VEMY vs. FRDM

Last updated Jun 14, 2026

VEMY (Virtus Stone Harbor Emerging Markets High Yield Bond ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - VEMY is a Emerging Markets Bonds fund actively managed by Virtus, while FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. VEMY is actively managed, while FRDM is passively managed. Over the past 3 years, VEMY returned 15.16%/yr vs 34.29%/yr for FRDM. A 0.52 correlation means they provide meaningful diversification when combined. VEMY charges 0.58%/yr vs 0.49%/yr for FRDM.

Performance

VEMY vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMY achieves a 6.44% return, which is significantly lower than FRDM's 40.13% return.

VEMY

• 1D: 0.21%
• 1M: 1.32%
• YTD: 6.44%
• 6M: 6.86%
• 1Y: 18.56%
• 3Y*: 15.16%
• 5Y*: —
• 10Y*: —

FRDM

• 1D: 0.49%
• 1M: 4.97%
• YTD: 40.13%
• 6M: 46.37%
• 1Y: 87.32%
• 3Y*: 34.29%
• 5Y*: 18.68%
• 10Y*: —

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

VEMY vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VEMY Virtus Stone Harbor Emerging Markets High Yield Bond ETF	6.44%	15.27%	13.48%	14.45%	-1.43%
FRDM Freedom 100 Emerging Markets ETF	40.13%	61.27%	1.70%	22.77%	-1.51%

Correlation

The correlation between VEMY and FRDM is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (All Time) Calculated using the full available price history since Dec 13, 2022	0.52

The correlation between VEMY and FRDM has been stable across timeframes, ranging from 0.52 to 0.56 - a consistent structural relationship.

Return for Risk

VEMY vs. FRDM — Risk / Return Rank

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

VEMY

VEMY Risk / Return Rank: 93
VEMY Sharpe Ratio Rank: 93
VEMY Sortino Ratio Rank: 95
VEMY Omega Ratio Rank: 94
VEMY Calmar Ratio Rank: 88
VEMY Martin Ratio Rank: 93

FRDM

FRDM Risk / Return Rank: 92
FRDM Sharpe Ratio Rank: 94
FRDM Sortino Ratio Rank: 90
FRDM Omega Ratio Rank: 92
FRDM Calmar Ratio Rank: 91
FRDM Martin Ratio Rank: 91

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.

VEMY vs. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) and Freedom 100 Emerging Markets ETF (FRDM). 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.

	VEMY	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	2.98	3.15	-0.17
Sortino ratio: Return per unit of downside risk	4.59	3.68	+0.91
Omega ratio: Gain probability vs. loss probability	1.61	1.54	+0.07
Calmar ratio: Return relative to maximum drawdown	4.52	5.02	-0.50
Martin ratio: Return relative to average drawdown	21.45	19.36	+2.08

VEMY vs. FRDM - Sharpe Ratio Comparison

The current VEMY Sharpe Ratio is 2.98, which is comparable to the FRDM Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of VEMY and FRDM, 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

VEMY vs. FRDM - Drawdown Comparison

The maximum VEMY drawdown since its inception was -8.77%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for VEMY and FRDM.

Drawdown Indicators

	VEMY	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-8.77%	-40.49%	+31.72%
Max Drawdown (1Y) Largest decline over 1 year	-4.00%	-16.87%	+12.87%
Max Drawdown (3Y) Largest decline over 3 years	-6.57%	-16.87%	+10.30%
Max Drawdown (5Y) Largest decline over 5 years	—	-29.25%	—
Current Drawdown Current decline from peak	0.00%	-4.36%	+4.36%
Average Drawdown Average peak-to-trough decline	-1.30%	-7.09%	+5.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	4.37%	-3.53%

Volatility

VEMY vs. FRDM - Volatility Comparison

The current volatility for Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) is 1.64%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 14.27%. This indicates that VEMY experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMY	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.64%	14.27%	-12.63%
Volatility (6M) Calculated over the trailing 6-month period	4.71%	24.39%	-19.68%
Volatility (1Y) Calculated over the trailing 1-year period	6.08%	26.86%	-20.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.62%	21.35%	-13.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.62%	23.09%	-15.47%

VEMY vs. FRDM - Expense Ratio Comparison

VEMY has a 0.58% expense ratio, which is higher than FRDM's 0.49% expense ratio.

Dividends

VEMY vs. FRDM - Dividend Comparison

VEMY's dividend yield for the trailing twelve months is around 8.33%, more than FRDM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	1.56%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%
VEMY Virtus Stone Harbor Emerging Markets High Yield Bond ETF	8.33%	8.89%	10.28%	9.55%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEMY and FRDM in my portfolio?

VEMY and FRDM have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEMY or FRDM?

FRDM has higher volatility (14.27%) compared to VEMY (1.64%). In terms of maximum drawdown, VEMY dropped -8.77% vs FRDM's -40.49%.

Which ETF is better, VEMY or FRDM?

On 3-year performance, FRDM leads with 34.29% vs 15.16% for VEMY. On fees, FRDM is cheaper at 0.49% per year. On volatility, VEMY has been the lower-risk option at 1.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEMY or FRDM?

Over the 3-year period, FRDM has performed better with a 34.29% return vs 15.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEMY or FRDM?

FRDM is cheaper with a 0.49% expense ratio, compared with 0.58% for VEMY.

Which ETF pays a higher dividend yield, VEMY or FRDM?

VEMY has the higher dividend yield at 8.33%, compared with 1.56% for FRDM.

What is the main difference between VEMY and FRDM?

VEMY is categorized as Emerging Markets Bonds, while FRDM is Emerging Markets Diversified. They also come from different issuers: Virtus and Freedom Funds. Their fees differ too: 0.58% for VEMY and 0.49% for FRDM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.15 vs 2.98), 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.