TLTE vs. MFEM

Last updated Jun 24, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and MFEM (PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF) are both exchange-traded funds - TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index, while MFEM is a Emerging Markets Equities fund tracking the RAFI Dynamic Multi-Factor Emerging Market Index. Both are passively managed. Over the past 5 years, TLTE returned 7.23%/yr vs 7.53%/yr for MFEM. Their correlation of 0.93 suggests significant overlap in exposure. TLTE charges 0.59%/yr vs 0.49%/yr for MFEM.

Performance

TLTE vs. MFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 20.12% return, which is significantly lower than MFEM's 22.43% return.

TLTE

• 1D: -5.06%
• 1M: 0.90%
• YTD: 20.12%
• 6M: 20.98%
• 1Y: 39.95%
• 3Y*: 21.14%
• 5Y*: 7.23%
• 10Y*: 9.47%

MFEM

• 1D: -4.55%
• 1M: -0.67%
• YTD: 22.43%
• 6M: 23.23%
• 1Y: 40.87%
• 3Y*: 20.13%
• 5Y*: 7.53%
• 10Y*: —

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

TLTE vs. MFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	20.12%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	7.02%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	22.43%	25.33%	4.73%	15.14%	-19.50%	10.77%	11.33%	15.26%	-14.64%	4.86%

Correlation

The correlation between TLTE and MFEM is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Sep 6, 2017	0.93

The correlation between TLTE and MFEM has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

TLTE vs. MFEM - Sectors Allocation Comparison

Sectors	TLTE	MFEM
Technology	33.5%	29.1%
Financial Services	17.7%	16.0%
Industrials	10.5%	11.3%
Consumer Cyclical	9.9%	9.1%
Basic Materials	7.0%	13.8%
Communication Services	4.2%	4.5%
Real Estate	4.1%	1.0%
Consumer Defensive	3.7%	3.1%
Energy	3.7%	7.5%
Utilities	2.9%	3.4%
Healthcare	2.8%	1.4%

Return for Risk

TLTE vs. MFEM — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 64
TLTE Sharpe Ratio Rank: 62
TLTE Sortino Ratio Rank: 56
TLTE Omega Ratio Rank: 67
TLTE Calmar Ratio Rank: 66
TLTE Martin Ratio Rank: 68

MFEM

MFEM Risk / Return Rank: 63
MFEM Sharpe Ratio Rank: 62
MFEM Sortino Ratio Rank: 57
MFEM Omega Ratio Rank: 66
MFEM Calmar Ratio Rank: 68
MFEM Martin Ratio Rank: 65

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.

TLTE vs. MFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM). 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.

	TLTE	MFEM	Difference
Sharpe ratio: Return per unit of total volatility	1.91	1.92	-0.01
Sortino ratio: Return per unit of downside risk	2.50	2.51	-0.01
Omega ratio: Gain probability vs. loss probability	1.37	1.37	+0.01
Calmar ratio: Return relative to maximum drawdown	3.08	3.19	-0.11
Martin ratio: Return relative to average drawdown	11.60	10.95	+0.65

TLTE vs. MFEM - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 1.91, which is comparable to the MFEM Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of TLTE and MFEM, 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

TLTE vs. MFEM - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, roughly equal to the maximum MFEM drawdown of -43.32%. Use the drawdown chart below to compare losses from any high point for TLTE and MFEM.

Drawdown Indicators

	TLTE	MFEM	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-43.32%	-0.89%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-12.86%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-19.22%	+1.79%
Max Drawdown (5Y) Largest decline over 5 years	-32.65%	-30.84%	-1.81%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	—	—
Current Drawdown Current decline from peak	-5.06%	-7.95%	+2.89%
Average Drawdown Average peak-to-trough decline	-12.12%	-11.45%	-0.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	3.74%	-0.29%

Volatility

TLTE vs. MFEM - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) have volatilities of 11.78% and 11.67%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	MFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.78%	11.67%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	19.21%	19.63%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	21.00%	21.40%	-0.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.45%	17.16%	+0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.60%	19.63%	-1.03%

TLTE vs. MFEM - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than MFEM's 0.49% expense ratio.

Dividends

TLTE vs. MFEM - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.26%, more than MFEM's 2.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	2.27%	2.77%	5.89%	4.01%	7.01%	29.96%	1.70%	2.37%	1.18%	0.21%	0.00%	0.00%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.26%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TLTE and MFEM in my portfolio?

With a correlation of 0.93, TLTE and MFEM 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, TLTE or MFEM?

TLTE has higher volatility (11.78%) compared to MFEM (11.67%). In terms of maximum drawdown, TLTE dropped -44.21% vs MFEM's -43.32%.

Which ETF is better, TLTE or MFEM?

On 5-year performance, MFEM leads with 7.53% vs 7.23% for TLTE. On fees, MFEM is cheaper at 0.49% per year. On volatility, MFEM has been the lower-risk option at 11.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or MFEM?

Over the 5-year period, MFEM has performed better with a 7.53% return vs 7.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or MFEM?

MFEM is cheaper with a 0.49% expense ratio, compared with 0.59% for TLTE.

Which ETF pays a higher dividend yield, TLTE or MFEM?

TLTE has the higher dividend yield at 3.26%, compared with 2.27% for MFEM.

What is the main difference between TLTE and MFEM?

TLTE is categorized as Foreign Large Cap Equities, while MFEM is Emerging Markets Equities. TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while MFEM tracks RAFI Dynamic Multi-Factor Emerging Market Index. They also come from different issuers: Northern Trust and PIMCO. Their fees differ too: 0.59% for TLTE and 0.49% for MFEM.

Which has better risk-adjusted returns?

MFEM currently has the higher Sharpe Ratio (1.92 vs 1.91), 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.