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RFEM vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

RFEM vs. EEM

Last updated Aug 2, 2026
Documentation

RFEM (First Trust RiverFront Dynamic Emerging Markets ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Equities funds. RFEM is actively managed, while EEM is passively managed. Over the past 10 years, RFEM returned 8.95%/yr vs 8.32%/yr for EEM. Their correlation of 0.92 means they have usually moved in the same direction. RFEM charges 0.95%/yr vs 0.72%/yr for EEM.

Performance

RFEM vs. EEM - Performance Comparison

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

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Returns By Period

The year-to-date returns for both stocks are quite close, with RFEM having a 17.85% return and EEM slightly lower at 17.75%. Over the past 10 years, RFEM has outperformed EEM with an annualized return of 8.95%, while EEM has yielded a comparatively lower 8.32% annualized return.

RFEM

1D
1.21%
1M
-1.00%
6M
9.94%
YTD
17.85%
1Y
33.67%
3Y*
21.15%
5Y*
9.66%
10Y*
8.95%
ALL TIME*
9.76%

EEM

1D
0.79%
1M
-2.45%
6M
9.01%
YTD
17.75%
1Y
35.57%
3Y*
18.45%
5Y*
6.91%
10Y*
8.32%
ALL TIME*
9.87%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

EEM

iShares MSCI Emerging Markets ETF
$1.56B$1.60B$1.90B

RFEM

First Trust RiverFront Dynamic Emerging Markets ETF
$175.57K$273.16K$280.47K

RFEM vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
RFEM
First Trust RiverFront Dynamic Emerging Markets ETF		17.85%27.71%10.85%20.78%-19.05%0.97%8.19%20.33%-18.80%35.73%
EEM
iShares MSCI Emerging Markets ETF		17.75%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between RFEM and EEM is 0.93, 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.

0.93

Correlation (3Y)
Balances recent behavior with more history.

0.93

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.92

Correlation (10Y)
Provides a long-term view across more market conditions.

0.93

Correlation (All Time)
Calculated using the full available price history since Jun 15, 2016

0.92

The correlation between RFEM and EEM has been stable across timeframes, ranging from 0.92 to 0.93 - a consistent structural relationship.

RFEM vs. EEM - Sectors Allocation Comparison

Sectors
RFEM
EEM

Technology

36.5%
45.9%

Financial Services

22.3%
18.2%

Consumer Cyclical

10.7%
7.4%

Industrials

8.4%
6.2%

Energy

5.6%
3.2%

Communication Services

5.1%
6.0%

Basic Materials

4.0%
5.4%

Consumer Defensive

2.9%
2.5%

Healthcare

2.4%
2.5%

Utilities

1.3%
1.8%

Real Estate

0.6%
1.0%

Technology

RFEM
36.5%
EEM
45.9%

Financial Services

RFEM
22.3%
EEM
18.2%

Consumer Cyclical

RFEM
10.7%
EEM
7.4%

Industrials

RFEM
8.4%
EEM
6.2%

Energy

RFEM
5.6%
EEM
3.2%

Communication Services

RFEM
5.1%
EEM
6.0%

Basic Materials

RFEM
4.0%
EEM
5.4%

Consumer Defensive

RFEM
2.9%
EEM
2.5%

Healthcare

RFEM
2.4%
EEM
2.5%

Utilities

RFEM
1.3%
EEM
1.8%

Real Estate

RFEM
0.6%
EEM
1.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

First Trust RiverFront Dynamic Emerging Markets ETF

iShares MSCI Emerging Markets ETF

Often compared with RFEM:
RFEM vs. FEMRFEM vs. ALTYRFEM vs. NFTYRFEM vs. INDYRFEM vs. AVEMRFEM vs. EMCRRFEM vs. ECOW
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. VXUSEEM vs. IS3N.DEEEM vs. EEMSEEM vs. SPEM

Return for Risk

RFEM vs. EEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
RFEM
RFEM Risk / Return Rank: 7676
Overall Rank
RFEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
RFEM Sortino Ratio Rank: 7474
Sortino Ratio Rank
RFEM Omega Ratio Rank: 7575
Omega Ratio Rank
RFEM Calmar Ratio Rank: 7979
Calmar Ratio Rank
RFEM Martin Ratio Rank: 7979
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 6363
Overall Rank
EEM Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 5656
Sortino Ratio Rank
EEM Omega Ratio Rank: 6464
Omega Ratio Rank
EEM Calmar Ratio Rank: 7171
Calmar Ratio Rank
EEM Martin Ratio Rank: 6363
Martin Ratio Rank
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.

RFEM vs. EEM - Risk-Adjusted Trends 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.

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.

RFEMEEMDifference
Sharpe ratioReturn per unit of total volatility
1.75
1.42

+0.33

Sortino ratioReturn per unit of downside risk
2.38
1.93

+0.45

Omega ratioGain probability vs. loss probability

1.31

1.27

+0.04

Calmar ratioReturn relative to maximum drawdown

2.86

2.44

+0.42

Martin ratioReturn relative to average drawdown

10.09

7.49

+2.60

RFEM vs. EEM - Sharpe Ratio Comparison

The current RFEM Sharpe Ratio is 1.75, which is comparable to the EEM Sharpe Ratio of 1.42. The chart below compares the historical Sharpe Ratios of RFEM and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

RFEM vs. EEM - Drawdown Comparison

The maximum RFEM drawdown since its inception was -42.22%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for RFEM and EEM.

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Drawdown Indicators

RFEMEEMDifference

Max Drawdown

Largest peak-to-trough decline

-42.22%

-66.43%

+24.21%

Max Drawdown (1Y)

Largest decline over 1 year

-11.65%

-14.24%

+2.59%

Max Drawdown (3Y)

Largest decline over 3 years

-15.81%

-17.29%

+1.48%

Max Drawdown (5Y)

Largest decline over 5 years

-32.47%

-35.01%

+2.54%

Max Drawdown (10Y)

Largest decline over 10 years

-42.22%

-39.82%

-2.40%

Current Drawdown

Current decline from peak

-4.48%

-10.00%

+5.52%

Average Drawdown

Average peak-to-trough decline

-11.85%

-15.95%

+4.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.29%

4.63%

-1.34%

Volatility

RFEM vs. EEM - Volatility Comparison

The current volatility for First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is 6.31%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 9.09%. 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.

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Volatility by Period

RFEMEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.31%

9.09%

-2.78%

Volatility (6M)

Calculated over the trailing 6-month period

16.90%

22.40%

-5.50%

Volatility (1Y)

Calculated over the trailing 1-year period

19.07%

24.46%

-5.39%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.22%

19.83%

-1.61%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.71%

20.80%

-1.09%

RFEM vs. EEM - Expense Ratio Comparison

RFEM has a 0.95% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

RFEM vs. EEM - Dividend Comparison

RFEM's dividend yield for the trailing twelve months is around 2.69%, more than EEM's 1.74% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.74%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
RFEM
First Trust RiverFront Dynamic Emerging Markets ETF		2.69%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

With a correlation of 0.93, RFEM and EEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

EEM has higher volatility (9.09%) compared to RFEM (6.31%). In terms of maximum drawdown, RFEM dropped -42.22% vs EEM's -66.43%.

On 10-year performance, RFEM leads with 8.95% vs 8.32% for EEM. On fees, EEM is cheaper at 0.72% per year. On volatility, RFEM has been the lower-risk option at 6.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, RFEM has performed better with a 8.95% return vs 8.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

EEM is cheaper with a 0.72% expense ratio, compared with 0.95% for RFEM.

RFEM has the higher dividend yield at 2.69%, compared with 1.74% for EEM.

They also come from different issuers: First Trust and iShares. Their fees differ too: 0.95% for RFEM and 0.72% for EEM.

RFEM currently has the higher Sharpe Ratio (1.75 vs 1.42), 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.

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