AFEM vs FDEM
First Trust Active Factor Emerging Markets ETF vs Fidelity Emerging Markets Multifactor ETF
Which is better, AFEM or FDEM?
AFEM has been ahead.
FDEM has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. FDEM is less concentrated, with 33.8% of the fund in its ten largest positions against 35.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFEM | FDEM |
|---|---|---|
| Expense Ratio | 0.85% | 0.25%Best |
| AUM | $74M | $499M |
| Dividend Yield | 2.74% | 3.45% |
| Holdings | 281 | 482 |
| YTD Return | +16.23%Best | +7.56% |
| 1Y Return | +19.62%Best | +8.91% |
| 3Y Return (annualized) | +22.30%Best | +17.71% |
| 5Y Return (annualized) | +10.26%Best | +8.53% |
| Volatility (annualized) | 17.4% | 15.6%Best |
| Max Drawdown | -36.0% | -33.6%Best |
| $10,000 over 5 years | $16,296Best | $15,057 |
| Top 10 Weight | 35.3% | 33.8%Best |
| Fund Family | First Trust Portfolios (US) | Fidelity Investments (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 14, 2016 | Feb 26, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Nov 11, 2026 (7.7 years).
AFEM vs FDEM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.7 years both funds cover.
AFEM vs FDEM Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and Fidelity Emerging Markets Multifactor ETF (FDEM) is an ETF from Fidelity Investments (US). Over the past year AFEM returned +19.62% while FDEM returned +8.91%. Year to date, AFEM is up 16.23% versus a gain of 7.56% for FDEM.
Over three years, AFEM compounded at +22.30% per year against +17.71% for FDEM; over five years the annualized figures are +10.26% and +8.53% respectively. Across the full 8-year window we track, AFEM has the edge at +8.24% annualized vs +7.20%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFEM has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 15.6% for FDEM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.0% for AFEM and -33.6% for FDEM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFEM charges 0.85% per year while FDEM charges 0.25%. On a $10,000 position that is $85 vs $25 annually, a gap of $60 per year that compounds over a long holding period. On income, AFEM currently yields 2.74% against 3.45% for FDEM.
Holdings Overlap
32.0% of AFEM's money is in holdings FDEM also owns. 24.1% of FDEM's money is in holdings AFEM also owns.
The two portfolios partly overlap.
34 positions in common, counted across the 136 positions we hold weights for in AFEM and 207 in FDEM, against full books of 281 and 482.
What only one of them owns
Our book lists 3 positions for FDEM that do not appear in our book for AFEM (0.6% of the fund), and 4 for AFEM that do not appear in FDEM (2.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFEM | Weight in FDEM | Difference |
|---|---|---|---|
| 005930:KRSamsung Electronics (Equity) | 6.47% | 6.02% | 0.45% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 2.82% | 3.51% | 0.69% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.42% | 1.52% | 0.10% |
| 1398:HKIndustrial & Commercial Bank Manufacturing & . Ltd. | 1.91% | 0.71% | 1.20% |
| 2359:HKWuxi Apptec Co Ltd-h | 0.90% | 1.42% | 0.52% |
| 3328:SHBank Of Communications Co Ltd | 1.74% | 0.36% | 1.38% |
| 000270:KRKia Corporation | 1.49% | 0.55% | 0.94% |
| 3653:TWJentech Precision Industrial Co | 1.77% | 0.25% | 1.52% |
| EMAARDEV:AEEmaar Development Pjsc | 0.21% | 1.79% | 1.58% |
| FED:MBFederal Bank Ltd | 1.17% | 0.38% | 0.79% |
32.0% of AFEM is already inside FDEM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFEM or FDEM?
AFEM has an expense ratio of 0.85% while FDEM charges 0.25%. FDEM is the cheaper option, by $60 a year on a $10,000 investment.
Which performed better, AFEM or FDEM?
Over the past year AFEM returned +19.62% vs +8.91% for FDEM, so AFEM leads on 1-year performance. Over the longest common window we track (8 years), AFEM annualized +8.24% vs +7.20% for FDEM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or FDEM?
AFEM has been the more volatile fund at 17.4% annualized versus 15.6% for FDEM. Worst drawdown: AFEM -36.0% vs FDEM -33.6%.
Should I hold both AFEM and FDEM?
AFEM and FDEM have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between AFEM and FDEM?
32.0% of AFEM's money is in holdings FDEM also owns. 24.1% of FDEM's is in holdings AFEM also owns. They hold 34 positions in common, counted across the 136 positions we hold weights for in AFEM and 207 in FDEM.
Which pays a higher dividend, AFEM or FDEM?
AFEM yields 2.74% while FDEM yields 3.45%, so FDEM currently pays the higher dividend yield.
Is FDEM better than AFEM?
FDEM has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. FDEM is less concentrated, with 33.8% of the fund in its ten largest positions against 35.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.