VEM vs. EMDM

Last updated Jul 30, 2026

VEM (Virtus Emerging Markets Dividend ETF) and EMDM (First Trust Bloomberg Emerging Market Democracies ETF) are both Emerging Markets Equities funds. VEM is actively managed, while EMDM is passively managed. Their 0.95 correlation means they have historically moved very closely together. VEM charges 0.49%/yr vs 0.75%/yr for EMDM.

Performance

VEM vs. EMDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Emerging Markets Dividend ETF (VEM) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VEM

• 1D: -1.75%
• 1M: -6.50%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

EMDM

• 1D: -2.31%
• 1M: -10.82%
• 6M: 4.05%
• YTD: 22.01%
• 1Y: 56.01%
• 3Y*: 24.03%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 24.78%

*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)
EMDM First Trust Bloomberg Emerging Market Democracies ETF	$933.92K	$769.28K	$584.66K
VEM Virtus Emerging Markets Dividend ETF	$1.18K	$2.76K	$6.90K

VEM vs. EMDM - Yearly Performance Comparison

	2026 (YTD)
VEM Virtus Emerging Markets Dividend ETF	2.66%
EMDM First Trust Bloomberg Emerging Market Democracies ETF	4.87%

Correlation

The correlation between VEM and EMDM is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 4, 2026	0.95

VEM vs. EMDM - Sectors Allocation Comparison

Sectors	VEM	EMDM
Technology	38.5%	39.9%
Financial Services	22.3%	25.6%
Industrials	7.5%	2.6%
Basic Materials	7.3%	12.7%
Energy	5.5%	4.8%
Consumer Cyclical	2.9%	5.3%
Consumer Defensive	2.2%	3.1%
Communication Services	1.8%	4.0%
Utilities	1.1%	1.5%
Real Estate	1.0%	-
Healthcare	-	0.5%

Return for Risk

VEM vs. EMDM — Risk / Return Rank

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

VEM

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

EMDM

EMDM Risk / Return Rank: 85
EMDM Sharpe Ratio Rank: 87
EMDM Sortino Ratio Rank: 80
EMDM Omega Ratio Rank: 85
EMDM Calmar Ratio Rank: 88
EMDM Martin Ratio Rank: 85

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.

VEM vs. EMDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Emerging Markets Dividend ETF (VEM) and First Trust Bloomberg Emerging Market Democracies ETF (EMDM). 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.

	VEM	EMDM	Difference
Sharpe ratio: Return per unit of total volatility	—	2.04	—
Sortino ratio: Return per unit of downside risk	—	2.58	—
Omega ratio: Gain probability vs. loss probability	—	1.36	—
Calmar ratio: Return relative to maximum drawdown	—	3.60	—
Martin ratio: Return relative to average drawdown	—	11.75	—

Drawdowns

VEM vs. EMDM - Drawdown Comparison

The maximum VEM drawdown since its inception was -13.55%, smaller than the maximum EMDM drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for VEM and EMDM.

Drawdown Indicators

	VEM	EMDM	Difference
Max Drawdown Largest peak-to-trough decline	-13.55%	-18.81%	+5.26%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.65%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-18.81%	—
Current Drawdown Current decline from peak	-11.26%	-14.96%	+3.70%
Average Drawdown Average peak-to-trough decline	-4.52%	-4.18%	-0.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.78%	—

Volatility

Volatility by Period

	VEM	EMDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	9.31%	—
Volatility (6M) Calculated over the trailing 6-month period	—	25.24%	—
Volatility (1Y) Calculated over the trailing 1-year period	30.70%	27.58%	+3.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.70%	21.06%	+9.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.70%	21.06%	+9.64%

VEM vs. EMDM - Expense Ratio Comparison

VEM has a 0.49% expense ratio, which is lower than EMDM's 0.75% expense ratio.

Dividends

VEM vs. EMDM - Dividend Comparison

VEM's dividend yield for the trailing twelve months is around 2.14%, less than EMDM's 3.10% yield.

Position	TTM	2025	2024	2023
EMDM First Trust Bloomberg Emerging Market Democracies ETF	3.10%	3.57%	5.87%	2.16%
VEM Virtus Emerging Markets Dividend ETF	2.14%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEM and EMDM in my portfolio?

With a correlation of 0.95, VEM and EMDM 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 ETF is better, VEM or EMDM?

On fees, VEM is cheaper at 0.49% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEM or EMDM?

VEM is cheaper with a 0.49% expense ratio, compared with 0.75% for EMDM.

Which ETF pays a higher dividend yield, VEM or EMDM?

EMDM has the higher dividend yield at 3.10%, compared with 2.14% for VEM.

What is the main difference between VEM and EMDM?

They also come from different issuers: Virtus and First Trust. Their fees differ too: 0.49% for VEM and 0.75% for EMDM.