SPEM vs. FEM

Last updated Jun 4, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and FEM (First Trust Emerging Markets AlphaDEX Fund) are both Emerging Markets Equities funds - SPEM tracks the S&P Emerging Markets BMI while FEM tracks the NASDAQ AlphaDEX EM Index. Both are passively managed. Over the past 10 years, SPEM returned 9.45%/yr vs 9.75%/yr for FEM. Their correlation of 0.89 suggests significant overlap in exposure. SPEM charges 0.11%/yr vs 0.80%/yr for FEM.

Performance

SPEM vs. FEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and First Trust Emerging Markets AlphaDEX Fund (FEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 12.45% return, which is significantly lower than FEM's 20.43% return. Both investments have delivered pretty close results over the past 10 years, with SPEM having a 9.45% annualized return and FEM not far ahead at 9.75%.

SPEM

• 1D: -1.40%
• 1M: 3.20%
• YTD: 12.45%
• 6M: 14.11%
• 1Y: 31.35%
• 3Y*: 18.73%
• 5Y*: 5.70%
• 10Y*: 9.45%

FEM

• 1D: -1.38%
• 1M: -0.66%
• YTD: 20.43%
• 6M: 22.40%
• 1Y: 42.41%
• 3Y*: 20.73%
• 5Y*: 7.34%
• 10Y*: 9.75%

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

SPEM vs. FEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	12.45%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
FEM First Trust Emerging Markets AlphaDEX Fund	20.43%	28.36%	3.01%	10.84%	-14.24%	7.40%	-1.68%	20.55%	-15.51%	41.05%

Correlation

The correlation between SPEM and FEM is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Apr 20, 2011	0.89

The correlation between SPEM and FEM has been stable across timeframes, ranging from 0.83 to 0.89 - a consistent structural relationship.

SPEM vs. FEM - Sectors Allocation Comparison

Sectors	SPEM	FEM
Technology	28.2%	24.5%
Financial Services	20.2%	7.0%
Consumer Cyclical	10.4%	5.7%
Industrials	8.5%	20.9%
Basic Materials	8.2%	8.6%
Communication Services	7.2%	4.6%
Energy	4.7%	14.1%
Healthcare	4.0%	3.1%
Consumer Defensive	3.9%	2.8%
Utilities	2.8%	6.2%
Real Estate	1.9%	2.5%

Return for Risk

SPEM vs. FEM — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 57
SPEM Sharpe Ratio Rank: 57
SPEM Sortino Ratio Rank: 56
SPEM Omega Ratio Rank: 58
SPEM Calmar Ratio Rank: 55
SPEM Martin Ratio Rank: 57

FEM

FEM Risk / Return Rank: 76
FEM Sharpe Ratio Rank: 74
FEM Sortino Ratio Rank: 67
FEM Omega Ratio Rank: 72
FEM Calmar Ratio Rank: 84
FEM Martin Ratio Rank: 84

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.

SPEM vs. FEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) and First Trust Emerging Markets AlphaDEX Fund (FEM). 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.

	SPEM	FEM	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.45	-0.47
Sortino ratio: Return per unit of downside risk	2.73	3.11	-0.38
Omega ratio: Gain probability vs. loss probability	1.36	1.43	-0.07
Calmar ratio: Return relative to maximum drawdown	2.77	4.58	-1.81
Martin ratio: Return relative to average drawdown	10.14	17.35	-7.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPEM vs. FEM - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.98, which is comparable to the FEM Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of SPEM and FEM, 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

	SPEM	FEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	2.45	-0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.40	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.47	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.19	+0.04

Drawdowns

SPEM vs. FEM - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than FEM's maximum drawdown of -46.23%. Use the drawdown chart below to compare losses from any high point for SPEM and FEM.

Drawdown Indicators

	SPEM	FEM	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-46.23%	-18.18%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-9.31%	-2.05%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-18.79%	+1.17%
Max Drawdown (5Y) Largest decline over 5 years	-31.88%	-31.72%	-0.16%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-46.23%	+10.17%
Current Drawdown Current decline from peak	-1.40%	-2.46%	+1.06%
Average Drawdown Average peak-to-trough decline	-14.75%	-15.04%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.45%	+0.65%

Volatility

SPEM vs. FEM - Volatility Comparison

The current volatility for SPDR Portfolio Emerging Markets ETF (SPEM) is 5.69%, while First Trust Emerging Markets AlphaDEX Fund (FEM) has a volatility of 6.18%. This indicates that SPEM experiences smaller price fluctuations and is considered to be less risky than FEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	FEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	6.18%	-0.49%
Volatility (6M) Calculated over the trailing 6-month period	13.29%	14.47%	-1.18%
Volatility (1Y) Calculated over the trailing 1-year period	15.92%	17.40%	-1.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.13%	18.39%	-1.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.80%	20.96%	-2.16%

SPEM vs. FEM - Expense Ratio Comparison

SPEM has a 0.11% expense ratio, which is lower than FEM's 0.80% expense ratio.

Dividends

SPEM vs. FEM - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.47%, less than FEM's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEM First Trust Emerging Markets AlphaDEX Fund	2.58%	3.13%	3.66%	4.96%	6.15%	4.15%	2.68%	3.31%	3.52%	2.45%	2.25%	3.61%
SPEM SPDR Portfolio Emerging Markets ETF	2.47%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SPEM and FEM in my portfolio?

SPEM and FEM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or FEM?

FEM has higher volatility (6.18%) compared to SPEM (5.69%). In terms of maximum drawdown, SPEM dropped -64.41% vs FEM's -46.23%.

Which ETF is better, SPEM or FEM?

On 10-year performance, FEM leads with 9.75% vs 9.45% for SPEM. On fees, SPEM is cheaper at 0.11% per year. On volatility, SPEM has been the lower-risk option at 5.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or FEM?

Over the 10-year period, FEM has performed better with a 9.75% return vs 9.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or FEM?

SPEM is cheaper with a 0.11% expense ratio, compared with 0.80% for FEM.

Which ETF pays a higher dividend yield, SPEM or FEM?

FEM has the higher dividend yield at 2.58%, compared with 2.47% for SPEM.

What is the main difference between SPEM and FEM?

SPEM tracks S&P Emerging Markets BMI, while FEM tracks NASDAQ AlphaDEX EM Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.11% for SPEM and 0.80% for FEM.

Which has better risk-adjusted returns?

FEM currently has the higher Sharpe Ratio (2.45 vs 1.98), 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.