FTHF vs. DFEM

Last updated Aug 2, 2026

FTHF (First Trust Emerging Markets Human Flourishing ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both Emerging Markets Equities funds. FTHF is passively managed, while DFEM is actively managed. Over the past year, FTHF returned 75.55% vs 29.34% for DFEM. Their correlation of 0.86 means they have usually moved in the same direction. FTHF charges 0.75%/yr vs 0.39%/yr for DFEM.

Performance

FTHF vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Human Flourishing ETF (FTHF) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTHF achieves a 34.68% return, which is significantly higher than DFEM's 14.75% return.

FTHF

• 1D: 0.45%
• 1M: -5.25%
• 6M: 17.86%
• YTD: 34.68%
• 1Y: 75.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 37.84%

DFEM

• 1D: 0.43%
• 1M: -4.27%
• 6M: 6.72%
• YTD: 14.75%
• 1Y: 29.34%
• 3Y*: 17.44%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.40%

*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)
DFEM Dimensional Emerging Markets Core Equity 2 ETF	$43.02M	$39.58M	$39.86M
FTHF First Trust Emerging Markets Human Flourishing ETF	$333.76K	$497.21K	$541.76K

FTHF vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FTHF First Trust Emerging Markets Human Flourishing ETF	34.68%	65.30%	-8.14%	18.14%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	14.75%	29.51%	7.53%	11.00%

Correlation

The correlation between FTHF and DFEM is 0.92, 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.	0.92
Correlation (All Time) Calculated using the full available price history since Oct 31, 2023	0.86

The correlation between FTHF and DFEM has been stable across timeframes, ranging from 0.86 to 0.92 - a consistent structural relationship.

FTHF vs. DFEM - Sectors Allocation Comparison

Sectors	FTHF	DFEM
Technology	50.9%	40.4%
Financial Services	25.0%	14.8%
Basic Materials	7.5%	7.3%
Industrials	5.4%	10.6%
Energy	4.6%	3.4%
Consumer Defensive	3.0%	3.3%
Utilities	1.8%	1.9%
Communication Services	0.8%	5.0%
Consumer Cyclical	0.6%	7.9%
Healthcare	0.5%	3.6%
Real Estate	-	1.7%

Return for Risk

FTHF vs. DFEM — Risk / Return Rank

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

FTHF

FTHF Risk / Return Rank: 87
FTHF Sharpe Ratio Rank: 89
FTHF Sortino Ratio Rank: 82
FTHF Omega Ratio Rank: 87
FTHF Calmar Ratio Rank: 88
FTHF Martin Ratio Rank: 87

DFEM

DFEM Risk / Return Rank: 55
DFEM Sharpe Ratio Rank: 53
DFEM Sortino Ratio Rank: 50
DFEM Omega Ratio Rank: 57
DFEM Calmar Ratio Rank: 59
DFEM Martin Ratio Rank: 58

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.

FTHF vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Human Flourishing ETF (FTHF) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	FTHF	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	2.21	1.28	+0.93
Sortino ratio: Return per unit of downside risk	2.69	1.76	+0.94
Omega ratio: Gain probability vs. loss probability	1.38	1.25	+0.14
Calmar ratio: Return relative to maximum drawdown	3.59	2.08	+1.51
Martin ratio: Return relative to average drawdown	12.54	6.85	+5.69

FTHF vs. DFEM - Sharpe Ratio Comparison

The current FTHF Sharpe Ratio is 2.21, which is higher than the DFEM Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of FTHF and DFEM, 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

FTHF vs. DFEM - Drawdown Comparison

The maximum FTHF drawdown since its inception was -21.05%, roughly equal to the maximum DFEM drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for FTHF and DFEM.

Drawdown Indicators

	FTHF	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-21.05%	-20.82%	-0.23%
Max Drawdown (1Y) Largest decline over 1 year	-21.05%	-13.84%	-7.21%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.09%	—
Current Drawdown Current decline from peak	-15.75%	-10.46%	-5.29%
Average Drawdown Average peak-to-trough decline	-4.53%	-5.08%	+0.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	4.19%	+1.82%

Volatility

FTHF vs. DFEM - Volatility Comparison

First Trust Emerging Markets Human Flourishing ETF (FTHF) has a higher volatility of 14.08% compared to Dimensional Emerging Markets Core Equity 2 ETF (DFEM) at 8.15%. This indicates that FTHF's price experiences larger fluctuations and is considered to be riskier than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTHF	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.08%	8.15%	+5.93%
Volatility (6M) Calculated over the trailing 6-month period	32.04%	20.62%	+11.42%
Volatility (1Y) Calculated over the trailing 1-year period	34.28%	22.46%	+11.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.89%	18.17%	+9.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.89%	18.17%	+9.72%

FTHF vs. DFEM - Expense Ratio Comparison

FTHF has a 0.75% expense ratio, which is higher than DFEM's 0.39% expense ratio.

Dividends

FTHF vs. DFEM - Dividend Comparison

FTHF's dividend yield for the trailing twelve months is around 3.38%, more than DFEM's 1.97% yield.

Position	TTM	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.97%	2.32%	2.50%	2.38%	1.99%
FTHF First Trust Emerging Markets Human Flourishing ETF	3.38%	4.40%	3.34%	0.51%	0.00%

Frequently Asked Questions

Can I hold both FTHF and DFEM in my portfolio?

With a correlation of 0.92, FTHF and DFEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FTHF or DFEM?

FTHF has higher volatility (14.08%) compared to DFEM (8.15%). In terms of maximum drawdown, FTHF dropped -21.05% vs DFEM's -20.82%.

Which ETF is better, FTHF or DFEM?

On 1-year performance, FTHF leads with 75.55% vs 29.34% for DFEM. On fees, DFEM is cheaper at 0.39% per year. On volatility, DFEM has been the lower-risk option at 8.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTHF or DFEM?

Over the 1-year period, FTHF has performed better with a 75.55% return vs 29.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTHF or DFEM?

DFEM is cheaper with a 0.39% expense ratio, compared with 0.75% for FTHF.

Which ETF pays a higher dividend yield, FTHF or DFEM?

FTHF has the higher dividend yield at 3.38%, compared with 1.97% for DFEM.

What is the main difference between FTHF and DFEM?

They also come from different issuers: First Trust and Dimensional. Their fees differ too: 0.75% for FTHF and 0.39% for DFEM.

Which has better risk-adjusted returns?

FTHF currently has the higher Sharpe Ratio (2.21 vs 1.28), 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.