RFEM ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The First Trust RiverFront Emerging Markets ETF (RFEM) invests in emerging market equities and actively adjusts its country and stock weightings. This article covers its management strategy, total expense ratio, how it differs from large passive ETFs such as IEMG and VWO, plus its dividends and investment outlook.
SubscribeWhat Is the First Trust RiverFront Emerging Markets ETF?
It is an active ETF that invests broadly in emerging market equities while dynamically adjusting country and stock weightings at the portfolio managers' discretion. It provides diversified exposure to large-cap and mid-cap stocks across multiple emerging markets.
It suits investors who want exposure to emerging market growth but prefer the managers' active allocation over simple index tracking.
It is an ETF run with an active (actively managed) approach by First Trust.
How Does the First Trust RiverFront Emerging Markets ETF Invest?
| Item | Details |
|---|---|
| Index tracked | Actively managed (does not track a specific index) |
| Management style | Active (discretionary allocation) |
| Rebalancing frequency | As needed, at the managers' discretion |
| Dividend frequency | Semiannual |
| Issuer | First Trust |
| Total expense ratio | 0.99% |
The managers actively adjust country and stock weightings across emerging market equities. They shift allocations in response to valuations and market conditions, and rather than replicating a fixed index, the fund moves its exposure according to relative attractiveness.
- Active management that dynamically adjusts country and stock weightings
- Diversified exposure across large-cap and mid-cap stocks in multiple emerging markets
First Trust RiverFront Emerging Markets ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $83.7M, and the total expense ratio is 0.99% per year.
The fee burden is heavier than that of large passive emerging market ETFs, but the fund is differentiated by the managers' active allocation.
First Trust RiverFront Emerging Markets ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEmerging market equities tend to be more volatile than developed markets, and their direction varies with dollar strength or weakness, commodity prices, and the policy environment in each individual country. Because of the fund's active allocation, performance can diverge depending on which country weightings are chosen.
Emerging market assets react sensitively to global risk appetite. In risk-off phases, capital tends to flow out, while in phases when valuation appeal comes to the fore, inflows can increase.
First Trust RiverFront Emerging Markets ETF Pros and Cons
Active country and stock allocation is its strength, while relatively high fees and the volatility characteristic of emerging markets are its drawbacks.
💪 Key Strengths
⚠️ Points to Watch
First Trust RiverFront Emerging Markets ETF Alternative ETFs and Related Products
Large passive emerging market ETFs such as IEMG and VWO, which appear in the table, are low-cost, broad core options, and EEM is also a long-established flagship emerging market ETF. You may also consider EMXC, which invests in emerging markets excluding China, and AVEM, which invests in emerging markets on a factor basis. Unlike these, RFEM is distinguished by being an active product that applies discretionary allocation.
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.16% | $406.13 | -6.0% | $2.11T | 26.1 | 1.01% |
 MCHI | iShares MSCI China ETF | 0.04% | $49.07 | +0.2% | $0.0M | - | 2.23% |
| BABA | Alibaba Group Holding Ltd ADR | 0.02% | $98.04 | -1.5% | $243.9B | 23.1 | 1.14% |
 GXC | State Street SPDR S&P China ETF | 0.01% | $80.79 | -0.0% | $0.0M | - | 2.46% |
| IBN | ICICI Bank Ltd ADR | 0.01% | $29.45 | +1.1% | $105.7B | 16.8 | 0.98% |
| PBR-A | Petroleo Brasileiro SA Petrobras ADR | 0.01% | $19.41 | -0.1% | $52.9B | 4.9 | 7.65% |
| VALE | Vale SA ADR | 0.01% | $11.39 | +1.9% | $46.4B | 24.0 | 8.62% |
 JBS | JBS NV | 0.01% | $12.49 | +2.7% | $13.4B | 11.7 | 8.14% |
 BCH | Banco de Chile ADR | 0.01% | $36.55 | -4.5% | $18.5B | 13.9 | 5.86% |
 BMRC | Bank of Marin Bancorp | 0.01% | $28.37 | -1.5% | $460.5M | - | 3.52% |
First Trust RiverFront Emerging Markets ETF Investor Checkpoints
These are the points to review before investing in RFEM. Because it is an active emerging market ETF, it is wise to check carefully in advance its fee level, management strategy, country allocation, currency exposure, and the volatility characteristic of emerging markets.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Expense ratio | Check the fee level versus passive funds | Somewhat high |
| 🌏 Country allocation | Check emerging market weightings and any concentration | Reflects the managers' judgment |
| 💱 Currency | Impact of dollar and emerging market currency moves | Not currency hedged |
| 📊 Volatility | Check the price volatility characteristic of emerging markets | High |
Political, policy, and currency variables in emerging markets, along with shifts in global risk appetite, are the main drivers of volatility. Because of the active allocation, performance relative to the benchmark can diverge widely depending on country selection.
It is an active ETF suited to investors who want to approach emerging markets actively. If a low-cost core exposure is the priority, it makes sense to look at passive products such as IEMG and VWO, and if you want active allocation, to consider RFEM.
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 July 2, 2026.
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