At a glance
RFEM charges 0.95% a year, above the 0.23% average of the 7 funds most like it (the most expensive of 8). It has $29.4M in assets, the 8th largest of that group; it paid 2.68% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +21.0% with distributions reinvested (S&P 500: +11.5%), 2nd of those 8 funds; over three years it returned +24.9% a year. At its worst it fell 33.5% in the 2020 crash (S&P 500: 33.7%) and 31.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 19 months after the lows.
The short version
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an exchange-traded fund that invests in emerging-market stocks, with no leverage or options. Its 0.95% expense ratio is the highest of eight emerging-markets funds in its comparison group, where the others average 0.23%, and its roughly $29.4 million in assets is the smallest. Its returns stand out, though: 24.9% a year over the three years to October 27, 2026, second in that group.
Price history
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RFEM +21.0% 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 | |
|---|---|---|---|---|---|---|
| RFEM price data to Oct 27, 2026 | +19.6% | +21.0% | +24.9% | +10.5% | +8.7% | +9.7% |
- Over the year to Oct 27, 2026, RFEM returned +21.0%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +10.5% and its 10-year +8.7%.
- In the 2020 COVID crash it fell 33.5% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2022 (-19.0%); its best was 2017 (+35.8%).
- The deepest fall in its price history was 42.2% (Jan 26, 2018 to Mar 23, 2020), recovered by Jan 14, 2021.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +19.6% |
| 2025 | +27.7% |
| 2024 | +10.8% |
| 2023 | +20.8% |
| 2022 | -19.0% |
| 2021 | +1.0% |
| 2020 | +8.2% |
| 2019 | +20.4% |
| 2018 | -18.8% |
| 2017 | +35.8% |
| 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 | Lost 33.5% over that stretch · deepest drop along the way 33.5%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.6% over that stretch · deepest drop along the way 31.3%, back to its old high 19.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.8430 | |
| 2025 | $1.5700 | -31.7% |
| 2024 | $2.3000 | +17.9% |
| 2023 | $1.9500 | -50.3% |
| 2022 | $3.9200 | +79.8% |
| 2021 | $2.1800 | +159.5% |
| 2020 | $0.8400 | -65.3% |
| 2019 | $2.4200 | +82.0% |
| 2018 | $1.3300 | +14.7% |
| 2017 | $1.1600 |
How it works
RFEM is a First Trust stock ETF, launched on June 14, 2016, that focuses on emerging markets: developing economies whose stock markets tend to be smaller and swing more than the US market. Beyond that, the details are thin. The fund's prospectus wasn't available for this page, and the ticker couldn't be matched to SEC records, which can happen when a fund has been renamed or closed. So this page can't say which index it follows, if any, how it picks and weights stocks, how often it rebalances, or what its largest holdings are.
The basic structure is easier to pin down. RFEM doesn't borrow to magnify returns, bet on falling prices or use options, and it isn't a trust or a fund of other funds. Its returns come from the stocks it owns and their dividends, minus the 0.95% expense ratio. Because most emerging-market stocks are priced in local currencies, a stronger US dollar can cut returns for US holders, and a weaker one can add to them.
Its results point to a portfolio that differs from broad index funds. RFEM returned 21% over the year to October 27, 2026, while Vanguard's VWO returned 3.3% over the year to October 30, 2026. First Trust's fund documents are the place to confirm its strategy and holdings.
What it really costs
- RFEM charges 0.95% a year, versus an average of 0.23% for the similar funds below (8th of 8, cheapest first).
In a retirement portfolio
Its 0.95% fee, roughly $29.4 million in assets, 42.2% deepest drop and thin public detail on its strategy point to a small, higher-risk slice rather than a core stake.
RFEM could add emerging-market stocks to a portfolio built mostly on US assets, but its swings have been deep. It fell 33.5% in the 2020 COVID crash and regained that ground by November 5, 2020. In the 2022 bear market it dropped 31.3% and didn't recover until May 3, 2024, about 19 months after the low. Its worst calendar year was 2022, at -19%. Its deepest drop, 42.2% from January 2018 to March 2020, wasn't recovered until January 14, 2021. It launched in 2016, so it has no 2008 record. Anyone forced to draw money from it after such a fall would lock in losses.
Its trailing 12-month yield, paid quarterly, was 2.68% as of October 27, 2026, but its 0.95% expense ratio is far above the 0.23% peer average. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, higher-risk emerging-markets stake whose returns have differed sharply from broad index funds, and who accept a 0.95% expense ratio.
- Those looking for some quarterly income from emerging-market stocks; the trailing 12-month yield was 2.68% as of October 27, 2026.
- Long-term holders who could sit through drops like the 42.2% slide from January 2018 to March 2020 without needing the money.
Look elsewhere if
- Cost-focused investors: Vanguard's VWO and SPDR's SPEM charge 0.07% for broad emerging-markets exposure, against RFEM's 0.95%.
- Anyone preferring a large fund: RFEM's roughly $29.4 million in assets is the smallest in its comparison group, and smaller funds are more likely to close.
- Retirees who may need withdrawals soon: after falling 31.3% in 2022, RFEM didn't regain its peak until May 3, 2024.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| RFEM this fund | 0.95% | $29.4M | +21.0% | +24.9% |
| VWO Vanguard FTSE Emerging Markets ETF | 0.07% | $111.70B | +3.3% | +16.8% |
| IEMG iShares Core MSCI Emerging Markets ETF | 0.09% | $83.00B | +11.7% | +19.8% |
| EEM iShares MSCI Emerging Markets ETF | 0.72% | $16.60B | +12.7% | +20.3% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 0.25% | $14.50B | +27.3% | +24.6% |
| SPEM SPDR Portfolio Emerging Markets ETF | 0.07% | $10.40B | +5.0% | +16.8% |
| SCHE Schwab Emerging Markets Equity ETF | 0.11% | $9.40B | +4.4% | +16.7% |
| AVEM Avantis Emerging Markets Equity ETF | 0.33% | $7.70B | +14.1% | +21.5% |
Questions investors ask
What does RFEM invest in?
RFEM invests in stocks of companies in emerging markets, meaning economies that are still developing, as opposed to mature markets like the US. First Trust launched it on June 14, 2016. Beyond that, details are limited: its prospectus and holdings list weren't available for this page, and the ticker couldn't be matched to SEC records, which can happen when a fund is renamed or closed. As a result, its largest holdings and stock-picking rules can't be confirmed here. First Trust's fund documents are the place to check.
What is RFEM's expense ratio?
RFEM's expense ratio is 0.95%, the highest of eight emerging-markets funds in its comparison group. The other seven average 0.23%. Vanguard's VWO and SPDR's SPEM each charge 0.07%. Even iShares' EEM, the priciest of the seven, charges 0.72%. The expense ratio is the yearly fee taken out of fund assets, so a gap this wide is a drag the fund has to overcome every year before it can match cheaper funds.
Does RFEM pay dividends?
Yes, RFEM pays dividends quarterly. Over the 12 months to October 27, 2026, it paid about $2.49 per share, a trailing yield of 2.68%. A trailing yield looks back at what was actually paid over the past year. It isn't a promise of future payouts. Dividends from emerging-market companies can rise or fall with profits and currency moves, so the amount can vary from quarter to quarter.
RFEM vs IEMG: what's the difference?
The biggest differences are cost, size and returns. IEMG, iShares' broad emerging-markets ETF, charges 0.09% and has about $83 billion in assets. RFEM charges 0.95% and has about $29.4 million. RFEM returned 21% over one year and 24.9% a year over three years to October 27, 2026. IEMG returned 11.3% and 20.6% over the same spans to October 30, 2026. The two were grouped by fund category, not by holdings, so their portfolios may differ widely, and past outperformance may not last.
Is RFEM good for retirement?
RFEM is better suited to a small, higher-risk slice of a retirement portfolio than to a core role. It fell 33.5% in early 2020 and 31.3% in 2022, and it didn't regain its 2022 peak until May 3, 2024. Its worst calendar year was 2022, at -19%. It does pay quarterly income, with a 2.68% trailing yield as of October 27, 2026, but its 0.95% fee is high for the category. Past results don't predict future ones.