At a glance
EMDM charges 0.75% a year, above the 0.3% average of the 8 funds most like it (the most expensive of 9). It has $36.1M in assets, the 9th largest of that group; it paid 3.0% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +33.1% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +30.6% a year. Its ten largest positions make up 47.7% of the fund, out of 100 in all.
The short version
First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is an index fund that holds about 100 large and midsize companies in emerging market countries that Freedom House rates as electoral democracies. It gives more weight to countries with higher freedom scores and caps each country at 15% at every rebalance. Its 0.75% expense ratio is the highest among comparable emerging markets funds, which average 0.30%.
Price history
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EMDM +33.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EMDM official prospectus, to Dec 31, 2025 | — | +57.32% | — | — | — | +22.16% |
| EMDM price data to Oct 27, 2026 | +24.6% | +33.1% | +30.6% | — | — | +26.1% |
- Over the year to Oct 27, 2026, EMDM returned +33.1%, 1st of 9 among similar funds.
- Its worst full calendar year was 2024 (-4.9%); its best was 2025 (+59.8%).
- The deepest fall in its price history was 18.8% (Sep 26, 2024 to Apr 8, 2025), recovered by May 27, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +24.6% | — |
| 2025 | +59.8% | +57.32% |
| 2024 | -4.9% | -3.61% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3600 | |
| 2025 | $1.1200 | -7.4% |
| 2024 | $1.2100 |
What's inside
As of Jun 30, 2026, the fund held 100 securities; the ten largest made up 47.68% of assets, and 2.34% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| SAMSUNG ELECTRONICS CO LTD | 12.12% | |
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 11.67% | |
| SK HYNIX INC | 8.63% | |
| GRUPO MEXICO SAB DE CV | 3.67% | |
| OTP BANK NYRT | 2.17% | |
| PETROLEO BRASILEIRO SA Preferred stock | 2.02% | |
| NASPERS LTD | 1.91% | |
| ANGLOGOLD ASHANTI PLC | 1.90% | |
| HDFC BANK LTD | 1.84% | |
| AMERICA MOVIL SAB DE CV | 1.76% | |
| VALE SA | 1.75% | |
| POWSZECHNA KASA OSZCZEDNOSCI BANK POLSKI SA | 1.71% | |
| GRUPO FINANCIERO BANORTE SAB DE CV | 1.53% | |
| ITAU UNIBANCO HOLDING SA Preferred stock | 1.53% | |
| ICICI BANK LTD | 1.51% |
By country
South Korea 25.04%Taiwan 18%India 12.68%Brazil 10.9%Mexico 9.96%By asset type
Stocks 93.1%Preferred stock 6.63%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $10.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +11.86%, +10.17%, -0.47%.
How it works
EMDM is a First Trust index fund. It aims to match the price and yield, before fees and expenses, of the Bloomberg Emerging Market Democracies Index, owned by Bloomberg Index Services Limited. It generally owns every index stock, though it may use a sample.
From Bloomberg's emerging markets large- and mid-cap universe, the index keeps only companies based in countries the nonprofit Freedom House rates as electoral democracies (scores of at least 7 for electoral process, 20 for political rights and 30 for civil liberties). It then picks the 100 largest by free-float market value, which counts only shares open to public investors. Weights blend each company's adjusted market value with its country's total Freedom House score. No country may exceed 15% at a rebalance; any excess goes proportionally to the others.
The index changes members each April and rebalances each April and October; the fund follows shortly after. The country cap applies only on those dates, so actual weights can differ: as of June 30, 2026, South Korea was about 25% of the fund and Taiwan 18%. As a "non-diversified" fund, it can hold bigger stakes in single companies. It also expects to settle many share creations and redemptions in cash rather than stocks, which can make it less tax-efficient than many ETFs.
What it really costs
- EMDM charges 0.75% a year, versus an average of 0.3% for the similar funds below (9th of 9, cheapest first).
In a retirement portfolio
EMDM is small and costly, with heavy weight in a few Asian chipmakers and less than four years of history, so it fits better as a limited add-on than as a core holding.
EMDM offers emerging market stocks with a democracy screen, but the ride has been bumpy. It launched March 2, 2023, so it has no record from the 2008, 2020 or 2022 downturns. Its worst calendar year was 2024, when it lost 3.61%. Its deepest drop was 18.8%, from September 26, 2024 to April 8, 2025, and it recovered by May 27, 2025, about 1.6 months after the low. Over three years through October 27, 2026, its annual volatility (how widely returns swing) was 22.4%. A retiree forced to sell during a slump could lock in losses. Its trailing yield was 3% as of October 27, 2026, paid twice a year. The 0.75% fee is well above the 0.30% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want emerging market stocks only from countries Freedom House rates as electoral democracies, and who accept a 0.75% fee for that screen.
- People comfortable with heavy exposure to Samsung, TSMC and SK Hynix, which together made up about 32% of assets as of June 30, 2026.
- Holders who value some income: the trailing yield was 3% as of October 27, 2026, paid twice a year.
Look elsewhere if
- Cost-focused investors: broad emerging markets funds such as VWO (0.07%) and IEMG (0.09%) charge far less than EMDM's 0.75%.
- Anyone who wants a long track record. The fund launched in March 2023 and missed the 2008, 2020 and 2022 market declines.
- Investors who prefer a large fund: EMDM held about $36 million in net assets as of June 30, 2026, the smallest of the funds compared.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| EMDM this fund | — | 0.75% | $36.1M | +33.1% | +30.6% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 53% | 0.25% | $24.92B | +27.3% | +24.6% |
| EEM iShares MSCI Emerging Markets ETF | 47% | 0.72% | $31.21B | +12.7% | +20.3% |
| IEMG iShares Core MSCI Emerging Markets ETF | 43% | 0.09% | $160.90B | +11.7% | +19.8% |
| DFAE Dimensional Emerging Core Equity Market ETF | 36% | 0.35% | $9.47B | +14.5% | +22.1% |
| SCHE Schwab Emerging Markets Equity ETF | 32% | 0.11% | $13.00B | +4.4% | +16.7% |
| DFEM Dimensional Emerging Markets Core Equity 2 … | 31% | 0.39% | $8.96B | +14.6% | +21.4% |
| VWO Vanguard FTSE Emerging Markets ETF | 30% | 0.07% | $162.04B | +3.3% | +16.8% |
Questions investors ask
Is EMDM good for retirement?
EMDM may suit a small part of a retirement portfolio rather than a core holding. It charges 0.75% a year, holds about 100 emerging market stocks and launched in March 2023, so its history is short. Its deepest drop was 18.8%, from September 2024 to April 2025, and it recovered by late May 2025. Its trailing yield was 3% as of October 27, 2026. Past results don't predict future returns.
What's the difference between EMDM and EMXC?
Both funds invest in emerging markets outside China, and about 53% of their holdings overlap. The main differences are the screen and the cost. EMDM keeps only countries Freedom House rates as electoral democracies and weights by freedom scores. iShares MSCI Emerging Markets ex China ETF (EMXC) charges 0.25% versus EMDM's 0.75%. EMXC is also much larger, with about $24.9 billion in net assets as of August 31, 2026. EMDM's three-year annualized return was 30.6% as of October 27, 2026. EMXC's was 25.9% as of October 30, 2026.
Does EMDM pay dividends?
Yes. EMDM pays dividends twice a year. Over the 12 months through October 27, 2026, it paid $1.16 per share, a trailing yield of about 3%. The payouts come from the stocks it holds, including banks such as HDFC Bank, ICICI Bank and OTP Bank, so the amounts can change from one payment to the next. Changes in exchange rates can also raise or lower the dollar value of those dividends.
What countries are in EMDM?
As of June 30, 2026, the fund's largest country weights were South Korea at 25.0%, Taiwan at 18.0%, India at 12.7%, Brazil at 10.9%, Mexico at 10.0% and South Africa at 9.7%. Countries must qualify as electoral democracies under Freedom House scores. Each country is capped at 15% only when the index rebalances, so weights can be higher in between. Samsung Electronics and Taiwan Semiconductor Manufacturing were the two largest holdings.
How risky is EMDM?
EMDM is riskier than a broad US stock fund. Its annual volatility was 22.4% over three years and 29.3% over one year, as of October 27, 2026. Its worst quarter in the prospectus was a 9.84% loss at the end of 2024. The fund is non-diversified: its top 10 holdings made up 47.7% of assets as of June 30, 2026. It also carries currency risk and emerging markets risk.