FRDM vs. DEM

Last updated Aug 2, 2026

FRDM (Freedom 100 Emerging Markets ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - FRDM is a Emerging Markets Equities fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. Both are passively managed. Over the past 5 years, FRDM returned 17.22%/yr vs 10.19%/yr for DEM. Their correlation of 0.82 means they have usually moved in the same direction. FRDM charges 0.49%/yr vs 0.63%/yr for DEM.

Performance

FRDM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRDM achieves a 28.12% return, which is significantly higher than DEM's 17.08% return.

FRDM

• 1D: 0.66%
• 1M: -4.87%
• 6M: 13.53%
• YTD: 28.12%
• 1Y: 65.50%
• 3Y*: 29.15%
• 5Y*: 17.22%
• 10Y*: —
• ALL TIME*: 16.90%

DEM

• 1D: 0.19%
• 1M: 0.60%
• 6M: 10.28%
• YTD: 17.08%
• 1Y: 24.73%
• 3Y*: 15.88%
• 5Y*: 10.19%
• 10Y*: 9.26%
• ALL TIME*: 4.92%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.90M	$9.48M	$10.87M
FRDM Freedom 100 Emerging Markets ETF	$22.77M	$21.45M	$25.02M

FRDM vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	28.12%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.23%
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	13.32%

Correlation

The correlation between FRDM and DEM is 0.80, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.80
Correlation (3Y) Balances recent behavior with more history.	0.79
Correlation (5Y) Shows whether the relationship held over a longer period.	0.81
Correlation (All Time) Calculated using the full available price history since May 23, 2019	0.82

The correlation between FRDM and DEM has been stable across timeframes, ranging from 0.79 to 0.82 - a consistent structural relationship.

FRDM vs. DEM - Sectors Allocation Comparison

Sectors	FRDM	DEM
Financial Services	15.3%	21.9%
Technology	8.5%	17.5%
Consumer Cyclical	3.6%	5.4%
Basic Materials	3.4%	3.7%
Real Estate	2.3%	2.9%
Energy	1.7%	6.2%
Utilities	1.2%	3.0%
Consumer Defensive	0.9%	5.8%
Industrials	0.3%	8.9%
Communication Services	0.3%	3.0%
Healthcare	0.1%	0.6%

Return for Risk

FRDM vs. DEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FRDM

FRDM Risk / Return Rank: 85
FRDM Sharpe Ratio Rank: 88
FRDM Sortino Ratio Rank: 81
FRDM Omega Ratio Rank: 86
FRDM Calmar Ratio Rank: 87
FRDM Martin Ratio Rank: 83

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 73
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FRDM vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	FRDM	DEM	Difference
Sharpe ratio: Return per unit of total volatility	2.13	1.66	+0.47
Sortino ratio: Return per unit of downside risk	2.63	2.31	+0.32
Omega ratio: Gain probability vs. loss probability	1.37	1.30	+0.07
Calmar ratio: Return relative to maximum drawdown	3.39	3.15	+0.25
Martin ratio: Return relative to average drawdown	11.29	9.50	+1.79

FRDM vs. DEM - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 2.13, which is comparable to the DEM Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of FRDM and DEM, 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

FRDM vs. DEM - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for FRDM and DEM.

Drawdown Indicators

	FRDM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-51.85%	+11.36%
Max Drawdown (1Y) Largest decline over 1 year	-19.24%	-7.89%	-11.35%
Max Drawdown (3Y) Largest decline over 3 years	-19.24%	-15.64%	-3.60%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	-27.18%	-2.07%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-14.15%	-3.57%	-10.58%
Average Drawdown Average peak-to-trough decline	-7.13%	-12.82%	+5.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.77%	2.61%	+3.16%

Volatility

FRDM vs. DEM - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 12.28% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.12%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.28%	5.12%	+7.16%
Volatility (6M) Calculated over the trailing 6-month period	28.47%	13.28%	+15.19%
Volatility (1Y) Calculated over the trailing 1-year period	30.66%	15.02%	+15.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.38%	15.60%	+6.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.62%	17.85%	+5.77%

FRDM vs. DEM - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

FRDM vs. DEM - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.69%, less than DEM's 4.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.18%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
FRDM Freedom 100 Emerging Markets ETF	1.69%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FRDM and DEM in my portfolio?

FRDM and DEM have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRDM or DEM?

FRDM has higher volatility (12.28%) compared to DEM (5.12%). In terms of maximum drawdown, FRDM dropped -40.49% vs DEM's -51.85%.

Which ETF is better, FRDM or DEM?

On 5-year performance, FRDM leads with 17.22% vs 10.19% for DEM. On fees, FRDM is cheaper at 0.49% per year. On volatility, DEM has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or DEM?

Over the 5-year period, FRDM has performed better with a 17.22% return vs 10.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or DEM?

FRDM is cheaper with a 0.49% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, FRDM or DEM?

DEM has the higher dividend yield at 4.18%, compared with 1.69% for FRDM.

What is the main difference between FRDM and DEM?

FRDM is categorized as Emerging Markets Equities, while DEM is Dividend. FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index, while DEM tracks WisdomTree Emerging Markets Equity Income Index. They also come from different issuers: Freedom Funds and WisdomTree. Their fees differ too: 0.49% for FRDM and 0.63% for DEM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (2.13 vs 1.66), 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.