RFEM vs. EEM
Compare and contrast key facts about First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) and iShares MSCI Emerging Markets ETF (EEM).
RFEM and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. RFEM is an actively managed fund by First Trust. It was launched on Jun 14, 2016. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: RFEM or EEM.
Key characteristics
| RFEM | EEM | |
|---|---|---|
| YTD Return | 9.70% | 7.55% |
| 1Y Return | 16.62% | 11.02% |
| 3Y Return (Ann) | 2.27% | -3.81% |
| 5Y Return (Ann) | 4.79% | 2.21% |
| Sharpe Ratio | 1.09 | 0.77 |
| Sortino Ratio | 1.58 | 1.17 |
| Omega Ratio | 1.20 | 1.14 |
| Calmar Ratio | 0.94 | 0.39 |
| Martin Ratio | 5.31 | 3.77 |
| Ulcer Index | 3.20% | 3.17% |
| Daily Std Dev | 15.55% | 15.58% |
| Max Drawdown | -42.22% | -66.44% |
| Current Drawdown | -8.84% | -20.04% |
Correlation
The correlation between RFEM and EEM is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
RFEM vs. EEM - Performance Comparison
In the year-to-date period, RFEM achieves a 9.70% return, which is significantly higher than EEM's 7.55% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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RFEM vs. EEM - Expense Ratio Comparison
RFEM has a 0.95% expense ratio, which is higher than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
RFEM vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) and iShares MSCI Emerging Markets ETF (EEM). 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.
Dividends
RFEM vs. EEM - Dividend Comparison
RFEM's dividend yield for the trailing twelve months is around 2.64%, more than EEM's 2.42% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
RFEM First Trust RiverFront Dynamic Emerging Markets ETF | 2.64% | 3.28% | 7.74% | 3.21% | 1.22% | 3.75% | 2.37% | 1.62% | 3.73% | 0.00% | 0.00% | 0.00% |
EEM iShares MSCI Emerging Markets ETF | 2.42% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% | 2.23% | 2.06% |
Drawdowns
RFEM vs. EEM - Drawdown Comparison
The maximum RFEM drawdown since its inception was -42.22%, smaller than the maximum EEM drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for RFEM and EEM. For additional features, visit the drawdowns tool.
Volatility
RFEM vs. EEM - Volatility Comparison
The current volatility for First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is 4.16%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 4.77%. This indicates that RFEM experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.