RFEM vs. AIRR

Last updated Jun 24, 2026

RFEM (First Trust RiverFront Dynamic Emerging Markets ETF) and AIRR (First Trust RBA American Industrial Renaissance ETF) are both exchange-traded funds - RFEM is a Emerging Markets Equities fund actively managed by First Trust, while AIRR is a Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance Index. RFEM is actively managed, while AIRR is passively managed. Over the past 10 years, RFEM returned 9.39%/yr vs 22.05%/yr for AIRR. At a 0.50 correlation, their price movements are largely independent. RFEM charges 0.95%/yr vs 0.69%/yr for AIRR.

Performance

RFEM vs. AIRR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) and First Trust RBA American Industrial Renaissance ETF (AIRR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFEM achieves a 18.11% return, which is significantly lower than AIRR's 31.81% return. Over the past 10 years, RFEM has underperformed AIRR with an annualized return of 9.39%, while AIRR has yielded a comparatively higher 22.05% annualized return.

RFEM

• 1D: -3.04%
• 1M: 0.28%
• YTD: 18.11%
• 6M: 18.72%
• 1Y: 36.93%
• 3Y*: 22.77%
• 5Y*: 8.62%
• 10Y*: 9.39%

AIRR

• 1D: -2.80%
• 1M: 3.57%
• YTD: 31.81%
• 6M: 27.48%
• 1Y: 63.63%
• 3Y*: 36.68%
• 5Y*: 25.97%
• 10Y*: 22.05%

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

RFEM vs. AIRR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RFEM First Trust RiverFront Dynamic Emerging Markets ETF	18.11%	27.71%	10.85%	20.78%	-19.05%	0.97%	8.19%	20.33%	-18.80%	35.73%
AIRR First Trust RBA American Industrial Renaissance ETF	31.81%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%

Correlation

The correlation between RFEM and AIRR is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Jun 15, 2016	0.50

The correlation between RFEM and AIRR has been stable across timeframes, ranging from 0.50 to 0.54 - a consistent structural relationship.

RFEM vs. AIRR - Sectors Allocation Comparison

Sectors	RFEM	AIRR
Technology	36.3%	0.7%
Financial Services	21.0%	6.9%
Consumer Cyclical	12.7%	-
Industrials	8.0%	92.4%
Energy	5.9%	3.8%
Communication Services	5.0%	-
Basic Materials	3.9%	-
Consumer Defensive	2.9%	-
Healthcare	2.4%	-
Utilities	1.3%	-
Real Estate	0.7%	-

Return for Risk

RFEM vs. AIRR — Risk / Return Rank

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

RFEM

RFEM Risk / Return Rank: 69
RFEM Sharpe Ratio Rank: 69
RFEM Sortino Ratio Rank: 65
RFEM Omega Ratio Rank: 69
RFEM Calmar Ratio Rank: 69
RFEM Martin Ratio Rank: 73

AIRR

AIRR Risk / Return Rank: 79
AIRR Sharpe Ratio Rank: 80
AIRR Sortino Ratio Rank: 73
AIRR Omega Ratio Rank: 67
AIRR Calmar Ratio Rank: 88
AIRR Martin Ratio Rank: 87

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.

RFEM vs. AIRR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) and First Trust RBA American Industrial Renaissance ETF (AIRR). 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.

	RFEM	AIRR	Difference
Sharpe ratio: Return per unit of total volatility	2.05	2.43	-0.38
Sortino ratio: Return per unit of downside risk	2.73	3.13	-0.40
Omega ratio: Gain probability vs. loss probability	1.38	1.38	-0.01
Calmar ratio: Return relative to maximum drawdown	3.19	4.89	-1.70
Martin ratio: Return relative to average drawdown	12.49	17.83	-5.34

RFEM vs. AIRR - Sharpe Ratio Comparison

The current RFEM Sharpe Ratio is 2.05, which is comparable to the AIRR Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of RFEM and AIRR, 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

RFEM vs. AIRR - Drawdown Comparison

The maximum RFEM drawdown since its inception was -42.22%, roughly equal to the maximum AIRR drawdown of -42.37%. Use the drawdown chart below to compare losses from any high point for RFEM and AIRR.

Drawdown Indicators

	RFEM	AIRR	Difference
Max Drawdown Largest peak-to-trough decline	-42.22%	-42.37%	+0.15%
Max Drawdown (1Y) Largest decline over 1 year	-11.65%	-13.09%	+1.44%
Max Drawdown (3Y) Largest decline over 3 years	-15.81%	-27.95%	+12.14%
Max Drawdown (5Y) Largest decline over 5 years	-34.25%	-27.95%	-6.30%
Max Drawdown (10Y) Largest decline over 10 years	-42.22%	-42.37%	+0.15%
Current Drawdown Current decline from peak	-4.26%	-2.80%	-1.46%
Average Drawdown Average peak-to-trough decline	-11.93%	-7.47%	-4.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.58%	-0.61%

Volatility

RFEM vs. AIRR - Volatility Comparison

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) and First Trust RBA American Industrial Renaissance ETF (AIRR) have volatilities of 8.40% and 8.80%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFEM	AIRR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.40%	8.80%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	15.94%	20.63%	-4.69%
Volatility (1Y) Calculated over the trailing 1-year period	18.14%	26.40%	-8.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.15%	25.45%	-7.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.85%	26.33%	-6.48%

RFEM vs. AIRR - Expense Ratio Comparison

RFEM has a 0.95% expense ratio, which is higher than AIRR's 0.69% expense ratio.

Dividends

RFEM vs. AIRR - Dividend Comparison

RFEM's dividend yield for the trailing twelve months is around 1.73%, more than AIRR's 0.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIRR First Trust RBA American Industrial Renaissance ETF	0.13%	0.19%	0.18%	0.23%	0.12%	0.05%	0.10%	0.20%	0.43%	0.30%	0.08%	0.47%
RFEM First Trust RiverFront Dynamic Emerging Markets ETF	1.73%	1.98%	3.64%	3.28%	7.74%	3.21%	1.22%	3.75%	2.37%	1.62%	3.73%	0.00%

Frequently Asked Questions

Can I hold both RFEM and AIRR in my portfolio?

RFEM and AIRR have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFEM or AIRR?

AIRR has higher volatility (8.80%) compared to RFEM (8.40%). In terms of maximum drawdown, RFEM dropped -42.22% vs AIRR's -42.37%.

Which ETF is better, RFEM or AIRR?

On 10-year performance, AIRR leads with 22.05% vs 9.39% for RFEM. On fees, AIRR is cheaper at 0.69% per year. On volatility, RFEM has been the lower-risk option at 8.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RFEM or AIRR?

Over the 10-year period, AIRR has performed better with a 22.05% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RFEM or AIRR?

AIRR is cheaper with a 0.69% expense ratio, compared with 0.95% for RFEM.

Which ETF pays a higher dividend yield, RFEM or AIRR?

RFEM has the higher dividend yield at 1.73%, compared with 0.13% for AIRR.

What is the main difference between RFEM and AIRR?

RFEM is categorized as Emerging Markets Equities, while AIRR is Building & Construction. Their fees differ too: 0.95% for RFEM and 0.69% for AIRR.

Which has better risk-adjusted returns?

AIRR currently has the higher Sharpe Ratio (2.43 vs 2.05), 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.