FTHF vs. EMDM

Last updated Jun 24, 2026

FTHF (First Trust Emerging Markets Human Flourishing ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Diversified funds from First Trust - FTHF tracks the Emerging Markets Human Flourishing Index while EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net. Both are passively managed. Over the past year, FTHF returned 99.98% vs 81.79% for EMDM. Their correlation of 0.94 suggests significant overlap in exposure. Both charge a 0.75% expense ratio.

Performance

FTHF vs. EMDM - Performance Comparison

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

Returns By Period

In the year-to-date period, FTHF achieves a 48.98% return, which is significantly higher than EMDM's 35.53% return.

FTHF

• 1D: -6.80%
• 1M: 6.57%
• YTD: 48.98%
• 6M: 51.53%
• 1Y: 99.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

EMDM

• 1D: -5.54%
• 1M: 3.57%
• YTD: 35.53%
• 6M: 38.16%
• 1Y: 81.79%
• 3Y*: 30.82%
• 5Y*: —
• 10Y*: —

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

FTHF vs. EMDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FTHF First Trust Emerging Markets Human Flourishing ETF	48.98%	65.30%	-8.14%	18.14%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	35.53%	59.68%	-4.93%	17.22%

Correlation

The correlation between FTHF and EMDM is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (All Time) Calculated using the full available price history since Oct 31, 2023	0.94

The correlation between FTHF and EMDM has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

Return for Risk

FTHF vs. EMDM — Risk / Return Rank

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

FTHF

FTHF Risk / Return Rank: 87
FTHF Sharpe Ratio Rank: 89
FTHF Sortino Ratio Rank: 79
FTHF Omega Ratio Rank: 89
FTHF Calmar Ratio Rank: 93
FTHF Martin Ratio Rank: 86

EMDM

EMDM Risk / Return Rank: 90
EMDM Sharpe Ratio Rank: 93
EMDM Sortino Ratio Rank: 87
EMDM Omega Ratio Rank: 90
EMDM Calmar Ratio Rank: 90
EMDM Martin Ratio Rank: 91

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.

FTHF vs. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Human Flourishing ETF (FTHF) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). 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	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	2.79	3.15	-0.36
Sortino ratio: Return per unit of downside risk	3.22	3.65	-0.43
Omega ratio: Gain probability vs. loss probability	1.52	1.54	-0.02
Calmar ratio: Return relative to maximum drawdown	6.16	5.25	+0.91
Martin ratio: Return relative to average drawdown	16.85	20.82	-3.97

FTHF vs. EMDM - Sharpe Ratio Comparison

The current FTHF Sharpe Ratio is 2.79, which is comparable to the EMDM Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of FTHF and EMDM, 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. EMDM - Drawdown Comparison

The maximum FTHF drawdown since its inception was -17.36%, smaller than the maximum EMDM drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for FTHF and EMDM.

Drawdown Indicators

	FTHF	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-17.36%	-18.81%	+1.45%
Max Drawdown (1Y) Largest decline over 1 year	-16.31%	-15.65%	-0.66%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.81%	—
Current Drawdown Current decline from peak	-6.80%	-5.54%	-1.26%
Average Drawdown Average peak-to-trough decline	-4.22%	-4.06%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.95%	3.94%	+2.01%

Volatility

FTHF vs. EMDM - Volatility Comparison

First Trust Emerging Markets Human Flourishing ETF (FTHF) has a higher volatility of 17.38% compared to First Trust Bloomberg Emerging Market Democracies ETF (EMDM) at 13.23%. This indicates that FTHF's price experiences larger fluctuations and is considered to be riskier than EMDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTHF	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.38%	13.23%	+4.15%
Volatility (6M) Calculated over the trailing 6-month period	28.89%	23.83%	+5.06%
Volatility (1Y) Calculated over the trailing 1-year period	36.06%	26.11%	+9.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.89%	20.67%	+6.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.89%	20.67%	+6.22%

FTHF vs. EMDM - Expense Ratio Comparison

Both FTHF and EMDM have an expense ratio of 0.75%.

Dividends

FTHF vs. EMDM - Dividend Comparison

FTHF's dividend yield for the trailing twelve months is around 3.03%, more than EMDM's 2.63% yield.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.63%	3.57%	5.87%	2.16%
FTHF First Trust Emerging Markets Human Flourishing ETF	3.03%	4.40%	3.34%	0.51%

Frequently Asked Questions

Can I hold both FTHF and EMDM in my portfolio?

With a correlation of 0.93, FTHF and EMDM 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 EMDM?

FTHF has higher volatility (17.38%) compared to EMDM (13.23%). In terms of maximum drawdown, FTHF dropped -17.36% vs EMDM's -18.81%.

Which ETF is better, FTHF or EMDM?

On 1-year performance, FTHF leads with 99.98% vs 81.79% for EMDM. Both ETFs have the same 0.75% expense ratio. On volatility, EMDM has been the lower-risk option at 13.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTHF or EMDM?

Over the 1-year period, FTHF has performed better with a 99.98% return vs 81.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTHF or EMDM?

FTHF and EMDM have the same expense ratio: 0.75% per year.

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

FTHF has the higher dividend yield at 3.03%, compared with 2.63% for EMDM.

What is the main difference between FTHF and EMDM?

FTHF tracks Emerging Markets Human Flourishing Index, while EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.15 vs 2.79), 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.