First Trust Emerging Markets Equity Select ETF

First Trust Emerging Markets Equity Select ETF (RNEM) tracks the Nasdaq Riskalyze Emerging Markets Index, which holds up to 25 of the least volatile large and mid-sized stocks from each emerging-market country. It may appeal to investors wanting emerging-markets exposure tilted toward steadier stocks, but its 0.75% annual expense ratio is well above the 0.32% average of similar funds, and it held just $16.4 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, RNEM returned +2.7%, 5th of 5 among similar funds.
• Its 5-year annualized return was +5.4%.
• In the 2020 COVID crash it fell 32.1% and regained its old high 11.6 months after the low.
• Its worst full calendar year was 2018 (-9.4%); its best was 2023 (+23.4%).
• The deepest fall in its price history was 38.9% (Jan 24, 2018 to Mar 24, 2020), recovered by Jul 18, 2023.

As of Jun 30, 2026, the fund held 298 securities; the ten largest made up 26.67% of assets.

• Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.49%, -1.91%, +0.42%.

RNEM is an index fund aiming to match the Nasdaq Riskalyze Emerging Markets Index, before fees. Nitrogen Wealth owns the index; Nasdaq calculates it. The starting pool is the Nasdaq Emerging Markets Large Mid Cap Index of larger emerging-market companies. Stocks that pass liquidity (ease of trading) and seasoning (trading history) tests are ranked within each country by volatility, meaning how much their prices swung over the past 12 months. Up to 25 of the steadiest in each country make the cut.

Each country-industry group, such as Indian financial companies, is weighted by its market value in the starting index. Stocks within a group get equal weights, adjusted so none exceeds 3% of the index. The index resets its weights and membership twice a year, and the fund follows shortly after. Weights can move in between: Novatek Microelectronics, the largest holding, was 4.1% of the fund as of June 30, 2026. Turnover, the share of the portfolio replaced in a year, was 64%; trading costs come on top of the expense ratio.

It used no derivatives as of June 30, 2026. To reach certain Chinese companies closed to direct foreign investment, it invests significantly in non-Chinese shell companies using variable interest entities (VIEs): contracts that mimic ownership of a Chinese business without legal title, which Chinese authorities could challenge.

• RNEM charges 0.75% a year, versus an average of 0.32% for the similar funds below (5th of 5, cheapest first).

Its low-volatility take on emerging markets could sit beside a core portfolio, but a heavy India weighting, a 38.9% peak-to-trough drop and only $16.4 million in assets make it a higher-risk side position.

RNEM could add emerging-market stocks that US-focused portfolios lack, tilted heavily toward India (33% of assets as of June 30, 2026). Its low-volatility screen has not prevented sharp falls. It began in 2017, so it has no 2008 record. It fell 32.1% in the 2020 COVID crash and recovered by March 2021, then fell 20.7% in the 2022 bear market, recovering by June 2023. Its deepest decline, 38.9%, ran from January 2018 to March 2020, with no full recovery until July 2023. Its worst calendar year was 2018, a 9.67% loss. Withdrawals during such slumps mean cashing out shares at low prices.

It yielded 2.36% over the 12 months to October 27, 2026, paid twice a year, and costs 0.75% a year, versus 0.07% for Vanguard FTSE Emerging Markets ETF (VWO). Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.