EMDM vs SPY
First Trust Bloomberg Emerging Market Democracies ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. EMDM delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | EMDM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $39M | $821.1B | |
| Dividend Yield | 2.89% | 1.01% | |
| Holdings | 110 | 505 | |
| YTD Return | +28.69% | +13.17% | |
| 1Y Return | +65.47% | +21.53% | |
| 3Y Return (annualized) | +31.00% | +22.06% | |
| 5Y Return (annualized) | - | +13.35% | |
| Volatility (annualized) | 19.6% | 15.3% | |
| Max Drawdown | -18.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2023 | Jan 22, 1993 |
EMDM vs SPY Performance
First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EMDM returned +65.47% while SPY returned +21.53%. Year to date, EMDM is up 28.69% versus a gain of 13.17% for SPY.
Over three years, EMDM compounded at +31.00% per year against +22.06% for SPY. Across the full 4-year window we track, EMDM has the edge at +26.99% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMDM has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 15.3% for SPY. 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 -18.8% for EMDM and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMDM charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, EMDM currently yields 2.89% against 1.01% for SPY.
Holdings Overlap
EMDM and SPY share 0 holdings out of 603 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EMDM or SPY?
EMDM has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, EMDM or SPY?
Over the past year EMDM returned +65.47% vs +21.53% for SPY, so EMDM leads on 1-year performance. Over the longest common window we track (4 years), EMDM annualized +26.99% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, EMDM or SPY?
EMDM has been the more volatile fund at 19.6% annualized versus 15.3% for SPY. Worst drawdown: EMDM -18.8% vs SPY -56.5%.
Should I hold both EMDM and SPY?
EMDM and SPY have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMDM and SPY?
EMDM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, EMDM or SPY?
EMDM yields 2.89% while SPY yields 1.01%, so EMDM currently pays the higher dividend yield.
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