EMDM ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is an emerging-market equity ETF that builds democracy criteria into its country selection. To form an outlook, investors should weigh related stocks, country concentration, the semiannual distribution structure, and the burden of the management fee.
SubscribeWhat Is the First Trust Bloomberg Emerging Market Democracies ETF?
The EMDM ETF tracks the Bloomberg Emerging Market Democracies Index and invests in emerging-market companies from countries that meet electoral democracy criteria. The key feature is that, in addition to market size, the selection process reflects criteria related to political rights and civil liberties.
It suits long-term investors who want diversified exposure to emerging-market equities while also applying democracy criteria to country selection.
It is a passively managed (index-tracking) ETF run by First Trust.
How Does the First Trust Bloomberg Emerging Market Democracies ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Bloomberg Emerging Market Democracies Index |
| Management Style | Passive index tracking |
| Rebalancing Frequency | Semiannual |
| Distribution Frequency | Semiannual distributions |
| Total Expense Ratio | 0.75% |
| Issuer | First Trust |
The fund replicates the index constituents to track the stock performance of emerging-market democracies. Eligible holdings must meet liquidity and market-size requirements, and the structure applies country weight management together with democracy-related assessments.
- Democracy-related criteria reflected in country selection
- Index tracking centered on emerging-market large-cap and mid-cap stocks
First Trust Bloomberg Emerging Market Democracies ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $40.9M, and the total expense ratio is 0.75% per year.
As a micro-cap ETF, the EMDM ETF calls for checking the bid-ask spread, trading volume, and the gap between net asset value and market price before you trade. For a long-term holding, you should also look at concentration in specific countries and sectors, in addition to the fee and distribution policy.
First Trust Bloomberg Emerging Market Democracies ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe performance of the EMDM ETF can be affected by emerging-market equity trends, the currencies of its constituent countries, export conditions, and earnings changes in technology and financial stocks. Even with democracy criteria applied, the fund is not immune to the high volatility typical of emerging markets or to country-level policy changes.
Unlike broad emerging-market ETFs, this product is a niche structure with distinct country selection criteria. As a result, fund flows can vary with overall emerging-market risk appetite as well as with investor demand for democracy-based criteria, trading conditions, and country-specific geopolitical variables.
First Trust Bloomberg Emerging Market Democracies ETF Pros and Cons
The fund is distinguished by emerging-market exposure that reflects democracy criteria, but investors must also accept the fee burden and swings in country, currency, and liquidity conditions.
💪 Key Strengths
⚠️ Points to Watch
First Trust Bloomberg Emerging Market Democracies ETF Alternative ETFs and Related Products
Among the ETFs in the comparison table, the FNDE ETF accesses emerging-market stocks on a fundamental basis, and the FRDM ETF uses a freedom-based criterion, so both can be compared with the EMDM ETF. The XSOE ETF focuses on excluding state-owned enterprises, while the PXH ETF uses a fundamentally weighted approach. The EMGF ETF offers factor-based emerging-market exposure, so investors should compare the need for democracy criteria, the fee burden, fund size, and differences in trading conditions.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDE | Schwab Fundamental Emerging Markets Equity ETF | $40.95 | -0.4% | $10.1B | 0.39% | 3.63% | +9.4% |
 FRDM | Freedom 100 Emerging Markets ETF | $64.55 | -1.8% | $3.4B | 0.49% | 1.82% | +33.4% |
 XSOE | WisdomTree Emerging Markets ex-State-Owned Enterprises Fund | $43.96 | -1.6% | $2.0B | 0.32% | 1.77% | +10.1% |
 PXH | Invesco RAFI Emerging Markets ETF | $28.24 | -0.3% | $2.0B | 0.47% | 4.11% | +7.3% |
 EMGF | iShares Emerging Markets Equity Factor ETF | $67.51 | -1.0% | $1.9B | 0.26% | 2.14% | +13.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.22% | $431.81 | -1.8% | $2.24T | 27.8 | 0.95% |
| SKHY | SK Hynix Inc ADR | 0.09% | $162.21 | -1.5% | $1.18T | 10.5 | 1.21% |
| PBR-A | Petroleo Brasileiro SA Petrobras ADR | 0.04% | $19.42 | -0.9% | $52.9B | 4.9 | 7.64% |
| AU | AngloGold Ashanti Plc | 0.03% | $85.08 | -2.5% | $43.0B | 11.4 | 5.63% |
| AMX | America Movil SAB de CV ADR | 0.03% | $24.13 | +0.8% | $73.9B | 14.0 | 2.6% |
 GGAL | Grupo Financiero Galicia ADR | 0.03% | $33.73 | -0.3% | $4.5B | 45.0 | 2.8% |
| ITUB | Itau Unibanco Holding SA ADR | 0.02% | $7.37 | -0.4% | $39.8B | 9.6 | 7.95% |
| GFI | Gold Fields Ltd ADR | 0.02% | $35.12 | -3.1% | $31.1B | 7.2 | 5.96% |
| VALE | Vale SA ADR | 0.02% | $11.18 | -2.5% | $45.5B | 23.6 | 8.83% |
First Trust Bloomberg Emerging Market Democracies ETF Investor Checkpoints
When evaluating the EMDM ETF, do not rely solely on expectations for emerging markets as a whole. Check the index's country selection criteria and actual trading conditions as well. Because democracy criteria can change the regional makeup of a portfolio, you should also check for overlap with your existing emerging-market holdings.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| Fee Burden | Check the cost difference versus similar emerging-market ETFs over a long holding period | Relatively high |
| Trading Conditions | Check the bid-ask spread and trading volume before placing an order | Needs verification |
| Distribution Characteristics | Check the semiannual distribution structure and the possibility of fluctuating payouts | May vary |
| Country and Currency | Check for overlap in country and currency exposure with existing holdings | Sensitivity present |
Emerging-market stocks are sensitive to the economy, commodities, exchange rates, and policy changes, and criteria on political rights and civil liberties do not protect against investment losses. If the weight of a specific country or sector rises, regional events and geopolitical variables can amplify price swings.
The EMDM ETF is a product worth considering for investors who want to use democracy criteria as a separate screening factor in emerging-market investing. However, the fees, trading conditions, currency risk, and country composition may differ from those of broad emerging-market ETFs, so it is advisable to define its role within your existing asset allocation before investing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of August 16, 2026.
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