AFEM vs EMCS
First Trust Active Factor Emerging Markets ETF vs Xtrackers MSCI Emerging Markets Select ETF
Which is better, AFEM or EMCS?
Each has led over a different period.
EMCS has a lower expense ratio. AFEM led over 5Y, EMCS over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91. AFEM is less concentrated, with 36.1% of the fund in its ten largest positions against 52.8%.
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 | EMCS |
|---|---|---|
| Expense Ratio | 0.95% | 0.15%Best |
| AUM | $82M | $1.1B |
| Dividend Yield | 2.55% | 1.45% |
| Holdings | 178 | 134 |
| YTD Return | +20.72% | +21.87%Best |
| 1Y Return | +29.92% | +32.15%Best |
| 3Y Return (annualized) | +24.53% | +26.63%Best |
| 5Y Return (annualized) | +11.03%Best | +8.24% |
| Volatility (annualized) | 17.5%Best | 19.1% |
| Max Drawdown | -36.0%Best | -44.9% |
| $10,000 over 5 years | $16,873Best | $14,857 |
| Top 10 Weight | 36.1%Best | 52.8% |
| Fund Family | First Trust Portfolios (US) | Xtrackers ETFs |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 14, 2016 | Dec 4, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Dec 6, 2018 to Oct 14, 2026 (7.9 years).
AFEM vs EMCS 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 7.9 years both funds cover.
AFEM vs EMCS Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and Xtrackers MSCI Emerging Markets Select ETF (EMCS) is an ETF from Xtrackers ETFs. Over the past year AFEM returned +29.92% while EMCS returned +32.15%. Year to date, AFEM is up 20.72% versus a gain of 21.87% for EMCS.
Over three years, AFEM compounded at +24.53% per year against +26.63% for EMCS; over five years the annualized figures are +11.03% and +8.24% respectively. Across the full 8-year window we track, EMCS has the edge at +9.56% annualized vs +9.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMCS has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 17.5% for AFEM. 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 -44.9% for EMCS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. 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 EMCS charges 0.15%. On a $10,000 position that is $95 vs $15 annually, a gap of $80 per year that compounds over a long holding period. On income, AFEM currently yields 2.55% against 1.45% for EMCS.
Holdings Overlap
16.8% of AFEM's money is in holdings EMCS also owns. 34.0% of EMCS's money is in holdings AFEM also owns.
The two portfolios partly overlap.
11 positions in common, counted across the 178 positions we hold weights for in AFEM and 63 in EMCS, against full books of 178 and 134.
What only one of them owns
Our book lists 1 positions for EMCS that do not appear in our book for AFEM (1.4% of the fund), and 4 for AFEM that do not appear in EMCS (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 EMCS | Difference |
|---|---|---|---|
| 005930:KRSamsung Electronics (Equity) | 7.51% | 10.06% | 2.55% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 3.81% | 7.53% | 3.72% |
| 0700:KYTencent Holdings Ltd Ordinary Shares | 0.78% | 4.44% | 3.66% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.50% | 2.52% | 1.02% |
| 1398:HKIndustrial & Commercial Bank Manufacturing & . Ltd. | 1.78% | 1.19% | 0.59% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 0.00% | 2.64% | 2.64% |
| 2801:TWChang Hwa Commercial Bank Ltd | 1.01% | 1.31% | 0.30% |
| ICICIBANK:MBIcici Bank Ltd | 0.41% | 1.42% | 1.01% |
| 3711:TWASE Technology Holding Co., Ltd. | 0.00% | 1.21% | 1.21% |
| RELIANCE:MBReliance Industries Ltd | 0.00% | 1.05% | 1.05% |
34.0% of EMCS is already inside AFEM.
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 EMCS?
AFEM has an expense ratio of 0.95% while EMCS charges 0.15%. EMCS is the cheaper option, by $80 a year on a $10,000 investment.
Which performed better, AFEM or EMCS?
Over the past year AFEM returned +29.92% vs +32.15% for EMCS, so EMCS leads on 1-year performance. Over the longest common window we track (8 years), AFEM annualized +9.47% vs +9.56% for EMCS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or EMCS?
EMCS has been the more volatile fund at 19.1% annualized versus 17.5% for AFEM. Worst drawdown: AFEM -36.0% vs EMCS -44.9%.
Should I hold both AFEM and EMCS?
AFEM and EMCS have a monthly-return correlation of 0.91, 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 EMCS?
34.0% of EMCS's money is in holdings AFEM also owns. 34.0% of EMCS's is in holdings AFEM also owns. They hold 11 positions in common, counted across the 178 positions we hold weights for in AFEM and 63 in EMCS.
Which pays a higher dividend, AFEM or EMCS?
AFEM yields 2.55% while EMCS yields 1.45%, so AFEM currently pays the higher dividend yield.
Is EMCS better than AFEM?
EMCS has a lower expense ratio. AFEM led over 5Y, EMCS over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91. AFEM is less concentrated, with 36.1% of the fund in its ten largest positions against 52.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.