rank

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

FEMS

FEMS Risk / Return Rank: 38
FEMS Sharpe Ratio Rank: 35
FEMS Sortino Ratio Rank: 33
FEMS Omega Ratio Rank: 35
FEMS Calmar Ratio Rank: 49
FEMS Martin Ratio Rank: 37

AIRR

AIRR Risk / Return Rank: 87
AIRR Sharpe Ratio Rank: 90
AIRR Sortino Ratio Rank: 85
AIRR Omega Ratio Rank: 79
AIRR Calmar Ratio Rank: 92
AIRR Martin Ratio Rank: 92

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.

FEMS vs. AIRR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 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.

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.

	FEMS	AIRR	Difference
Sharpe ratio: Return per unit of total volatility	1.16	2.59	-1.43
Sortino ratio: Return per unit of downside risk	1.63	3.29	-1.65
Omega ratio: Gain probability vs. loss probability	1.22	1.41	-0.19
Calmar ratio: Return relative to maximum drawdown	2.15	5.21	-3.06
Martin ratio: Return relative to average drawdown	5.32	19.01	-13.69

FEMS vs. AIRR - Sharpe Ratio Comparison

The current FEMS Sharpe Ratio is 1.16, which is lower than the AIRR Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of FEMS 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.

Drawdowns

FEMS vs. AIRR - Drawdown Comparison

The maximum FEMS drawdown since its inception was -47.85%, which is greater than AIRR's maximum drawdown of -42.37%. Use the drawdown chart below to compare losses from any high point for FEMS and AIRR.

Drawdown Indicators

	FEMS	AIRR	Difference
Max Drawdown Largest peak-to-trough decline	-47.85%	-42.37%	-5.48%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-13.09%	+4.11%
Max Drawdown (3Y) Largest decline over 3 years	-21.09%	-27.95%	+6.86%
Max Drawdown (5Y) Largest decline over 5 years	-26.43%	-27.95%	+1.52%
Max Drawdown (10Y) Largest decline over 10 years	-47.85%	-42.37%	-5.48%
Current Drawdown Current decline from peak	-7.63%	-0.25%	-7.38%
Average Drawdown Average peak-to-trough decline	-17.36%	-7.46%	-9.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.63%	3.58%	+0.05%

Volatility

FEMS vs. AIRR - Volatility Comparison

The current volatility for First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is 7.14%, while First Trust RBA American Industrial Renaissance ETF (AIRR) has a volatility of 8.64%. This indicates that FEMS 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

	FEMS	AIRR	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.14%	8.64%	-1.50%
Volatility (6M) Calculated over the trailing 6-month period	14.40%	20.62%	-6.22%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	26.39%	-9.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.87%	25.44%	-7.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.98%	26.33%	-6.35%

FEMS vs. AIRR - Expense Ratio Comparison

FEMS has a 0.80% expense ratio, which is higher than AIRR's 0.69% expense ratio.

Dividends

FEMS vs. AIRR - Dividend Comparison

FEMS's dividend yield for the trailing twelve months is around 5.44%, 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%
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	5.44%	4.27%	3.97%	4.65%	4.55%	6.25%	2.90%	4.37%	4.68%	3.39%	2.42%	3.28%

Frequently Asked Questions

Can I hold both FEMS and AIRR in my portfolio?

FEMS and AIRR have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEMS or AIRR?

AIRR has higher volatility (8.64%) compared to FEMS (7.14%). In terms of maximum drawdown, FEMS dropped -47.85% vs AIRR's -42.37%.

Which ETF is better, FEMS or AIRR?

On 10-year performance, AIRR leads with 22.80% vs 9.42% for FEMS. On fees, AIRR is cheaper at 0.69% per year. On volatility, FEMS has been the lower-risk option at 7.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEMS or AIRR?

Over the 10-year period, AIRR has performed better with a 22.80% return vs 9.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEMS or AIRR?

AIRR is cheaper with a 0.69% expense ratio, compared with 0.80% for FEMS.

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

FEMS has the higher dividend yield at 5.44%, compared with 0.13% for AIRR.

What is the main difference between FEMS and AIRR?

FEMS is categorized as Emerging Markets Equities, while AIRR is Building & Construction. FEMS tracks NASDAQ AlphaDEX EM Small Cap Index, while AIRR tracks Richard Bernstein Advisors American Industrial Renaissance Index. Their fees differ too: 0.80% for FEMS and 0.69% for AIRR.

Which has better risk-adjusted returns?

AIRR currently has the higher Sharpe Ratio (2.59 vs 1.16), 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.