FTCB vs MFEM
First Trust Core Investment Grade ETF vs PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Quick Verdict
MFEM has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 704 holdings.
Side-by-Side Comparison
| Metric | FTCB | MFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.49% | |
| AUM | $2.5B | $142M | |
| Dividend Yield | 5.24% | 2.14% | |
| Holdings | 721 | 730 | |
| YTD Return | -0.12% | +20.26% | |
| 1Y Return | +2.42% | +33.25% | |
| 3Y Return (annualized) | - | +19.51% | |
| 5Y Return (annualized) | - | +8.07% | |
| Volatility (annualized) | 5.1% | 17.6% | |
| Max Drawdown | -5.0% | -45.3% | |
| Fund Family | First Trust Portfolios (US) | PIMCO (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Aug 31, 2017 |
FTCB vs MFEM Performance
First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US). Over the past year FTCB returned +2.42% while MFEM returned +33.25%. Year to date, FTCB is down 0.12% versus a gain of 20.26% for MFEM.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 5.1% for FTCB. 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 -5.0% for FTCB and -45.3% for MFEM. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTCB charges 0.56% per year while MFEM charges 0.49%. On a $10,000 position that is $56 vs $49 annually, a gap of $7 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 2.14% for MFEM.
Holdings Overlap
FTCB and MFEM share 0 holdings out of 1035 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, FTCB or MFEM?
FTCB has an expense ratio of 0.56% while MFEM charges 0.49%. MFEM is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, FTCB or MFEM?
Over the past year FTCB returned +2.42% vs +33.25% for MFEM, so MFEM leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.66% vs +6.71% for MFEM. Past performance does not guarantee future results.
Which is riskier, FTCB or MFEM?
MFEM has been the more volatile fund at 17.6% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs MFEM -45.3%.
Should I hold both FTCB and MFEM?
FTCB and MFEM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCB and MFEM?
FTCB and MFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1035 unique securities.
Which pays a higher dividend, FTCB or MFEM?
FTCB yields 5.24% while MFEM yields 2.14%, so FTCB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.