MEM vs. EMDM

Last updated Jun 4, 2026

MEM (Matthews Emerging Markets Equity Active ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Diversified funds. MEM is actively managed, while EMDM is passively managed. Over the past 3 years, MEM returned 23.26%/yr vs 32.95%/yr for EMDM. Their correlation of 0.87 suggests significant overlap in exposure. MEM charges 0.79%/yr vs 0.75%/yr for EMDM.

Performance

MEM vs. EMDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Emerging Markets Equity Active ETF (MEM) 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, MEM achieves a 28.39% return, which is significantly lower than EMDM's 39.03% return.

MEM

• 1D: -1.34%
• 1M: 8.03%
• YTD: 28.39%
• 6M: 30.14%
• 1Y: 54.36%
• 3Y*: 23.26%
• 5Y*: —
• 10Y*: —

EMDM

• 1D: -1.32%
• 1M: 11.04%
• YTD: 39.03%
• 6M: 45.21%
• 1Y: 91.32%
• 3Y*: 32.95%
• 5Y*: —
• 10Y*: —

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

MEM vs. EMDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MEM Matthews Emerging Markets Equity Active ETF	28.39%	28.31%	10.11%	2.36%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	39.03%	59.68%	-4.93%	14.21%

Correlation

The correlation between MEM and EMDM is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Mar 6, 2023	0.87

The correlation between MEM and EMDM has been stable across timeframes, ranging from 0.86 to 0.88 - a consistent structural relationship.

MEM vs. EMDM - Sectors Allocation Comparison

Sectors	MEM	EMDM
Technology	37.5%	32.1%
Financial Services	24.6%	27.2%
Basic Materials	9.2%	15.1%
Consumer Cyclical	9.1%	6.0%
Industrials	8.9%	3.3%
Communication Services	5.6%	4.3%
Energy	2.9%	6.3%
Real Estate	1.6%	-
Consumer Defensive	1.4%	3.4%
Healthcare	0.8%	0.5%
Utilities	-	1.9%

Return for Risk

MEM vs. EMDM — Risk / Return Rank

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

MEM

MEM Risk / Return Rank: 77
MEM Sharpe Ratio Rank: 81
MEM Sortino Ratio Rank: 78
MEM Omega Ratio Rank: 78
MEM Calmar Ratio Rank: 75
MEM Martin Ratio Rank: 73

EMDM

EMDM Risk / Return Rank: 93
EMDM Sharpe Ratio Rank: 95
EMDM Sortino Ratio Rank: 92
EMDM Omega Ratio Rank: 93
EMDM Calmar Ratio Rank: 91
EMDM Martin Ratio Rank: 93

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.

MEM vs. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Emerging Markets Equity Active ETF (MEM) 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.

	MEM	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	2.65	3.92	-1.28
Sortino ratio: Return per unit of downside risk	3.47	4.56	-1.09
Omega ratio: Gain probability vs. loss probability	1.47	1.66	-0.19
Calmar ratio: Return relative to maximum drawdown	3.74	5.87	-2.13
Martin ratio: Return relative to average drawdown	13.64	24.30	-10.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MEM vs. EMDM - Sharpe Ratio Comparison

The current MEM Sharpe Ratio is 2.65, which is lower than the EMDM Sharpe Ratio of 3.92. The chart below compares the historical Sharpe Ratios of MEM 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.

Sharpe Ratios by Period

	MEM	EMDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.65	3.92	-1.28
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	1.58	-0.44

Drawdowns

MEM vs. EMDM - Drawdown Comparison

The maximum MEM drawdown since its inception was -19.10%, roughly equal to the maximum EMDM drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for MEM and EMDM.

Drawdown Indicators

	MEM	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-19.10%	-18.81%	-0.29%
Max Drawdown (1Y) Largest decline over 1 year	-14.62%	-15.65%	+1.03%
Max Drawdown (3Y) Largest decline over 3 years	-19.10%	-18.81%	-0.29%
Current Drawdown Current decline from peak	-1.34%	-1.32%	-0.02%
Average Drawdown Average peak-to-trough decline	-4.74%	-4.07%	-0.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.00%	3.77%	+0.23%

Volatility

MEM vs. EMDM - Volatility Comparison

The current volatility for Matthews Emerging Markets Equity Active ETF (MEM) is 8.97%, while First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a volatility of 9.61%. This indicates that MEM experiences smaller price fluctuations and is considered to be less risky than EMDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MEM	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.97%	9.61%	-0.64%
Volatility (6M) Calculated over the trailing 6-month period	17.95%	20.78%	-2.83%
Volatility (1Y) Calculated over the trailing 1-year period	20.65%	23.42%	-2.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	19.79%	-1.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.31%	19.79%	-1.48%

MEM vs. EMDM - Expense Ratio Comparison

MEM has a 0.79% expense ratio, which is higher than EMDM's 0.75% expense ratio.

Dividends

MEM vs. EMDM - Dividend Comparison

MEM's dividend yield for the trailing twelve months is around 2.77%, more than EMDM's 2.57% yield.

Position	TTM	2025	2024	2023	2022
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.57%	3.57%	5.87%	2.16%	0.00%
MEM Matthews Emerging Markets Equity Active ETF	2.77%	3.56%	7.81%	0.01%	0.53%

Frequently Asked Questions

Can I hold both MEM and EMDM in my portfolio?

MEM and EMDM have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MEM or EMDM?

EMDM has higher volatility (9.61%) compared to MEM (8.97%). In terms of maximum drawdown, MEM dropped -19.10% vs EMDM's -18.81%.

Which ETF is better, MEM or EMDM?

On 3-year performance, EMDM leads with 32.95% vs 23.26% for MEM. On fees, EMDM is cheaper at 0.75% per year. On volatility, MEM has been the lower-risk option at 8.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MEM or EMDM?

Over the 3-year period, EMDM has performed better with a 32.95% return vs 23.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MEM or EMDM?

EMDM is cheaper with a 0.75% expense ratio, compared with 0.79% for MEM.

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

MEM has the higher dividend yield at 2.77%, compared with 2.57% for EMDM.

What is the main difference between MEM and EMDM?

They also come from different issuers: Matthews and First Trust. Their fees differ too: 0.79% for MEM and 0.75% for EMDM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.92 vs 2.65), 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.