NSI vs. EMDM

Last updated Jun 4, 2026

NSI (National Security Emerging Markets Index ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Diversified funds - NSI tracks the Alerian National Security Emerging Markets Index while EMDM tracks the Bloomberg Emerging Market Democracies Index - Benchmark TR Net. Both are passively managed. Over the past year, NSI returned 42.48% vs 91.32% for EMDM. Their correlation of 0.88 suggests significant overlap in exposure. NSI charges 1.00%/yr vs 0.75%/yr for EMDM.

Performance

NSI vs. EMDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in National Security Emerging Markets Index ETF (NSI) 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, NSI achieves a 17.45% return, which is significantly lower than EMDM's 39.03% return.

NSI

• 1D: -1.59%
• 1M: 3.72%
• YTD: 17.45%
• 6M: 19.18%
• 1Y: 42.48%
• 3Y*: —
• 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)

NSI vs. EMDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NSI National Security Emerging Markets Index ETF	17.45%	35.94%	-1.21%	4.68%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	39.03%	59.68%	-4.93%	6.70%

Correlation

The correlation between NSI and EMDM is 0.90, 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	0.90
Correlation (All Time) Calculated using the full available price history since Dec 8, 2023	0.88

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

NSI vs. EMDM - Sectors Allocation Comparison

Sectors	NSI	EMDM
Technology	34.0%	32.1%
Financial Services	20.2%	27.2%
Consumer Cyclical	13.5%	6.0%
Communication Services	10.1%	4.3%
Basic Materials	8.0%	15.1%
Energy	3.9%	6.3%
Industrials	2.9%	3.3%
Healthcare	2.9%	0.5%
Consumer Defensive	2.5%	3.4%
Utilities	1.5%	1.9%
Real Estate	0.6%	-

Return for Risk

NSI vs. EMDM — Risk / Return Rank

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

NSI

NSI Risk / Return Rank: 67
NSI Sharpe Ratio Rank: 71
NSI Sortino Ratio Rank: 68
NSI Omega Ratio Rank: 68
NSI Calmar Ratio Rank: 63
NSI Martin Ratio Rank: 64

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.

NSI vs. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for National Security Emerging Markets Index ETF (NSI) 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.

	NSI	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	2.31	3.92	-1.61
Sortino ratio: Return per unit of downside risk	3.11	4.56	-1.45
Omega ratio: Gain probability vs. loss probability	1.41	1.66	-0.25
Calmar ratio: Return relative to maximum drawdown	3.12	5.87	-2.74
Martin ratio: Return relative to average drawdown	11.55	24.30	-12.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NSI vs. EMDM - Sharpe Ratio Comparison

The current NSI Sharpe Ratio is 2.31, which is lower than the EMDM Sharpe Ratio of 3.92. The chart below compares the historical Sharpe Ratios of NSI 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

	NSI	EMDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	3.92	-1.61
Sharpe Ratio (All Time) Calculated using the full available price history	1.24	1.58	-0.34

Drawdowns

NSI vs. EMDM - Drawdown Comparison

The maximum NSI drawdown since its inception was -18.77%, roughly equal to the maximum EMDM drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for NSI and EMDM.

Drawdown Indicators

	NSI	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-18.77%	-18.81%	+0.04%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-15.65%	+1.99%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.81%	—
Current Drawdown Current decline from peak	-1.59%	-1.32%	-0.27%
Average Drawdown Average peak-to-trough decline	-3.65%	-4.07%	+0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.69%	3.77%	-0.08%

Volatility

NSI vs. EMDM - Volatility Comparison

The current volatility for National Security Emerging Markets Index ETF (NSI) is 7.13%, while First Trust Bloomberg Emerging Market Democracies ETF (EMDM) has a volatility of 9.61%. This indicates that NSI 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

	NSI	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.13%	9.61%	-2.48%
Volatility (6M) Calculated over the trailing 6-month period	15.60%	20.78%	-5.18%
Volatility (1Y) Calculated over the trailing 1-year period	18.51%	23.42%	-4.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.22%	19.79%	-1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.22%	19.79%	-1.57%

NSI vs. EMDM - Expense Ratio Comparison

NSI has a 1.00% expense ratio, which is higher than EMDM's 0.75% expense ratio.

Dividends

NSI vs. EMDM - Dividend Comparison

NSI's dividend yield for the trailing twelve months is around 1.17%, less than EMDM's 2.57% yield.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	2.57%	3.57%	5.87%	2.16%
NSI National Security Emerging Markets Index ETF	1.17%	1.69%	3.39%	0.34%

Frequently Asked Questions

Can I hold both NSI and EMDM in my portfolio?

NSI and EMDM have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NSI or EMDM?

EMDM has higher volatility (9.61%) compared to NSI (7.13%). In terms of maximum drawdown, NSI dropped -18.77% vs EMDM's -18.81%.

Which ETF is better, NSI or EMDM?

On 1-year performance, EMDM leads with 91.32% vs 42.48% for NSI. On fees, EMDM is cheaper at 0.75% per year. On volatility, NSI has been the lower-risk option at 7.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NSI or EMDM?

Over the 1-year period, EMDM has performed better with a 91.32% return vs 42.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NSI or EMDM?

EMDM is cheaper with a 0.75% expense ratio, compared with 1.00% for NSI.

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

EMDM has the higher dividend yield at 2.57%, compared with 1.17% for NSI.

What is the main difference between NSI and EMDM?

NSI tracks Alerian National Security Emerging Markets Index, while EMDM tracks Bloomberg Emerging Market Democracies Index - Benchmark TR Net. They also come from different issuers: Tuttle and First Trust. Their fees differ too: 1.00% for NSI and 0.75% for EMDM.

Which has better risk-adjusted returns?

EMDM currently has the higher Sharpe Ratio (3.92 vs 2.31), 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.