RFEM vs. EEM

Last updated Jun 23, 2026

RFEM (First Trust RiverFront Dynamic Emerging Markets ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - RFEM is a Emerging Markets Equities fund actively managed by First Trust, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). RFEM is actively managed, while EEM is passively managed. Over the past 10 years, RFEM returned 9.73%/yr vs 10.51%/yr for EEM. Their correlation of 0.92 suggests significant overlap in exposure. 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.

Returns By Period

In the year-to-date period, RFEM achieves a 21.81% return, which is significantly lower than EEM's 30.84% return. Over the past 10 years, RFEM has underperformed EEM with an annualized return of 9.73%, while EEM has yielded a comparatively higher 10.51% annualized return.

RFEM

• 1D: 0.02%
• 1M: 3.41%
• YTD: 21.81%
• 6M: 23.05%
• 1Y: 42.44%
• 3Y*: 24.04%
• 5Y*: 9.58%
• 10Y*: 9.73%

EEM

• 1D: 0.59%
• 1M: 8.65%
• YTD: 30.84%
• 6M: 32.53%
• 1Y: 56.71%
• 3Y*: 24.99%
• 5Y*: 7.99%
• 10Y*: 10.51%

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

RFEM vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RFEM First Trust RiverFront Dynamic Emerging Markets ETF	21.81%	27.71%	10.85%	20.78%	-19.05%	0.97%	8.19%	20.33%	-18.80%	35.73%
EEM iShares MSCI Emerging Markets ETF	30.84%	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 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.92
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 0.94 - a consistent structural relationship.

RFEM vs. EEM - Sectors Allocation Comparison

Sectors	RFEM	EEM
Technology	36.3%	46.4%
Financial Services	21.0%	17.8%
Consumer Cyclical	12.7%	7.2%
Industrials	8.0%	5.9%
Energy	5.9%	3.0%
Communication Services	5.0%	5.6%
Basic Materials	3.9%	5.7%
Consumer Defensive	2.9%	2.4%
Healthcare	2.4%	2.3%
Utilities	1.3%	1.8%
Real Estate	0.7%	0.9%

Return for Risk

RFEM vs. EEM — Risk / Return Rank

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

RFEM

RFEM Risk / Return Rank: 76
RFEM Sharpe Ratio Rank: 78
RFEM Sortino Ratio Rank: 73
RFEM Omega Ratio Rank: 77
RFEM Calmar Ratio Rank: 74
RFEM Martin Ratio Rank: 77

EEM

EEM Risk / Return Rank: 82
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 77
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 83
EEM Martin Ratio Rank: 81

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. 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.

	RFEM	EEM	Difference
Sharpe ratio: Return per unit of total volatility	2.39	2.59	-0.20
Sortino ratio: Return per unit of downside risk	3.15	3.28	-0.12
Omega ratio: Gain probability vs. loss probability	1.44	1.48	-0.05
Calmar ratio: Return relative to maximum drawdown	3.66	4.22	-0.55
Martin ratio: Return relative to average drawdown	14.41	15.52	-1.11

RFEM vs. EEM - Sharpe Ratio Comparison

The current RFEM Sharpe Ratio is 2.39, which is comparable to the EEM Sharpe Ratio of 2.59. 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.

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.

Drawdown Indicators

	RFEM	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-42.22%	-66.43%	+24.21%
Max Drawdown (1Y) Largest decline over 1 year	-11.65%	-13.52%	+1.87%
Max Drawdown (3Y) Largest decline over 3 years	-15.81%	-17.29%	+1.48%
Max Drawdown (5Y) Largest decline over 5 years	-34.25%	-37.49%	+3.24%
Max Drawdown (10Y) Largest decline over 10 years	-42.22%	-39.82%	-2.40%
Current Drawdown Current decline from peak	-1.27%	0.00%	-1.27%
Average Drawdown Average peak-to-trough decline	-11.93%	-15.99%	+4.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	3.66%	-0.71%

Volatility

RFEM vs. EEM - Volatility Comparison

The current volatility for First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is 7.81%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.95%. 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.

Volatility by Period

	RFEM	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.81%	10.95%	-3.14%
Volatility (6M) Calculated over the trailing 6-month period	15.64%	19.83%	-4.19%
Volatility (1Y) Calculated over the trailing 1-year period	17.89%	22.04%	-4.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.10%	19.39%	-1.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.83%	20.69%	-0.86%

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 1.67%, more than EEM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.56%	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	1.67%	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 EEM in my portfolio?

With a correlation of 0.94, 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.

Which is riskier, RFEM or EEM?

EEM has higher volatility (10.95%) compared to RFEM (7.81%). In terms of maximum drawdown, RFEM dropped -42.22% vs EEM's -66.43%.

Which ETF is better, RFEM or EEM?

On 10-year performance, EEM leads with 10.51% vs 9.73% for RFEM. On fees, EEM is cheaper at 0.72% per year. On volatility, RFEM has been the lower-risk option at 7.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RFEM or EEM?

Over the 10-year period, EEM has performed better with a 10.51% return vs 9.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RFEM or EEM?

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

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

RFEM has the higher dividend yield at 1.67%, compared with 1.56% for EEM.

What is the main difference between RFEM and EEM?

RFEM is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.95% for RFEM and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.59 vs 2.39), 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.