AFEM vs EEM
First Trust Active Factor Emerging Markets ETF vs iShares MSCI Emerging Markets ETF
Which is better, AFEM or EEM?
AFEM has been ahead.
EEM has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. AFEM is less concentrated, with 36.1% of the fund in its ten largest positions against 39.4%.
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 | EEM |
|---|---|---|
| Expense Ratio | 0.95% | 0.72%Best |
| AUM | $82M | $30.4B |
| Dividend Yield | 2.55% | 1.67% |
| Holdings | 178 | 1,224 |
| YTD Return | +20.72%Best | +15.09% |
| 1Y Return | +29.92%Best | +23.94% |
| 3Y Return (annualized) | +24.53%Best | +21.98% |
| 5Y Return (annualized) | +11.03%Best | +7.13% |
| Volatility (annualized) | 17.1% | 17.0%Best |
| Max Drawdown | -45.6%Best | -68.8% |
| $10,000 over 5 years | $16,873Best | $14,111 |
| Top 10 Weight | 36.1%Best | 39.4% |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 14, 2016 | Apr 7, 2003 |
Volatility and max drawdown are measured over the window both funds cover: Jun 15, 2016 to Oct 14, 2026 (10.3 years).
AFEM vs EEM 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 10.3 years both funds cover.
AFEM vs EEM Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and iShares MSCI Emerging Markets ETF (EEM) is an ETF from iShares by BlackRock (US). Over the past year AFEM returned +29.92% while EEM returned +23.94%. Year to date, AFEM is up 20.72% versus a gain of 15.09% for EEM.
Over three years, AFEM compounded at +24.53% per year against +21.98% for EEM; over five years the annualized figures are +11.03% and +7.13% respectively. Across the full 10-year window we track, AFEM has the edge at +8.63% annualized vs +7.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 17.0% for EEM. 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 -45.6% for AFEM and -68.8% for EEM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFEM charges 0.95% per year while EEM charges 0.72%. On a $10,000 position that is $95 vs $72 annually, a gap of $23 per year that compounds over a long holding period. On income, AFEM currently yields 2.55% against 1.67% for EEM.
Holdings Overlap
45.4% of AFEM's money is in holdings EEM also owns. 20.2% of EEM's money is in holdings AFEM also owns.
The two portfolios partly overlap.
82 positions in common, counted across the 178 positions we hold weights for in AFEM and 1,162 in EEM, against full books of 178 and 1,224.
What only one of them owns
Our book lists 5 positions for EEM that do not appear in our book for AFEM (0.9% of the fund), and 0 for AFEM that do not appear in EEM (1.5%).
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 EEM | Difference |
|---|---|---|---|
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 3.81% | 6.03% | 2.22% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.50% | 1.82% | 0.32% |
| 1398:HKIndustrial & Commercial Bank Manufacturing & . Ltd. | 1.78% | 0.52% | 1.26% |
| 3037:TWUnimicron Technology Corp | 1.78% | 0.42% | 1.36% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 0.00% | 1.84% | 1.84% |
| 000270:KRKia Corporation | 1.68% | 0.16% | 1.52% |
| 3328:SHBank Of Communications Co Ltd | 1.54% | 0.07% | 1.47% |
| 3653:TWJentech Precision Industrial Co Ltd | 1.45% | 0.15% | 1.30% |
| ICT:PHInternational Container Terminal Services Inc | 1.41% | 0.11% | 1.30% |
| 402340:KRSk Square | 0.65% | 0.64% | 0.01% |
45.4% of AFEM is already inside EEM.
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 EEM?
AFEM has an expense ratio of 0.95% while EEM charges 0.72%. EEM is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, AFEM or EEM?
Over the past year AFEM returned +29.92% vs +23.94% for EEM, so AFEM leads on 1-year performance. Over the longest common window we track (10 years), AFEM annualized +8.63% vs +7.86% for EEM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or EEM?
AFEM has been the more volatile fund at 17.1% annualized versus 17.0% for EEM. Worst drawdown: AFEM -45.6% vs EEM -68.8%.
Should I hold both AFEM and EEM?
AFEM and EEM have a monthly-return correlation of 0.94, 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 EEM?
45.4% of AFEM's money is in holdings EEM also owns. 20.2% of EEM's is in holdings AFEM also owns. They hold 82 positions in common, counted across the 178 positions we hold weights for in AFEM and 1,162 in EEM.
Which pays a higher dividend, AFEM or EEM?
AFEM yields 2.55% while EEM yields 1.67%, so AFEM currently pays the higher dividend yield.
Is EEM better than AFEM?
EEM has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. AFEM is less concentrated, with 36.1% of the fund in its ten largest positions against 39.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.