MFEM vs PHDG
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Invesco S&P 500 Downside Hedged ETF
Quick Verdict
PHDG has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | PHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.39% | |
| AUM | $156M | $63M | |
| Dividend Yield | 2.39% | 1.69% | |
| Holdings | 701 | 514 | |
| YTD Return | +21.04% | +10.70% | |
| 1Y Return | +33.03% | +15.16% | |
| 3Y Return (annualized) | +20.26% | +9.75% | |
| 5Y Return (annualized) | +9.18% | +4.11% | |
| Volatility (annualized) | 17.7% | 9.9% | |
| Max Drawdown | -45.3% | -23.6% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Dec 5, 2012 |
MFEM vs PHDG Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Invesco S&P 500 Downside Hedged ETF (PHDG) is a ETF from Invesco (US). Over the past year MFEM returned +33.03% while PHDG returned +15.16%. Year to date, MFEM is up 21.04% versus a gain of 10.70% for PHDG.
Over three years, MFEM compounded at +20.26% per year against +9.75% for PHDG; over five years the annualized figures are +9.18% and +4.11% respectively. Across the full 9-year window we track, MFEM has the edge at +6.77% annualized vs +4.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 9.9% for PHDG. 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 -45.3% for MFEM and -23.6% for PHDG. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFEM charges 0.49% per year while PHDG charges 0.39%. On a $10,000 position that is $49 vs $39 annually, a gap of $10 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 1.69% for PHDG.
Holdings Overlap
MFEM and PHDG share 0 holdings out of 997 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, MFEM or PHDG?
MFEM has an expense ratio of 0.49% while PHDG charges 0.39%. PHDG is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, MFEM or PHDG?
Over the past year MFEM returned +33.03% vs +15.16% for PHDG, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.77% vs +4.28% for PHDG. Past performance does not guarantee future results.
Which is riskier, MFEM or PHDG?
MFEM has been the more volatile fund at 17.7% annualized versus 9.9% for PHDG. Worst drawdown: MFEM -45.3% vs PHDG -23.6%.
Should I hold both MFEM and PHDG?
MFEM and PHDG have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and PHDG?
MFEM and PHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 997 unique securities.
Which pays a higher dividend, MFEM or PHDG?
MFEM yields 2.39% while PHDG yields 1.69%, so MFEM currently pays the higher dividend yield.
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