RWEM vs. FDL

Last updated Jul 17, 2026

RWEM (Rayliant Wilshire NxtGen Emerging Markets Equity ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - RWEM is a Emerging Markets Equities fund tracking the FT Wilshire Emerging Large NxtGen Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 3 years, RWEM returned 19.89%/yr vs 19.90%/yr for FDL. At a 0.27 correlation, their price movements are largely independent. RWEM charges 0.52%/yr vs 0.43%/yr for FDL.

Performance

RWEM vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM) 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, RWEM achieves a 19.17% return, which is significantly higher than FDL's 17.61% return.

RWEM

• 1D: 1.01%
• 1M: -4.36%
• 6M: 15.15%
• YTD: 19.17%
• 1Y: 36.22%
• 3Y*: 19.89%
• 5Y*: —
• 10Y*: —

FDL

• 1D: 2.42%
• 1M: 2.96%
• 6M: 12.71%
• YTD: 17.61%
• 1Y: 25.62%
• 3Y*: 19.90%
• 5Y*: 14.10%
• 10Y*: 10.98%

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

RWEM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	19.17%	28.17%	7.24%	21.56%	-20.11%	0.16%
FDL First Trust Morningstar Dividend Leaders Index Fund	17.61%	14.79%	17.98%	2.94%	6.66%	4.60%

Correlation

The correlation between RWEM and FDL is -0.15, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (All Time) Calculated using the full available price history since Dec 16, 2021	0.27

The correlation between RWEM and FDL shifts across timeframes, from -0.15 (1 year) to 0.27 (all time), reflecting how their relationship changes across market environments.

RWEM vs. FDL - Sectors Allocation Comparison

Sectors	RWEM	FDL
Technology	43.8%	1.4%
Financial Services	15.3%	15.2%
Industrials	5.9%	3.9%
Consumer Cyclical	4.5%	4.7%
Communication Services	4.4%	10.6%
Basic Materials	3.5%	0.3%
Energy	2.4%	25.7%
Healthcare	1.9%	17.6%
Utilities	1.9%	6.5%
Consumer Defensive	1.0%	14.4%
Real Estate	0.1%	-

Return for Risk

RWEM vs. FDL — Risk / Return Rank

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

RWEM

RWEM Risk / Return Rank: 43
RWEM Sharpe Ratio Rank: 34
RWEM Sortino Ratio Rank: 35
RWEM Omega Ratio Rank: 38
RWEM Calmar Ratio Rank: 59
RWEM Martin Ratio Rank: 51

FDL

FDL Risk / Return Rank: 87
FDL Sharpe Ratio Rank: 85
FDL Sortino Ratio Rank: 89
FDL Omega Ratio Rank: 81
FDL Calmar Ratio Rank: 95
FDL Martin Ratio Rank: 85

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.

RWEM vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM) 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.

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.

	RWEM	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.01	2.18	-1.17
Sortino ratio: Return per unit of downside risk	1.53	3.33	-1.80
Omega ratio: Gain probability vs. loss probability	1.21	1.38	-0.17
Calmar ratio: Return relative to maximum drawdown	2.36	6.02	-3.66
Martin ratio: Return relative to average drawdown	6.75	13.73	-6.98

RWEM vs. FDL - Sharpe Ratio Comparison

The current RWEM Sharpe Ratio is 1.01, which is lower than the FDL Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of RWEM 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.

Drawdowns

RWEM vs. FDL - Drawdown Comparison

The maximum RWEM drawdown since its inception was -26.92%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for RWEM and FDL.

Drawdown Indicators

	RWEM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-26.92%	-65.93%	+39.01%
Max Drawdown (1Y) Largest decline over 1 year	-15.39%	-4.27%	-11.12%
Max Drawdown (3Y) Largest decline over 3 years	-22.56%	-12.24%	-10.32%
Max Drawdown (5Y) Largest decline over 5 years	—	-16.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-7.97%	0.00%	-7.97%
Average Drawdown Average peak-to-trough decline	-9.56%	-9.61%	+0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.38%	1.87%	+3.51%

Volatility

RWEM vs. FDL - Volatility Comparison

Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM) has a higher volatility of 10.62% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 4.91%. This indicates that RWEM'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

	RWEM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.62%	4.91%	+5.71%
Volatility (6M) Calculated over the trailing 6-month period	30.07%	8.74%	+21.33%
Volatility (1Y) Calculated over the trailing 1-year period	35.98%	11.79%	+24.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.55%	14.41%	+8.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.55%	17.13%	+5.42%

RWEM vs. FDL - Expense Ratio Comparison

RWEM has a 0.52% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

RWEM vs. FDL - Dividend Comparison

RWEM's dividend yield for the trailing twelve months is around 1.81%, less than FDL's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.61%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	1.81%	2.15%	3.59%	1.60%	5.59%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both RWEM and FDL in my portfolio?

RWEM and FDL have a correlation of -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWEM or FDL?

RWEM has higher volatility (10.62%) compared to FDL (4.91%). In terms of maximum drawdown, RWEM dropped -26.92% vs FDL's -65.93%.

Which ETF is better, RWEM or FDL?

On 3-year performance, FDL leads with 19.90% vs 19.89% for RWEM. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RWEM or FDL?

Over the 3-year period, FDL has performed better with a 19.90% return vs 19.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWEM or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.52% for RWEM.

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

FDL has the higher dividend yield at 3.61%, compared with 1.81% for RWEM.

What is the main difference between RWEM and FDL?

RWEM is categorized as Emerging Markets Equities, while FDL is Large Cap Value Equities. RWEM tracks FT Wilshire Emerging Large NxtGen Index, while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: Rayliant and First Trust. Their fees differ too: 0.52% for RWEM and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.18 vs 1.01), 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.