GEM vs. FRDM

Last updated Jun 4, 2026

GEM (Goldman Sachs ActiveBeta Emerging Markets Equity ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - GEM is a Emerging Markets Equities fund tracking the Goldman Sachs ActiveBeta Emerging Markets Equity Index, while FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past 5 years, GEM returned 7.91%/yr vs 19.30%/yr for FRDM. Their correlation of 0.85 suggests significant overlap in exposure. GEM charges 0.45%/yr vs 0.49%/yr for FRDM.

Performance

GEM vs. FRDM - Performance Comparison

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

Returns By Period

In the year-to-date period, GEM achieves a 27.56% return, which is significantly lower than FRDM's 44.61% return.

GEM

• 1D: -1.04%
• 1M: 9.44%
• YTD: 27.56%
• 6M: 30.41%
• 1Y: 54.83%
• 3Y*: 23.85%
• 5Y*: 7.91%
• 10Y*: 10.00%

FRDM

• 1D: -1.30%
• 1M: 17.06%
• YTD: 44.61%
• 6M: 53.16%
• 1Y: 97.46%
• 3Y*: 37.08%
• 5Y*: 19.30%
• 10Y*: —

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

GEM vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	27.56%	33.43%	6.66%	11.82%	-21.33%	-0.19%	13.23%	15.34%
FRDM Freedom 100 Emerging Markets ETF	44.61%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.33%

Correlation

The correlation between GEM and FRDM is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since May 24, 2019	0.85

The correlation between GEM and FRDM has been stable across timeframes, ranging from 0.85 to 0.91 - a consistent structural relationship.

GEM vs. FRDM - Sectors Allocation Comparison

Sectors	GEM	FRDM
Financial Services	34.0%	22.1%
Technology	14.1%	41.1%
Consumer Cyclical	13.0%	7.8%
Basic Materials	8.7%	7.4%
Industrials	7.5%	8.6%
Healthcare	5.4%	1.8%
Communication Services	4.5%	3.9%
Utilities	4.3%	2.6%
Consumer Defensive	4.2%	2.2%
Real Estate	1.5%	2.5%
Energy	1.3%	0.1%

Return for Risk

GEM vs. FRDM — Risk / Return Rank

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

GEM

GEM Risk / Return Rank: 82
GEM Sharpe Ratio Rank: 85
GEM Sortino Ratio Rank: 81
GEM Omega Ratio Rank: 83
GEM Calmar Ratio Rank: 79
GEM Martin Ratio Rank: 80

FRDM

FRDM Risk / Return Rank: 93
FRDM Sharpe Ratio Rank: 95
FRDM Sortino Ratio Rank: 93
FRDM Omega Ratio Rank: 93
FRDM Calmar Ratio Rank: 91
FRDM 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.

GEM vs. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) and Freedom 100 Emerging Markets ETF (FRDM). 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.

	GEM	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	2.82	4.00	-1.17
Sortino ratio: Return per unit of downside risk	3.68	4.65	-0.98
Omega ratio: Gain probability vs. loss probability	1.51	1.67	-0.16
Calmar ratio: Return relative to maximum drawdown	4.08	5.81	-1.73
Martin ratio: Return relative to average drawdown	15.81	23.37	-7.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GEM vs. FRDM - Sharpe Ratio Comparison

The current GEM Sharpe Ratio is 2.82, which is comparable to the FRDM Sharpe Ratio of 4.00. The chart below compares the historical Sharpe Ratios of GEM and FRDM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GEM	FRDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.82	4.00	-1.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.93	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.85	-0.33

Drawdowns

GEM vs. FRDM - Drawdown Comparison

The maximum GEM drawdown since its inception was -37.02%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for GEM and FRDM.

Drawdown Indicators

	GEM	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-37.02%	-40.49%	+3.47%
Max Drawdown (1Y) Largest decline over 1 year	-13.50%	-16.87%	+3.37%
Max Drawdown (3Y) Largest decline over 3 years	-16.54%	-16.87%	+0.33%
Max Drawdown (5Y) Largest decline over 5 years	-35.43%	-29.25%	-6.18%
Max Drawdown (10Y) Largest decline over 10 years	-37.02%	—	—
Current Drawdown Current decline from peak	-1.04%	-1.30%	+0.26%
Average Drawdown Average peak-to-trough decline	-12.01%	-7.09%	-4.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	4.18%	-0.70%

Volatility

GEM vs. FRDM - Volatility Comparison

The current volatility for Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is 8.60%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 11.03%. This indicates that GEM experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GEM	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.60%	11.03%	-2.43%
Volatility (6M) Calculated over the trailing 6-month period	16.96%	21.65%	-4.69%
Volatility (1Y) Calculated over the trailing 1-year period	19.51%	24.50%	-4.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.70%	20.80%	-3.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.03%	22.77%	-3.74%

GEM vs. FRDM - Expense Ratio Comparison

GEM has a 0.45% expense ratio, which is lower than FRDM's 0.49% expense ratio.

Dividends

GEM vs. FRDM - Dividend Comparison

GEM's dividend yield for the trailing twelve months is around 1.80%, more than FRDM's 1.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRDM Freedom 100 Emerging Markets ETF	1.51%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%	0.00%	0.00%
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	1.80%	2.30%	2.58%	2.97%	2.96%	3.00%	1.63%	3.13%	2.08%	1.81%	1.98%	0.25%

Frequently Asked Questions

Can I hold both GEM and FRDM in my portfolio?

With a correlation of 0.91, GEM and FRDM 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, GEM or FRDM?

FRDM has higher volatility (11.03%) compared to GEM (8.60%). In terms of maximum drawdown, GEM dropped -37.02% vs FRDM's -40.49%.

Which ETF is better, GEM or FRDM?

On 5-year performance, FRDM leads with 19.30% vs 7.91% for GEM. On fees, GEM is cheaper at 0.45% per year. On volatility, GEM has been the lower-risk option at 8.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GEM or FRDM?

Over the 5-year period, FRDM has performed better with a 19.30% return vs 7.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GEM or FRDM?

GEM is cheaper with a 0.45% expense ratio, compared with 0.49% for FRDM.

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

GEM has the higher dividend yield at 1.80%, compared with 1.51% for FRDM.

What is the main difference between GEM and FRDM?

GEM is categorized as Emerging Markets Equities, while FRDM is Emerging Markets Diversified. GEM tracks Goldman Sachs ActiveBeta Emerging Markets Equity Index, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: Goldman Sachs and Freedom Funds. Their fees differ too: 0.45% for GEM and 0.49% for FRDM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (4.00 vs 2.82), 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.