NUEM vs. FRDM

Last updated Jun 24, 2026

NUEM (Nuveen ESG Emerging Markets Equity ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - NUEM is a Emerging Markets Equities fund tracking the MSCI TIAA ESG Emerging Markets, 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, NUEM returned 5.15%/yr vs 18.74%/yr for FRDM. Their correlation of 0.80 suggests significant overlap in exposure. NUEM charges 0.35%/yr vs 0.49%/yr for FRDM.

Performance

NUEM vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen ESG Emerging Markets Equity ETF (NUEM) 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, NUEM achieves a 17.79% return, which is significantly lower than FRDM's 39.87% return.

NUEM

• 1D: -5.04%
• 1M: 2.42%
• YTD: 17.79%
• 6M: 17.76%
• 1Y: 34.99%
• 3Y*: 18.90%
• 5Y*: 5.15%
• 10Y*: —

FRDM

• 1D: -6.27%
• 1M: 5.76%
• YTD: 39.87%
• 6M: 43.31%
• 1Y: 88.48%
• 3Y*: 35.26%
• 5Y*: 18.74%
• 10Y*: —

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

NUEM vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
NUEM Nuveen ESG Emerging Markets Equity ETF	17.79%	27.12%	9.73%	8.57%	-19.74%	-1.08%	24.09%	13.26%
FRDM Freedom 100 Emerging Markets ETF	39.87%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.23%

Correlation

The correlation between NUEM and FRDM is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (All Time) Calculated using the full available price history since May 23, 2019	0.80

The correlation between NUEM and FRDM has been stable across timeframes, ranging from 0.78 to 0.87 - a consistent structural relationship.

NUEM vs. FRDM - Sectors Allocation Comparison

Sectors	NUEM	FRDM
Technology	36.5%	48.9%
Financial Services	16.8%	19.4%
Consumer Cyclical	11.2%	7.1%
Industrials	11.1%	7.6%
Basic Materials	7.9%	6.4%
Communication Services	7.6%	3.2%
Energy	2.6%	0.0%
Healthcare	2.6%	1.5%
Utilities	1.7%	2.1%
Consumer Defensive	1.5%	1.9%
Real Estate	0.6%	2.0%

Return for Risk

NUEM vs. FRDM — Risk / Return Rank

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

NUEM

NUEM Risk / Return Rank: 58
NUEM Sharpe Ratio Rank: 54
NUEM Sortino Ratio Rank: 51
NUEM Omega Ratio Rank: 57
NUEM Calmar Ratio Rank: 66
NUEM Martin Ratio Rank: 61

FRDM

FRDM Risk / Return Rank: 90
FRDM Sharpe Ratio Rank: 93
FRDM Sortino Ratio Rank: 85
FRDM Omega Ratio Rank: 90
FRDM Calmar Ratio Rank: 90
FRDM 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.

NUEM vs. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen ESG Emerging Markets Equity ETF (NUEM) 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.

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.

	NUEM	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	1.70	3.18	-1.48
Sortino ratio: Return per unit of downside risk	2.32	3.62	-1.29
Omega ratio: Gain probability vs. loss probability	1.33	1.55	-0.22
Calmar ratio: Return relative to maximum drawdown	3.04	5.27	-2.23
Martin ratio: Return relative to average drawdown	10.30	20.25	-9.95

NUEM vs. FRDM - Sharpe Ratio Comparison

The current NUEM Sharpe Ratio is 1.70, which is lower than the FRDM Sharpe Ratio of 3.18. The chart below compares the historical Sharpe Ratios of NUEM 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.

Drawdowns

NUEM vs. FRDM - Drawdown Comparison

The maximum NUEM drawdown since its inception was -39.48%, roughly equal to the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for NUEM and FRDM.

Drawdown Indicators

	NUEM	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-39.48%	-40.49%	+1.01%
Max Drawdown (1Y) Largest decline over 1 year	-11.56%	-16.87%	+5.31%
Max Drawdown (3Y) Largest decline over 3 years	-17.58%	-16.87%	-0.71%
Max Drawdown (5Y) Largest decline over 5 years	-38.10%	-29.25%	-8.85%
Current Drawdown Current decline from peak	-5.04%	-6.27%	+1.23%
Average Drawdown Average peak-to-trough decline	-14.95%	-7.07%	-7.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.41%	4.38%	-0.97%

Volatility

NUEM vs. FRDM - Volatility Comparison

The current volatility for Nuveen ESG Emerging Markets Equity ETF (NUEM) is 10.41%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 15.75%. This indicates that NUEM 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

	NUEM	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.41%	15.75%	-5.34%
Volatility (6M) Calculated over the trailing 6-month period	18.44%	25.69%	-7.25%
Volatility (1Y) Calculated over the trailing 1-year period	20.68%	27.99%	-7.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.15%	21.67%	-1.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.36%	23.26%	-2.90%

NUEM vs. FRDM - Expense Ratio Comparison

NUEM has a 0.35% expense ratio, which is lower than FRDM's 0.49% expense ratio.

Dividends

NUEM vs. FRDM - Dividend Comparison

NUEM's dividend yield for the trailing twelve months is around 3.04%, more than FRDM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FRDM Freedom 100 Emerging Markets ETF	1.56%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%
NUEM Nuveen ESG Emerging Markets Equity ETF	3.04%	3.58%	1.95%	2.37%	1.90%	2.45%	1.26%	1.98%	2.05%	0.62%

Frequently Asked Questions

Can I hold both NUEM and FRDM in my portfolio?

NUEM and FRDM have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NUEM or FRDM?

FRDM has higher volatility (15.75%) compared to NUEM (10.41%). In terms of maximum drawdown, NUEM dropped -39.48% vs FRDM's -40.49%.

Which ETF is better, NUEM or FRDM?

On 5-year performance, FRDM leads with 18.74% vs 5.15% for NUEM. On fees, NUEM is cheaper at 0.35% per year. On volatility, NUEM has been the lower-risk option at 10.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NUEM or FRDM?

Over the 5-year period, FRDM has performed better with a 18.74% return vs 5.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NUEM or FRDM?

NUEM is cheaper with a 0.35% expense ratio, compared with 0.49% for FRDM.

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

NUEM has the higher dividend yield at 3.04%, compared with 1.56% for FRDM.

What is the main difference between NUEM and FRDM?

NUEM is categorized as Emerging Markets Equities, while FRDM is Emerging Markets Diversified. NUEM tracks MSCI TIAA ESG Emerging Markets, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: Nuveen and Freedom Funds. Their fees differ too: 0.35% for NUEM and 0.49% for FRDM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.18 vs 1.70), 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.