WCME vs. RNEM

Last updated Aug 4, 2026

WCME (First Trust WCM Developing World Equity ETF) and RNEM (First Trust Emerging Markets Equity Select ETF) are both Emerging Markets Equities funds from First Trust - WCME tracks the Actively Managed while RNEM tracks the Nasdaq Riskalyze Emerging Markets Equity Select Index. Both are passively managed. Over the past year, WCME returned 18.78% vs 9.49% for RNEM. Their 0.72 correlation means they have sometimes moved together and sometimes differently. WCME charges 0.95%/yr vs 0.75%/yr for RNEM.

Performance

WCME vs. RNEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust WCM Developing World Equity ETF (WCME) and First Trust Emerging Markets Equity Select ETF (RNEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WCME achieves a 7.80% return, which is significantly higher than RNEM's 4.10% return.

WCME

• 1D: 0.47%
• 1M: -2.58%
• 6M: -1.23%
• YTD: 7.80%
• 1Y: 18.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 15.56%

RNEM

• 1D: 0.14%
• 1M: 4.17%
• 6M: 0.60%
• YTD: 4.10%
• 1Y: 9.49%
• 3Y*: 7.48%
• 5Y*: 5.66%
• 10Y*: —
• ALL TIME*: 4.47%

*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)
RNEM First Trust Emerging Markets Equity Select ETF	$36.95K	$31.61K	$54.56K
WCME First Trust WCM Developing World Equity ETF	$140.21K	$238.13K	$188.93K

WCME vs. RNEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
WCME First Trust WCM Developing World Equity ETF	7.80%	35.19%	-10.72%
RNEM First Trust Emerging Markets Equity Select ETF	4.10%	15.58%	-8.36%

Correlation

The correlation between WCME and RNEM is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (All Time) Calculated using the full available price history since Oct 7, 2024	0.72

The correlation between WCME and RNEM has been stable across timeframes, ranging from 0.70 to 0.72 - a consistent structural relationship.

WCME vs. RNEM - Sectors Allocation Comparison

Sectors	WCME	RNEM
Technology	39.9%	6.5%
Financial Services	13.7%	36.0%
Industrials	11.0%	4.1%
Healthcare	10.2%	4.5%
Consumer Cyclical	9.8%	10.0%
Basic Materials	5.7%	13.8%
Energy	3.8%	6.5%
Communication Services	3.1%	8.5%
Consumer Defensive	3.0%	5.9%
Utilities	2.7%	3.4%
Real Estate	-	0.8%

Return for Risk

WCME vs. RNEM — Risk / Return Rank

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

WCME

WCME Risk / Return Rank: 31
WCME Sharpe Ratio Rank: 31
WCME Sortino Ratio Rank: 29
WCME Omega Ratio Rank: 30
WCME Calmar Ratio Rank: 33
WCME Martin Ratio Rank: 35

RNEM

RNEM Risk / Return Rank: 29
RNEM Sharpe Ratio Rank: 31
RNEM Sortino Ratio Rank: 30
RNEM Omega Ratio Rank: 29
RNEM Calmar Ratio Rank: 27
RNEM Martin Ratio Rank: 28

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.

WCME vs. RNEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust WCM Developing World Equity ETF (WCME) and First Trust Emerging Markets Equity Select ETF (RNEM). 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.

	WCME	RNEM	Difference
Sharpe ratio: Return per unit of total volatility	0.79	0.76	+0.03
Sortino ratio: Return per unit of downside risk	1.18	1.16	+0.03
Omega ratio: Gain probability vs. loss probability	1.16	1.14	+0.02
Calmar ratio: Return relative to maximum drawdown	1.21	0.89	+0.32
Martin ratio: Return relative to average drawdown	3.67	2.35	+1.32

WCME vs. RNEM - Sharpe Ratio Comparison

The current WCME Sharpe Ratio is 0.79, which is comparable to the RNEM Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of WCME and RNEM, 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

WCME vs. RNEM - Drawdown Comparison

The maximum WCME drawdown since its inception was -15.64%, smaller than the maximum RNEM drawdown of -38.38%. Use the drawdown chart below to compare losses from any high point for WCME and RNEM.

Drawdown Indicators

	WCME	RNEM	Difference
Max Drawdown Largest peak-to-trough decline	-15.64%	-38.38%	+22.74%
Max Drawdown (1Y) Largest decline over 1 year	-15.64%	-10.71%	-4.93%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.09%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-21.41%	—
Current Drawdown Current decline from peak	-8.40%	-2.19%	-6.21%
Average Drawdown Average peak-to-trough decline	-3.88%	-9.22%	+5.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.13%	4.04%	+1.09%

Volatility

WCME vs. RNEM - Volatility Comparison

First Trust WCM Developing World Equity ETF (WCME) has a higher volatility of 8.27% compared to First Trust Emerging Markets Equity Select ETF (RNEM) at 3.09%. This indicates that WCME's price experiences larger fluctuations and is considered to be riskier than RNEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WCME	RNEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.27%	3.09%	+5.18%
Volatility (6M) Calculated over the trailing 6-month period	20.88%	10.83%	+10.05%
Volatility (1Y) Calculated over the trailing 1-year period	23.82%	12.51%	+11.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.29%	14.47%	+6.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	17.14%	+4.15%

WCME vs. RNEM - Expense Ratio Comparison

WCME has a 0.95% expense ratio, which is higher than RNEM's 0.75% expense ratio.

Dividends

WCME vs. RNEM - Dividend Comparison

WCME's dividend yield for the trailing twelve months is around 0.36%, less than RNEM's 2.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNEM First Trust Emerging Markets Equity Select ETF	2.28%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%
WCME First Trust WCM Developing World Equity ETF	0.36%	0.68%	0.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WCME and RNEM in my portfolio?

WCME and RNEM have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WCME or RNEM?

WCME has higher volatility (8.27%) compared to RNEM (3.09%). In terms of maximum drawdown, WCME dropped -15.64% vs RNEM's -38.38%.

Which ETF is better, WCME or RNEM?

On 1-year performance, WCME leads with 18.78% vs 9.49% for RNEM. On fees, RNEM is cheaper at 0.75% per year. On volatility, RNEM has been the lower-risk option at 3.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WCME or RNEM?

Over the 1-year period, WCME has performed better with a 18.78% return vs 9.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WCME or RNEM?

RNEM is cheaper with a 0.75% expense ratio, compared with 0.95% for WCME.

Which ETF pays a higher dividend yield, WCME or RNEM?

RNEM has the higher dividend yield at 2.28%, compared with 0.36% for WCME.

What is the main difference between WCME and RNEM?

WCME tracks Actively Managed, while RNEM tracks Nasdaq Riskalyze Emerging Markets Equity Select Index. Their fees differ too: 0.95% for WCME and 0.75% for RNEM.

Which has better risk-adjusted returns?

WCME currently has the higher Sharpe Ratio (0.79 vs 0.76), 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.