RNEM vs. VBINX

Last updated Jun 24, 2026

RNEM (First Trust Emerging Markets Equity Select ETF) and VBINX (Vanguard Balanced Index Fund) are both funds - RNEM is a Emerging Markets Equities fund tracking the Nasdaq Riskalyze Emerging Markets Equity Select Index, while VBINX is a Diversified Portfolio fund managed by Vanguard. Over the past 5 years, RNEM returned 4.54%/yr vs 8.02%/yr for VBINX. At a 0.50 correlation, their price movements are largely independent. RNEM charges 0.75%/yr vs 0.18%/yr for VBINX.

Performance

RNEM vs. VBINX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Equity Select ETF (RNEM) and Vanguard Balanced Index Fund (VBINX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RNEM achieves a -0.01% return, which is significantly lower than VBINX's 6.32% return.

RNEM

• 1D: -1.32%
• 1M: 1.05%
• YTD: -0.01%
• 6M: -0.61%
• 1Y: 4.82%
• 3Y*: 7.54%
• 5Y*: 4.54%
• 10Y*: —

VBINX

• 1D: -0.29%
• 1M: 0.57%
• YTD: 6.32%
• 6M: 5.69%
• 1Y: 16.95%
• 3Y*: 15.26%
• 5Y*: 8.02%
• 10Y*: 10.03%

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

RNEM vs. VBINX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNEM First Trust Emerging Markets Equity Select ETF	-0.01%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-8.16%	12.76%	-9.34%	11.97%
VBINX Vanguard Balanced Index Fund	6.32%	13.46%	17.63%	17.41%	-16.98%	13.62%	16.26%	21.67%	-2.97%	6.65%

Correlation

The correlation between RNEM and VBINX is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jun 23, 2017	0.50

The correlation between RNEM and VBINX shifts across timeframes, from 0.50 (all time) to 0.66 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

RNEM vs. VBINX — Risk / Return Rank

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

RNEM

RNEM Risk / Return Rank: 13
RNEM Sharpe Ratio Rank: 14
RNEM Sortino Ratio Rank: 13
RNEM Omega Ratio Rank: 13
RNEM Calmar Ratio Rank: 14
RNEM Martin Ratio Rank: 13

VBINX

VBINX Risk / Return Rank: 66
VBINX Sharpe Ratio Rank: 62
VBINX Sortino Ratio Rank: 62
VBINX Omega Ratio Rank: 60
VBINX Calmar Ratio Rank: 69
VBINX Martin Ratio Rank: 77

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.

RNEM vs. VBINX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Equity Select ETF (RNEM) and Vanguard Balanced Index Fund (VBINX). 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.

	RNEM	VBINX	Difference
Sharpe ratio: Return per unit of total volatility	0.36	2.13	-1.77
Sortino ratio: Return per unit of downside risk	0.61	3.00	-2.40
Omega ratio: Gain probability vs. loss probability	1.07	1.39	-0.32
Calmar ratio: Return relative to maximum drawdown	0.45	3.05	-2.60
Martin ratio: Return relative to average drawdown	1.00	13.50	-12.50

RNEM vs. VBINX - Sharpe Ratio Comparison

The current RNEM Sharpe Ratio is 0.36, which is lower than the VBINX Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of RNEM and VBINX, 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

RNEM vs. VBINX - Drawdown Comparison

The maximum RNEM drawdown since its inception was -38.38%, which is greater than VBINX's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for RNEM and VBINX.

Drawdown Indicators

	RNEM	VBINX	Difference
Max Drawdown Largest peak-to-trough decline	-38.38%	-35.97%	-2.41%
Max Drawdown (1Y) Largest decline over 1 year	-10.71%	-5.84%	-4.87%
Max Drawdown (3Y) Largest decline over 3 years	-13.09%	-11.60%	-1.49%
Max Drawdown (5Y) Largest decline over 5 years	-21.41%	-21.61%	+0.20%
Max Drawdown (10Y) Largest decline over 10 years	—	-22.78%	—
Current Drawdown Current decline from peak	-6.06%	-0.93%	-5.13%
Average Drawdown Average peak-to-trough decline	-9.28%	-4.14%	-5.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.83%	1.32%	+3.51%

Volatility

RNEM vs. VBINX - Volatility Comparison

First Trust Emerging Markets Equity Select ETF (RNEM) has a higher volatility of 4.04% compared to Vanguard Balanced Index Fund (VBINX) at 3.23%. This indicates that RNEM's price experiences larger fluctuations and is considered to be riskier than VBINX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RNEM	VBINX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.04%	3.23%	+0.81%
Volatility (6M) Calculated over the trailing 6-month period	10.80%	6.70%	+4.10%
Volatility (1Y) Calculated over the trailing 1-year period	13.64%	8.39%	+5.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.47%	11.17%	+3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.21%	11.27%	+5.94%

RNEM vs. VBINX - Expense Ratio Comparison

RNEM has a 0.75% expense ratio, which is higher than VBINX's 0.18% expense ratio.

Dividends

RNEM vs. VBINX - Dividend Comparison

RNEM's dividend yield for the trailing twelve months is around 2.75%, less than VBINX's 5.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RNEM First Trust Emerging Markets Equity Select ETF	2.75%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%	0.00%	0.00%
VBINX Vanguard Balanced Index Fund	5.16%	5.89%	7.88%	4.25%	2.71%	2.71%	2.54%	2.19%	2.20%	1.83%	1.97%	1.95%

Frequently Asked Questions

Can I hold both RNEM and VBINX in my portfolio?

RNEM and VBINX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RNEM or VBINX?

RNEM has higher volatility (4.04%) compared to VBINX (3.23%). In terms of maximum drawdown, RNEM dropped -38.38% vs VBINX's -35.97%.

Which has better risk-adjusted returns?

VBINX currently has the higher Sharpe Ratio (2.13 vs 0.36), 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.