FRDM vs. EPU

Last updated Jun 13, 2026

FRDM (Freedom 100 Emerging Markets ETF) and EPU (iShares MSCI Peru ETF) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while EPU is a Mid Cap Blend Equities fund tracking the MSCI All Peru Capped Index. Both are passively managed. Over the past 5 years, FRDM returned 18.68%/yr vs 28.15%/yr for EPU. A 0.63 correlation means they provide meaningful diversification when combined. FRDM charges 0.49%/yr vs 0.59%/yr for EPU.

Performance

FRDM vs. EPU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) and iShares MSCI Peru ETF (EPU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRDM achieves a 40.13% return, which is significantly higher than EPU's 21.02% return.

FRDM

• 1D: 0.49%
• 1M: 5.45%
• YTD: 40.13%
• 6M: 46.37%
• 1Y: 84.22%
• 3Y*: 34.29%
• 5Y*: 18.68%
• 10Y*: —

EPU

• 1D: 2.12%
• 1M: 3.58%
• YTD: 21.02%
• 6M: 26.87%
• 1Y: 84.39%
• 3Y*: 46.38%
• 5Y*: 28.15%
• 10Y*: 15.16%

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

FRDM vs. EPU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	40.13%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.23%
EPU iShares MSCI Peru ETF	21.02%	86.87%	21.73%	25.34%	2.05%	-11.81%	-4.31%	7.94%

Correlation

The correlation between FRDM and EPU is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since May 23, 2019	0.63

The correlation between FRDM and EPU has been stable across timeframes, ranging from 0.63 to 0.66 - a consistent structural relationship.

FRDM vs. EPU - Sectors Allocation Comparison

Sectors	FRDM	EPU
Technology	41.1%	-
Financial Services	22.1%	28.8%
Industrials	8.6%	2.8%
Consumer Cyclical	7.8%	4.1%
Basic Materials	7.4%	52.7%
Communication Services	3.9%	1.6%
Utilities	2.6%	2.8%
Real Estate	2.5%	3.2%
Consumer Defensive	2.2%	3.0%
Healthcare	1.8%	1.2%
Energy	0.1%	-

Return for Risk

FRDM vs. EPU — Risk / Return Rank

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

FRDM

FRDM Risk / Return Rank: 92
FRDM Sharpe Ratio Rank: 94
FRDM Sortino Ratio Rank: 90
FRDM Omega Ratio Rank: 92
FRDM Calmar Ratio Rank: 91
FRDM Martin Ratio Rank: 91

EPU

EPU Risk / Return Rank: 82
EPU Sharpe Ratio Rank: 91
EPU Sortino Ratio Rank: 81
EPU Omega Ratio Rank: 83
EPU Calmar Ratio Rank: 85
EPU Martin Ratio Rank: 72

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.

FRDM vs. EPU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) and iShares MSCI Peru ETF (EPU). 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	EPU	Difference
Sharpe ratio: Return per unit of total volatility	3.15	2.73	+0.42
Sortino ratio: Return per unit of downside risk	3.68	3.14	+0.53
Omega ratio: Gain probability vs. loss probability	1.54	1.43	+0.11
Calmar ratio: Return relative to maximum drawdown	5.02	4.07	+0.95
Martin ratio: Return relative to average drawdown	19.36	11.73	+7.63

FRDM vs. EPU - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 3.15, which is comparable to the EPU Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of FRDM and EPU, 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. EPU - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, smaller than the maximum EPU drawdown of -60.62%. Use the drawdown chart below to compare losses from any high point for FRDM and EPU.

Drawdown Indicators

	FRDM	EPU	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-60.62%	+20.13%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-20.85%	+3.98%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-20.85%	+3.98%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	-35.59%	+6.34%
Max Drawdown (10Y) Largest decline over 10 years	—	-50.97%	—
Current Drawdown Current decline from peak	-4.36%	-6.69%	+2.33%
Average Drawdown Average peak-to-trough decline	-7.09%	-18.81%	+11.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	7.22%	-2.85%

Volatility

FRDM vs. EPU - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 14.27% compared to iShares MSCI Peru ETF (EPU) at 13.52%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than EPU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	EPU	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.27%	13.52%	+0.75%
Volatility (6M) Calculated over the trailing 6-month period	24.39%	26.94%	-2.55%
Volatility (1Y) Calculated over the trailing 1-year period	26.86%	31.04%	-4.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	25.11%	-3.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.09%	23.64%	-0.55%

FRDM vs. EPU - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is lower than EPU's 0.59% expense ratio.

Dividends

FRDM vs. EPU - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.56%, more than EPU's 1.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EPU iShares MSCI Peru ETF	1.35%	1.63%	5.78%	4.17%	5.56%	3.13%	1.91%	2.67%	1.53%	3.30%	0.85%	1.90%
FRDM Freedom 100 Emerging Markets ETF	1.56%	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 EPU in my portfolio?

FRDM and EPU have a correlation of 0.66, 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 EPU?

FRDM has higher volatility (14.27%) compared to EPU (13.52%). In terms of maximum drawdown, FRDM dropped -40.49% vs EPU's -60.62%.

Which ETF is better, FRDM or EPU?

On 5-year performance, EPU leads with 28.15% vs 18.68% for FRDM. On fees, FRDM is cheaper at 0.49% per year. On volatility, EPU has been the lower-risk option at 13.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or EPU?

Over the 5-year period, EPU has performed better with a 28.15% return vs 18.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or EPU?

FRDM is cheaper with a 0.49% expense ratio, compared with 0.59% for EPU.

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

FRDM has the higher dividend yield at 1.56%, compared with 1.35% for EPU.

What is the main difference between FRDM and EPU?

FRDM is categorized as Emerging Markets Diversified, while EPU is Mid Cap Blend Equities. FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index, while EPU tracks MSCI All Peru Capped Index. They also come from different issuers: Freedom Funds and iShares. Their fees differ too: 0.49% for FRDM and 0.59% for EPU.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.15 vs 2.73), 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.