RFEM vs. FDL

Last updated Jun 4, 2026

RFEM (First Trust RiverFront Dynamic Emerging Markets ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - RFEM is a Emerging Markets Equities fund actively managed by First Trust, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. RFEM is actively managed, while FDL is passively managed. Over the past 5 years, RFEM returned 8.99%/yr vs 12.51%/yr for FDL. At a 0.44 correlation, their price movements are largely independent. RFEM charges 0.95%/yr vs 0.45%/yr for FDL.

Performance

RFEM vs. FDL - 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 Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFEM achieves a 21.66% return, which is significantly higher than FDL's 13.33% return.

RFEM

• 1D: -1.39%
• 1M: 4.27%
• YTD: 21.66%
• 6M: 23.54%
• 1Y: 45.49%
• 3Y*: 24.73%
• 5Y*: 8.99%
• 10Y*: —

FDL

• 1D: -0.26%
• 1M: -0.26%
• YTD: 13.33%
• 6M: 14.76%
• 1Y: 23.67%
• 3Y*: 18.97%
• 5Y*: 12.51%
• 10Y*: 11.24%

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

RFEM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RFEM First Trust RiverFront Dynamic Emerging Markets ETF	21.66%	27.71%	10.85%	20.78%	-19.05%	0.97%	8.19%	20.33%	-18.80%	35.73%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.33%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between RFEM and FDL is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (All Time) Calculated using the full available price history since Jun 16, 2016	0.44

Over the past year, the correlation between RFEM and FDL has dropped to 0.14 - well below their long-term average of 0.44, suggesting their price drivers have been diverging.

RFEM vs. FDL - Sectors Allocation Comparison

Sectors	RFEM	FDL
Technology	35.8%	1.1%
Financial Services	20.4%	15.1%
Consumer Cyclical	11.4%	3.8%
Industrials	7.9%	3.8%
Energy	6.6%	27.3%
Communication Services	5.7%	10.6%
Basic Materials	4.0%	0.3%
Consumer Defensive	3.4%	14.7%
Healthcare	2.7%	16.8%
Utilities	1.4%	6.5%
Real Estate	0.7%	-

Return for Risk

RFEM vs. FDL — Risk / Return Rank

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

RFEM

RFEM Risk / Return Rank: 81
RFEM Sharpe Ratio Rank: 83
RFEM Sortino Ratio Rank: 81
RFEM Omega Ratio Rank: 82
RFEM Calmar Ratio Rank: 78
RFEM Martin Ratio Rank: 81

FDL

FDL Risk / Return Rank: 70
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 70
FDL Omega Ratio Rank: 59
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 71

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. FDL - 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 Morningstar Dividend Leaders Index Fund (FDL). 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.

	RFEM	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.11	+0.60
Sortino ratio: Return per unit of downside risk	3.63	3.25	+0.37
Omega ratio: Gain probability vs. loss probability	1.49	1.37	+0.12
Calmar ratio: Return relative to maximum drawdown	3.92	5.56	-1.64
Martin ratio: Return relative to average drawdown	15.99	13.56	+2.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RFEM vs. FDL - Sharpe Ratio Comparison

The current RFEM Sharpe Ratio is 2.71, which is comparable to the FDL Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of RFEM and FDL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RFEM	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.11	+0.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.88	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.45	+0.07

Drawdowns

RFEM vs. FDL - Drawdown Comparison

The maximum RFEM drawdown since its inception was -42.22%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for RFEM and FDL.

Drawdown Indicators

	RFEM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-42.22%	-65.93%	+23.71%
Max Drawdown (1Y) Largest decline over 1 year	-11.65%	-4.27%	-7.38%
Max Drawdown (3Y) Largest decline over 3 years	-15.81%	-12.24%	-3.57%
Max Drawdown (5Y) Largest decline over 5 years	-34.73%	-16.46%	-18.27%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-1.39%	-2.18%	+0.79%
Average Drawdown Average peak-to-trough decline	-11.98%	-9.66%	-2.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	1.75%	+1.10%

Volatility

RFEM vs. FDL - Volatility Comparison

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) has a higher volatility of 6.86% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.85%. This indicates that RFEM's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFEM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.86%	2.85%	+4.01%
Volatility (6M) Calculated over the trailing 6-month period	14.37%	7.87%	+6.50%
Volatility (1Y) Calculated over the trailing 1-year period	16.85%	11.28%	+5.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.88%	14.31%	+3.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.81%	17.11%	+2.70%

RFEM vs. FDL - Expense Ratio Comparison

RFEM has a 0.95% expense ratio, which is higher than FDL's 0.45% expense ratio.

Dividends

RFEM vs. FDL - Dividend Comparison

RFEM's dividend yield for the trailing twelve months is around 1.68%, less than FDL's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.68%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
RFEM First Trust RiverFront Dynamic Emerging Markets ETF	1.68%	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 FDL in my portfolio?

RFEM and FDL have a correlation of 0.14, 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 FDL?

RFEM has higher volatility (6.86%) compared to FDL (2.85%). In terms of maximum drawdown, RFEM dropped -42.22% vs FDL's -65.93%.

Which ETF is better, RFEM or FDL?

On 5-year performance, FDL leads with 12.51% vs 8.99% for RFEM. On fees, FDL is cheaper at 0.45% per year. On volatility, FDL has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RFEM or FDL?

Over the 5-year period, FDL has performed better with a 12.51% return vs 8.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RFEM or FDL?

FDL is cheaper with a 0.45% expense ratio, compared with 0.95% for RFEM.

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

FDL has the higher dividend yield at 3.68%, compared with 1.68% for RFEM.

What is the main difference between RFEM and FDL?

RFEM is categorized as Emerging Markets Equities, while FDL is Large Cap Value Equities. Their fees differ too: 0.95% for RFEM and 0.45% for FDL.

Which has better risk-adjusted returns?

RFEM currently has the higher Sharpe Ratio (2.71 vs 2.11), 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.