MFEM vs. DEM

Last updated Aug 2, 2026

MFEM (PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - MFEM is a Emerging Markets Equities fund tracking the RAFI Dynamic Multi-Factor Emerging Market Index, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. Both are passively managed. Over the past 5 years, MFEM returned 7.21%/yr vs 10.19%/yr for DEM. Their correlation of 0.90 means they have usually moved in the same direction. MFEM charges 0.49%/yr vs 0.63%/yr for DEM.

Performance

MFEM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with MFEM having a 16.47% return and DEM slightly higher at 17.08%.

MFEM

• 1D: -0.21%
• 1M: -2.90%
• 6M: 6.30%
• YTD: 16.47%
• 1Y: 30.01%
• 3Y*: 15.79%
• 5Y*: 7.21%
• 10Y*: —
• ALL TIME*: 6.85%

DEM

• 1D: 0.19%
• 1M: 0.60%
• 6M: 10.28%
• YTD: 17.08%
• 1Y: 24.73%
• 3Y*: 15.88%
• 5Y*: 10.19%
• 10Y*: 9.26%
• ALL TIME*: 4.92%

*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)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.90M	$9.48M	$10.87M
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	$581.34K	$458.22K	$623.99K

MFEM vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	16.47%	25.33%	4.73%	15.14%	-19.50%	10.77%	11.33%	15.26%	-14.64%	4.86%
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	5.53%

Correlation

The correlation between MFEM and DEM is 0.88, 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.	0.88
Correlation (3Y) Balances recent behavior with more history.	0.90
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (All Time) Calculated using the full available price history since Sep 6, 2017	0.90

The correlation between MFEM and DEM has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

MFEM vs. DEM - Sectors Allocation Comparison

Sectors	MFEM	DEM
Technology	34.0%	17.5%
Financial Services	14.4%	21.9%
Basic Materials	13.1%	3.7%
Industrials	10.1%	8.9%
Energy	7.7%	6.2%
Consumer Cyclical	7.0%	5.4%
Communication Services	4.4%	3.0%
Consumer Defensive	3.4%	5.8%
Utilities	3.3%	3.0%
Healthcare	1.4%	0.6%
Real Estate	1.0%	2.9%

Return for Risk

MFEM vs. DEM — Risk / Return Rank

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

MFEM

MFEM Risk / Return Rank: 53
MFEM Sharpe Ratio Rank: 54
MFEM Sortino Ratio Rank: 51
MFEM Omega Ratio Rank: 56
MFEM Calmar Ratio Rank: 55
MFEM Martin Ratio Rank: 50

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 73
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 76

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.

MFEM vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	MFEM	DEM	Difference
Sharpe ratio: Return per unit of total volatility	1.31	1.66	-0.35
Sortino ratio: Return per unit of downside risk	1.82	2.31	-0.49
Omega ratio: Gain probability vs. loss probability	1.25	1.30	-0.05
Calmar ratio: Return relative to maximum drawdown	1.97	3.15	-1.18
Martin ratio: Return relative to average drawdown	5.82	9.50	-3.68

MFEM vs. DEM - Sharpe Ratio Comparison

The current MFEM Sharpe Ratio is 1.31, which is comparable to the DEM Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of MFEM and DEM, 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

MFEM vs. DEM - Drawdown Comparison

The maximum MFEM drawdown since its inception was -43.32%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for MFEM and DEM.

Drawdown Indicators

	MFEM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-43.32%	-51.85%	+8.53%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-7.89%	-7.16%
Max Drawdown (3Y) Largest decline over 3 years	-19.22%	-15.64%	-3.58%
Max Drawdown (5Y) Largest decline over 5 years	-30.78%	-27.18%	-3.60%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-12.43%	-3.57%	-8.86%
Average Drawdown Average peak-to-trough decline	-11.43%	-12.82%	+1.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.08%	2.61%	+2.47%

Volatility

MFEM vs. DEM - Volatility Comparison

PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) has a higher volatility of 7.50% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.12%. This indicates that MFEM's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MFEM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.50%	5.12%	+2.38%
Volatility (6M) Calculated over the trailing 6-month period	20.84%	13.28%	+7.56%
Volatility (1Y) Calculated over the trailing 1-year period	22.65%	15.02%	+7.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.42%	15.60%	+1.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.70%	17.85%	+1.85%

MFEM vs. DEM - Expense Ratio Comparison

MFEM has a 0.49% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

MFEM vs. DEM - Dividend Comparison

MFEM's dividend yield for the trailing twelve months is around 2.37%, less than DEM's 4.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.18%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	2.37%	2.77%	5.89%	4.01%	7.01%	29.96%	1.70%	2.37%	1.18%	0.21%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MFEM and DEM in my portfolio?

MFEM and DEM 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, MFEM or DEM?

MFEM has higher volatility (7.50%) compared to DEM (5.12%). In terms of maximum drawdown, MFEM dropped -43.32% vs DEM's -51.85%.

Which ETF is better, MFEM or DEM?

On 5-year performance, DEM leads with 10.19% vs 7.21% for MFEM. On fees, MFEM is cheaper at 0.49% per year. On volatility, DEM has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFEM or DEM?

Over the 5-year period, DEM has performed better with a 10.19% return vs 7.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFEM or DEM?

MFEM is cheaper with a 0.49% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, MFEM or DEM?

DEM has the higher dividend yield at 4.18%, compared with 2.37% for MFEM.

What is the main difference between MFEM and DEM?

MFEM is categorized as Emerging Markets Equities, while DEM is Dividend. MFEM tracks RAFI Dynamic Multi-Factor Emerging Market Index, while DEM tracks WisdomTree Emerging Markets Equity Income Index. They also come from different issuers: PIMCO and WisdomTree. Their fees differ too: 0.49% for MFEM and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (1.66 vs 1.31), 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.