TLTE vs. SPEM

Last updated Aug 4, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and SPEM (SPDR Portfolio Emerging Markets ETF) are both Emerging Markets Equities funds - TLTE tracks the Morningstar Emerging Markets Factor Tilt Index while SPEM tracks the S&P Emerging BMI Index. Both are passively managed. Over the past 10 years, TLTE returned 7.90%/yr vs 8.32%/yr for SPEM. Their correlation of 0.93 means they have usually moved in the same direction. TLTE charges 0.59%/yr vs 0.07%/yr for SPEM.

Performance

TLTE vs. SPEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and SPDR Portfolio Emerging Markets ETF (SPEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 15.71% return, which is significantly higher than SPEM's 10.33% return. Over the past 10 years, TLTE has underperformed SPEM with an annualized return of 7.90%, while SPEM has yielded a comparatively higher 8.32% annualized return.

TLTE

• 1D: 0.91%
• 1M: -1.41%
• 6M: 6.23%
• YTD: 15.71%
• 1Y: 30.47%
• 3Y*: 17.77%
• 5Y*: 7.25%
• 10Y*: 7.90%
• ALL TIME*: 5.51%

SPEM

• 1D: 0.39%
• 1M: 0.02%
• 6M: 4.39%
• YTD: 10.33%
• 1Y: 22.62%
• 3Y*: 16.30%
• 5Y*: 6.50%
• 10Y*: 8.32%
• ALL TIME*: 5.56%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPEM SPDR Portfolio Emerging Markets ETF	$92.35M	$109.23M	$122.58M
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	$291.32K	$272.95K	$346.48K

TLTE vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	15.71%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
SPEM SPDR Portfolio Emerging Markets ETF	10.33%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%

Correlation

The correlation between TLTE and SPEM is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.95
Correlation (All Time) Calculated using the full available price history since Oct 2, 2012	0.93

The correlation between TLTE and SPEM has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.

TLTE vs. SPEM - Sectors Allocation Comparison

Sectors	TLTE	SPEM
Technology	34.6%	32.7%
Financial Services	18.7%	19.9%
Industrials	10.1%	8.3%
Consumer Cyclical	9.9%	8.9%
Basic Materials	7.0%	7.7%
Communication Services	4.2%	6.6%
Real Estate	3.8%	1.8%
Consumer Defensive	3.6%	3.7%
Energy	3.1%	3.8%
Healthcare	2.6%	3.9%
Utilities	2.4%	2.7%

Return for Risk

TLTE vs. SPEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TLTE

TLTE Risk / Return Rank: 56
TLTE Sharpe Ratio Rank: 53
TLTE Sortino Ratio Rank: 51
TLTE Omega Ratio Rank: 57
TLTE Calmar Ratio Rank: 64
TLTE Martin Ratio Rank: 58

SPEM

SPEM Risk / Return Rank: 52
SPEM Sharpe Ratio Rank: 51
SPEM Sortino Ratio Rank: 49
SPEM Omega Ratio Rank: 51
SPEM Calmar Ratio Rank: 55
SPEM Martin Ratio Rank: 54

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TLTE vs. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and SPDR Portfolio Emerging Markets ETF (SPEM). 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	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	1.36	1.28	+0.08
Sortino ratio: Return per unit of downside risk	1.89	1.81	+0.08
Omega ratio: Gain probability vs. loss probability	1.26	1.24	+0.03
Calmar ratio: Return relative to maximum drawdown	2.35	2.00	+0.35
Martin ratio: Return relative to average drawdown	7.13	6.59	+0.54

TLTE vs. SPEM - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 1.36, which is comparable to the SPEM Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of TLTE and SPEM, 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. SPEM - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, smaller than the maximum SPEM drawdown of -64.41%. Use the drawdown chart below to compare losses from any high point for TLTE and SPEM.

Drawdown Indicators

	TLTE	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-64.41%	+20.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-11.36%	-1.68%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-17.62%	+0.19%
Max Drawdown (5Y) Largest decline over 5 years	-30.97%	-30.03%	-0.94%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-36.06%	-8.15%
Current Drawdown Current decline from peak	-8.55%	-3.76%	-4.79%
Average Drawdown Average peak-to-trough decline	-12.08%	-14.65%	+2.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.29%	3.44%	+0.85%

Volatility

TLTE vs. SPEM - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 8.36% compared to SPDR Portfolio Emerging Markets ETF (SPEM) at 5.72%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than SPEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.36%	5.72%	+2.64%
Volatility (6M) Calculated over the trailing 6-month period	20.72%	15.29%	+5.43%
Volatility (1Y) Calculated over the trailing 1-year period	22.54%	17.72%	+4.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.76%	17.36%	+0.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.73%	18.80%	-0.07%

TLTE vs. SPEM - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than SPEM's 0.07% expense ratio.

Dividends

TLTE vs. SPEM - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.38%, more than SPEM's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	2.54%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.38%	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 SPEM in my portfolio?

With a correlation of 0.91, TLTE and SPEM 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 SPEM?

TLTE has higher volatility (8.36%) compared to SPEM (5.72%). In terms of maximum drawdown, TLTE dropped -44.21% vs SPEM's -64.41%.

Which ETF is better, TLTE or SPEM?

On 10-year performance, SPEM leads with 8.32% vs 7.90% for TLTE. On fees, SPEM is cheaper at 0.07% per year. On volatility, SPEM has been the lower-risk option at 5.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or SPEM?

Over the 10-year period, SPEM has performed better with a 8.32% return vs 7.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or SPEM?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.59% for TLTE.

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

TLTE has the higher dividend yield at 3.38%, compared with 2.54% for SPEM.

What is the main difference between TLTE and SPEM?

TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while SPEM tracks S&P Emerging BMI Index. They also come from different issuers: Northern Trust and State Street. Their fees differ too: 0.59% for TLTE and 0.07% for SPEM.

Which has better risk-adjusted returns?

TLTE currently has the higher Sharpe Ratio (1.36 vs 1.28), 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.